Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Friday, April 18
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Friday, April 18 |
| 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 - Modest number of breakouts today as stock market rises sharply with the Dow breaking out of its trading range. Bulls be aggressive looking for breakouts with strong profit outlooks.
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
DE, based in Moline, Il., makes agricultural, industrial, forestry, and lawn-care equipment. It includes tractors and other vehicles. Annual revenues: $24.8 billion. DE, part of the powerful agricultural sector, breaks out today from a 13-week flat base. The stock hit a new intraday high. That could well bring in more buying on Monday. So far today, DE is trading 9 million shares, about double its normal daily volume of 4.7 million shares.
TTD's clip of the tape shows a big block of 313,000 shares crossing in the morning. It went off on a big up tick to $91.24 from the prior trade at $91. The action showed aggressive institutional buying.
TTD highlighted DE as a breakout at our midsession show on the Web.
DE's products include tractors, harvesters, sprayers, mowers, excavators, loaders, diesel engines, utility transport vehicles, and machinery components.
The company's credit subsidiaries provide financing and leasing services to aid in the purchase of new and used equipment.
TTD's long-term chart shows DE soaring from 20 in 2003 - the start of the prior bull market - to 92. It has been a big winner in the big cap sector.
TTD's performance chart shows DE appreciating 65% in the past 12 months versus a 5% drop in the S&P 500 index.
TTD's daily chart shows the breakout in DE today. The stock is in a base bracketed between roughly 91 on the upside and 78 on the downside. The breakpoint was set at the key upside resistance of the base.
Today, DE plows through that on expanding volume.
DE's technical indicators are very bullish. The TTD momentum indicator (top of the chart) shot higher a few sessions ago. It remains very bullish.
The accumulation - distribution line (bottom of chart) broke out to the upside a few sessions ago. That was a good advance signal that a breakout might be coming.
This year, analysts predict a 30% jump in DE's earnings to $5.21 a share from $4.01 a year ago. The stock sells with a price-earnings ratio of 17, which is reasonable.
Next year, profits are expected to increase 19% to $6.17 a share from the anticipated $5.21 this year.
DE is benefiting from the strong demand for its products in the farm sector. The company is also expanding aggressively in Russia.
For the upcoming first quarter, the Street is looking for a 29% gain in net to $1.76 a share from $1.36 a year ago. The highest estimate on the Street is at $1.97 a share. TTD sees very good chances for an upside surprise in earnings. The past four quarters, DE topped the consensus Street estimate by 6 to 18 cents a share.
Strategy Opinion: DE is riding the wave in the agricultural sector. TTD sees this big cap playing doing well if it can follow through on the move today. TTD is targeting DE for a move to 110 within a few months, or sooner. A protective stop can be placed near 88. TTD rates DE a very good intermediate-term play because of its strong profit outlook.
Sponsorship: Excellent. Several top performing funds have been buyers lately, very few have sold. The largest fund holder is American Funds Fundamental Investors with a 2.4% stake. The 5-star fund was a recent buyer of 4.7 million shares. Also, 5-star rated Vanguard Wellington Fund purchased 3.2 million shares and 5-star rated CGM Focus Fund added 3.2 million shares.
Insider Activity: Neutral. Some light insider buying took place in recent months. Currently, 14 analysts follow the stock, 6 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 Deere & Co. (DE) |
| 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 | 14 | 0 | 0 |
(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 - 5
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side -Very few breakouts as stock market turns sharply higher. Bears be conservative and watchful. Dow pulls out of bottoming pattern. Best shorts are those with fundamental problems.
(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.)
ICUI, based in San Clemente, Ca., makes medical devices used to protect healthcare workers from the accidental spread of infectious diseases such as hepatitis and HIV. Annual revenues: $190 million. ICUI falls sharply today after reporting disappointing earnings. The drop today comes on heavy volume of 713,599 shares, eight times its normal daily volume of 96,300 shares.
TTD's list of big block trades today shows the stock sinking in price from $26.26 to $24. The action shows clear institutional selling pressure on this otherwise thinly traded issue.
ICUI's medical devices are primarily IV systems that prevent disconnections and accidental needle sticks.
Its proprietary model, the CLAVE NeedleFree Connector, serves this purpose. It also manufactures CLC2000, a device designed to prevent backflow of blood into a catheter.
ICUI reported first quarter net plunged to 20 cents a share from 67 cents a year ago. The results were well below Street consensus estimates. Revenues for the quarter dropped 9%. The drop in net reflected plant closing which in turn cut profit margins.
The company said it was sticking with its full year estimate that net would reach $1.50 a share. That would be a 28% increase over the $1.17 a share a year ago.
TTD's daily chart shows ICUI's stock in a clear down trend. The gap breakdown on big volume and a widening of the spread (range from high to low) is very bearish. The steady decline in the accumulation - distribution line shows the stock has been under selling pressure for several weeks. TTD is targeting ICUI for a drop to 19 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.)
