Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Thursday, April 17
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Thursday, April 17 |
| 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 - 7
Stocks Screened - 8,200
Bull side - Small list of breakouts today as market turns mixed. IBM's breakout is noteworthy for the Dow average. Bulls be selective.
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
DAR, based in Irving, Tex., processes animal by-products into a variety of products such as soap, rubber and plastics. Annual revenues: $650 million. DAR breaks out today from a seven-week flat base and hits a new high. The stock was featured recently by TTD as stock to accumulate in anticipation of a breakout. The stock's move out of the base came in the morning. It held the gain nicely through the day. Volume so far today is running at 3.2 million shares, almost triple its normal daily volume of 1.3 million shares. 
DAR got off to a good start in the morning. TTD's clip of the tape shows a big block of 20,000 shares crossing on a modest up tick at $13.75 from the prior trade at $13.74.
The tape action showed good institutional buying.
DAR collects animal by-products and grease from restaurants, butcher shops, grocery stores, and independent meat and poultry processors in the United States.
The company then processes these materials into oil, meat, and bone meal that are used to produce animal feed, meat products, paint, cosmetics, soaps, rubber, paper, concrete, plastics, and pet food. The company markets its products in the United States and abroad.
TTD's long-term chart shows the stock in a powerful bull market phase that has carried it from 2 at the start of the past bull market in 2003 to a peak of 15. It remains in a strong up trend.
TTD's performance chart shows that DAR has appreciated 85% the past 12 months versus a 5% decline in the S&P 500 index.
TTD's daily chart shows DAR climbing from 8 back in August to 14. The advance was orderly with the stock stepping higher in staircase fashion. The current base was well formed. The stock spent the past few session near the top of the base before breaking out today. That is bullish.
Notice on today's breakout that the spread (range from high to low) widened significantly. That shows ease of price movement on the breakout. That is good for bulls.
The TTD momentum indicator (top of the chart) is bullish and getting stronger.
The accumulation - distribution line (bottom of chart) has hit a new peak and confirms that today's breakout is supported by good buying.
DAR is poised to show an acceleration in quarterly earnings growth. Analysts predict net for the first quarter should rise 50% and then in the second quarter 61%. The acceleration should be a key driver to carry the stock higher.
Net for the first quarter should come in at 18 cents a share, up from 12 cents a year ago. The highest estimate on the Street is at 22 cents a share. TTD sees chances for a modest upside earnings surprise. The past two quarters DAR has topped the consensus Street estimate by 2 to 3 cents a share.
The company is benefiting from higher prices on its sold products.
For the year, analysts predict a 39% gain in net to 80 cents a share from 58 cents a year ago. The stock sells with a 19 price-earnings ratio. TTD sees that as reasonable.
Strategy Opinion: DAR does look like a "darling of a breakout" today. TTD is targeting the stock for a move to 19 within the next few months. A protective stop can be placed near 13.50. TTD rates DAR a good intermediate-term play. The stock does have a low beta. So, one does need to be patient.
Sponsorship: Good. Several of the top fund holders were recent buyers. A key buyer was American Century Small Company Fund, 2-star rated, which purchased 552,000 shares. It is the largest holder with a 1.3% stake. Also, Oppenheimer Main St. Small Cap Fund, 3-star rated, recently purchased 438,000 shares. DAR has 81 million shares outstanding.
Insider Activity: Neutral. Insiders were recent sellers, after being buyers earlier in the year. Five analysts follow the stock, 3 have a buy, the same as three months ago.
Stock Performance Chart for One Year versus the S&P 500 index.
| TTD's Breakout Profile
Rating Darling International Inc. (DAR) |
| 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 - 13
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side -Large number of breakdown stocks today. Many are linked to earnings disappointments, which is typical in this bear market phase. Bears be aggressive.
(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.)
EPIC, based in Irvine, Ca., makes software solutions primarily used by businesses. Annual revenues: $430 million. EPIC falls sharply today after cutting its sales and earnings outlook. The gap move lower today on heavy volume is very bearish. TTD sees more to go even though this stock seems low priced now. So far today, EPIC is trading 7 million shares, 14 times its normal daily volume of 558,000 shares. 
TTD's table shows a clip form the tape with a big block of 100,000 shares crossing on a modest down tick to $7.83. The action showed heavy institutional selling pressure in the morning.
EPIC's software solutions allow clients to gather and track more information about their customers, plan and schedule warehouse management, and improve supply chain management.
The company's customers typically include mid-sized firms and divisions of larger companies.
The company forecast first-quarter adjusted revenue in a range of $103 million to $104 million. It said Earnings per share would be 6 to 7 cents. That's a big disappointment. The Street was looking for 14 cents a share.
EPIC said in February it expected revenue of $112 to $115 million and earnings per share in a range of 16 to 17 cents.
Results were impacted by lower-than-expected consulting revenue and significantly lower consulting margins during the quarter. Additionally, the company experienced lower-than-expected software license sales in its retail vertical and in international markets. The company cut 2008 guidance. It now expects earnings per share of 92 to 96 cents. The Street consensus is at 89 cents a share.
TTD's daily chart shows the stock falling off a cliff. The gap move lower is very bearish with volume swelling. TTD is targeting EPIC for a drop to 5.30 within the next few months, or sooner.
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.)
