Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Wednesday, March 5
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Wednesday, March 5 |
| 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 - 2
Stocks Screened - 8,200
Bull side - Very few breakouts. Still slim pickings for bulls.
Long-Term Environment for bulls: Neutral
Market Status (Daily) - NYSE Bearish, Nasdaq Bearish
Market Status (Weekly) -NYSE Bullish, Nasdaq Bearish
BUCY, based in Milwaukee, Wisc., makes draglines, electric mining shovels, and rotary blasthole drills used in the surface mining of commodities, such as coal, copper, and oil sands. Annual revenues: $1.6 billion. BUCY hits a new high today and reemerges from an 11-week base. The stock showed very good action through the day. Volume so far today is running at 1.8 million shares, almost double the normal daily volume of $1.1 million shares. 
TTD highlighted BUCY at our midsession show on the Web today.
The stock got off to a good start at the opening bell. A block of 6,810 shares crossed early on a nice up tick to $103.15 from the prior trade at $102.19.
So right from the start the stock was acting well. BUCY does have a high beta of 2.11 versus the 1.00 for the S&P 500. That means the stock is twice as volatile as the stock market. So, BUCY should have the potential to be a mover.
BUCY gets 65% of its sales from the aftermarket parts and services for its machines.
The company estimates its installed base of machinery at $13 billion, spread throughout the world. BUCY is based near its primary manufacturing facility in Milwaukee.
BUCY is one of the few stocks hitting a new high. TTD's long-term chart shows the stock in a solid bull market.
BUCY's daily chart shows the basing work. The structure of the base is not the best. It shows a "V" bottom type set up. The ideal would be a cup-and-handle base.
Also, one would like to see pull backs in price over the past few weeks with a contraction in volume. There were a few but not many significant ones. So, in all, one has to be very watch of the stock the next few days.
What is impressive is that BUCY's accumulation - distribution line (bottom of chart) is in a strong up trend and has hit a new peak. That could well be a good confirmation that there is strong underlying buying in the stock.
This year, BUCY's profits should climb 35% to $5.12 a share from $3.79 a share a year ago. The stock sells with a price-earnings ratio of 20 which is attractive to value growth investors.
The 20 p/e ratio is well below the earnings growth rate of this year of 35%. Next year, analysts expect net to be up 23% to $6.31 a share.
Net for the upcoming first quarter should be extremely strong. Analysts expect a 71% surge to 98 cents a share from 57 cents a year ago. The highest estimate on the Street is at $1.10 a share. So there are some looking for a big quarter.
Strategy Opinion: TTD is targeting BUCY for a move to 130 within the next few months. A protective stop can be placed near 99. TTD rates BUCY a very good looking intermediate-term play because of its strong earnings outlook.
Sponsorship: Excellent. The top three fund holders all have a 5-star rating. The largest fund holder is Neuberger Berman Genesis Fund with a 6% stake. The largest buyer lately was 4-star rated Brandywine Fund which purchased 330,000 shares.
Insider Activity: Neutral. Not much activity lately. Currently, seven analysts follow the stock, 5 have a buy, up from 3 three months ago.
| TTD's Breakout Profile
Rating Bucyrus International Inc. (BUCY) |
| 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 | 12 | 0 | 2 |
(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 - 2
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Only a few breakdown stocks today. Bears be conservative today and watchful.
(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.)
UCBH, based in San Francisco, is a bank that focuses on the ethnic Chinese population in the United States and abroad. Annual revenues: $350 million. UCBH falls sharply today after several brokers lowered their ratings on the stock. The company disclosed it would have to increase its loan loss provisions. So far today, UCBH is trading 9 million shares, almost six times its normal daily volume of 1.6 million shares.
The stock got off to a bearish start in the morning. TTD's clip of the tape highlights a big block of 119,700 shares crossing on a down tick to $9.43 from the prior trade at $9.45. The action showed clear institutional selling pressure.
UCBH offers checking and savings accounts, retirement accounts, business and real estate lending, and trade finance for importers and exporters.
In 2004, the bank began offering brokerage services through its subsidiary, UCB Investment Services. The bank has about 49 locations, including offices in China and Taiwan.
Analysts are forecasting a very weak first half. Net for the first quarter is projected to decline 12% to 23 cents a share from 26 cents a share a year ago. Looking out to the secod quarter, profits are expected to be down 4% to 26 cents a share from 27 cents a year ago.
TTD's daily chart shows UCBH's stock in a down trend and now rolling over with heavy selling pressure. The stock's TTD momentum indicator (top of the chart) is extremely bearish. The accumulation - distribution line ( bottom of chart) is trending lower indicating heavy selling pressure.
TTD sees the stock has a good trading short. We are targeting UCBH for a decline to 7 within the next few months, or sooner.
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.)
