|
|
|
Go to Video Show - "How to Make Money With Breakout Stocks" Go to Video Show -TTD Performance 2008 Long and Short |
|---|
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.
|
Ticker Tape Digest's Trading Strategies Overview and Performance Bullish Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." Conservative Investors "Bargain Buy Trades" (swing trades). Ideally suited for entry into stocks on pullbacks within overall up trend. Good for trading range markets Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns Conservative Bearish Investors (swing traders). "Bargain Bearish Plays" to Sell Short. Ideally suited for trading range markets with overall market down trend. |
|---|
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 These are for conservative bullish Investors The strategy is called swing trading. These long buys are ideally suited for entry into stocks on pull backs within overall up trend. They are good for trading range markets. These stocks can give a good return in a week or two. They can also explode into a breakout and a powerful advance.
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 Bearish bargain play stocks to sell short. These issues are usually in down trends and are poised to rollover after a minor rally. They often can provide a conservative bear with a good entry point.
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
Stocks Screened - 8,200
Bull side - Breakout list remains high with some top stocks moving out. Bulls be aggressive. The stock market action would suggest allocation money is moving into stocks. Many recent breakouts are doing well.
(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 Bearish, Nasdaq Bullish
|
TTD's Quality Rating of Stock - V - ABOVE AVERAGE |
V, based in San Francisco, operates a retail electronic payments network and
manages a global payments brand called Visa. Annual revenues: $6.9 billion. V
breaks out from a 13-week, flat base today and hits a new all-time high. The stock has been acting strong the past 12 months having doubled. It is one of the stock on TTD's Long-term investors list. 
TTD highlighted V as a breakout at our midsession show on the web Monday.
V's 5-minute chart shows the stock dipping at the opening, but then rallying strongly to push over its breakpoint.
The stock has been able to hold a good chunk of its gain so far today.
So far today, V is trading 7.7 million shares, double its normal daily volume of 4 million shares.
TTD's clip of the tape shows the big block trades the past few days. One can
see the price for the blocks climbing from $86.15 to $89.46. That showed good
institutional buying interest. 
A key trade was a big block of 639,300 shares that crossed at $87.04, up from the prior block that went off at $86.77. That was a big institution bidding up for the stock.
V has a large number of credit card services.
The company provides financial institutions with product platforms encompassing consumer credit, debit, prepaid and commercial payments. VisaNet, the centralized, global processing platform, lets financial institutions and merchants operate with a range of product platforms, transaction processing and related services.
V's 12-month performance chart shows the stock appreciating 80% compared with a 65% gain in the S&P 500 index. So, for a big cap play V has done well.
V's long-term chart shows the stock doing well when it came public in 2008
and trading around $60. It zoomed to a peak of 89. However, it was pulled lower
during the bear market touching 41.78. It has since rebounded strongly. 
V's daily chart shows the recent advance from 65 to almost 90. The stock set up a flat base. There was a shakeout down to the low 80s, but the stock bounced back.
The breakout today looks good in that the spread (range from high to low) has expanded. That shows ease of price movement.
The stock's accumulation - distribution line (bottom of chart) is in an overall up trend.
The TTD momentum indicator (top of chart) is bullish
V stands to do well with an up turn in the economy and more spending by the consumer.
The company is a consistent 20% earnings growth play. That is very good for such a big firm.
Net for the fiscal year ending September 30, 2010 is projected to increase 30% to $3.81 a share from $2.92 a year ago. The stock sells with a price-earnings ratio of 23. That is reasonable. Analysts have been lifting their estimates for V.
Going out to fiscal 2011, analysts project a 20% gain in net to $4.57a share from the anticipated $3.81 in fiscal 2010.
V's net for the upcoming fiscal second quarter ending March 30 should rise 24% to 90 cents a share from 73 cents a year ago. TTD sees good chances for an upside earnings surprise. The past four quarters, V has topped the consensus by 9 to 3 cents a share.
Strategy Opinion: V is a solid big cap play with strong profits. TTD is targeting V for a move to 110. A protective stop can be placed near 85 giving the stock some room. TTD rates V a very good intermediate-term play for conservative investors.
Sponsorship: Excellent. The largest fund holder is 5-star rated Fidelity Contrafund with a 1.9% stake. It was a recent buyer of 272,700 shares. One of the largest non index fund buyers recently was T. Rowe Price Growth Stock Fund, 4-star rated, which purchased 825,000 shares. V has 843 million shares outstanding.
Insider Activity: Neutral. Not much activity recently. The latest buy was with an options and the holder sold at $84.25. Currently, 31 analysts follow the stock, 26 have a buy, up from 23 three months ago. .
Stock Performance Chart for 12 months with Quarterly Earnings Markers.
|
TTD's Breakout Profile Rating Visa Inc. - (V) |
| 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 |
(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. They are ranked according to percentage change and classified as leaders or other. (Trading strategy: One should buy breakout stocks at breakpoint by using market order or stop buy)
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - GMCR - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - BCSI - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - IMAX - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - NUS - AVERAGE |
|
Conservative Investors Bearish (swing traders) - Go To TTD Bargain Short Trade Setups - Monday, March 8 - Weekly - Feature short play Chart Industries (GTLS) 20.26 |
Ticker Tape Digest’s Daily List of “Stocks To 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 - 1
Stocks Screened - 8,2007
Long-Term Environment for bears: Neutral.
Bear Side - Very few breakdown stocks today. Bears remain patient and watchful. TTD's featured breakdown stock on Friday was Dynamic Materials Corp. (BOOM) - 16.11, down 2.95. Today, BOOM is trading at 16.07.
(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.)
DRWI, based in Ottawa, Canada, develops broadband wireless backhaul equipment. Annual revenues: $115 million. DRWI's stock breaks below key support today with expanding volume. The stock was on a roll the past several months. However, the momentum of the price of the stock has shifted to the downside. So far today, DRWI is trading a hefty 1.7 million shares, double its normal daily volume of 732,000 shares. TTD sees more on the downside. 
DRWI's stock fell sharply at the opening. It hit a bottom at 9.55, and then lifted slightly. The stock managed to cut its loss during the day. However, it has still remained in the red for the session.
TTD's clip of the tape shows the recent big block trades. One can see the price for DRWI's blocks declining from $11.24 to $9.70. The latest block showed a slight lift. A key trade took place on Friday when a block of 22,700 shares crossed at $10.35. That was down sharply from the prior block trade at $10.82.
The tape action indicates clear institutional selling pressure.
DRWI makes carrier-grade microwave equipment offering broadband wireless systems for network operators and service providers worldwide.
The Company delivers Ethernet wireless point-to-point backhaul networks for the transport of voice, video and data. Its additional solutions include leased line replacement, last mile fiber extension and enterprise networks.
For the fiscal year ending February 28, 2010, analysts expect net of 80 cents a share. No comparable numbers were available. DRWI came public in late 2007. Going out to fiscal 2011, the Street projects a 12% rise in net to 89 cents a share.
DRWI's chart shows the stock dropping below key support near 10.50. The stock ha been moving lower the past several sessions with an increase in volume. That is bearish. DRWI's TTD momentum indicator (top of chart) is extremely bearish. The accumulation - distribution line (bottom of chart) is trending lower indicating clear selling pressure.
Strategy Opinion: TTD is targeting DRWI for a decline to 8 within the next few months. TTD sees the stock as a trading short. A protective stop buy can be placed near 11.10
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.)
