Daily - Go to TTD's Tape of Stock Charts - Monday, January 31 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - January 31 |
Go to Video Show - "How to Make Money With Breakout Stocks" Go to Video Show -TTD Performance 2008 Long and Short |
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By Leo Fasciocco -- TTD
Ticker Tape Digest presents its daily stock market report containing stocks to go long as breakout trades, quick trades, or bargain trades. We also feature stocks under Significant Accumulation that are poised to breakout.
Ticker Tape Digest's Trading Strategies Overview and Performance Bullish Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." Conservative Investors "Bargain Buy Trades for the Long Term." Ideally suited for entry into top performing big cap stocks on pullbacks within overall up trend. Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns
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The TTD report also contains stocks to short as breakdown plays and as bargain (swing trade) shorts.
Investors should tend to try to go with a strategy that fits with the stock market's trend, unless there is a special situation play.
TTD's Breakout Stocks - Long are most suitable for aggressive investors seeking ideal entry points into leading stocks, especially during bull markets. They can do extremely well in bull markets with gains of as much as several hundred percent.
These stocks can also do extremely well during strong market rallies, or if they are in a industry group that is performing very well. They tend to have strong earnings outlooks and are near new-52 week, or all-time highs.
TTD Quick Trade Stocks - Long These are leading issues that have pulled back in recent days, but could move higher soon. They are most suitable for Aggressive Investors willing to trade short term. These stocks will do extremely well during market advances. They have about 74% win rate. During market rally sequences the win rate is even higher. The return is small 3% to 8% in just a few days.
TTD's Bargain Buy Trades - Long - Long Term. These are for conservative bullish Investors These long-term buys are ideally suited for entry into stocks on pull backs within overall up trend. These stocks can give a good return long-term especially during a bull market.
TTD also presents Stocks To Sell or Sell Short. These issues are suitable for aggressive investors willing to take short positions both as trades or for longer-term plays. These stocks will do very well during bear markets or market pull backs.
TTD's Bearish breakdown stocks to sell short. These issues have potential to fall sharply. They often show a technical breakdown and also some fundamental business problem such as weak earnings.
TTD's multi-media updates include a slide-show that presents charts and analysis at midsession. Some times TTD presents feature analysis on stocks and the market. TTD uses Windows Media Files. (WMV).
TTD also presents a "Breakout Watch List" that is up dated daily. This list consists of key stocks in position to breakout. A close watch of this list can put you in the stock just as it breaks out. A good idea is to study the list and be ready to move into a stock quickly as it hits its breakpoint.
TTD often suggests using stop buy orders to enter. It is very important to buy a breakout stock as close as possible to the breakpoint. The idea is to get "elbow room" if the stock should follow through to the upside. This is very important in being successful in making big money with breakout stocks.
It is also essential to have a stop loss strategy for all stocks in which positions are taken. Not every stock will work as expected. It is important for investors to "police" their portfolios and avoid getting trapped in any bad positions.
Quality rating of breakout Two key factors: 1 - Stock near all-time in price or near a 52-week high. 2 - earnings growth current year is strong. The ideal play is a stock with an Above Average Quality Rating. The stock is near a new high and will have strong earnings. TTD's other ratings are Average and Below Average.
TTD also has special feature sections on Educational Tips on Investing.
To email Mr. Leo Fasciocco leo@tickertapedigest.com.For service, email Beverly Owen owen@tickertapedigest.com. TTD’s Tel: 1-480-926-1680.
Breakout Stocks
Total Buy Breakouts so far today - 10
Overall Quality of Breakouts - Above Average
Stocks Screened - 8,300
Bull side - Small number of breakouts today but some interesting plays. Bulls can be venturesome, but be watchful. February is generally a seasonally bearish months. Bulls watch all stops.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bullish, Nasdaq Bearish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - ROSE - ABOVE AVERAGE |
ROSE, based in Houston, is an oil and gas producer. Annual revenues: $296 million. ROSE, a small cap play, breaks out from a 10-week flat base today and hits an all-time high. So far today, volume is running at 1.3 million shares, double its normal daily volume of 606,000 shares. The stock is part of the strong acting oil group which is up 2.8%. ROSE is the 11th best performer in the group today.
