Daily - Go to TTD's Tape of  Stock Charts - Thursday, February 9

Daily - Bullish Investors  - Go To TTD Pre-Market Opening Breakout Watch  List and Performance -  Thursday, February 9

Ticker Tape Digest

Thursday - February 9, 2012

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 - 7

Overall Quality of Breakouts - Average

Stocks Screened - 8,300

Bull side -  Small number of breakouts, but some good looking plays. Bulls can be venturesome. Stock market holds in up trend with momentum still bullish.

 (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

Timely Breakout Stocks From Tape Action - February 9

(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

Heartland Payment Systems Inc.  (HPY) - 27.15, up 2.43 - Breakpoint 25.10

Hits 3-Year High, Posts Strong Profits, TTD Targets 32

  HPY, based in Princeton, N.J., provides bank-card payment processing services. Annual revenues: $2 billion. HPY's stock breaks out today from a six-week flat base. The move carries the stock to a 3-year high. The move was triggered by a strong earnings report. So far today, HPY is trading a heavy 1.7 million shares, eight times its normal daily volume of 216,000 shares.

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

  HPY's 10-minute chart shows the stock gapping higher in the morning and peaking at 27.49. The stock then trended sideways for most of the day. Going into the final hour the stock is continuing to act strong

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

  One can see the price for the blocks climbing from $24.99 to $26.95.

  A key bullish trade came in the morning when a block of 29,598 shares crossed the tape at $26. That was up from the prior block trade at $24.73.

  HPY reported net for the fourth quarter jumped to 28 cents a share from 17 cents a year ago. The 28 cents a share topped the consensus estimate of 24 cents a share and also the highest estimate on the Street of 26 cents a share.

  TTD has noted that when a company can top the highest quarterly estimate, it has the potential to move higher off the news and continue to work higher for the next few weeks. That is because analysts need to up their bullish view of the company.

   HPY provides bank card-based payment processing services to small- and medium- sized merchants in the U.S.

  The company facilitates the exchange of information and funds between merchants and cardholders' financial institutions, providing end-to- end electronic payment processing services. The company's services also include merchant setup and training, transaction authorization and electronic draft capture, clearing and settlement, merchant accounting, merchant assistance and support and risk management.

  HPY's 12-month performance chart shows the stock appreciating 60% versus 4% for the S&P 500 index. The chart also shows steady insider selling.

  HPY's long-term chart shows the stock coming public in late 2005 and trading around 25. The tock rose to a peak of  33 in 2008. However, the stock got knocked down during the bear market falling to $3.57. It has since made a strong come back.   

  HPY's daily chart shows the stock advancing from 19 in October to 25 in January. The stock then put down a well formed flat base. The breakout today comes on a gap move and big volume. That is very bullish.

  The stock has a lot of upside momentum

  HPY's TTD momentum indicator (top of chart) is strongly bullish.

  The accumulation - distribution line (bottom of chart) has broken out to the upside confirming the price action.

  The company lifted its forecast of 2012 earnings to $1.33 a share to $1.40. The consensus estimate on the Street was at $1.31. That would compare with $1.09 a share for 2011.

  The highest estimate on the Street is currently at $1.41 a share.

  The company said revenues for the fourth quarter increased 13%.

  Analysts are forecasting HPY will show a 30% jump in net for the first quarter to 26 cents a share from 20 cents a year ago. The highest estimate on the Street is at 31 cents a share.

  Strategy Opinion: TTD is targeting HPY for a move to 32 within the next few months or sooner. A protective stop can be placed near 24.50.

 TTD rates HPY a very good intermediate-term play due to its strong earnings outlook.

  Sponsorship:  Excellent. The largest fund holder is 4-star rated Fidelity Low-Priced Stock Fund with a big 9.1% stake. It has held its position steady. A key buyer recently was 5-star rated Delaware Smid Cap Growth Fund which added 171,500 shares. HPY has 39.4 million shares outstanding. Institutions hold 90% of the stock.

  Insider Activity: Bearish. Insiders were recent buyers using stock options at $5 a share. They sold at $24. TTD's chart shows steady selling going back for several months. Currently, 14 analysts follow the stock, 5 have a buy, the same as three months ago.

 Stock Performance Chart with Quarterly Earnings Markers

  Insider Activity - Buying in Green - Selling in Red

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 - 2

Stocks Screened - 8,300

Long-Term Environment for bears: Unfavorable.

Bear Side - Only a few breakdown stocks today. Bears remain patient and watchful.  TTD's short from Wednesday was Opnet Technologies (OPNT) at 32.40. Today, OPNT has declined to 30.63 and is working well for bears.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

KT Corp. (KT) - 14.21, down 0.29

Korean Firm's Net to Decline in 2012, TTD Sees Drop to 11.20

  KT, based in Korea, provides telecom services. Annual revenues: $18.7 billion. KT's stock breaks below key technical support today to reignite its down trend. So far today KT is trading 1.6 million shares. Its average daily volume is 1.8 million shares. The company is expected to show lower profits for this year. TTD sees more on the downside.

  KT's stock moved lower in the morning. It hit a low of 14.18 in the morning, but then staged a modest rally, only to roll over again and touch its early session low. The stock continues to act weak.

  KT's tape action shows the recent block trades. A key bearish trade came in the morning when a block of 34,800 shares crossed the tape at $14.29. That was down from the prior block trade at $14.50.

  The tape action showed some significant institutional selling pressure.

 KT's services include mobile telecommunications, telephone services, fixed-line and VoIP telephone services.

 The Company also provides interconnection services to other telecommunications companies, broadband Internet access services and other Internet-related services.

  This year,  analysts forecast a 4% decline in net to $2.21 a share from $2.30 a year ago.

  KT's stock has worked gradually lower. The stock is a big cap issue that moves slowly. So, one should be patient with KT.

   Strategy Opinion:  TTD is targeting KT for a decline to 11.20. TTD would treat the stock as a trading short with the idea of covering near the target on the downside. A protective stop buy can be placed 15.20.

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.

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.)