Daily - Go to TTD's Tape of Stock Charts - Friday, February 4
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Daily - Go to TTD's Tape of Stock Charts - Friday, February 4 |
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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - January 31 |
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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.
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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.
Total Buy Breakouts so far today - 18
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Good number of breakouts today and several top rated issues moving out. Stock Market continues to show good resilience to selling. Bulls be selective and watchful since the advance is now 4 months old.
(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
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TTD's Quality Rating of Stock - LULU - ABOVE AVERAGE |
LULU, based in Canada, makes and sells athletic apparel primarily in
North America. Annual revenues: $452 million. LULU's stock breaks out today from a seven-week flat base. TTD had highlighted the stock as an accumulate about a week ago. So far today, LULU is trading 4.1 million shares, double its normal daily volume of 1.9 million shares.
TTD spotlighted LULU as a breakout at our midsession video show on the Web Friday.
LULU's 10 minute chart shows the stock breaking out in the morning on strong volume. The stock then edged higher the rest of the day staying comfortably over is breakpoint.
As TTD noted previous, LULU has made a great comeback after being knocked to the mat during the bear market. With strong profits coming, TTD sees the stock with potential to move higher. Also, other sport apparel stocks Under Armour are doing well.
The stock's tape action reveals some very solid accumulation as the stock broke out intraday from its base.
A big block of 8,500 shares crossed the tape in the morning at $75.62. That was up sharply from the prior big block at $74.89. The
tape action indicates important accumulation. 
LULU's yoga-inspired apparel is marketed under the lululemon athletica brand name. The company offers a line of apparel and fitness pants, shorts, tops and jackets designed for athletic pursuits, such as yoga, running and general fitness.
It sells through 124 stores in Canada and the United States. It has 45 stores in Canada, 70 in the United States and nine franchise stores in Australia. LULU's long-term chart shows the stock coming public in 2007 and trading at 30.
LULU's 12- month performance chart shows the stock appreciating 180% compared with a 20% gain for the S&P 500 index.
On LULU's long term chart, the stock advanced to a peak of 60 that year. However, is
pulled lower during the bear market falling to 4. Ouch! It has since made a
strong comeback and is now in position to make a new all-time high. That could
be very bullish and draw in buying from the new-high crowd. 
LULU's daily chat shows the stock climbing from 31 in August to a peak of 74 in December. The stock set up a well-formed flat base that showed a good contraction in volume at times. That would indicate that profit taking from the prior run up was being cleared up.
The stock continues to hold above its 50-day moving average line showing it is still in a strong up trend.
The stock's TTD momentum indicator (top of chart) is slightly bullish.
The accumulation - distribution line (bottom of chart) is lagging. So, one must watch the stock carefully.
Net for the upcoming fiscal fourth quarter ending January 31 is expected to jump 41% to 57 cents a share from 40 cents a year ago. The highest estimate on the Street is at 58 cents a share.
TTD sees good chances for an upside surprise. The past four quarters, LULU has topped the consensus Street estimate by 6 to 11 cents a share.
Net for the fiscal year ending in fiscal 2011 should surge 82% to $1.49 a share from 82 cents a year ago. The stock sells with a price-earnings ratio of 47.
Net for the fiscal year ending January of 2012 is projected to rise 24% to $1.85 a share from the anticipated $1.49 a share for fiscal 2011.
Strategy Opinion: As TTD said its prior report LULU is still hot. TTD is targeting the stock for a move to 92 within the next few months or sooner. A protective stop can be placed near 70. TTD rates LULU an average intermediate-term play.
Sponsorship: Good. The largest fund holder is Fidelity Growth Company Fund with a big 13% stake. The 4-star rated fund has held its position steady. However, some funds have been big sellers recently. The key one is 2-star rated Columbia Select Large Cap Growth Fund which unloaded 629,910 shares.
Insider Activity: Neutral. Insiders were buyers using stock options. They turned around and sold. The latest selling was at $72.78. Right now, 17 analysts follow the stock, 5 have a buy, the same as three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
| TTD's Breakout Profile
Rating Lululemon Athletica Inc. - (LULU) |
| 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 | 14 | 0 | 0 |
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - UA - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - MTSC - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - CCI - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - FOSL - 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 - 4
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small number of breakdown stocks today as stock market continues to pause. Bears be selective as market is still holding its up trend.
List of Stocks To Sell or Short
CHUX, based in Nashville, Ten., operates multi-concept restaurants. Annual revenues: $1.5 billion. CHUX's stock falls sharply today after the company reported a wider loss for the fourth quarter. So far today, CHUX is trading 303,291 shares, double its normal daily volume of 149,000 shares. TTD sees more on the downside. 
TTD highlighted CHUX as a short at our midsession show on the Web today.
CHUX reported for the fourth quarter a loss of 77 cents a share compared with a loss of 56 cents a share a year ago. The Street was looking for a loss of 30 cents a share. The lowest forecast was for a loss of 36 cents a share.
So, the results were a negative surprise.
CHUX's stock fell sharply in the morning. It hit an intraday low of $6.01. It then rallied in the afternoon to cut its loss.
This year, analysts forecast a loss of 26 cents a share compared with a loss of $1.05 a share for 2010.
The company operates the O’Charley’s, Ninety Nine and Stoney River Legendary Steaks trade names. It has 235 O’Charley’s company owned restaurants in 17 states in the Southeast and Midwest, 116 Ninety Nine restaurants in nine states throughout New England and the Mid-Atlantic states, and 11 Stoney River restaurants in seven states in the East, Southeast and Midwest.
CHUX has 10 franchised O’Charley’s restaurants in five states in the East and Southeast.
CHUX's daily chart shows the stock cutting below key support. The stock was showing weakness before the news. So, the late rally today could well be short covering.
Strategy Opinion: TTD is targeting CHUX for a decline to 5 within the next few months, or sooner. A protective stop buy can be placed near $7.40
| TTD's Quality Rating of Stock - CHUX - BELOW 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
