Daily - Go to TTD's Tape of Stock Charts - Friday, February 7, 2014
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Daily - Go to TTD's Tape of Stock Charts - Friday, February 7, 2014 |
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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, February 3, 2013 |
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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 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 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 - 13
Overall Quality of Breakouts - ABOVE AVERAGE
Stocks Screened - 8,300
Bull side - Good number of breakouts as stock market stages "comeback rally." Bulls remain selective and cautious.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Stock Market Momentum
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bearish, Nasdaq Bearish
Ticker Tape Digest's
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TTD's Quality Rating of Stock - EXP - ABOVE AVERAGE |
EXP, based in Dallas, makes cement and wallbard. Annual revenues: $804 million. EXP's stock breaks out today from a 4-month, flat base. The move carries the stock close to a new all-time high. So far today, EXP is trading 1.1 million shares. Its average daily volume is 831,000 shares. 
TTD highlighted the stock recently as a breakout on January 22. However, the stock fell back into the base. Now it reemerges.
EXP's 10-minute chart shows the stock trading in the morning just below its breakpoint. In the afternoon, with the stock market moving higher, so did EXP. 
The push carried the stock above its breakpoint. It then trended mostly sideways the rest of the day holding the breakout. It will be important for the stock to show follow through
EXP's tape action shows the recent block trades.
One can see the price for the blocks climbing from $78.76 in the prior session to as high as $80.66 Friday. .
A key bullish trade came around noon when a block of 50,200 shares crossed the tape at $79.74.
That was up from the prior block trade at $79.44.
Then late in the afternoon a key block of 9,800 shares crossed at $80.66. That was up from the prior block at $79.80.
Then after the close there was some profit taking.
EXP makes cement, gypsum wallboard, recycled paperboard and concrete.
The company mines limestone and gypsum..
EXP's 12-month performance chart shows the stock appreciating 25%. That compares with a 19% gain for the S&P 500 index.
EXP's long-term chart shows the stock coming public in 2004 and trading around 18.50. The stock soared to a peak of 74 in 2006 and then split 3-for -1.
The stock eventually fell to a low of 13 in 2008 due to the bear market.
It has since made a sensational recovery soaring to an all-time high of 81.95 recently. A move to a new all-time high could well draw in more buying from the new-high crowd..
EXP's daily chart shows the stock climbing to a peak near 80 in early November from 65 back in September. Near-term, the stock set up a very good looking cup-and-handle base. 
It broke out but then faded back into the base.
The stock regrouped and formed a smaller flat base. Friday, it breaks out.
The stock has shown strong volume in recent sessions indicating good demand for the stock.
The TTD momentum indicator is modestly bullish.
Analysts are forecasting EXP will rack up a 68% gain in earnings for the fiscal year ending in March of 2014.
They look for $2.69 a share, up from $1.63 a year ago.
The stock sells with a price-earnings ratio of 27. TTD sees that as low given the strong earnings outlook. The p/e is well below the 68% projected growth rate.
Going out fiscal 2015 ending in March, the Street is looking for a 59% jump in net to $4.27 a share from the anticipated $2.69 this fiscal year.
Net for the upcoming fiscal fourth quarter ending in March should jump 38% to 58 cents a share from 42 cents a year ago.
The highest estimate on the Street is at 63 cents a share. EXP has come in under the estimate some times. So, one needs to be watchful. (see table)
EXP tends to come in close to the consensus estimate. (See table)
Looking ahead to fiscal 2015 ending in March, analysts project a 59% leap in profits to $4.27 a share from $2.69 the year before.
Strategy Opinion: TTD is targeting EXP for a move to 100 off this breakout. A protective stop can be placed near 76.
TTD rates EXP a very good intermediate-term play due to its strong earnings outlook.
Sponsorship: Excellent. The largest fund holder is 4-star rated MainStay Marketfield I Fund with a 5.2% stake. It was a recent buyer of 347,529 shares.
Also, the 4-star rated Neuberger Berman Genesis Fund purchased 76,200 shares. It has a 1.3% stake.
EXP has 50 million shares outstanding. Institutions hold 95% of the stock.
Insider Activity: Bearish. Insiders have been getting stock options at $11 to $31 a share. They have been steady sellers around $72 to $78.
Currently, 8 analysts follow the stock, 4 have a buy, the same as three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
| TTD's Breakout Profile
Rating Eagle Materials Inc. - (EXP) |
| 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 | 13 | 0 | 1 |
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - FANG - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - ADS - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - TRGP - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - OUTR - 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 today. Stock market continues to rally. Bears remain conservative.
SREV, based in San Francisco, provides cloud applications for business. Annual revenues: $262 million. SREV's stock falls Friday after the company reported a loss for the fourth quarter. The Street was expecting a breakeven. So far today, SREV is trading a heavy 2.7 million shares, triple its average daily volume of 780,000 shares. TTD sees more on the downside. 
TTD highlighted SREV as a short at our midsession video show on the web.
SREV reported a loss of 2 cents a share for the fourth quarter. That compares with a loss of 2 cents a year ago. The Street was expecting a breakeven.
SREV's stock fell sharply in the morning and hit an intraday low of 6.97.
The stock rebounded to cut its loss by about a half. However, later in the afternoon it faded.
SREV's tape action shows the recent block trades.
One an see the price for the blocks falling from$7.95 the prior session to as low as $7.13. The action showed clear institutional selling pressure.
A key bearish trade came in the morning when a block of 75,000 shares crossed at $7.13. That was down sharply from the prior block at $7.93.
The Company helps hardware, software, healthcare, and life sciences companies derive from their customers more revenue from maintenance, support and subscription agreements.
The Company analyzes areas of the customer's service business that are not optimized, and develops and implements a suite of cloud applications and managed services for the service sales team..
ServiceSource helps customers increase service revenue contract renewal rates, on average, by over 15 percentage points and, in some cases, up to 44 percentage points.
This year, the Street is forecasting SREV will show a loss of 5 cents a share compared with a loss of 11 cents a year ago.
SREV's chart shows the stock trending lower from 13 back in September to around 8. The stock tried to form a bottom. However, Friday, it cuts below support with heavy volume. The stock's accumulation - distribution line (bottom of chart) is in a down trend showing clear selling pressure.
Strategy Opinion: TTD is targeting SREV for a decline to 5.50 within the next few months, or sooner. A protective stop buy can be placed near 8.20.
| TTD's Quality Rating of Stock - SREV - 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.)
