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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, February 27 |
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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 - 4
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Just a small number of breakouts. Very Selective choices. Bulls can be watchful. Stock market still holds in up trend with momentum still bullish.
(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
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TTD's Quality Rating of Stock - ZNGA - AVERAGE |
ZNGA, based in San Francisco, produces social games that have 232 million average monthly active users in 166 countries. Annual revenues: $1.1 billion. ZNGA's stock breaks out today from a five-week flat base. The stock came public in December and traded around $10. So far today, Zynga is trading a heavy 31.5 million shares, about double its normal daily volume of 15.7 million shares. 
The stock's strength today was linked to analysts reports that ZNGA plans to make its games available on non-facebook platforms.
TTD highlighted the stock as a breakout at our midsession video show.
ZNGA's 10-minute chart shows the stock actually move across its breakpoint line in the prior sessions. Friday, the stock pushes higher in the morning, but then fades back a bit. Nevertheless it holds above the breakpoint heading into the close.
The company produces popular games like Farmville and Cityville which can be seen on Facebook.
ZNGA's tape action shows the recent big block trades. 
One can see the price for the blocks climbing from $14.99 Friday morning to a peak of $15.70. The price of the blocks came down late in the session as some institutional profit taking took place.
However, there was a key bullish block. That came in the morning when 504,364 shares (duplicated) crossed the tape at $14.99. That was up from the prior block at $14.31. That showed very aggressive institutional buying.
ZNGA was formerly Presidio Media LLC.
The Company’s games are mostly accessible on Facebook, other social networks and mobile platforms to players globally, wherever and whenever they want.
The company operates its games as live services. All of its games are free to play, and it generates revenue through the in-game sale of virtual goods and advertising. In November 2010, the Company acquired Newtoy, Inc.
ZNGA's 3-month performance chart shows the stock appreciating 58% versus a 10% gain for the S&P 500 index.
ZNGA's long-term chart, going back just a few months, shows the stock trading around 10, dipping to 8 and that taking off with good volume. So far as a recent new issue ZNGA is acting strong.
ZNGA's daily chart shows the stock climbing from 8 to 14 and then basing. The stock now breaks out to the upside with good volume. The move was obviously sparked by bullish news of further expansion.
The base, although small, is still well formed. The stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) is in an overall up trend.
This year, analysts are forecasting a modest 10% rise in ZNGA's net to 26 cents a share from 24 cents a year ago. The stock sells with a price-earnings ratio of 57.
Going out to 2013, the Street looks for a 42% jump in net to 38 cents a share from the anticipated 26 cents this year.
Net for the upcoming first quarter should be 5 cents a share. The highest estimate is at 7 cents a share. In the prior quarter, ZNGA topped the consensus estimate by 2 cents a share, or 67%. That was impressive.
The company has been tending to raise earnings projects. 
Strategy Opinion: ZNGA is a speculative new IPO that is working very well. TTD is targeting the stock for a push to 19. A protective stop can be placed near 13.30.
TTD rates ZNGA a good intermediate-term play provided earnings meet expectations.
Sponsorship: Excellent. The largest fund holder is 5-star rated Morgan Stanley Inst. Mid Cap Growth Fund with a 0.69% stake. The 5-star rated fund was a recent buyer of 4.9 million shares. Also, 4-star rated T. Rowe Price Int. Large Capt Growth Fund was a buyer of 695,500 shares. ZNGA has 726.7 million shares outstanding.
Insider Activity: Neutral. Insiders have been exercising options from $8 to $13. They have done no selling. Currently, 14 analysts follow the stock, 5 have a buy.
Stock Performance Chart with Quarterly Earnings Markers
Insider Activity - Buying in Green - Selling in Red
| TTD's Breakout Profile
Rating Zynga Inc. - (ZNGA) |
| 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 - FURX - AVERAGE |
| TTD's Quality Rating of Stock - BVSN - BELOW AVERAGE |
| TTD's Quality Rating of Stock - T - BELOW 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 - 4
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small number of breakdown stocks today. Stock market looking tired and vulnerable. Bears be patient and selective.
OSTK, based in Salt Lake City, is an online closeout retailer. Annual revenues: $1.1 billion. OSTK's stock gaps sharply lower today on heavy volume. The drop was triggered by the firm reporting a loss for the fourth quarter of 15 cents a share compared with a profit of 63 cents a year ago. So far today, OSTK is trading 724,399 shares, six times its normal daily volume of 122,000 shares. TTD sees more on the downside. 
TTD highlighted OSTK as a short at our midsession video show on the Web Friday.
The stock gapped lower in the morning, bounced a bit and then turned lower again. It hit an intraday low of 5.89 in the morning. It then trended sideways the rest of the day unable to rally.
OSTK's tape action shows the recent big block trades. One can see the price for the blocks declining from $6.95 to as low as $6.08.
OSTK sells discount, brand-name merchandise for sale over the internet. Their merchandise offerings include bed-and-bath goods, kitchenware, watches, jewelry, electronics, sporting goods and designer accessories.
Analysts are forecast OSTK will show a loss of 17 cents a share for 2012.
OSTK's daily chart shows the stock trending lower from 10.50 to around 7. the stock tried to form a bottom, but fails. The breakdown with volume seems to come as a surprise since OSTK rose sharply in the prior session.
Strategy Opinion: TTD is targeting OSTK for a decline to 4.20 within the next few months, or sooner. A protective stop buy can be placed near 6.80.
| TTD's Quality Rating of Stock -OSTK - BELOW 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.)