ROSE's stock climbed steadily in the morning. It peaked near noon at $40.04. The stock then pulled back a little, but came on again late in the afternoon.
The stock's tape action was bullish.
TTD's clip shows the recent big block trades. One can see a key block trade around midday when 23,900 shares traded at $39.98. That was up from the prior block trade at $39.94.
Later a block of 8,500 shares crossed at $40.30. So, the pace of the action showed good institutional buying interest.
ROSE's operations are concentrated in the areas of the Sacramento Basin of California, the Rockies, and South Texas.
In addition, the company has non-core positions in the State Waters of Texas and the Gulf of Mexico.
During the year ended December 31, 2009, ROSE drilled 43 gross and 36 net wells, with a success rate of 83%. On February 4, 2009, the Company acquired the remaining 10% working interest in the 1,280-acre position Pinedale Anticline in the Rockies.
TTD's 12-month performance chart shows the stock appreciating 85% versus an 18% gain for the S&P 500 index. The stock is a top performer among IPOS of the past few years.
ROSE's long-term chart shows the stock hitting a peak at 30 in 2008. The stock was pulled lower during the bear market to 5. It has since roared back making an eight fold move. The push to a new high could well draw in more buying on Tuesday from the new-high crowd.
ROSE's daily chart shows the stock climbing from 20 to 39. The stock put down a well-formed, tight flat base. The push to a new peak comes on modest expansion in volume. TTD believes volume could easily pick up.
The key will be for a follow through in the next few days.
ROSE's TTD momentum indicator (top of chart) is solidly bullish.
The accumulation - distribution line (bottom of chart) is in an overall up trend and compliments the up trend of the stock's price.
Analysts expect ROSE to post a 67% gain in net for 2010 to 62 cents a share, up from 37 cents a year ago.
Net for the fourth quarter should be up 17% to 22 cents a share from 19 cents a year ago. The highest estimate on the Street is at 29 cents a share. That says some are looking for a big jump in profits.
TTD sees chances for a "mild upside surprise."
Looking ahead to 2011, the Street looks for net to soar 148% to $1.53 a share from the anticipated 62 cents a share for 2010. That would be a big acceleration in annual earnings growth. That is often bullish.
Also, net for the first quarter should climb 114% to 30 cents a share from 14 cents a year ago - again an acceleration in quarterly earnings growth.
Strategy Opinion: ROSE's breakout looks impressive. TTD is targeting the stock for a move to 50 within the next few months or sooner. A protective stop can be placed at 37 giving the stock some room. TTD rates ROSE a good intermediate-term play as long as earnings meet expectations.
Sponsorship: Good. The largest fund holder is FPA Capital, 4-star rated, which a 4.5% stake. It was a recent seller of 392,900 shares. A key buyer recently was American Funds NVIT Asset Allocation II Fund, 2-star rated, which purchased 1.5 million shares. ROSE has 52.7 million shares outstanding.
Insider Activity: Neutral. Not much activity lately. The latest insider selling in the stock took place at $36.84. Right now, 20 analysts follow the stock, 12 have a buy, up from 11 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
TTD's Breakout Profile
Rating Rosetta Resources Inc. - (ROSE) |
TTD Check List | Bullish | Bearish | Neutral |
Near 52-week High | YES | ||
Volume | YES | ||
Tick Volume | YES | ||
Price Trend - Daily | YES | ||
Price Trend - Long Term | YES | ||
Price Daily Spread | YES | ||
Base Structure | YES | ||
Base - A-D | YES | ||
Earnings-Quarterly | YES | ||
Earnings-Long Term | YES | ||
Earnings Outlook | YES | ||
Industry Group | YES | ||
Prior Breakout Success | YES | ||
Fund Sponsorship | YES | ||
Total Score | 13 | 0 | 1 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - LUFK - ABOVE AVERAGE |
TTD's Quality Rating of Stock - PLL - ABOVE AVERAGE |
TTD's Quality Rating of Stock - TNB - AVERAGE |
TTD's Quality Rating of Stock - GTE - AVERAGE |
Ticker Tape Digest provides a list of potential breakout stocks from our screen of companies that will show some of the strongest earnings gains. One of the best ways to play these stocks is to study the list and then place a stop buy order to catch the stock on the breakout.
