Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Monday, February 26
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Monday, February 26 |
| 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 - 7
Stocks Screened - 8,200
Bull side - Only a few breakouts today with most in the energy sector. Market averages improving. Bulls be alert now for top earnings stocks breaking out.
Long-Term Environment for bulls: Neutral
Market Status (Daily) - NYSE Bullish, Nasdaq Bearish
Market Status (Weekly) -NYSE Bullish, Nasdaq Bullish
ILMN, based in San Diego, makes equipment for the genomics research market. Annual revenues: $315 million. ILMN breaks out from an eight-week, cup-and-handle base today with a good expansion in volume. The stock's move carries it to a new high. Volume so far today is running at 2.1 million shares. The stock's average daily volume is 1.7 million shares.
TTD's clip of the tape shows ILMN moving higher in the early afternoon. A block of 6,544 shares crossed on a modest up tick to $75.99 from the prior trade at $75.98.
TTD highlighted ILMN as a breakout at our midsession show on the Web.
ILLMN's systems are used for genotyping, gene expression analysis, and DNA sequencing.
The company generates most of its revenue through consumable sales such as DNA chips and chemical reagents, which are needed on a per-experiment basis to complement its systems. ILMN sells most of its products to academic and government research centers.
The company's tools provide researchers with the performance and cost effectiveness to perform the billions of genetic tests needed to extract valuable medical information from advances in genomics and proteomics.
The company sees this information enabling researchers to correlate genetic variation and biological function, which will enhance drug discovery and clinical research, allow diseases to be detected earlier, and permit better choices of drugs for individual patients.
TTD's long-term chart of ILMN shows the stock now in a powerful bull market. and making a new high. The stock could well attract buying on Tuesday from the new high crowd.
ILMN is a powerful stock. A look at TTD's daily chart shows the stock with a big gap move higher in January. The subsequent basing work was well contained. It was a classic consolidation of the prior gains.
The structure of the base was very good with the stock spending the past few days near the top of the base. Today's breakout looks very god.
The stock's TTD momentum indicator (top of the chart) is extremely bullish. The accumulation - distribution line had a set back due to a quirk. That is when the stock gapped higher and then closed on the low for the day with big volume. We see the accumulation - distribution line as bullish.
The next two quarters will be very strong. Analyst expect ILMN's profits to increase 66% in the first quarter this year and up 64% in the second quarter.
The company's revenue growth is running at 15%.
For the upcoming first quarter, ILMN's net should climb to 23 cents a share from 14 cents a year ago. The highest estimate on the Street is at 26 cents a share. TTD sees good chances for an upside surprise. The past four quarters, ILMN topped the consensus Street estimate by between 3 to 6 cents a share.
Net for this year should increase 29% to $1.14 a share from 88 cents a year ago. The stock sells with a price-earnings ratio of 65. That is high. So, one has to be watchful of the stock. Going out to 2009, analysts predict net will increase 49% to $1.70 a share.
Strategy Opinion: ILMN is a great looking breakout stock today. It has a high valuation. So, it is most suitable for an aggressive investors. TTD is targeting ILMN for a move to 90. The stock does have the characteristics to attract investor attention. A protective stop can be placed near 70 and should be honored. TTD rates the stock a good intermediate-term play with potential to surprise on the upside.
Sponsorship: Excellent. The largest fund holder is Fidelity Growth Company Fund with a 6% stake. It was a recent buyer of 159,000 shares. Also, 5-star rated Columbia Acorn Z Fund was a recent purchaser of 300,000 shares and 4-star rated Morgan Stanley Inst. Small Company Growth Fund picked up 293,000 shares.
Insider Activity: Slightly Bullish. Insiders have done a bit more buying than selling in recent months. Currently, 14 analysts follow the stock, 11 have a buy, up sharply from 7 three months ago.
| TTD's Breakout Profile
Rating Illumina Inc. (ILMN) |
| 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 - 7
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Small list of breakdown plays today as market rallies. However, several recent shorts continue to work. Today, Strayer (STRA), a short from Friday, falls 5.11 to 153.64 and Enernoc Inc. (ENOC) drops 1.31 to 25.35.
(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.)
SMSI, based in Alizo Viejo, Ca., develops and markets wireless communication and Internet-based business software. Annual revenues: $71 million. SMSI, a micro-cap tech stock falls sharply today on heavy volume after being downgraded by brokerage firm JP Morgan. TTD sees more on the downside because weak earnings are coming.
So far today, SMISI is trading 3.7 million shares, seven times its normal dally volume of 527,000 shares.
The stock came under heavy selling pressure early in the day. TTD's clip of the tape shows a big block of 50,000 shares crossing on down tick to $5.80 from the prior trade at $5.81. TTD sees the heavy selling as very bearish and indication of institutional selling pressure.
SMSI will report year end earnings on March 5. Analysts forecast a 21% decline in fourth quarter profits to 11 cents a share from 14 cents a year ago. For the year, profits should be down 61% to 19 cents a share from 48 cents a year ago.
The company makes wireless products for original equipment manufacturers, particularly mobile phone manufacturers and wireless service providers.
Looking out to the first quarter of this year, analysts see earnings tumbling 50% to 10 cents a share from 20 cents a year ago.
JP Morgan lowered its rating on the stock to neutral. TTD sees it as bearish. The TTD daily chart of SMSI shows the stock in a down trend and now rolling over again. The stock's TTD momentum indicator (top of the chart) is very bearish. The accumulation - distribution line is trending lower indicating consistent selling pressure. TTD is targeting the stock for a decline to 4 within a few months.
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.)
