Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Thursday, February 5
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Thursday, February 5 |
| Go to Video Show - "How to Make Money With Breakout Stocks" |
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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 breakout and Short Selling report.
It contains Breakout Stocks and Stocks under Significant Accumulation. 
Data is from tape action for the day. These stocks are most suitable for aggressive investors seeking ideal entry points for leading stocks.
These stocks will do very well during bull markets and strong market rallies.
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 corrections
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.
TTD often suggests using stop buy orders to enter. It is very important to buy a breakout stock as close as possible to the break point. 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.
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.
Stocks Screened - 8,200
Bull's Strategy - A small list of breakouts today with the overall quality average. Their breakouts came from stronger than expected earnings. Bulls remain selective and patient. Market's attempt to rally across trading range continues to meet choppy action.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Unfavorable
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) -NYSE Bearish, Nasdaq Bullish
Market (Monthly) NYSE Bearish, Nasdaq Bearish
| TTD's Quality Rating of Breakout Stock - CUB - AVERAGE |
CUB, based in San Diego, Ca., produces products for the defense
and transportation industries. Annual revenues: $880 million. CUB's stock breaks out from a five-month, cup-and-handle base today. The spark for the move was a report of stronger than expected earnings that topped the highest estimate on the Street. The stock is trading a hefty 778,785 shares, seven times its normal daily volume of 115,000 shares. 
CUB's stock gapped higher in the morning peaked near noon and then spent the rest of the day coasting with its gain.
TTD's clip of the tape shows the stock sprinting higher in the morning. A big block of 5,200 shares crossed the tape on a big up tick to $29.85 from the prior trade at $28.65.
The tape action indicated good institutional buying interest.
CUB came in with net for the fiscal first quarter ending Dec. 31 of 53 cents a share, up from 40 cents a year ago. The 53 cents topped the consensus estimate of 43 cents a share. It also surpassed the highest estimate of 51 cents a share. TTD has noted that stocks that can top the highest quarterly estimate and respond well to the news have the potential to move higher for the next few weeks. That is because analysts need to adjust their earnings models.
CUB is a producer of realistic combat training systems, mission support services and defense electronics.
CUB's Transportation Systems makes automated fare collection systems and services for public transit authorities worldwide.
The company's big gain in earnings was due to strong sales in both its military and transportation businesses.
TTD's performance chart shows CUB's stock appreciating 18% the past 12 months. That easily outperformed the S&P 500 index which fell 36% during the same time.
CUB is a lagging issue in that it is well off its high of 50 set in 2007. (See TTD's long-term chart) The stock has been able to move up from roughly 20 to 31 the past five months. 
TTD's daily chart shows the breakout today. Note the big move in price and the widening of the spread. That shows aggressively bullish price action.
Although the stock was in a base, it had been showing superb technicals.
The accumulation - distribution line (bottom of chart) was trending higher aggressively. That shows there was subtle buying going on. The TTD momentum indicator (bottom of chart) was bullish the past few weeks.
Analysts look for net for the fiscal second quarter ending March 31 to increase 23% to 44 cents a share form 36 cents the year before. The highest estimate on the Street is at 49 cents a share.
Looking out for fiscal 2009, Wall Street has been forecasting an 18% gain in net to $1.80 a share from $1.52 the year before. TTD sees that estimate being bumped up to possibly $2 a share.
The stock sells with a price-earnings ratio of 17 based on the $1.80 estimate for the fiscal year.
Strategy Opinion: TTD suggests just scaling into CUB because the stock is extended near-term. TTD is targeting CUB for a move to 38 within the next few months, or sooner. A protective stop can be placed near 27. TTD rates CUB an average intermediate-term play.
Sponsorship: Good. The largest fund holder is Ridgeworth Small Cap Value Equity fund, 5-star rated, with a 0.92% stake. It has held its position steady. The largest fund buyer lately was 4-star rated Northern Small Cap Value Fund which picked up 21,000 shares. CUB has 26 million shares outstanding. Funds hold 3.4 million shares.
Insider Activity: Neutral. Insider did some light buying and selling. Currently, 5 analysts follow the stock, 3 have a buy, up from 2 three months ago.
Stock Performance Chart for 12 months with Quarterly Earnings Markers.
| TTD's Profile
Rating Cubic Corp. - (CUB) |
| TTD Check List | Bullish | Bearish | Neutral |
| Near 52-week High | YES | ||
| Volume Expansion | 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 | 10 | 2 | 2 |
(The “breakout List” gives all stocks breaking out of a base of five weeks or more. These stocks have a good chance to trend higher. However, a stop should be used to avoid those that do not work. (Trading strategy: One should buy breakout stocks at breakpoint by using market order or stop buy.
Charts of Breakout Stocks
| TTD's Quality Rating of Breakout Stock - TNDM - BELOW AVERAGE |
| TTD's Quality Rating of Breakout Stock - WW - BELOW 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 - 13
Stocks Screened - 8,200
Long-Term Environment for bears: Favorable.
Bear Side - Large number of breakdown stocks. Bears be selective. Market has potential for a further breakdown. Wednesday's TTD short was Universal Technical Institute Inc. (UTI) - 12.07, off 5.85. Today the stock is trading at 11.94
(Trading strategy: These stocks can be sold short, or if held should be sold. If a stock is sold short, a protective stop buy should be placed. Short plays work best when the stock market is in a down trend.)
NCR, based in Dayton, O., designs and services automated systems that streamline consumer point-of-sale transactions. Annual revenues: $5.42 billion. NCR's stock breaks down hard today after the company reported lower earnings for the quarter. The stock's gap drop portends more on the downside. So far today, NCR is trading 7.3 million shares, four times its normal daily volume of 1.9 million shares. 
TTD's clip of the tape shows a big block of 101,000 shares crossing the tape at $10.02. That came within a sequence started by a down tick from $10.03. The tape action indicates heavy institutional selling pressure.
NCR reported earnings from operations for the fourth quarter dropped to 34 cents a share from 52 cents a year ago. That was a big disappointment in that the consensus estimate on the Street was for net of 55 cents a share.
The 34 cents a share was well below the 52 cents which was the lowest estimate. So, that was very favorable for bears.
NCR said revenues declined due to lower international sales and foreign-exchange impacts. The maker of automated teller machines and retail and financial electronics said revenue missed analysts' expectations and forecast 2009 earnings below estimates.
NCR designs and services automated systems that streamline consumer point-of-sale transactions. Products include ATMs, airline check-in kiosks, retail workstations, grocery store self-checkout stations, paper rolls, and payment and imaging technology.
TTD's chart shows an ideal technical set up for bears. NCR was in a down trend and then tried to form a bottom around 12. Today, it gaps below that support level on big volume. The stock's TTD momentum indicator (top of the chart) is bearish.
TTD is targeting the stock for a decline to 8. NCR is a good looking trading play for bears.
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. Some of the charts are from Telescan, Insight Trading, First Alert and other sources.)
