Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Tuesday, April 21
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Tuesday, April 21 |
| 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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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.
Stocks Screened - 8,200
Bull's Strategy - Just one breakout today as stock market bounces higher after Monday's selloff. Bulls be patient and watchful of all long positions. Earnings reports will still impact market.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) -NYSE Bearish, Nasdaq Bearish
Market (Monthly) NYSE Bullish, Nasdaq Bullish
| TTD's Quality Rating of Stock - LANC - AVERAGE |
LANC, based in Columbus, O., a diversified firm, makes food products, automotive
accessories, glass products, and candles. Annual revenues: $1.1 billion. LANC,
a conservative stock, breaks out today from a six-week flat base. The stock had been edging higher in recent weeks and TTD had been highlighting the stock due to its strong earnings outlook.
LANC was highlighted by TTD at our midsession show on the Web today.
So far today, LANC is trading 279,818 shares. Its average daily volume is 216,000 shares. The stock has a beta of just 0.39 versus 1.00 for the S&P 500 index. So, LANC tends to be a low mover - but not today!
LANC's stock rose sharply in the morning and then continued to push higher through out the day. It finished near its high for the sessions, which is bullish. That means the stock has good chances to follow through on the upside Wednesday.
TTD's clip of the tape shows the recent big block trades. one can see the price for the blocks climbing from $42.77 to $44.31. The block action would indicate good institutional interest in LANC.
LANC largest division is in the food sector. It produces specialty foods, markets condiments, baked goods, and pasta under brand names such as Girard's, Pfeiffer, and Marzetti.
The automotive division produces floor mats, truck splash guards, and other parts, which it sells to auto manufacturers and retail stores. Lancaster Colony also produces glassware, cookware, and glass items used in industrial applications.
TTD's performance chart shows LANC's stock appreciating 40% the past six months compared with an 8% decline in the S&P 500 index.
The past six years, LANC traded between roughly 30 and 45. The stock is
now moving toward the top of its long-term trading range. (see TTD's long-term
chart. A push to a new multi-year high would be technically very bullish
long-term. 
TTD's daily chart shows LANC rallying from 26 to 42 the past few months. The structure of the base is bullish. The sluggish movement the past several sessions is probably due in part to the stock market and LANC's low beta.
The contraction in volume the past several sessions is very bullish. It shows a dry up of profit taking from the prior move from 26 to 42.. The breakout today shows a good widening of the spread (range from high to low). It will be important to see LANC show more volume on up days.
LANC's TTD momentum indicator (top of the chart) is bullish.
The accumulation - distribution line (bottom of chart) is in an overall up trend.
What makes LANC's stock look attractive is that earnings for the fiscal year ending June 30 should surge 42% to $2.33 a share from $1.64 a year ago.
The stock sells with a price-earnings ratio of just 17. Granted it is a food stock. Nevertheless the p/e is well below the earnings growth rate. That makes it attractive to value investors.
Net for the upcoming fiscal third quarter should soar 72% to 51 cents a share from 30 cents a year ago. The highest estimate on the Street is at 56 cents a share.
The company is benefiting from good sales and a better mix of products. That is helping to improve margins. The company expects its specialty foods unit to do well as commodity costs moderate.
Looking out to the fiscal fourth quarter ending June 30, analyst predict a 47% jump in net to 55 cents a share from 37 cents a year ago.
Strategy Opinion: LANC is a conservative play but the breakout to a 52-week high could well draw in more buying. TTD is targeting the stock for a move to 54 within the next few months. A protective stop can be placed near 42, which is tight.
TTD rates the stock a good intermediate-term play because of the strong earnings outlook.
Sponsorship: Excellent. The largest fund holder is 5-star rated Royce Special Equity Fund with a 1.7% stake. It was a recent buyer of 15,000 shares. Also, 5-star rated Champlain Small Company Fund picked up 29,000 shares. LANC has 27 million shares outstanding. Funds hold 3.5 million shares.
Insider Activity: Slightly Bullish. Insiders did some light buying in recent months. Two analysts follow the stock, none have a buy.
Stock Performance Chart for 6 months with Quarterly Earnings Markers.
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TTD's Profile Rating Lancaster Colony Corp. - (LANC) |
| 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 | 12 | 0 | 2 |
(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
None
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 - 7
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Modest number of breakdown stocks today. Education stocks fall on brokerage downgrade of the group. Stock market remains whippy, but is now working lower on the daily charts. Bears be selective but venturesome at this time. TTD's feature short on Monday was Amgen Inc. (AMGN) - 45.39, off 1.68. Today it is trading off slightly from its Monday close.
(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.)
FWRD, based in Greenville, Ten., is a provider of time-definite truck transportation to the North American deferred freight shipping market. Annual revenues: $474 million. FWRD's stock gaps lower today on big volume after reporting a first quarter loss. The stock has been in a downtrend since peaking near 40 last year. So far today, FWRD is trading 940,758 shares, triple its normal daily volume of 305,000 shares. 
TTD sees more on the downside.
FWRD's stock fell sharply in the morning. It staged a rally in the late after to cut its loss. It then trended sideways in the afternoon.
TTD's clip of the tape shows the stock taking a hit in the morning. A big block of 15,016 shares crossed the tape on a big down tick to $14.16 from the prior trade at $14.50. The selling indicated aggressive institutional distribution
FWRD reported a loss for the first quarter of 11 cents a share compared with a profit of 35 cents a share a year ago. Revenues declined to $96 million from $107 million.
Forward Air Airport-to-airport trucking generates 80% of revenue. Logistics, predominantly expedited truckload brokerage, produces around 11%. Less-than-truckload pooling shipments produces 4%, and warehousing, terminal handling 5%. The firm operates 82 terminals near airports in the U.S. and Canada.
This year, analysts project a 55% plunge in FWRD's earnings to 66 cents a share from $1.47 a year ago. The estimate for this year could go even lower.
TTD's daily chart shows FWRD in a down trend and then showing a bounce rally. Today, it gaps lower on heavy volume to resume its down trend.
Strategy Opinion: TTD is targeting FWRD for a decline to 11.50 within the next few months or sooner. The stock has the potential to fall even further if earnings fail to materialize. A protective stop buy can be placed near 15.50.
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.)
