Daily - Go to TTD's Tape of Stock Charts - Friday, February 3 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, January 30 |
Go to Video Show - "How to Make Money With Breakout Stocks" |
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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 Daily schedule guide for TTD subscribers 1. Pre-market - check Breakout Watch List and Quick Trades. 2. Morning - (11:30 - 12 A.M.) - check breakout stocks tape and breakout chart slide show. 3. Midday (1 P.M.) check TTD Midsession Report and see market video show. 4. After close (4 P.M.) check final TTD Report for day. Trading Strategies Bullish Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. (See Performance) Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." (See Performance) 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.(See Performance) Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance) |
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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 - 14
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Breakout list small expands as stock market drives sharply higher on favorable jobs report. Bulls be selective. Stock market is a bit extended and moving into a weak seasonal period for bulls.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
(See Top Performing Breakout Stocks for 2011- 2012)
TTD's Quality Rating of Stock - GEOI - ABOVE AVERAGE |
GEOI, based in Houston, produces oil and gas and lignite coal. Annual revenues: $124 million. GEOI's stock breaks out from a nine-week flat base today. The stock is nearing an all-time high. So far today, GEOI is trading a light 164,275 shares.. Its average daily volume is 253,000 shares.
TTD highlighted GEOI as a breakout at our mid-session video show on the Web Friday.
GEOI's 10-minute chart shows the stock pushing higher in the morning and clearing its breakpoint. The stock sagged back a bit right afterwards, but held.
In the afternoon. the stock trended sideways holding its gain nicely.
GEOI met with analysts on February 2 in Palm Beach, Florida. It was the IPAA Oil and Gas Investment Symposium. The buying today could have been aided by a positive talk.
TTD's clip of the tape shows the recent block trades in GEOI.
One can see the price for the blocks climbing from $30.86 on Thursday to a peak of $32.10 Friday.
A key bullish trade today came in the morning when a block of 3,938 shares (duplicated) crossed the tape at $31.70. That was up sharply from the prior block trade at $30.86.
GEOI is a natural resources company engaged principally in oil and gas exploration, development and production.
It also mines for leonardite (oxidized lignite coal) and manufactures leonardite based products which are sold primarily as oil and gas drilling mud additives.
In addition to originating its own prospects, the company occasionally participate in exploratory and development prospects originated by other firms.
GEOI's 12-month performance chart shows the stock appreciating 14% versus just a 3% gain for the S&P 500 index. The insider activity depicts heavy selling back in April and then the stock performed weakly. So, the insiders were right!
GEOI's long-term chart shows the stock climbing from 5 back in 2007 to a peak of 29 in 2008. It was pulled back down to 5 in late 2008 due to the bear market. However, it has since surged back again. It is in a long-term up trend and near a new high. It needs to hurdle 32.94 to hit a new high.
GEOI's daily chart shows the near-term flat which was formed after the stock ran up from 15 back in October to 30. The base is above a rising 50-day moving average line which shows that the stock is in a good up trend.
GEOI's TTD momentum indicator (top of chart) is solidly bullish.
The accumulation - distribution line (bottom of chart is in an overall up trend and has broken out to the upside to confirm the price breakout.
GEOI is poised to show strong earnings for the next two quarters and for all 2012.
Net for the upcoming fourth quarter should climb 42% to 37 cents a share from 26 cents a year ago. The highest estimate on the Street is at 43 cents a share. The past few quarters, GEOI has tended to top the consensus estimate by 2 to 3 cents a share.
Net for the year 2011 should show a 6% gain to $1.33 a share from $1.25 a year ago.
The outlook for 2012 is stronger and the fundamental key to drive it higher.
. Net for the first quarter is expected to surge 50% to 44 cents a share from 29 cents a year ago. Overall, profits for 2012 should surge 50% to $1.99 a share from the $1.33 anticipated for 2011.
The company is benefiting from increased production and successful development of several properties.
Strategy Opinion: TTD is targeting GEOI for a move to 40 off this breakout. A protective stop can be placed near 29.
TTD rates GEOI a good intermediate-tem play with potential to surprise on the upside if earnings can do the same.
Sponsorship: Excellent. The largest fund holder is 5-star rated Fidelity OTC Fund with a 5.9% stake. It sold 148,600 shares recently. A key fund buyer recently was 4-star rated Walthausen Small Cap Value Fund which purchased 76,600 shares. GEOI has 25.6 million shares outstanding. Institutions hold 74% of the stock.
Insider Activity: Slightly Bearish. One Insider was a recent buyer using stock options at $9.56. He turned around and sold at $30.14. The firm has granted more options. There has been no buying or other selling. Currently, 14 analysts follow the stock, 10 have a buy, up from 9 three months ago.
Stock Performance Chart with Quarterly Earnings Markers
Insider Activity - Buying in Green - Selling in Red
TTD's Breakout Profile
Rating GeoResources Inc. - (GEOI) |
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 | 12 | 0 | 2 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - GCOM - ABOVE AVERAGE |
TTD's Quality Rating of Stock - OYOG - AVERAGE |
TTD's Quality Rating of Stock - MA - AVERAGE |
TTD's Quality Rating of Stock - SWI - AVERAGE |
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 - 1
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Only one breakdown stocks today. Bears be conservative and watchful. Market resume rally phase.
EGOV, based in Olathe, Kansaas, provides internet services for the government. Annual revenues: $176 million. EGOV's stock falls today and undercuts key technical support with a big expansion in volume. The company lowered is revenue forecast for 2012. So far today, EGOV is trading 971,908 shares, four times its normal daily volume of 234,000 shares.
TTD highlighted EGOV as a short at our midsession video show on the Web Friday.
EGOV lowered its forecast of revenues for 2012 to $199.5 million to $204.5 million. The current estimate for revenues was at $209.7 million.
EGOV's stock fell in the morning and made an intraday low of 11.25. In the afternoon the stock lifted to shave its deficit.
The tape action shows the recent block trades.
One can see the price for the blocks declining recently from $12.48 to $11.42. A key bearish trade came when a block of 25,000 shares crossed the tape in the morning at $11.98. That was down from the prior block at $12.14.
EGOV provides services that help governments use the Internet to reduce costs and provide a higher level of service to businesses and citizens.
EGOV accomplishes this currently through three different business segments: state and local portal businesses, government procurement business and eGovernment products businesses.
This year, analysts forecast a 16% increase in EGOV's net to 41 cents a share from 35 cents a year ago.
EGOV's chart shows the breakdown under key technical support with volume.
Strategy Opinion: TTD is targeting EGOV for a decline to 9 within the next few months, or sooner. A protective stop buy can be placed near 12.50. TTD sees the stock as a trading short.
TTD's Quality Rating of Stock - EGOV - 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.)