One can take either a full position on the breakout if they are aggressive, or scale-in looking to add to the stake later if they are conservative. TTD's premarket breakout watch list gives you a great opportunity "to be prepared for the next key breakout stock just before it happens." The list will be updated daily and the screen monthly.
Guide: Symbol=Ticker, Name=Corporate name, Entry is the buy price to enter on the breakout, Last=prior close, Change=change from last close to prior, Date=date of price of close etc, Gain in blue is price above breakpoint (entry), Gain in red is price below breakpoint (entry)., % Gain in blue is % over breakpoint (entry), Gain in red is % below breakpoint (entry)
Ticker Tape Digest’s Daily List of “Stocks To Sell or Sell Short” ranks stocks well timed to be sold immediately based on daily trading. The list can be used as an alert to reduce current long-term positions.
Shorts from tape action so far today - 6
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of breakdown stocks as stock market holds its ground. Bears be venturesome.
List of Stocks To Sell or Short
CEL, based in Israel, provides cellular communications services in Israel. Annual revenues: $1.7 billion. CEL's stock gaps lower today in heavy trading. The move undercuts near-term support and reinforces the technical down trend in the stock. So far today, CEL is trading 863,838 shares, four times its normal daily volume of 228,000 shares. TTD sees more on the downside.
CEL's stock fell sharply in the morning. It hit an intraday low of $29.50 around 10 a.m. The stock then rallied to around $30.50 and then trended sideways.
TTD's clip of the tape shows heavy selling by institutions. A key block trade was 47,372 shares that crossed in the morning at $30.39. That was down sharply from the prior block trade at $3.20.
CLE's services include basic and advanced cellular telephone services, text and multimedia messaging services, and advanced cellular content and data services.
It offers international roaming services in 177 countries. The company offers its subscribers a selection of handsets from various global manufacturers, as well as extended warranty and repair and replacement services. It also offers landline transmission and data services to business customers and telecommunications operators. It has 3.292 million subscribers.
This year, analysts forecast a 9% decline in net to $3.01 a share from $3.31 anticipated for 2010.
Strategy Opinion: TTD sees CEL as a good trading short. We are targeting the stock for a decline to 26 within the next few months, or sooner. A protective stop buy can be placed near 32.
TTD's Quality Rating of Stock - CEL - AVERAGE |
TTD columnist Leo Fasciocco has covered the stock market for over 20 years. His articles appear in many publications. He is also a speaker at the Intershow conferences. He has been on television and radio. He is author of many educational articles about stock investing and the book “Guide To High-Performance Investing.”
For information to subscribe to the Ticker Tape Digest Services call: B. J. Owen at 1-480-926-1680. Distributed by Corona Publishing Enterprises. Ticker Tape Digest Inc. P.O. Box 2044 Chandler, Az. 85244-2044. TTD “Professional Report” is available on the World Wide Web: $100 per month. Password needed. “TTD Professional“ Faxed is $200 per month. The TTD Daily Report is $39.95. Credit cards accepted.
(The information contained has been prepared from data deemed reliable but there is no guarantee of complete accuracy. Ticker Tape Digest Inc. is not affiliated with any broker, dealer or investment advisor. Nothing in this publication constitutes an offer, recommendation or solicitation to buy or sell any securities. Further research is advised. This report is copyrighted and no redistribution is permitted with out permission.)
Copyright - Ticker Tape Digest - 2011