Daily - Go to TTD's Tape of Stock Charts - Tuesday, February 12
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Daily - Go to TTD's Tape of Stock Charts - Tuesday, February 12 |
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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, February 11 |
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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 - 12
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Good number of breakouts with several good looking plays. Bulls can be venturesome. Stock market holds up trend.
(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
(See Top Performing Breakout Stocks for 2011- 2012)
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TTD's Quality Rating of Stock - KORS - ABOVE AVERAGE |
KORS, based in Hong Kong, makes footware and hand bags. Annual revenues: $1.7 billion. KORS's stock surges higher an breaks out from a four-month, cup-and-handle base. The move, which carried the stock to a new all-time high, came after KORS reported strong net for the fiscal third quarter ending in December. 
TTD highlighted KORS as a breakout at our midsession video show on the Web Tuesday.
The company reported net for the fiscal third quarter from operations jumped to 64 cents a share from 28 cents a share a year ago.
The results topped the 40 cents a share expected by the Street and the highest estimate of 43 cents a share. It was a big earnings surprise and the stock responded extremely bullishly to the news. 
TTD's 10-minute chart shows KORS's stock driving sharply higher in the morning and breaking out from its base.
The stock peaked at $64.80 in the morning. In the afternoon, it trended sideways holding the bulk of its gains.
The earnings - surpassing the highest estimate on the Street - is very bullish. That often causes analysts to have to up year estimates. Also, it sometimes causes the stock to move higher for the next two weeks or so as the fundamentals are adjusted upward.
KORS' tape action shows the recent big block trades. 
One can see the price for the blocks climbing from $56.78 the day before to a peak of $64.42 Tuesday morning.
The key bullish trade came when 352,935 shares crossed the tape at $64.42, up from $56.78.
One can see the price for the blocks dribbling lower afterwards. That indicates some institutional profit taking.
KORS offers two primary collections: the Michael Kors luxury collection and the MICHAEL Michael Kors accessible luxury collection.
They also offer select footwear and outerwear through their KORS Michael Kors accessible luxury collection. They operate their business in three segments-retail, wholesale and licensing-and have a global distribution network focused on company-operated retail stores, leading department stores, specialty stores and select licensing partners.
KORS 12-month performance chart shows the stock appreciating 84% versus a 17% gain for the S&P 500 index. The stock is a top performer.
KORS long-term chart shows the stock coming public in late 2011 and trading around 25. It climbed to a peak near 50 in early 2012 and has since been working higher. The push to a new high could bring in more buying on Wednesday. 
KORS daily chart shows the stock gapping higher on big volume. The base was well formed and bracketed between 48 and 58.
The stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) has been working higher.
KORS said it expects fourth quarter earnings of 32 to 34 cents a share. That would be up some 50% from the 21 cents a share posted a year ago.
The Street consensus is at 31 cents a share with the highest estimate at 44 cents a share.
For fiscal 203 ending in March, the Street is projecting a 93% leap in net to $1.54 a share from 80 cents a year ago. The stock sells with a price-earnings ratio of 40. TTD sees that as reasonable.
Going out to fiscal 2014 ending in March, earnings are projected to climb 31% to $2.03 a share from the anticipated $1.54 a share for 2013. 
Strategy Opinion: KORS is hot! TTD is targeting the stock for a move to 75 within the next few months or sooner. A protective stop can be placed near 57 giving it some room.
TTD rates KORS a very good intermediate-term play due to its strong earnings outlook.
Sponsorship: Excellent. The largest fund buyer recently was 4-star rated T. Rowe Price Blue Chip Growth Fund which purchased 510,100 shares. It has a 0.9% stake.
The largest fund holder is 5-star rated Fidelity Growth Company Fund with a 2.9% stake. It was a recent seller of 100,000 shares. KORS has 200 million shares outstanding.
Insider Activity: Not available. Currently, 9 analysts follow the stock, all 9 have a buy, the same sentiment as three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
| TTD's Breakout Profile
Rating Michael Kors Holdings Ltd. - (KORS) |
| 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 - FLS - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - FRGI - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - GWW - AVERAGE |
| TTD's Quality Rating of Stock - CONN - 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 - 3
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Blue chip stocks move sharply higher today. Stock market holds up trend. Bears be selective and conservative.
CUB, based in San Diego, makes auto fare collection systems. Annual revenues: $1.4 billion. CUB's stock falls sharply today after the company reported lower earnings for the fiscal first quarter ended Dec. 31. So far today, CUB is trading a heavy 548,050 shares, seven times its normal daily volume of 73,000 shares. TTD sees more on the downside. 
TTD highlighted CUB as a short at our midsession video show on the Web.
CUB reported earnings for the fiscal first quarter dropped to 47 cents a share from 77 cents a year ago.
CUB's stock fell sharply in the morning. It hit an intraday low of 44.25. The stock then lifted slightly and trended sideways the rest of the day.
TTD's clip of the tape shows the recent big block trades.
One can see the price for the blocks tumbling from $48.40 to as low as $44.84. A key bearish block came in the morning when a 5,700 share block crossed at $46.66. That was down sharply from the prior block at $48.40.
The tape showed heavy institutional selling pressure.
CUB operates in two areas. The first is defense applications providing realistic combat training systems, mission support services and defense electronics.
The second area is making automatic fare collection systems for public transit authorities.
This fiscal year ending September of 2013 the Street is forecasting an 11% decline in net to $3.07 a share from $3.44 in fiscal 2012.
CUB's daily chart shows the stock gapping lower today on big volume. CUB's accumulation - distribution line (bottom of chart) was trending higher. It would appear the news surprised investors. That is good for bears.
Strategy Opinion: TTD is targeting CUB for a decline 38 within the next few months, or sooner. A protective stop buy can be placed near 47.
| TTD's Quality Rating of Stock - CUB - 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.)
