Daily - Go to TTD's Tape of Stock Charts - Monday, February 6 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, February 6 |
Go to Video Show - "How to Make Money With Breakout Stocks" |
---|
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) |
---|
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 - 9
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Medical plays dominate breakout list Monday. Stock market off slightly, but still holds in up trend. Bulls be watchful and selective.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Bullish
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 - JAZZ - AVERAGE |
JAZZ, based in Palo Alto, Ca., is developing drugs to meet needs in neurology and psychiatry. Annual revenues: $242 million. JAZZ's stock breaks out today from a five-week flat base and hits a new all-time high. The stock came public back in 2007 and traded at 15 at that time. It has been a big winner long-term and one TTD has covered at prior times during its advance. So far today, JAZZ is trading 1.9 million shares, double its normal daily volume of 1 million shares.
JAZZ's 10-minute chart shows the stock pushing sharply higher in the morning and cutting across its breakpoint line.
The stock then trended sideways the rest of the day with a slight bias to the upside.
TTD's clip of the tape shows the recent big block trades.
One can see the price for the blocks working higher from $47.90 to a peak of $50.61 in the afternoon.
A key bullish trade on the tape came in the morning when a block of 4,400 shares crossed at 47.92. That was up sharply from the prior block trade at $48.01.
JAZZ markets two products: Xyrem (sodium oxybate) for the treatment of both cataplexy and excessive daytime sleepiness in patients with narcolepsy; and Luvox CR (fluvoxamine maleate) for the treatment of both obsessive compulsive disorder and social anxiety disorder.
Its marketed products and late-stage product candidate are Xyrem (sodium oxybate) oral solution, Luvox CR (fluvoxamine maleate) Extended-Release Capsules and JZP-6 (sodium oxybate).
Its other product candidates in clinical development are oral tablet forms of sodium oxybate; JZP-8 (intranasal clonazepam); JZP-4 (elpetrigine), and JZP-7 (ropinirole gel).
JAZZ's 12-month performance chart shows the stock appreciating 125% versus a no gain for the S&P 500 index. JAZZ has been one of the hottest stocks of the past 2 years soaring from 55 cents to a peak of 50.50.
JAZZ's long-term chart shows the stock in a powerful up trend and making new highs. The push to a new high today could well bring in buying on Tuesday from the new-high crowd.
JAZZ's daily chart shows the stock climbing from 34 in December to 50 and then setting up a flat base. Today's breakout looks solid coming with good volume despite a drop in the stock market.
The stock's TTD momentum indicator (top of chart) has been bullish for about two months.
The accumulation - distribution line (bottom of chart) is in an up trend indicating solid underlying buying and no unusual distribution. It compliments the price action of the stock.
For 2011, analysts forecast a 159% surge in net to $3.16 a share from $1.22 for 2010. The stock sells with a price-earnings ratio of just 15 based on 2011 net.
TTD sees that as low given the growth rate. That means the stock could have potential to move higher based on valuation.
Net for the fourth quarter and year should show an 81% jump to $1.01 a share from 56 cents a year ago. The highest estimate on the Street is at $1.03 a share.
Looking out to 2012, JAZZ's earnings are projected to rise 20% to $3.78 a share from the anticipated $3.16 for 2011.
Net for the upcoming first quarter should leap 81% to 94 cents a share from 52 cents a year ago. JAZZ has a tendency to slightly exceed Street estimates. So, there is a chance for a mild upside surprise.
Strategy Opinion: JAZZ is in a strong stock. TTD is targeting the stock for a move to 62 within the next few months. A protective stop can be placed near 47.
TTD rates JAZZ a very good intermediate-term play even though it has already moved up sharply.
Sponsorship: Excellent. Many top funds holding the stock were recent buyers. 4-star rated American Century Heritage Fund was a recent buyer of 400,700 shares and 5-star rated T. Rowe Price Health Sciences Fund a buyer of 8,600 shares. It is the second largest fund holder with a 1.1% stake. JAZZ has 56.2 million shares outstanding. Institutions hold 47% of the stock.
Insider Activity: Bearish. Insiders have been getting plenty of options. The most recent transaction showed an insider buying around $20 with options and selling at $43. The insider chart below shows a lot of buying with options recently. Five analysts follow the stock and all 5 have a buy, up from 4 three months ago.
Stock Performance Chart with Quarterly Earnings Markers
Insider Activity - Buying in Green - Selling in Red
TTD's Breakout Profile
Rating Jazz Pharmaceuticals Plc. - (JAZZ) |
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 - ABMD - AVERAGE |
TTD's Quality Rating of Stock - ASTE - AVERAGE |
TTD's Quality Rating of Stock - EMR - AVERAGE |
TTD's Quality Rating of Stock - CAB - 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 short play. Bears be conservative as stock market remains in up trend.
PCCC, based in Merrimack, N.H., sells brand-name personal computers. Annual revenues: $2.1 billion. PCCC's stock, which fell sharply Friday, moves lower Monday. TTD sees the stock in a down trend now. The technical breakdown is bearish. So far today, PCCC is trading 182,485, double its normal daily volume of 81,000 shares. TTD sees more on the downside.
PCCC reported net for the fourth quarter rose to 28 cents a share from 26 cents a year ago. The Street was looking for 36 cents a share. So, results were disappointing.
PCCC's stock gapped lower on Friday, lifted slightly and trended sideways. On Monday, the stock fell in the morning and trended sideways unable to stage a rally.
PCCC's tape action shows the recent big block trades.
One can see the price for the big blocks declining from $10.31 to $9.80
PCCC sells personal computers, software, and networking products to business, education, government, and consumer end users in the U.S.
This year, analysts are forecasting a 17% rise in net to $1.25 a share from $1.07 the year before.
PCCC's daily chart shows the stock gapping lower on Friday with heavy volume. The stock is off slightly Monday.
Strategy Opinion: TTD is targeting PCCC for a decline to 7 within the next few months or sooner. A protective stop buy can be placed near 10.60. TTD sees PCCC as a trading short.
TTD's Quality Rating of Stock - PCCC - 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.)