Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Friday, April 4
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Friday, April 4 |
| 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 - 13
Stocks Screened - 8,200
Bull side -
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
PETD, based Bridgeport, W.V., is an oil and gas producing company. Annual revenues: $305 million. PETD edges out from a six-week base today as oil stocks move sharply higher. The stock is a leader in the sector having double the past 12 months. So far today, PETD is trading 223,377 shares. Its average daily volume is 275,000 shares. 
PETD was highlighted by TTD as a breakout at our midsession show on the Web. TTD's performance chart of PETD shows the stock now up 28% the past 12 months compared with a 5% decline in the S&P 500.
The company will make a presentation to analysts next week, April 7
The stock showed very good accumulation on Thursday before it moved sharply higher today.
TTD's tape shows a big block of 11,000 shares crossing on a nice up tick to $72.52 from the prior trade at $72.49. A second block moved a short time later. It was 6,561 shares crossing on an up tick to $72.64 from the prior trade at $72.55.
PETD operates drilling facilities in the Appalachian Basin, Michigan, and the Rocky Mountains.
The company markets natural gas for itself and other producers, and distributes natural gas to residential, commercial, and industrial customers. Its Riley Natural Gas subsidiary purchases gas from producers and markets it to utility companies.
The stock has been a sensational winner during the last bull market and continues to act strong. (see TTD's long-term chart). Since 2003, PETD has soared from 6 to 73. 
TTD's daily chart shows the breakpoint for PETD at 74.10. The stock is just above that $74.21.
The stock's base was set up after a run from 52 in January to a peak near 74 in late February. The basing work showed two shakeouts. One was sharp pulling the stock back to around 60.
Since that shakeout, PETD has turned and rallied nicely in price although the volume has been a bit soft. (see chart). That is why the accumulation - distribution line (bottom of chart) showed a sharp dip. The AD Line has since recovered.
The stock's TTD momentum indicator (top of chart) is solidly bullish.
PETD will be showing a big acceleration in quarterly profits. That could well be the driver to send it higher.
Analysts predict net for the first quarter will surge 150% and then in the second skyrocket 725%. They are big numbers and make the stock a very attractive growth play. The company is benefiting from strong demand and rising prices.
Net for the first quarter is expected to come in at 97 cents a share, up from 39 cents a year ago. The highest estimate on the Street is at $1.28 a share.
For the year, PETD's profits should jump 62% to $3.63 a share from $2.24 a share a year ago. The stock sells with a price-earnings ratio of 20, which is reasonable given the earnings growth rate. Next year, analysts forecast a 30% gain in net to $4.72 a share.
Strategy Opinion: PETD has all the earnings numbers to move higher in coming months. TTD is targeting PETD for a move to 90 within the next few months. A protective stop can be placed near 70. There is a chance for a stock split which could push the stock higher. TTD rates PETD a very good intermediate-term play.
Sponsorship: Very Good. Most of the top fund holders have held their positions steady. The top four fund holders are all Fidelity Funds. The largest holder is Fidelity Low-Priced Stock Fund, 4-star rated, with a big 9.1% stake. The second biggest holder is 5-star rated Fidelity Advisor Small Cap Fund with a 4.8% stake.
Insider Activity: Bullish. Insiders have been modest but steady buyers. There has been very little selling. Seven analysts follow the stock, 5 have a buy, up from 4 three months ago.
Stock Performance Chart for One Year versus the S&P 500 index.
| TTD's Breakout Profile
Rating Petroleum Development Corp. (PETD) |
| 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 - 6
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Small list of breakdown stocks today, but some interesting plays. Bears be selective. New earnings season should bring a crop of some interesting bear plays.
(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.)
RVBD, based in San Francisco, develops products for network. Annual revenues: $236 million. The company specializes in WAN traffic optimization. Today, RVBD falls sharply after making a disappointing forecast for first quarter results. The stock is down sharply. Volume is running at a heavy 13.6 million shares, six times its normal daily volume of 2.4 million shares. 
RVBD came under heavy selling pressure on the news. The selling continued through the day. TTD's clip of the tape shows a big block of 150,000 shares crossing on a down tick to $13.10 from the prior trade at $13.11. The action showed heavy institutional selling pressure.
RVBD develops hardware and software that allows distributed computer systems in branch offices connecting to a home office to run applications and transfer data faster and more efficiently.
RVBD forecast revenues for the first quarter at $72 to $73 million. The Street was expecting $80 million. The company guided non-GAAP earnings per share to 8 to 10 cents a share. Some on their Street were looking for 14 cents a share. The company blamed the weakness to a slowdown in the economy causing a lengthening of the sales cycle.
Analysts have been forecasting a 67% drop in RVBD's earnings for the first quarter to 2 cents a share from 5 cents a year ago.
TTD's daily chart of RVBD shows the stock in a clear down trend. It tried to hold support at 14.90. However that has fallen with a big expansion in volume. The volume indicates a race to the exits by institutions. Technically, the stock is wounded badly. The TTD momentum indicator (top of chart) is very bearish. The accumulation - distribution line (bottom of chart) has rolled over indicating heavy selling pressure.
TTD is targeting RVBD for a drop to 10. We see the stock as a very good bear play.
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.)
