Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Monday, February 23
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Monday, February 23 |
| 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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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 today - 1
Stocks Screened - 8,200
Bull's Strategy - Just one breakout stock today as the stock market continues to work lower. Bulls be very conservative and patient. A rally opportunity will come.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Unfavorable
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) -NYSE Bearish, Nasdaq Bearish
Market (Monthly) NYSE Bearish, Nasdaq Bearish
| TTD's Quality Rating of Breakout Stock - SNDA - BELOW AVERAGE |
SNDA, based in Shanghai, China, is an interactive entertainment company in China, offering diversified content through its EZ Center platform including online games, literature, music, movies, and other services. Annual revenues: $377 million. SNDA breaks out from an 8-week, cup-and-handle base today. The stock is the only one TTD found as a breakout as the stock market remains very bearish. 
So far today, SNDA is trading 687,118 shares. Its average daily volume is 524,000 shares. So, the breakout does not come with a lot of volume. That means one needs to be careful and watchful.
SNDA's stock rose through the morning. It peaked around midday and then gave ground in the afternoon as the stock market sold off.
TTD's clip of the tape shows the big block trades the past two days. One can see the price for the big blocks rose from $31.26 on Friday to $32.48. That is very bullish tape action. It shows institutions were willing to pay up for the stock even though the stock market worked lower. So, SNDA is outperforming nicely.
SNDA is a dominant operator of massively multiplayer and casual online games. They include chess and board games, and network PC games in China. It gets 90% of its revenues from massively multiplayer and casual games with in-game item-based revenue models.
TTD's performance chart for the past six months shows SNDA's stock appreciating 20%. The stock has easily outperformed the S&P 500 index which is down 40% the past six months.
TTD's long-term chart of SNDA shows the stock now in an up trend from 20 to 31. There is key upside resistance at 40. A breakout from its current base and a push over that point would be very bullish.
SNDA's daily chart shows the cup-and-handle base. It was formed after the stock rallied from 20 to 34. That was a strong move given market conditions.
SNDA's technicals are extremely bullish. So, that sets the tone for a potential move higher.
The TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) is in a strong up trend and has broken out to the upside. That is good technical confirmation there is good underlying buying taking place in the stock.
The company will report yearend results on Feb. 26.
The Street is forecasting a 14% increase in net for 2008 to $2.47 a share from $2.18 a year ago. The stock sells with a price-earnings ratio of 13 based on 2008 net. TTD sees that as reasonable.
Profits for the fourth quarter should climb 25% to 68 cents a share from 54 cents a year ago. The highest estimate on the Street is at 71 cents a share. TTD sees excellent chances for an upside earnings surprise. The past four quarters, SNDA topped the consensus Street estimate by 6 to 13 cents a share.
Going out to 2009, analysts predict a 16% increase in net to $2.88 a share from the anticipated $2.47 a share.
Strategy Opinion: SNDA's stock is acting well and has good potential to move higher, especially if the stock market should rally. TTD is targeting SNDA for a move to 40 within a few months. A protective stop can be placed near 30, which is tight. TTD rates SNDA a good intermediate-term play because of its steady earnings outlook.
Sponsorship: Very Good. The larges fund buyer recently was 5-star rated ING FMR Diversified Mid Cap Fund which purchased 121,000 shares. The largest fund holder is AllianceBernstein Intl. Growth Fund, 3-star rated, with a 1.4% stake. SNDA has 72 million shares outstanding. Funds hold 6.5 million shares.
Insider Activity: Not available. Nine analysts follow the stock, 8 have a buy, up from 7 three months ago.
Stock Performance Chart for 6 months with Quarterly Earnings Markers.
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TTD's Profile Rating Shanda Interactive Entertainment - (SNDA) |
| 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 | 9 | 0 | 5 |
(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 - 17
Stocks Screened - 8,200
Long-Term Environment for bears: Favorable.
Bear Side - Large number of breakdown stocks today as market works lower. Bears be aggressive. TTD's short play from Friday Nordson Corp. (NDSN) - 27.28, off 2.27, is working well for bears. Today, NDSN is down 1.70 to 25.78.
(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.)
VRGY, based in Singapore, supplies automated test equipment to the semiconductor industry. Annual revenues: $690 million. VRGY's stock breaks to the downside today. The company reported late last week a loss for the fiscal first quarter ended January 31. With further red ink expected in coming quarters, TTD sees VRGY with more to go on the downside. 
VRGY is trading 680,194 shares so far today. The stock's average daily volume is 492,000 shares.
The stock rose slightly at the opening. However, it turned lower and has trended down for most of the day. TTD's clip of the tape shows the big block trades of the past few days. One can see the price paid for the blocks declined from $7.53 on Friday to a low of $6.98.
The tape action indicates clear selling pressure.
VRGY reported on Feb. 19 that it a loss of $1.09 a share compared with a loss of 60 cents a share a year ago. Revenue for the quarter plunged 55%. It also took a restructuring charge of $23 million.
VRGY's tools are used to test a wide range of integrated circuits, such as memory, digital, analog, radio frequency, and system-on-a-chip devices.
The company also offers support services to assist customers in developing and implementing test solutions for semiconductors, from the design to manufacturing stages.
Analysts look for VRGY to show a loss of $1.95 a share for the fiscal year ending Oct. 30. That compares with a profit of $1.19 a share a year ago. For the upcoming fiscal second quarter ending April 30, they expect a loss of 58 cents a share compared with a profit of 23 cents a share a year ago.
TTD's chart shows the stock in a down trend and then trying to form a bottom around 7.36 to 9.50. It has failed. The stock now is moving lower.
TTD is targeting VRGY's stock for a decline to 5 with in the next few months or sooner, That would be a 29% decline.
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.)
