Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Friday, February 22
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Friday, February 22 |
| Go to Video Show - "How to Make Money With Breakout Stocks" |
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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 breakout and Short Selling report.
It contains Breakout Stocks and Stocks under 
Significant Accumulation.
Data is from tape action for the day. These stocks are most suitable for aggressive investors seeking ideal entry points for leading stocks.
These stocks will do very well during bull markets and strong market rallies.
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 corrections
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.
TTD often suggests using stop buy orders to enter. It is very important to buy a breakout stock as close as possible to the break point. 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.
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.
Total Buy Breakouts so far today - 3
Stocks Screened - 8,200
Bull side - Small list of breakouts. Market rallies late in the day led by the Blue Chips. Bulls remain cautious and selective.
Long-Term Environment for bulls: Neutral
Market Status (Daily) - NYSE Bearish, Nasdaq Bearish
Market Status (Weekly) -NYSE Bullish, Nasdaq Bearish
ME, based in Houston, is an oil and gas producer. Annual revenues; $842 million. ME breaks out from an 6-week, cup-and-handle base today. The stock had been showing an upward bias the pass several session. The trigger for today's advance: favorable earnings. So far today, ME is trading 2.6 million shares, triple its normal daily volume of 822,000 shares. 
The stock got off to a good start in the morning despite a selloff in the stock market. TTD's clip of the tape highlights a big block of 40,000 shares crossing the tape on a modest up tick to $26.49 from the prior trade at $26.46.
The action indicated aggressive institutional buying, which continue through the day.
TTD highlighted ME as a breakout at our midsession show on the Web.
ME operates onshore in West Texas and offshore in shelf and deep-water Gulf of Mexico.
In 2006, ME added offshore Gulf of Mexico properties that were spun off from Forest Oil through an exchange of stock. ME's proved reserves were 716 billion cubic feet of natural-gas equivalent, with 46% in the Gulf of Mexico shelf, 18% deep-water, and 36% onshore Texas.
Me reported a 16% increase in net for the fourth quarter to 58 cents a share from 50 cents a year ago. The 58 cents a share topped the consensus Street estimate of 45 cents a share and the highest estimate of 51 cents a share. So, the upside surprise was significant and the stock responded. That is bullish.
TTD's weekly chart of ME shows the outline of the six-week base. It also fits bullishly with the long-term pattern. The stock is now in a well defined up trend.
TTD's daily chart shows the strong pick up in volume today. The stock's accumulation - distribution line has been trending higher for several months, which is impressive given the overall weakness in the stock market.
ME finished 2007 with profits of $1.68 a share, up from $1.58 a year ago. Revenues increased 33% to $874 million from $659 million.
This year, analysts predict a big 67% surge in net to $2.80 a share from $1.68 in 2007. The stock sells with a price-earnings ratio of just 9 based on this year's estimated net.
TTD sees that as low making the stock an attractive energy play based on valuation and earnings growth.
ME should rack up a strong first quarter. Analysts expect net to jump 47% to 66 cents a share from 45 cents a year ago. The highest estimate on the Street is at 82 cents a share. So, some think a big quarter is possible.
Strategy Opinion: ME is one of the stronger acting energy plays. TTD is calling for the stock to climb to 34 within the next few months, or sooner. A protective stop can be placed near 25, which is tight. TTD rates ME a very good intermediate-term play because of the strong earnings outlook and low valuation for the stock.
Sponsorship: Excellent. The top three fund holders all have a 5-star rating. The largest fund holder is Fidelity Leveraged Company Stock Fund with a 3.4% stake. It has held its position steady. The largest fund buyer recently was 5-star rated Wells Fargo Advantage Small Cap Value Fund which purchased 369,000 shares.
Insider Activity: Neutral. Insiders have been buyers using stock options, but they have turned around and did more selling. Six analysts follow the stock, 4 have a buy, up from 3 three months ago.
| TTD's Breakout Profile
Rating Mariner Energy Inc. (ME) |
| TTD Check List | Bullish | Bearish | Neutral |
| Near 52-week High | YES | ||
| Volume Expansion | 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 |
(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.
(Trading strategy: One should buy breakout stocks at breakpoint by using market order or stop buy)
Charts of Breakout Stocks
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 - 13
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Good number of breakdown stocks today with several showing fundamental earnings problems. Bears be aggressive. TTD's feature short from Thursday, Lodgenet Interactive Corp. (LNET) falls 1.94 to 10.26 today, a drop of 16% - a great bear win in just one session.
(Trading strategy: These stocks can be sold short, or if held should be sold. If a stock is sold short, a protective stop buy should be placed. Short plays work best when the stock market is in a down trend.)
DGX, based in Teterboro, N.J., provides laboratory testing services. Annual revenues: $6.5 billion. DGX falls sharply today following on the bearish action on Thursday. The company reported a fourth quarter loss including a special item and makes disappointing 2008 forecast. TTD sees more on the downside. So far today, DGX is trading 4.4 million shares so far today, triple its average daily volume of 1.5 million shares.
TTD's table highlights a big block trade of 16,700 shares crossing on a modest down tick to $47.25 from the prior trade at $47.26. The stock was unable to put together any kind of an intraday rally. It is moving toward its low for the session late in the day. That is bearish.
DGX came in with a fourth quarter loss of 3 cents a share compared with a profit of 76 cents a share a year ago. The loss reflected a charge for legal reserves.
The company projected earnings from operations for this year at $3 to $3.20 a share.
The company's clinical testing business accounts for 92% of sales. The company offers access to diagnostic testing services through its national network of laboratories and patient service centers, and provides interpretive consultation through its medical and scientific staff.
The stock's breakdown the past two sessions is coming on heavy volume. The stock's technicals are extremely bearish with the TTD momentum indicator deeply bearish (see top of chart) and the accumulation - distribution line heading lower (see bottom of chart). TTD is targeting the stock for a drop to 40. It is a good trading short for bears.
TTD's February Short List of Potential Breakdown Stocks
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. Some of the charts are from Telescan, Insight Trading, First Alert and other sources.)
