Daily - Go to TTD's Tape of  Stock Charts - Thursday, February 7

Daily - Bullish Investors  - Go To TTD Pre-Market Opening Breakout Watch  List and Performance - Thursday, February 7, 2013

Ticker Tape Digest

Thursday - February 7, 2013

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.

 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 - Breakout showing a pick up in action in school stocks. Bulls be selective. Stock market looks to be running out of gas at this point.

 (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 Bullish

Market  (Monthly) - NYSE Bearish, Nasdaq Bearish 

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action - February 7

(See Top Performing Breakout Stocks for 2011- 2012)

(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. They are ranked according to percentage change and classified as leaders or other. (Trading strategy: One should buy breakout stocks at breakpoint by using market order or stop buy)All Timely Breakout Stocks From Tape Action Today )  

Today's Featured TTD Breakout Stock

Geospace Technologies Corp. (GEOS) - 110.20, up 16.38 - Breakpoint 94.62

Hits All-time High, Net Strong, TTD Targets 135

  GEOS, based in Houston, makes scientific instruments for acquiring and analyzing seismic data for the oil industry. Annual revenues: $226 million. GEOS's stock breaks out today from a  five-week flat base. The powerful move comes after the company reports favorable earnings for the fiscal first quarter ended in December.

  TTD highlighted GEOS as a breakout at our midsession video show on the Web Thursday.

  The stock pushed steadily higher in the morning peaking at 113.73. In the afternoon it trended sideways holding the bulk of its gain. (See 10-minute chart)

  GEOS reported net for the fiscal first quarter jumped to $1.70 a share from 68 cents a year ago.

  The $1.70 a share topped the consensus estimate of $1.19 a share and also the highest estimate on the Street of $1.58 a share.

  TTD has said when a company can top the highest estimate on its quarterly report the stock has the potential to drive higher in the coming weeks. TTD sees that potential here.

  GEOS has a beta of 1.93 versus 1.00 for the S&P 500 index. So the stock tends to be twice as volatile as the stock market.

  The tape action shows the recent trades in GEOS.

  One can see the price climbing from $92.91 a few days ago to a peak of $110.20.

  A key bullish trade came in the morning when 4,523 shares, (duplicated) crossed the tape at $99.20. That was up from the prior trade at $93.82.

 Then later in the day, around noon, a trade crossed at $109.53 on 2,000 shares. So, there was some aggressive buying going on off the earnings report.

  GEOS makes scientific instrumentation and equipment used in the acquisition and processing of seismic data, as well as in the characterization and monitoring of producing oil and gas reservoirs.

 The company also makes thermal imaging equipment and dry thermal film products.

 GEO'S's seismic products consist of land and marine nodal seismic data acquisition systems; multi-component geophones and hydrophones; seismic leader wires; geophone string and acquisition system connectors; seismic telemetry cables; marine seismic cable retrieval and steering devices; and data acquisition systems.

  It also makes non-seismic products such as offshore cables, thermal printing equipment and film. Geospace Technologies Corp., was formerly known as OYO Geospace Corp.

  GEOS's 12-month performance chart shows the stock appreciating 100% versus a 15% gain for the S&P 500 index.

  GEOS's long-term chart shows the stock climbing from 9 back in 2005 to a bull market peak of 55 in 2007. The stock then tumbled back to 4.72 in early 2009. It has since made a tremendous recovery. It is in position to make a new high if it can vault 70.91.

  GEOS's daily chart shows the stock climbing from 40 back in June to 90 by January.

 The stock put down a short flat base. The breakout today is powerful showing a good pick up in volume and a widening of the daily trading spread (range from high to low).

  The base was set up above a rising 50-day moving average line which shows the stock is in a solid up trend.

  The TTD momentum indicator (top of chart) has been bullish for about the past five months.

  The accumulation - distribution line (bottom of chart) is in a strong up trend showing there is good buying taking place as the stock bases.

  This fiscal year ending in September of 2013, Wall Street is forecasting 120% surge in net to $6.02 a share from $2.74 a year ago. The stock sells with a price earnings ratio of 18. TTD sees that as low making the stock appealing to aggressive-value investors.

  Going out to fiscal 2014 ending in September, analysts look for a only a 2% rise in net to $6.13 a share from the anticipated $6.02 this year. So, one needs to be watchful of the stock.

  Net for the upcoming fiscal second quarter ending in March should rocket ahead 105% to $1.82 a share from 89 cents a year ago. The highest estimate on the Street is at $2.05 a share.

   The company is getting a good flow of orders for its products.

  Strategy Opinion:  TTD is targeting the stock for a run to 135. A protective stop can be placed near 102. TTD rates GEOS a good intermediate-term play. However, it is most suitable for an aggressive investor.

  Sponsorship: Very Good. A key fund buyer recently was 4-star rated JNL/Eaaable Small Cap Equity Fund which purchased 64,475 shares. It now has a 3.5% stake. The largest fund holder is 3-star rated Eagle Small Cap Growth Fund with a 4.9% stake. The fund has held its position steady.

 GEOS has 12.8 million shares outstanding. Institutions hold 81% of the stock.

  Insider Activity: Bearish. Insiders have been buyers using stock options at $8.78 to as high as $43. They were recent sellers around $76.

Stock Performance Chart with Quarterly Earnings Markers.

Charts of Selected Breakout Stocks

Ticker Tape Digest’s

Stocks To “Sell or Short”

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 but some interesting plays. Stock market starts to weaken. Bears remain selective.  February tends to be bearish.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Orasure Technologies Inc. (OSUR) - 6.10, down 0.92

Posts 4th Quarter Loss, TTD Sees Side to 4.50

  OSUR, based in Bethlehem, Pa., makes medical products for skin lesion removals and oral products. Annual revenues: $89 million. OSUR's stock breaks down today after the company reported a loss for the fourth quarter. So far today, OSUR is trading a heavy 1.8 million shares, four times its normal daily volume of 373,000 shares. TTD sees more on the downside.

  OSUR reported a loss for the fourth quarter of 11 cents a share compared with a breakeven a year ago. The news disappointed the Street and triggered heavy selling.

  The stock fell in the morning and hit an intraday low of 5.98. The stock then trended sideways the rest of the day unable to mount an effective rally.

  OSUR's tape action shows the recent big block trades.

  One can see the price for the blocks falling from $7.02 to $6.07.

  A key bearish trade came late on Wednesday when a block of 110,000 shares crossed the tape at $6.95, down from the prior block trade at $7.02.

  That trade set the bearish tone and the institutional selling that followed.

  OSUR produces oral fluid diagnostics. The company also develops medical devices and diagnostic products for use by insurance companies, public health agencies, clinical laboratories, physicians and workplace sites.

  This year, analysts are forecast a loss of 34 cents a share compared with a loss of 22 cents a year ago. For the first quarter they expect a loss of 19 cents a share compared with a loss of 7 cents a share.

    OSUR's chart shows the stock in a clear down trend falling from 11 in October to 7. The breakdown today comes with a widening of the spread indicating heavy selling. The stock's accumulation - distribution line (bottom of chart) is in a steady down trend indicating steady selling pressure.

   Strategy Opinion:  TTD is targeting OSUR for a decline to 4.50. A protective stop buy can be placed near 6.60.

TTD takes no responsibility for trading by those using this information. The stocks presented in our report are those we deem the best looking "Day Trades" for the long side. We take no responsibility for the accuracy of this data, although every effort is made to present the information correctly. Copyright Ticker Tape Digest. - 2013

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.)