Daily - Go to TTD's Tape of Stock Charts - Friday, February 10
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Daily - Go to TTD's Tape of Stock Charts - Friday, February 10 |
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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, February 6 |
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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 - 2
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Very few breakouts today as stock market closes sharply lower. Bulls be watchful of all stops as stock market is vulnerable to a pullback.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
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)
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TTD's Quality Rating of Stock - AKRX - ABOVE AVERAGE |
AKRX, based in Buffalo Grove, Il., makes special drugs
for diagnostic
and therapeutic use. Annual revenues: $118 million. AKRX's stock, a top
performer among small cap issues the past few months, pushes higher today to clear its seven-week flat base. The stock's move today is a key follow through. So far today, AKRX is trading a heavy 2.2 million shares, double its normal daily volume of 1.1 million shares.
The stock was added to the S&P 600 small cap index on Friday. That is bullish and usually draws in buying from index funds linked to the S&P 600.
AKRX's 30-minute chart shows the stock breaking through its breakpoint line a few sessions ago. The stock then pulled back, but has since worked higher to get comfortably over its breakpoint line.
AKRX said Friday it will report fourth quarter net on March 6.
Today, AKRX's stock shot higher in the morning, but then backed off. It then worked higher during the day hitting an intraday peak of $12.47.
AKRX's tape action shows the recent block trades. One can see the
price for the blocks climbing from $11.99 on Thursday to a peak of
$12.36 on Friday. A key bullish trade came in the morning when a block
of 26,936 shares crossed the tape at $12.38. That was up
from the prior block at $11.96. 
AKRX's drugs are used in specialty areas such as ophthalmology, rheumatology, anesthesia and antidotes.
They also market ophthalmic surgical instruments and related products. Customers include physicians, optometrists, wholesalers, group purchasing organizations and other pharmaceutical companies. They also provide contract manufacturing services.
AKRX's 12-month performance chart shows the stock appreciating a sensational 130% versus a 4% gain for the S&P 500 index. The stock is one of the big winners of the past few months.
AKRX's long-term chart shows the stock coming public in late 2004 and trading around 4. The stock climbed to a peak of 8.19 in early 2008. However, it then fell sharply during the bear market sinking to as low as 73 cents a share. It has since surged back and now hits a new high, which could bring in more buying on Monday.
AKRX's daily chart shows the stock trending higher nicely from
seven. It peaked around 11.80 in December and then slipped back into a
well-formed flat base.
The basing work was above the rising 50-day moving average line which is bullish. The stock edged out of the base six sessions ago. However, it stalled. Today, it moves higher and clears the base with expanding volume.
The stock's TTD momentum indicator (top of chart) has been bullish for the past several months.
The accumulation - distribution line (bottom of chart) is in a strong up trend. It compliments the price action showing there is good underlying buying in the stock.
For 2011, analysts expect AKRX's earnings to climb to 29 cents a share from one cent a year ago. The stock sells with a price-earnings ratio of 40 based on 2011 net. TTD sees that as reasonable.
Analysts have been lifting their earnings forecasts.
Going out to 2012, profits are projected to jump 36% to 40 cents a share from the anticipated 29 cents a share this year. The p/e ratio based on 2012 net is 29.
The company is doing well due to strong growth in its ophthalmic and specialty injectable products
Net for the first quarter is expected to climb 50% to 9
cents a share from 6 cents a year ago. TTD sees chances for an upside earnings surprise. 
Strategy Opinion: TTD is targeting the AKRX for a move to 16. A protective stop can be placed near 11. TTD rats AKRX a very good intermediate-term play provided earnings meet expectations.
Sponsorship: Very Good. The largest fund holder is 4-star rated Columbia Acorn Z Fund -appropriately named - with a 4.8% stake. It was a recent seller of 472,634 shares. A key buyer recently was 5-star rated PowerShares Dynamic Pharmaceuticals Fund which purchased 10,187 shares. It has been a big buyer in prior months. Also, 3-star rated Vanguard Explorer Fund was a recent purchaser of 819,035 shares. AKRX has 94.8 million shares outstanding. Institutions hold 60% of the stock.
Insider Activity: Bearish. Insiders were recent sellers of the stock. One insider exercised an option and bought at $1 a share. He sold the same day at $11.01 a share. One can see on TTD's performance chart that insiders were big sellers in December. Four analysts follow the stock and all 4 have a buy, up from 3 three months ago.
Stock Performance Chart with Quarterly Earnings Markers
Insider Activity - Buying in Green - Selling in Red
| TTD's Breakout Profile
Rating Akorn Inc. - (AKRX) |
| 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 - RLOG - 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 - 5
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of breakdown stocks today, but some interesting plays. Bulls be alert now as stock market may be losing its upside momentum.
THRX, based in San Francisco, is a drug development firm seeking treatments for respiratory and bladder problems. Annual revenues: $26 million. THRX's stock falls sharply today after the company reports a wider quarterly loss. So far today, THRX is trading 454,626 shares. Its average daily volume is 459,000 shares. TTD sees more on the downside. 
THRX reported a fourth quarter loss of 45 cents a share compared with a loss of 25 cents a year ago.
For 2011, the company had a loss of $1.41 a share compared with a loss of $1.16 a year before.
The stock responded bearishly to the negative news. It gapped lower at the opening and hit an intraday low around noon at 15.69. The stock then lifted slightly and trended sideways.
TTD's clip of the tape shows the recent block trades. One can see the price for the blocks declining from $17.90 to $16.04. A key bearish trade came in the morning when a block of 3,460 shares crossed the tape at $16.09. That was down sharply from the prior block trade at $17.35. The tape action showed heavy institutional selling pressure.
THRX seeks to develop small molecule medicines for unmet medical needs for respiratory disease, bacterial infections, overactive bladder and gastrointestinal disorders.
Analysts forecast a loss of $1.35 a share for this year and a loss of $1.52 a share for 2013.
THRX's daily chart shows the stock gapping lower in January on heavy volume. The stock then lifted a bit, but now it is rolling over again. This is a very bearish pattern.
Strategy Opinion: TTD is targeting THRX for a drop to 12.40 within the next few months, or sooner. A protective stop buy can be placed near 16.60.
| TTD's Quality Rating of Stock - THRX - 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.)
