Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Thursday, April 3
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Thursday, April 3 |
| 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 - 12
Stocks Screened - 8,200
Bull side - Good number of breakouts with some quality stocks. Bulls can be venturesome. However, bulls must be aware of coming earnings reports which could impact a stock.
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
POT, based in Canada, produces fertilizers. Annual revenues: $5.2 billion. POT, a leader in one of the strongest sectors in the market, breaks out today from a six-week, flat base and hits an all-time high. TTD featured the stock on Wednesday as one to accumulate. So far, today, POT is trading 8.8 million shares. Its average daily volume is 8.7 million shares. 
TTD also highlighted the stock at our midsession show on the Web today.
The tape action today was very bullish. TTD's clip of the tape shows one of the largest trades of the session. It is a big block of 72,000 shares crossing on a nice up tick to $168.10 from the prior trade at $167.96.
The value of the block was $12.1 million. The trade indicated institutional accumulation.
TTD's performance chart of POT see below shows the stock appreciating 190% the past 12 months. That compares with a 5% decline in the S&P 500 index.
POT's three main products--potash, phosphate, and nitrogen--are used in fertilizers, animal feed, and industrial applications.
In
North America, the company sells to retailers, cooperatives, and distributors,
which then sell the products to farmers. The company mines potash at seven
locations in Canada and one in Chile. It produces phosphate and nitrogen from 12
facilities in the United States and South America. 
TTD's long-term chart shows POT's fabulous bull market. The stock as soared from 12 back in 2004 to 167. It remains in a bull phase.
POT's daily chart shows the breakout today. The key breakpoint is 165.95. The stock just clears that price. So, it is not overextended. Volume is just average. So, it will be important to see if POT shows a follow up move.
The flat base has a good structure with two shakeouts to the downside. That is typical.
The stock's TTD momentum indicator is bullish (top of chart).
The accumulation - distribution line (bottom of chart) has broken to a new peak. That is a good advance signal the stock should do well. It shows good underlying buying.
Fertilizer stocks are doing well because of strong demand.
This year, analysts forecast a 121% surge in profits to $7.51 a share from $3.40 a year ago. The stock sells with a price-earnings ratio of just 22. TTD sees that as reasonable. Next year, the Street looks for a 13% rise in net to $8.50 a share.
The next two quarters will be very strong. Net for the first quarter should leap 148% to $1.53 a share from 62 cents a year ago. TTD sees chances for an upside surprise. The highest estimate on the Street is at $1.86 a share. In the prior quarter, POT topped the consensus estimate by 16 cents a share.
Net for the second quarter should climb 134% to $2.06 a share from 88 cents a year ago.
Strategy Opinion: POT is a top performer that continues to act well. TTD is targeting the stock for a move to 200. We would not be surprised to see a stock split which could send the stock up quickly. A protective stop can be placed near 158. TTD rates POT a very good intermediate-term play provided earnings remain on course.
Sponsorship: Good. The top six fund holders all have a 5-star rating. However, 5 of the 6 have been heavy sellers. The largest fund holder is Vanguard Prime Cap Fund with a 3.8% stake. It was a recent seller of 3.6 million shares. Also, American Funds Growth Fund of America was a seller of 4 million shares and Janus Twenty Fund a seller of 1.8 million shares.
Insider Activity: Not available. Currently, 12 analysts follow the stock, 8 have a buy, up from 7 three months ago.
Stock Performance Chart for One Year versus the S&P 500 index.
| TTD's Breakout Profile
Rating Potash Corp. (POT) |
| 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 | 13 | 0 | 1 |
(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 - 4
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Only a few breakdown stocks today. Bears be selective. Coming earnings reports should favor the bears with possible warnings and downgradings.
(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.)
HNI, based in Muscatine, Ia., makes office furniture and hearth products. Annual revenues: $2.6 billion. HNI's stock falls sharply today after the company said it expected a significant decline in net from previous expectations. The gap drop in the price of the stock comes on a big expansion in volume to 1.1 million shares, double its normal daily volume of 498,000 shares.
TTD's clip of the tape shows there was heavy selling in the stock late on Wednesday. A big block of 25,000 shares crossed late Wednesday on a big down tick to $27.76 from the prior trade at $27.87. The action showed a bearish response to the news.
HNI was expecting flat sales for the quarter. It lowered its outlook due to weak sales of office furniture. It cited a deteriorating economy and uncertain consumer confidence."
Wall Street was expecting a 16% drop in first quarter earnings to 36 cents a share from 43 cents a share. Those estimates should go lower. For the year, analysts were looking for a 10% drop in net to $2.29 a share from $2.55 a year ago.
The company will report April 17.
HNI makes office systems, storage, seating, and desks. It also produces hearth products, which include electric, wood-burning, and gas-burning fireplaces.
TTD's daily chart shows the stock in a clear down trend the past few months from 44 down to 27. Today, the stock undercuts - with a gap move - key support at 26.73. The stock's accumulation - distribution line is in a down trend indicating clear selling pressure. TTD is targeting HNI for a drop to 20 within the next few months.
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.)
