Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, March 19 |
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 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 Daily schedule guide for TTD subscribers 1. Pre-market - check Breakout Watch List and Quick Trades. 2. Morning - (11:30 - 12 A.M.) - check breakout stocks tape and breakout chart slide show. 3. Midday (1 P.M.) check TTD Midsession Report and see market video show. 4. After close (4 P.M.) check final TTD Report for day. Trading Strategies Bullish Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. (See Performance) Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." (See Performance) Conservative Investors "Bargain Buy Trades for the Long Term." Ideally suited for entry into top performing big cap stocks on pullbacks within overall up trend.(See Performance) Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance) |
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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 - Long Term. These are for conservative bullish Investors These long-term buys are ideally suited for entry into stocks on pull backs within overall up trend. These stocks can give a good return long-term especially during a bull market.
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 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
Total Buy Breakouts so far today - 6
Overall Quality of Breakouts - Above Average
Stocks Screened - 8,300
Bull side - Small number of breakouts, but some good looking plays that are new to TTD's list. Bulls can be venturesome. Stock market holds in up trend, although momentum has weakened a bit.
(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 Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - INXN - ABOVE AVERAGE |
INXN, based in Schiphol-Rijk, Netherlands, operates as a provider of carrier-neutral collection data center services in Europe. Annual revenues: $322 million. INXN's stock breaks out today from a four week flat base. The move sends the stock to a new all-time high. INXN came public in February of 2011. So far today, INXN is trading 1.4 million shares, double its normal daily volume of 677,000 shares.
TTD highlighted INXN as a breakout at our midsession video show on the Web Friday.
INXN's 10-minute chart shows the stock pushing across its breakpoint line in the morning.
The stock then trended higher for most of the day. A close near its high for the session would be very bullish and a possible hint of a follow through move in coming sessions.
INXN's tape action shows the recent big block trades.
One can see the price of the blocks climbing from $16.72 to a peak of $18.28.
A key bullish trade came late on Thursday when a big block of 62,469 shares crossed the tape at $17.03. That was up from the prior block trade at $16.93.
The steady push higher in the block prices shows steady demand by institutions.
INXN's data centre facilitates provide processing, storage, sharing and distribution of data, content, applications and media among carriers and customers.
Its carrier-neutral collection services includes space, power, cooling to house its customers' computing, network, storage and IT infrastructure.
The company also offers network monitoring, remote monitoring of customer equipment, systems management, engineering support services, cross connects, data backup and storage. The Company's data centres are in London, Frankfurt, Paris, Amsterdam and Madrid, the main data center markets in Europe.
INXN's 12-month performance chart shows the stock appreciating 33% versus a 5% gain for the S&P 500 index.
INXN's long-term chart shows the stock coming public in 2011 and trading around $13. The stock then advanced to $15.62, but then turned down hitting a low of 13.82 in July of 2011. Since then the stock has been driving higher. The push to a new high could bring in more buying on Monday.
INXN's daily chart shows the stock climbing from 12 in December to 17 in early March. The stock put down a small base. Today's breakout is impressive.
It comes with a widening of the daily trading spread.
The stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) has spiked higher indicating strong buying in the stock.
This year, analysts look for a 26% gain in INXN's earnings to 65 cents a share from 52 cents a year ago. The stock sells with a price-earnings of 27. TTD sees that as reasonable.
Looking out to 2013, the Street projects a 24% gain in net to 81 cents a share from the anticipated 65 cents a share for 2012.
The big push in the stock now could be linked to a potential big first quarter. Analysts are predicting INXN's net for the first quarter will surge 112% to 15 cents a share from 7 cents a year ago. The highest estimate on the Street is at 17 cents a share. So some even see strong profits than the consensus. The prior quarter INXN topped the consensus estimate by 9 cents a share, or by 75%. That was impressive and showed the Street was underestimating the company's earnings power.
Looking out to the second quarter, earnings are projected to rise 44% to 16 cents a share from 11 cents a year ago.
Strategy Opinion: TTD is targeting INXN for a move to 22.50 off this breakout. A protective stop can be placed near 16.30.
TTD rates INXN a very good intermediate-term play provided earnings meet expectations.
Sponsorship: Excellent. The largest fund buyer recently was 5-star rated Thornburg Intl. Growth Fund which purchased 543,200 shares. The fund has a 0.82% stake. The largest fund holder is 3-star rated Prudential Jennison Small Company Fund with a 1.1% stake. INXN has 65.6 million shares outstanding.
Insider Activity: Not available. Nine analysts follow the stock and all 9 have a buy, up from 8 three months ago.
Stock Performance Chart with Quarterly Earnings Markers
Insider Activity - Buying in Green - Selling in Red
TTD's Breakout Profile
Rating Interxion Holding N.V. - (INXN) |
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 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - EGY - ABOVE AVERAGE |
TTD's Quality Rating of Stock - RA - ABOVE AVERAGE |
TTD's Quality Rating of Stock - ESL - AVERAGE |
TTD's Quality Rating of Stock - SYT - AVERAGE |
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 - 4
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of breakdown issues. Bears be conservative and selective. Stock market still holding in its up trend.
LAYN, based in Mission Woods, Kansas,. provides drilling services to a variety of industries. Annual revenues: $1.1 billion. LAYN's stock falls sharply today after the company forecast of a weak fourth quarter. So far today, LAYN is trading a heavy 759,890 shares, four times its normal daily volume of 172,000 shares. TTD sees more on the downside.
TTD highlighted LAYN as a short at our midsession video show on the Web Friday.
The company said it will take a special charge in the fourth quarter related to goodwill. As a result, it said it will show a fourth quarter loss of $35.9 to $4.07 a share.
It said excluding the special charge it would show a breakeven for the fourth quarter. That would compare with a profit of 45 cents a year ago. The company blamed losses in its water resources unit.
The stock gapped lower in the morning on heavy volume. It hit an intraday low of 19.75. The stock then edged slightly higher the rest of the day.
TTD's clip of the tape shows the recent big block trades. One can see the price for the blocks declining from $23.31 to as low as $20.10. A key bear trade came in the morning when a block of 7,112 shares (duplicated) crossed the tape at $20.59. That was down sharply from the prior block trade at $22.43. The tape showed clear institutional selling pressure.
LAYN provides drilling services to four markets: water-related products and services, mineral exploration drilling, geotechnical construction and oil and gas services.
Analysts expect LAYN to show a 15% decline in earnings for the first fiscal quarter ending April 30.
The stock's chart shows the gap breakdown today on big volume. The stock did show weakness about three weeks ago.
Strategy Opinion: TTD is targeting LAYN for a decline to 17 within the next few months, or sooner. A protective stop buy can be placed near 21.90.
TTD's Quality Rating of Stock - LAYN - BELOW AVERAGE |
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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(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.)