Daily - Go to TTD's Tape of  Stock Charts - Monday. March 31, 2014

Daily - Bullish Investors  - Go To TTD Pre-Market Opening Breakout Watch  List and Performance - Monday, March 31 2014

Ticker Tape Digest

Monday - March 31, 2014

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.

 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 - 12

Overall Quality of Breakouts - AVERAGE

Stocks Screened - 8,300

Bull side - Good number of breakouts with some interesting plays. Bulls can be venturesome. Stock market holding its ground.

 (Put mouse on Dow chart to see Nasdaq chart)

Long Term Environment for bulls:  Favorable

    Stock Market Momentum

Market (Daily) - NYSE Bullish,   As Bearish

Market (Weekly) - NYSE Bullish, Nasdaq Bearish

Market  (Monthly) - NYSE Bullish, Nasdaq Bullish 

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action - Monday

(See Top Performing Breakout Stocks for 2011- 2012)

(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)All Timely Breakout Stocks From Tape Action Today )  

Today's Featured TTD Breakout Stock

Constellium NV (CSTM) - 29.22, up 0.48 - Breakpoint 29.11

Net to Soar 66% This Year, TTD Targets 36

  CSTM, with offices in New York, makes rolled and extruded aluminum products. Annual revenues: $3.5 billion. CSTM's stock breaks out today from a seven week flat base. The move carries the stock to a new all-time high. It came public last year. So far today, CSTM is trading 1.5 million shares. Its average daily volume is 1.4 million shares.

 TTD highlighted CSTM as a breakout at our midsession video show on the Web Monday.

  CSTM' stock punched through its breakpoint in the morning. (See 10-minute chart)

  The stock worked higher hitting a peak around midday $29.36,

  The stock slipped back a bit in the afternoon, but then came on late in the session to finish near its high for the session.

  CSTM's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $28.93 on Friday to as high as $29.35 Monday.

  A key bullish trade came in the morning when a block of 25,000 shares crossed the tape at $29.12.

  That was up from the prior block trade at $28.84.

  Then near the close a block of 27,221 shares crossed at $29.35, the highest priced block for the day. The strong close shows potential for a follow through higher on Tuesday.   

  CSTM makes rolled and extruded aluminium products, primarily for aerospace, automotive and packaging markets.

  The company's products include common alloy coils, paintstock, foilstock and soft alloys.

  CSTM operates 26 production facilities, 10 administrative and commercial sites and one research and development center.

  The company operates in three segments; Aerospace & Transportation, Packaging & Automotive Rolled Products and Automotive Structures & Industry.

  Its Aerospace & Transportation segment offers products including plate, sheet, extrusions and precision casting products which offers tailored solutions to aerospace, defense, transportation and industrial industries.

  The company's packaging & automotive rolled products unit produces aluminum sheet and coil solutions. It offers beverage and food can stock, as well as closure stock and foil stock.

 Automotive structures makes crash management systems, side impact beams and cockpit carriers and soft and hard alloy extrusions and large profiles for automotive, rail, road, energy, building and industrial applications.

 CSTM's 12-month performance chart shows the stock appreciating 100% versus a 20% gain for the S&P 500 index.

 CSTM's long-term chart shows the stock coming public last year and trading around 15. The stock has climbed steadily having doubled the past several months.

  CSTM's daily chart shows the stock advancing from 17 back in November to 29 by February.

  The stock then formed a flat base above its rising 50-day moving average line.

  The stock just edges out from its base today.

   The volume is just average.

  It will be important to look for a follow through move on this breakout.

  CSTM's TTD momentum indicator (top of chart) is solidly bullish.

  The accumulation - distribution line (bottom of chart) is now working higher. That shows good underlying buying the past few weeks.

  This year, analysts are forecasting a hefty 66% jump in profits to $2.32 a share from $1.40 a year ago. The stock sells with a price-earnings ratio of just 12. TTD sees that as low making the stock an attractive value play.

  Going out to 2015, the Street projects a 20% gain in net to $2.78 a share from the anticipated $2.32 this year.

  For the upcoming first quarter, analysts look for a profit of 56 cents a share compared with a loss of 3 cents a year ago. The highest estimate on the Street is at 60 cents a share. TTD sees chances for a modest upside surprise. In the prior quarter, CSTM topped the Street estimate by 3 cents a share.

  Looking ahead to the second quarter, profits should soar 93% to 64 cents a share from 33 cents the year before.

  Strategy Opinion: TTD is targeting CSTM for a move to 36. One can scale-in to this breakout. A protective stop can be placed near 27. TTD rates CSTM a very good intermediate-term play provided earnings remain on course.

  Sponsorship: Excellent. The key fund buyer recently was the 5-star rated T. Rowe Price Small-Cap Stock Fund which purchased 2.1 million shares. It now has a 2% stake, the largest of all funds. Also, the 5-star rated T. Rowe Price Inst. Small-Cap Stock Fund was a buyer of 327,500 shares.

  CSTM has 104.1 million shares outstanding. Institutional investors hold 59% of the stock.

  Insider Activity: Not available. Right now, 6 analysts follow the stock, 5 have a buy, the same as three months ago.

Stock Performance Chart with Quarterly Earnings Markers.

Charts of Selected Breakout Stocks

Ticker Tape Digest’s

Stocks To “Sell or Short”

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: Neutral.

Bear Side - Small list of shorts today as stock market lifts broadly.  Bears be selective. TTD's short from Friday was Clovis Oncology Inc. (CLVS) at 69.40. Today, the stock has declined to 69.01 and is working well for bears.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Sturm Ruger & Co. (RGR) - 58.99, down 0.90

Profit to Fall 27% This Year, TTD Sees Decline to 52

RGR, based in Southport, Ct., makes guns. Annual revenues: $688 million. RGR's stock declines today cutting below key technical support. So far today, RGR is trading a heavy 523,768 shares. Its average daily volume is 330,000 shares. TTD sees more on the downside.

  TTD highlighted RGR as a short at our midsession video show on the Web Monday.

  RGR's stock moved lower in the morning. It hit an intraday low of 58.38.

  The stock then worked higher in the afternoon to cut into its deficit.

  RGR's tape action shows the recent block trades.

  One can see the price for the blocks falling from  $62.21 on Friday to as low as $58.67 Monday.

  A key bearish trade came in the morning when a block of 2,033 shares crossed the tape at $59.81. That was down from the prior block at $60.13.

  RGR makes  rifles, shotguns, pistols, and revolvers. The Company’s firearms are sold through independent wholesale distributors, principally to the commercial sporting market.

 The company makes castings made from steel alloys for both outside customers and internal use in the firearms industry.

  This year, analysts are forecasting a 27% drop in earnings to $4.09 a share from $5.58 a year ago. Net for the first quarter should be down 8% and in the second quarter off 32%.

  RGR's daily chart shows the stock peaking around 85 in January. Since then it has been trending lower. The stock tried to make a bottom near 60. However, it is now breaking down again.

  The TTD momentum indicator (top of chart) has moved back into the bearish zone.

   Strategy Opinion: TTD is targeting RGR for a drop to 52 within the next few months or sooner. A protective stop buy can be placed near 61.

TTD takes no responsibility for trading by those using this information. The stocks presented in our report are those we deem the best looking "Day Trades" for the long side. We take no responsibility for the accuracy of this data, although every effort is made to present the information correctly. Copyright Ticker Tape Digest. - 2014

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.)