stocks

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 These are for conservative bullish Investors The strategy is called swing trading. These long buys are ideally suited for entry into stocks on pull backs within overall up trend. They are good for trading range markets. These stocks can give a good return in a week or two. They can also explode into a breakout and a powerful advance.

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 Bearish bargain play stocks to sell short. These issues are usually in down trends and are poised to rollover after a minor rally. They often can provide a conservative bear with a good entry point.

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.

Bull side - Good number of breakouts today with some high quality plays. Stock market is extended and still vulnerable, Bulls be careful and more conservative. Earnings will continue to flow in.

Today's Featured Breakout Stock

VMware Inc. (VMW) - 57.58, up 2.87 - Breakpoint 55.06

Stock hits 52-week high, Net to Jump 39% This Year, TTD Targets 68

TTD's Quality Rating of Stock - VMW - AVERAGE

VMW, based in Palo Alto, Ca., produces software. Annual revenues: $2 billion. VMW's stock breaks out from a six-week flat base today with a big expansion in volume. The stock was a recent TTD accumulation buy. So far today, VMW's volume is running at 6.1 million shares, four times its normal daily volume of 1.5 million shares.

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

VMW's 10-minute chart shows the stock edging higher in the morning and then exploding to the upside. It held its gain through the session even though the stock market pulled back.

The company is set to show strong earnings this year and next. TTD sees that being the drive to send the stock higher.

TTD's view of the tape shows the recent big block trades.

One can see the price of the blocks rising sharply from $53.87 to $58.

A key trade came in the morning today. That is when a big block of 81,400 shares crossed at $55.68. That was up sharply from the prior block trade that went off at $54.78. On the tape the trade was below the prior price. So, it was a bit tricky to interpret the action. However, the fact the stock rose afterwards and steadily gives TTD the impression there was good institutional buying.

VMW’s suite of virtualization software solutions addresses a range of information technology problems that include cost and operational inefficiencies, business continuity, software lifecycle management and desktop management.

The company works closely with some 900 technology partners, including server, microprocessor, storage, networking and software vendors. In September 2009, VMW acquired SpringSource, a web application development firm. In February 2010, VMW acquired Zimbra, the vendor of open source email and collaboration software, from Yahoo! Inc.

VMW's 12-month performance chart shows the stock appreciating 80% versus a 35% gain for the S&P 500 index. VMW's stock price performance has been very strong the past two months.

With VMW's long-term chart, VMW came public in late 2007. The stock climbed sharply from 70 to 125. However, it was swept lower by the bear market and the slowdown in earnings growth. The stock tumbled to 17.25. Ouch! It has since come back nicely the past few months.

VMW's daily chart shows the stock climbing from 40 the past few months to 54. The stock then formed a flat base that was tight and above its rising 50-day moving average line.

The tight trading range and recent good contraction in volume indicates that profit taking from the prior run up was washed out.

The stock's TTD momentum indicator (top of chart) is now solidly bullish.

The accumulation - distribution line (bottom of chart) is in a solid up trend and bullish. It has broken out to a new peak and compliments the breakout in the price of the stock.

This year, analysts forecast a 39% jump in earnings to 70 cents a share from 50 cents a year ago. The stock sells with a price-earnings ratio of 77. That is high. So, one needs to be watchful of the stock.

Going out to 2011, the Street looks for a 24% gain in net to 87 cents a share from the anticipated 70 cents this year.

The company is benefiting from acquisitions and a pick up in the economy.

Net for the upcoming first quarter should be flat at 15 cents a share. However, it would appear the market is discounting those numbers.

Instead, it may be focusing on the second quarter, when profits are expected to jump 71% to 15 cents a share from 9 cents a year ago. In any case, there are some analysts predicting first quarter net as high as 20 cents a share. So, there is a chance for an upside surprise.

Strategy Opinion: TTD is targeting VMW for a move to 68 within the next few months, or sooner. That is up from our prior target of 65. A protective stop can be placed near 53. TTD rates VMW an average intermediate-term play due to its high p/e ratio.

Sponsorship: Very Good. The largest stock holder is Fidelity Growth Company Fund with a 0.69% stake. The 4-star rated fund was a recent buyer of 190,000 shares. Also, 4-star rated Harbor Capital Appreciation Fund was a recent buyer of 744,400 shares. VMW has 406 million shares outstanding.

Insider Activity: Bullish. Insiders which include EMC Corp. were steady buyers the past month at round $52 to $54. Currently, 28 analysts follow the stock, only 5 have a buy, down from 6 three months ago.

Stock Performance Chart for 12 months with Quarterly Earnings Markers.

All Timely Breakout Stocks From Tape Action Today

(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)

Ticker Tape Digest’s

Stocks To “Sell Short”

Ticker Tape Digest’s Daily List of “Stocks To 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.

Bear Side - Still a small list of breakdown stocks. Bears remain patient and conservative. TTD's short play from Monday wa Humana Inc. (HUM) - 44.92, down 1.39. Today, the stock has declined to 44.51 and is working well for bears.

List of Stocks To Sell or Short

(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.)

Commentary on TTD’s Feature Bear Play

Ceragon Networks Ltd. (CRNT) - 10.59, down 0.16

Stock trends lower, TTD Sees Slide to 8.70

CRNT, based in Israel, provides wireless telecom solutions. Annual revenues: $184 million. CRNT's stock has fallen below key support near 11 with volume. The technical breakdown opens the door to make CRNT a tranding short. So far today, CRNT is trading 621,350 shares. That is triple the stock's normal daily volume of 211,000 shares.

CRNT's stock trended lower in the morning. In the early afternoon it surged higher to erase its lost, but right afterwards fell back. It then edged higher in the afternoon.

TTD spotted important distribution. A look at CRNT's big block trades shows a block of 50,000 shares crossing the tape on Friday at $10.75. That was down from the prior block trade at $10.84. The big trade indicated institutional distribution.

CRNT provides high capacity wireless backhaul solutions that enable wireless service providers to deliver voice and data services, such as Internet browsing, music and video applications.

The company’s wireless backhaul solutions use microwave technology to transfer large amounts of network traffic between base stations and the infrastructure at the core of the mobile network.

This year, analysts forecast CRNTs net will increase to 33 cents a share from 10 cents a year ago. The stock sells with a price-earnings ratio of 32.

CRNT's stock chart shows the issue falling in late March on heavy volume. The stock then tried to hold. However, it is again slipping lower as volume picks up.

Strategy Opinion: TTD is targeting CRNT for a decline to 8.70 within the next few months or sooner. TTD considers the stock a trading play and one should look to take profits at that time. A protective stop can be placed near 11.60.

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.)

TTD Check List	Bullish	Bearish	Neutral
Near 52-week High	YES
Volume	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

Ticker Tape Digest

Monday - April 12, 2010

Today's Featured Breakout Stock

VMware Inc. (VMW) - 57.58, up 2.87 - Breakpoint 55.06

Stock hits 52-week high, Net to Jump 39% This Year, TTD Targets 68

All Timely Breakout Stocks From Tape Action Today

Ticker Tape Digest’s

Stocks To “Sell Short”

List of Stocks To Sell or Short

Commentary on TTD’s Feature Bear Play

Ceragon Networks Ltd. (CRNT) - 10.59, down 0.16

Stock trends lower, TTD Sees Slide to 8.70