Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Tuesday, April 1
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Tuesday, April 1 |
| 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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By Leo Fasciocco -- TTD
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 so far today - 11
Stocks Screened - 8,200
Bull side - Today, a modest pick up in breakouts. Steel stocks acting strong.
Long- term Environment for bulls: Bearish
Market Status (Daily) - NYSE Bullish, Nasdaq Bullish
Market Status (Weekly) -NYSE Bullish, Nasdaq Bullish
Market Status (Monthly) NYSE Bullish, Nasdaq Bullish
ISRG, based in Sunnyvale, Ca., makes a robotic surgical system. Annual revenues: $600 million. ISRG breaks out from a 15-week, double bottom basing pattern today with a good expansion in volume. The stock is within range to reach its all-time high of 359.59. If it can do that, it could well bring in more buying from the new-high crowd. So far today, ISRG is trading 1.4 million shares, almost double its normal daily volume of 894,000 shares. 
The stock showed good tape action around midday. TTD's clip shows a block of 2,288 shares crossing at 346.92 within a sequence started by an up tick.
TTD highlighted ISRG as a breakout at our midsession show on the Web.
The stock is high priced but that should not deter one from buying the issue.
ISRG's daVinci system translates a surgeon's hand movements at a remote console into corresponding instrument movements inside a patient through very small incisions.
The company also sells related surgical instruments, accessories, and services. ISRG has sold over 700 daVinci systems worldwide, and most sales are generated in the U.S. and Europe.
TTD's long-term chart of ISRG (see below) shows the stock soaring from 15 in 2004 to 346. It is one of the best performing stocks.
TTD's 12-month performance chart shows ISRG up 160%, while the S&P 500 index is down about 5%. 
ISRG's daily chart shows the basing pattern. It is a difficult one to figure. In this case a look at a weekly chart can sometimes give a better picture. The red line on the chart is the breakpoint level. It is at 338.84.
The breakout comes with good volume. That is a plus.
The stock's TTD momentum indicator (top of the chart) is strongly bullish.
The accumulation - distribution line is neutral.
TTD sees the near-term key to ISRG's stock performance will be its earnings. For the upcoming first quarter, analysts predict a 59% jump in net to 99 cents a share from 62 cents a year ago.
The second quarter should be strong. The Street expects a 52% leap in net to $1.20 a share from 79 cents a year ago.
TTD sees good chances for upside surprise in the first quarter. The past four quarters ISRG has topped the consensus Street estimate by 21, 17, 12 and eight cents a share.
ISRG will report first quarter net on April 17.
For the year, earnings should increase 38% to $5.10 a share from $3.70 a year ago. Revenue growth is running at 67%. The stock has a p/e ratio of 61 which is high, but justified by the strong near-term earnings.
Strategy Opinion: ISRG is a leader that is breaking out. TTD is calling for the stock to advance to 400 within the next few months. There is always a chance for a stock split which could push the stock higher faster. A protective stop can e placed near 320 giving it room. TTD rates ISRG a very good intermediate-term play because of its strong earnings outlook.
Sponsorship. Good. There are several top funds holding the stock, but they have been lightening up. The largest fund holder is 5-star rated Janus Adviser Forty Fund with a 2.9% stake. It has held its position steady. The largest buyer lately was 4-star rated Vanguard Morgan Growth Fund which added 106,000 shares. Some key sellers were Artisan Mid Cap Fund, 4-star rated, which sold 276,000 share and 5-star rated Janus Orion Fund which disposed of 180,000 shares.
Insider Activity: Neutral. Some light selling and buying by Insiders. Ten analysts follow the stock, 4 have a buy, down from 5 three months ago.
Stock Performance Chart for One Year versus the S&P 500 index.
| TTD's Breakout Profile
Rating Intuitive Surgical Inc. (ISRG) |
| 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: Neutral
Bear Side - Very few breakdown stocks today as stock market rallied sharply. Bears be selective.
(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.)
CVLT, based in Oceanport, N.J., provides backup and related software, maintenance, and services. Annual revenues: $184 million. CVLT breaks to a new low today on expanding volume. The stock was as high as 22 late last year It has been trending lower. So far today, CVLT is trading 1.1 million shares, almost triple its normal daily volume of 443,000 shares. TTD sees more on the downside.
TTD's clip of the tape today shows one of the largest trades. It is a big block of 10,000 shares crossing on a down tick to $11.89 from the prior trade at $11.95. The action showed significant selling pressure.
CVLT was an existing business inside Lucent Technologies that was spun out in 1996 by Sprout Group, a venture-capital firm. Soon afterward, the firm decided to build a unified software platform to help companies manage their storage resources, independent of platform or location.
CVLT is expected to report an 8% decline in earnings for the fiscal year ending March 31 to 43 cents a share from 47 cents a year ago. Next fiscal year, analysts see a rebound in profits to 59 cents a share, a 37% gain.
Although the company's earnings could rebound, the stock's technical action is telling a different story - a bearish one.
TTD's daily chart shows the stock in a severe down trend from 23 in December to 13. Today, the stock breaks below that support level (see chart). The stock's technicals are extremely bearish. The TTD momentum indicator (top of chart) is very bearish. The accumulation - distribution line (bottom of chart) is in a severe down trend.
TTD is targeting CVLT for a drop to 8.50 within the next few months. The stock is a very good looking short for an aggressive bear.
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.)
