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Ticker Tape Digest

Thursday - March 5, 2009


                                          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).

Quote or chart

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 - 2

Stocks Screened - 8,200

Bull's Strategy -  Just 2 breakout today. Stock market falls sharply today to reinforce the down trend after Wednesday's short covering rally.  Bulls  remain conservative and patient.

 (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


Today's Feature Breakout Stock

SXC Health Solutions Inc. (SXCI) - 21.12, up 1.91 - Breakpoint 20.80

Profits Top Street Estimates, TTD Targets 26

                    TTD's Quality Rating of Stock - SXCI -  AVERAGE

     SXCI, based in Milton, On., provides pharmacy benefits management services and Health Care Information Technology solutions to the healthcare benefits management industry. Annual revenues: $590 million. SXCI reemerges from a five-week flat base today after reporting a big upside surprise with fourth quarter earnings. Volume so far today is running at 460,386 shares, double its normal daily volume of 210,000 shares.

  TTD highlighted SXCI recently (February 2) and today on our midsession show on the Web.

  One of the larger trades on the tape is highlighted in TTD's table. It was a block of 7,300 shares crossing on a modest up tick to $21.18 from the prior trade at $21.17.

  The tape action showed good institutional buying interest.

  SXCI shot higher in the morning. It coasted in the afternoon and then weakened into the close due most likely by the heavy selling in the general stock market.

  SXCI's product offerings and solutions combine a wide range of PBM services, software applications, application service provider processing services and professional services.

 They are designed for many of the largest firms in the pharmaceutical supply chain, such as employers, health plans, Federal, provincial, and, state and local governments, pharmacy benefit managers, retail pharmacy chains and other healthcare intermediaries.

  The company reported fourth quarter earnings increased 17% to 21 cents a share from 18 cents a year ago. The 21 cents a share topped the consensus estimate of 13 cents a share and the highest estimate of 18 cents a share. The positive response to the earnings news was very bullish. TTD has noted that when a company can top the highest estimate on the Street, the stock has good chances to move higher not only for the day but for the next several weeks.

  SXCI's performance chart of the past 12 months shows the stock appreciating 60%. That easily outperforms the 52% drop in the S&P 500 index. One can see the stock has performed very well after reporting earnings the past several quarters.

  TTD's long-term chart of SXCI shows the stock as a big winner from 2005 to 2007 as it soared from 5 to 32. Afterwards the stock pulled back into an intermediate-term consolidation.  It is now emerging from that and working higher.  

  TTD's daily chart shows SXCI's stock trending higher from 10 to 20 the past few months. That is a sensational move bucking the down trend of the stock market. So, SXCI is a leader. 

  The breakout come from a short base. Also, the stock is a bit extended near-term. So, one needs to be watchful of the stock.

   The spread (range from high to low) widens today. That is bullish. It shows ease of price movement.

  The  TTD momentum indicator (top of the chart) is neutral. The accumulation - distribution line (bottom of chart) is trending higher. That indicates good demand for the stock.

   Net for 2008 came in at 66 cent a share. That topped the 57 cents a share consensus estimate.

   TTD sees net for this year increasing 22% to 80 cents a share from 55 cents a share in 2008.

  The company is growing via acquisitions and the win of new contracts. Late last year, it acquired Zynchros, a privately-held developer of management solutions.

  Strategy Opinion: SXCI's breakout today looks good considering the weakness in the stock market. TTD is targeting the stock for a move to 26 within the next few months. A protective stop can be placed at 20, which is tight. TTD rates SXCI a good intermediate-term play provided earnings remain on course.

  Sponsorship: Very Good. The largest fund holder is 3-star rated Janus Venture Fund with a 2.6% stake. It has held its position steady. A key buyer recently was 4-star rated BlackRock Global Small Cap Fund which purchased 124,000 shares. SXCI has 24 million shares outstanding. Funds hold 1.2 million shares.

  Insider Activity: Neutral. Insiders were buyers using stock options. They turned around and did slightly more selling than buying. Currently, 14 analysts follow the stock, 8 have a buy, the same as three months ago 



                     Stock Performance Chart for 12 months with Quarterly Earnings Markers.

  


TTD's Profile Rating

SXC Health Solutions Corp. - (SXCI)

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 13 0 1

Timely Breakout Stocks From Tape Action Today

(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  


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Ticker Tape Digest’s

Stocks To “Sell or Short”

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 - 10

Stocks Screened - 8,200

Long-Term Environment for bears: Favorable.

Bear Side - Breakout list expands today as stock market turns sharply lower. Bears remain aggressive. TTD's featured short play from Wednesday was  Gymboree Corp. (GYMB) - 22.50, off 1.53. Today, GYMB falls 6.16 to 16.50, for a nine 27% gain in just one day.


List of Stocks To Sell or Short

(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.)


TTD’s Feature Bear Play

 Vocus Inc. (VOCS) - 12.45, off 2.81

Earnings to Drop 11% This Year, TTD Sees Drop to 9

  VOCS, based Lanham, Md., offers a web based software suite to help organizations manage communications. VOCS stock gaps lower today on heavy volume. TTD did not spot any news. The company will make a presentation at the March 9 analyst meeting. Today's tumble sets the stock on a course lower. TTD sees VOCS as a very good short due to the massive technical breakdown today. Remember, often stocks will breakdown before the news.

  VOCS is down about 2 points so far today. Volume is running at a hefty 862,403 shares, about triple its normal daily volume of 286,000 shares.

  TTD's clip of the tape shows the stock got off to a bearish start in the morning when it fell from $15.33 to $14.57. The key block trade was 1,300 shares at $14.57. The stock headed lower afterwards. TTD sees the tape action for VOCS as extremely bearish.

  VOCS' software is designed to keep track of messages with journalists, analysts, and public officials.

  Its software modules address specific functions of corporate communications and public relations. These functions include contact management, news management, collateral management, project management, and interactive email campaigns.

  Analysts forecast a 10% drop in VOCS' earnings to 5 cents a share from 6 cents a year ago. Going out to 2009, the Street projects an 11% decline in net to 18 cents a share from an anticipated 20 cents a share this year.

  VOCS chart shows the stock falling from 35 to 15. The stock tried to form a bottom. However, today's decline violates key support at $14.12. The stock's TTD momentum indicator (top of chart) is solidly bearish. The accumulation - distribution line (bottom of chart) is rolling over.

  The breakdown in VOCS prior to an analysts meeting is very bearish. TTD is targeting the stock for a decline to 9 within the next few months, or sooner. A protective stop can be placed near 13.40.



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.”

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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.)