Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Wednesday, March 11
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Wednesday, March 11 |
| 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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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 today - 0
Stocks Screened - 8,200
Bull's Strategy - No breakouts today. Stock market holds bulk of big gain from Tuesday. That is encouraging for bulls. One needs to see a strong follow through in the Dow and some quality stocks breaking out. Bulls remain patient and very watchful.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Unfavorable
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) -NYSE Bearish, Nasdaq Bearish
Market (Monthly) NYSE Bearish, Nasdaq Bearish
(TTD found no breakout stocks today. So, we feature a recent breakout close to its breakpoint)
| TTD's Quality Rating of Stock - SNDA - ABOVE AVERAGE |
SNDA, based in Shanghai, China, is an interactive entertainment company in
China, offering diversified content through its EZ Center platform including
online games, literature, music, movies, and other services. Annual revenues:
$377 million. SNDA broke out from a six-week flat base on Tuesday. TTD highlights the stock today because there were no breakouts today. Today, SNDA pushes higher following through nicely on its breakout. That is very encouraging for bulls.
So far today, SNDA is trading 1.1 million shares. Its average daily volume is 970,000 shares.
The stock showed a good expansion in volume on its breakout day on Tuesday (see TTD's daily chart).
TTD's clip of the tape shows the big block trades of the past three sessions. One can see the price for the blocks rose form $30.85 to a peak of $34.80 around midday today. The prices for the last two blocks backed off a bit.
SNDA is a dominant operator of massively multiplayer and casual online games. They include chess and board games, and network PC games in China. It gets 90% of its revenues from massively multiplayer and casual games with in-game item-based revenue models.
TTD's performance chart for the past 12 months shows SNDA's stock appreciating 18%. The stock has easily outperformed the S&P 500 index which is down 44% the past 12 months.
TTD's long-term chart of SNDA shows the stock now in an up trend from 20 to 31. There is key upside resistance at 40. A breakout from its current base and a push over that point at 40 would be very bullish long-term
SNDA's daily chart shows a cup-and-handle base and more recently a smaller flat base.. It was formed after the
stock rallied from 20 to 34. That was a strong move given market conditions. So, SNDA is a leader over the past three months.
The TTD momentum indicator (top of chart) is slightly bullish now..
The accumulation - distribution line (bottom of chart) is in a strong up trend and has broken out to the upside. That is good technical confirmation there is good underlying buying taking place in the stock.
The Street is forecasting a 16% increase in net for 2009 to $2.92 a share from $2.53 a year ago. The stock sells with a price-earnings ratio of 11 based on 2009 net. TTD sees that as low and attractive for value investors.
Profits for the upcoming first quarter should climb 27% to 71 cents a share from 56 cents a year ago. The highest estimate on the Street is at 75 cents a share.
Going out to 2010, analysts predict an 11% increase in net to $3.25 a share from the anticipated $2.92 a share in fiscal 2008.
Strategy Opinion: SNDA's stock is acting well and has good potential to move higher, especially if the stock market should extend its rally.
TTD is targeting SNDA for a move to 42 within a few months. That is a boost from our prior target of 40. A protective stop can be placed near 30. TTD rates SNDA a good intermediate-term play because of its steady earnings outlook and low valuation.
Sponsorship: Very Good. One of the largest fund buyer recently was 5-star rated ING FMR Diversified Mid Cap Fund which purchased 250,000 shares. Another key buyer was 4-star rated Fidelity Advisor Mid Cap Fund which purchased 363,000 shares. The largest fund holder is AllianceBernstein Intl. Growth Fund, 3-star rated, with a 1.2% stake. SNDA has 72 million shares outstanding. Funds hold 6.5 million shares.
Insider Activity: Not available. 11 analysts follow the stock, 7 have a buy, the same as three months ago.
Stock Performance Chart for 12 months with Quarterly Earnings Markers.
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TTD's Profile Rating Shanda Interactive Entertainment Ltd. (SNDA) |
| 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 - 3
Stocks Screened - 8,200
Long-Term Environment for bears: Favorable.
Bear Side - Only a few breakdown stocks today. Bears be conservative as market is now trying to rally.
(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.)
CHTT, based in Chattanooga, Ten., produces over-the-counter health-care products, toiletries, and dietary supplements. Annual revenues: $460 million. CHTT's stock breaks down through key support today with a big increase in volume. The technical breakdown in the stock is severe and signals potential for more on the downside. So far today, CHTT is trading 1.2 million shares, four times its normal daily volume of 278,000 shares. TTD sees more on the downside. 
TTD's clip of the tape shows CHTT's stock coming under distribution late on Tuesday. A big block of 20,100 shares crossed the tape on a big down tick to $58.97 from the prior trade at $59.73. The tape action indicated significant institutional selling pressure.
TTD did not spot any news for the drop.
CHTT has produced a variety of products. They include: Gold Bond, Icy Hot, Selsun Blue, ACT, Unisom, and Cortizone-10, of which the latter three were received when the firm completed its acquisition of five J&J brands in 2007.
CHTT sells its products primarily through drug stores, and grocery stores.
This fiscal year ending November 30, analysts look for a 16% increase in net to $4.59 a share from $3.97 a year ago.
TTD's chart shows CHTT's stock breaking below key support at $60.38 a few sessions ago. The stock then rallied back to the breakdown point. However, today, it falls sharply with heavy volume. The technical breakdown is ideal for bears. The stock's TTD momentum indicator (top of the chart) is bearish.
Strategy Opinion: TTD is targeting CHTT for a decline to 48 within the next few months, or sooner. A protective stop buy can be placed near 60.
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.)
