Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Tuesday, March 24
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Tuesday, March 24 |
| 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 - 2
Stocks Screened - 8,200
Bull's Strategy - Only 2 breakouts today as stock market pulls back. The major market indicators are bullish. What is lacking is volume. Bulls remain conservative and selective. The first quarter will end soon and earnings will be coming.
(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
| TTD's Quality Rating of Stock - QSII - ABOVE AVERAGE |
QSII, based near Los Angeles, provides computer-based practice management
systems for medical and dental group practices. Annual revenues: $230 million.
QSII's stock breaks out to a new high today pulling out from a 13-week, cup-and-handle base. The push to a new high is very bullish and could well bring in more buying from the new-high crowd. TTD feature QSII as a possible breakout within the last week. 
The stock was also featured at TTD's show on the Web today.
The stock rose sharply in the morning and broke out. It pulled back a bit and then came on again. It gave very little ground in the afternoon when the stock market sold off.
So far today, QSII is trading 925,505 shares, double its normal daily volume of 471,000 shares.
TTD's clip of the tape shows the big block of the past few days. One can see the price for the blocks climbing from $43.49 to $46.98. The tape is bullish with good institutional buying.
QSII's two subsidiaries are Clinitec International, Inc., and MicroMed Healthcare Information Systems, Inc. Clinitec is a developer and provider of electronic medical records systems, MicroMed provides enterprise practice management systems and services to the medical marketplace utilizing a Microsoft Windows based graphical user interface client/server platform.
TTD's performance chart shows QSII's stock appreciating 48% the past 12 months. It has easily outperformed the S&P 500 index which is down 40%.
TTD's long-term chart shows QSII in a three-year consolidation pattern
between roughly 48 and 30. The push through 48 intraday to a new high is bullish.
TTD's daily chart shows there was upside resistance around 46. The base going back several months looks a bit wide and loose. However, on a weekly chart it looks more respectable.
The past several sessions QSII has moved sharply higher. So, the stock is a bit extended near-term. So, one does need to be watchful of the stock.
The TTD momentum indicator (top of the chart) is bullish.
The accumulation - distribution line (bottom of chart) is in an overall up trend. It did not shown any heavy distribution. It compliments the breakout nicely showing good buying.
This fiscal year ending March 40 analysts look for a 21% increase in net to $1.71 a share from $1.41 a year ago. The stock sells with a price-earnings ratio of 26. That is reasonable.
The company could benefit from the government's plans to increase the use of computer systems in the medical field.
Net for the upcoming fiscal fourth quarter ending March 30 should rise 14% to 47 cents a share from 41 cents a year ago. The highest estimate on the Street is at 50 cents a share.
QSII tends to meet or slightly exceed by one to three cents a share the consensus quarterly estimate on the Street. TTD does not expect any surprises.
Looking ahead to fiscal 2010 ending in March, the Street expects a 19% gain in net to $2.03 a share from the anticipated $1.71 a share in fiscal 2009.
Strategy Opinion: TTD had thought QSII would need more time to breakout. However, today, it pushes higher and clears the base. TTD is targeting the stock for a move to 57 within the next few months, or sooner.
In our accumulation report recently we suggested entering with a stop buy at 46.20 to catch the breakout.
A protective stop can be placed near 44. TTD rates QSII an average intermediate-term play, but with potential to surprise on the upside if it gets some good contracts that can boost earnings.
Sponsorship: Excellent. Five funds with a 5-star rating are holders of the stock. That is impressive. The largest fund holder is 4-star rated Columbia Acorn Z Fund with a 6.6% stake. A key buyer recently was 5-star rated Fidelity Contrafund which purchased 178,000 shares. QSII has 28 million shares outstanding. Funds hold 9 million shares.
Insider Activity: Slightly Bearish. some light selling in recent months. Currently, 13 analysts follow the stock, 3 have a buy, down from 4 three months ago.
Stock Performance Chart for 12 months with Quarterly Earnings Markers.
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TTD's Profile Rating Quality Systems Inc. - (QSII) |
| 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 | 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. (Trading strategy: One should buy breakout stocks at breakpoint by using market order or stop buy.
Charts of Breakout Stocks
| TTD's Quality Rating of Stock - PALM - BELOW 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 - 2
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Small number of breakdown stocks today. Bears be conservative, but watchful on another possible break in the market to the downside.
(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.)
MANT, based in Fairfax, Va., delivers information technology and technical services solutions to U.S. federal government customers. Annual revenues: $1.9 billion. MANT's stock was a leader. However, today it breaks down below near-term support opening the possibility of more on the downside. So far today, the stock is trading 465,464 shares. Its average daily volume is 644,000 shares. 
TTD highlighted MANT as a short at our midsession show on the Web Tuesday.
TTD's clip of the tape shows the recent big blocks. One can see the price for the blocks declining from $42.63 to $39.90. The tape action indicates that MANT's stock is under heavy distribution by institutions.
MANT opened lower and headed sharply lower in the morning. In the afternoon, it bottomed and trended sideways. It was unable to mount a significant rally.
MANT provides critical national defense programs for the intelligence community and Department of Defense.
The company designs and develops mission-critical, enterprise information technology and communication systems and infrastructures for federal government customers in the U. S. and worldwide.
This year, analysts predict a 16% increase in net to $2.98 a share from $2.58 a year ago.
The fact the stock is working lower without any news may indicated the potential for bearish news in the future.
TTD's daily chart shows MANT falling from 60 recently to the 40 area. It rested briefly and is now working lower. The stock's TTD momentum indicator (top of chart) is very bearish. The accumulation - distribution line (bottom of chart) is in a down trend indicating clear selling pressure for the past several weeks.
Strategy Opinion: TTD is targeting MANT for a decline to 32 within the next few months, or sooner. A protective stop buy can be placed near 42.
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.)
