Daily - Go to TTD's Tape of  Stock Charts - Wednesday, April 18

Daily - Bullish Investors  - Go To TTD Pre-Market Opening Breakout Watch  List and Performance - Wednesday, April 18

Ticker Tape Digest

Wednesday - April 18, 2012

By Leo Fasciocco -- TTD

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 - Long Term.  These are for conservative bullish Investors These long-term buys are ideally suited for entry into stocks on pull backs within overall up trend. These stocks can give a good return long-term especially during a bull market.

   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 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.

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.

  Breakout Stocks

Total Buy Breakouts so far today - 12

Overall Quality of Breakouts - Above Average

Stocks Screened - 8,300

Bull side -  Good number of breakouts with some quality plays. Bulls can be venturesome. Stock market still in a trading range within an overall up trend.

 (Put mouse on Dow chart to see Nasdaq chart)

Long Term Environment for bulls:  Favorable

Market (Daily) - NYSE Bullish, Nasdaq Bullish

Market (Weekly) - NYSE Bearish, Nasdaq Bearish

Market  (Monthly) - NYSE Bullish, Nasdaq Bullish 

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action - April 18

(See Top Performing Breakout Stocks for 2011- 2012)

(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)All Timely Breakout Stocks From Tape Action Today )  

Today's Featured TTD Breakout Stock

United Rentals Inc. (URI) - 45.35, up 4.44 - Breakpoint 44.49

Hits 13-Year High, Posts Strong Profits, TTD Targets 55

     URI, based in Greenwich, Ct., is an equipment rental firm. Annual revenues: $2.6 billion. URI's stock breaks out today  from a nine-week flat base and makes a 13-year high. TTD featured URI earlier this month as a potential breakout. So far today, URI is trading a heavy 8.5 million shares, four times its normal daily volume of 2 million shares.

  URI's push higher today was triggered by favorable quarterly earnings.

  TTD's 10-minute chart shows the stock driving higher in the morning. The just got above its breakpoint. Later in the day it pushed higher clearing the breakpoint nicely.

  URI came in with net for the first quarter of 36 cents a share. The Street was expecting only 5 cents a share. So, the net was a big bullish surprise.

The company said it benefited from a shift to renting equipment rather than buying. Revenues for the quarter rose to $656 million from $523 million a year ago. Rental revenues rose to $523 million from 434 million the year before.

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

  One can see the  price for the blocks climbing from $40.91 a few days ago to a peak of $46.08 on Wednesday.

A key bullish trade came in the morning when a block of 68,762 shares crossed the tape at $44.50. That was up from the prior block at $40.91 that came on a big 141,152 share trade.

 United Rentals, Inc. is one of North America's largest equipment rental companies with over branches in the majority of states, several Canadian provinces and Mexico. The company offers for rent different types of equipment to customers that include construction and industrial companies, manufacturers, utilities, municipalities, homeowners and others.

  URI's 12-month performance chart shows the stock appreciating 42% versus a 4% gain for the S&P 500 index.

  URI's long-term chart shows the stock climbing from 5 back in 2003 to a peak of 37.84 in 2006. The stock then went south due to the bear market. It hit a low of $2.52 by early 2009. However, since then the stock has surged higher. It is now near its all-time high of 42 set back in 1998 just after it came public.  

 URI's daily chart shows the stock climbing from 15 back in August to a peak near 44 in February. The stock then formed a flat base. The stock did have a small shakeout a few sessions ago, but then firmed. 

  URI's breakout comes with a gap move and widening of the daily trading spread - all bullish.

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

   The accumulation - distribution line (bottom of chart) has already broken out to the upside. That was a good lead indicator that the price of the stock would breakout too.

  This year, analysts are forecasting a big 66% surge in earnings to $3.10 a share from $1.87 a year ago. The stock sells with a price-earnings ratio of just 14. TTD sees that as low making the stock an excellent value-growth play.

  Next year, the Street is forecasting a 36% gain in net to $4.21 a share from the $3.10 anticipated this year.

  For the upcoming second quarter, earnings should surge 92% to 77 cents a share compared with 40 cents a share a year ago.

 The highest estimate on the Street is at 91 cents a share. That means some are looking for a significant higher quarter than others. TTD sees very good chances for an upside earnings surprise. The past three quarters, URI surpassed the consensus estimate by 31 cents a share, 21 cents a share and 16 cents a share (see table).

  Strategy Opinion:  TTD is targeting URI for a move to 55. A protective stop can be placed near 42.

 TTD rates URI an excellent intermediate-term play provided earnings remain on course.

  Sponsorship: Average. The largest fund buyer recently was 2-star rated American Century Vista Fund which purchased 525,000 shares. Also, 2-star rated Brandywine Fund purchased 348,000 shares as a new position. URI has 63.8 million shares outstanding.

  Insider Activity: Bearish. Insiders have been buyers using stock options from $5.85 to $11.63. They were sellers around $42. Currently, 8 analysts follow the stock 7 have a buy, up from 6 three months ago.   

 Stock Performance Chart with Quarterly Earnings Markers

  Insider Activity - Buying in Green - Selling in Red

Charts of Selected Breakout Stocks

Ticker Tape Digest’s

Stocks To “Sell or Short”

  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 - 9

Stocks Screened - 8,300

Long-Term Environment for bears: Unfavorable.

Bear Side -  Good number of breakdown stocks today with some interesting plays. Stock market in trading range giving bears some good chances for a breakdown stock with some damaged fundamentals. TTD's short from Tuesday was Zynga (ZNGA) at 10.37. Today, the stock has declined to 10.18 and is working well for bears.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Sina Corp. (SINA) - 59.10, down 1.86

Loss Expected for 1st Quarter, TTD Sees Drop to 52

 SINA, based in China, provides a variety of internet services in China. Annual revenues: $482 million. SINA's stock falls sharply today with expanding volume. The move causes the stock to undercut key technical support. With a loss expected in the first quarter, TTD sees good potential for more on the downside. So far, today, SINA is trading 5.8 million shares. Its average daily volume is 4.6 million shares.

  SINA's stock declined through the morning and into the early afternoon. Late in the day the stock mounted a modest rally to trim its loss. The stock had hit an intraday low of 57.68.

  SINA's tape action shows the recent big blocks. One can see the price for the blocks declining from $62.41 to $59. A key bearish trade came when a block of 17,760 shares crossed the tape today at $59. That was down from the prior block trade at $60.70.

  SINA  has several branded web sites targeting Greater China and overseas Chinese.

 The company operates three major business lines including SINA.com, SINA Online and SINA.net, providing an array of services including online portals, premium email, wireless short messaging, virtual ISP, search, classified information, online games, e-commerce, e-learning and enterprise e-solutions.

  Analysts expect SINA to post a first quarter loss of 27 cents a share compared with a profit of 21 cents a year ago. For the year, they see net tumbling 84% to 14 cents a share from 69 cents a year ago.

  SINA's daily chart shows the stock cutting below support with a pick up in volume. The stock's accumulation - distribution line (bottom of chart) is in a down trend indicating clear selling pressure.

   Strategy Opinion:  TTD is targeting SINA for a drop to 52 within the next few months, or sooner. A protective stop buy can be placed near 61.

TTD takes no responsibility for trading by those using this information. The stocks presented in our report are those we deem the best looking "Day Trades" for the long side. We take no responsibility for the accuracy of this data, although every effort is made to present the information correctly. Copyright Ticker Tape Digest.

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.”

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(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.)