Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Thursday, March 6
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Thursday, March 6 |
| 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 - 1
Stocks Screened - 8,200
Bull side - Only one breakout - a gold stock.
Long-Term Environment for bulls: Bearish
Market Status (Daily) - NYSE Bearish, Nasdaq Bearish
Market Status (Weekly) -NYSE Bearish, Nasdaq Bearish
EGO, based in Vancouver, is a gold producer. It has developments in Turkey, China, and Brazil. Annual revenues: $85 million. EGO breaks out from a six-month, cup-and-handle base today and hits a new high. Gold stocks are one of the strongest sectors in the market at this time. So far today, EGO is trading 4.7 million shares, triple its normal daily volume of 1.5 million shares. 
TTD highlighted EGO as a breakout at our midsesson show on the web. The stock broke out early in the day and held its gain nicely.
The key news today was that EGO was reopening its Kisladag mine in Turkey. Obviously, the stock responded bullishly to the news shaking off any effects from the general stock market slide.
The stock acted mixed on the tape. TTD did spot some distribution.
Our clip of the tape, though, shows a sequence when EGO moved up nicely on some big block trades.
The company's wholly owned Kisladag mine in western Turkey began commercial production in July 2006. Its 90%-owned Tanjianshan mine in western China began commercial production February 2007.
EGO has 6.9 million ounces of proven and probable gold reserves. The firm produced 136,000 ounces of gold in 2006, and expects to report production of 325,000 ounces in 2007.
TTD's long-term chart of EGO shows the stock on a steady climb the past several years participating in the strength of the gold sector and the rise in the price of the precious metal.
EGO's daily chart shows a classic breakout with a good expansion in volume to support the move. The stock's TTD momentum indicator (top of the chart) is very bullish.
The accumulation - distribution line (bottom of chart) has been lagging. However, it is starting to turn up now.
This year, analysts predict EGO's earnings will climb 72% to 28 cents a share from an anticipated 16 cents a share a year ago. The stock sells with a price-earnings ratio of 27, which is reasonable.
Strategy Opinion: EGO is obviously a speculative play within the strong gold sector. TTD sees the stock with potential to climb to 10 within a few months, or sooner.
A protective stop can be placed near 6.60. TTD rates the stock an average intermediate-term play. EGO's performance will be tied to that of the gold sector.
Sponsorship: Very Good. The largest fund holder is 4-star rated USAA Precious Metals and Minerals Fund with a 2% stake. It was a recent buyer of 1.9 million shares. Also, 4-star rated Oppenheimer Gold and Special Minerals Fund was a recent purchaser of 500,000 shares.
Insider Activity: Not available. Currently, 15 analysts follow the stock, 10 have a buy, down from 11 three months ago.
| TTD's Breakout Profile
Rating Eldorado Gold Ltd. (EGO) |
| 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 | 11 | 0 | 3 |
(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 - 12
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Quite a few breakdowns today as stock market works lower. Overall, trend of stock market remains down.
(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.)
CIT, based in Livingston, N.J., is a finance company. Annual revenues: $4.8 billion. CIT falls sharply today on heavy volume to set off a TTD short play. The stock has been in a nosedive the past year falling from a peak near 60 about a year ago. TTD sees the selling pressure as major and possibly signaling bearish news to come.
So far today, CIT is trading 16.1 million shares, four times its normal daily volume of 3.9 million shares. The stock started moving lower early in the session and remained weak throughout.
TTD's clip of the tape shows a big block of 237,000 shares crossing in the afternoon on a down tick to $17.50 from the prior trade at $17.52.
CIT offer a variety of lending products, including asset- and cash-flow-based loans, aircraft and rail leases, accounts receivable factoring, and student loans.
The company also participates in joint financing ventures with large partners like Microsoft . CIT also finances small businesses. It has been the nation's largest Small Business Administration lender for seven years.
CIT is poised to show a big drop in earnings for the next two quarters. For the upcoming first quarter, analysts predict earnings will tumble 30% to 92 cents a share from $1.30 a year ago. The following second quarter, the Street expects earnings to be down 34% to 82 cents a share from $1.25 a year ago.
TTD's daily chart shows the stock knifing below key support at 20. The stock's heavy volume indicates potential bearish news coming. CIT's TTD momentum indicator top of the chart is very bearish. The accumulation - distribution line (bottom of chart) is rolling over confirming the heavy selling pressure.
TTD sees CIT a good short play for aggressive bears. We are targeting the stock for a decline to 13 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.)
