Daily - Go to TTD's Tape of Stock Charts - Wednesday, April 24, 2013 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, April 22, 2013 |
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 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.
Ticker Tape Digest's Daily schedule guide for TTD subscribers 1. Pre-market - check Breakout Watch List and Quick Trades. 2. Morning - (11:30 - 12 A.M.) - check breakout stocks tape and breakout chart slide show. 3. Midday (1 P.M.) check TTD Midsession Report and see market video show. 4. After close (4 P.M.) check final TTD Report for day. Trading Strategies Bullish Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. (See Performance) Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." (See Performance) Conservative Investors "Bargain Buy Trades for the Long Term." Ideally suited for entry into top performing big cap stocks on pullbacks within overall up trend.(See Performance) Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance) |
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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 - 13
Overall Quality of Breakouts - ABOVE AVERAGE
Stocks Screened - 8,300
Bull side - Large breakout list with some very good looking plays. Bulls be venturesome. Stock market holding up trend and now consolidating.
(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
(See Top Performing Breakout Stocks for 2011- 2012)
TTD's Quality Rating of Stock - RKT - ABOVE AVERAGE |
RKT, based in Norcross, Ga., makes paperboard. Annual revenues: $9.2 billion. RKT's stock breaks out today after reporting better than expected earnings for the fiscal second quarter ending March 30. So far today, RKT is trading a heavy 3.6 million shares, five times its normal daily volume of 710,000 shares.
TTD highlighted RKT as a stock that should be accumulated for a possible breakout earlier this week. The stock was also featured as a breakout at our midsession video show on the Web Wednesday.
RKT''s stock surged higher in the morning on its strong earnings report. The stock peaked at 103.07 early in the session.
The stock then back tracked but held above its breakpoint line. In the afternoon, RKT pushed steadily higher with intraday volume picking up.
RKT came in with net for the fiscal second quarter of $1.12 a share, up from 97 cents a year ago. The $1.12 topped the consensus estimate on the Street of $1.05 a share. The stock responded very bullishly to the news.
RKT's tape action shows the recent block trades. One can see the price for the blocks climbing from $89.60 to as high as $99.51.
A key bullish trade came in the morning Tuesday when a block of 16,757 shares crossed the tape at $93.98. That was up strongly from the prior block trade at $89.60.
The stock's strong finish could indicate good chances for a follow through.
RKT makes paperboard, containerboard and consumer and corrugated packaging. The Company operates in the U.S., Canada, Mexico, Chile and Argentina.
The company operates in three segments:
- Corrugated packaging, consisting of its containerboard mills and its corrugated converting operations.
- Consumer Packaging, consisting of its coated and uncoated paperboard mills.
- Consumer packaging converting operations and merchandising display facilities, and Recycling, which consists of its recycled fiber brokerage and collection operations.
RKT has been active in making acquisitions to expand operations.
RKT's long-term chart shows the stock climbing from 7 back in 2001 to 46 by 2008.
The stock then pulled back to 23 in early 2009 due in part to the bear market. Since then, the stock has been trending higher. The push to a new high could continue to attract more buying on Thursday.
RKT's daily chart shows the stock climbing from 62 back in November to around 93. The stock set up a flat base and today blows out to the upside with strong volume.
The stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) has pushed to a new peak showing good supporting buying for the breakout.
This fiscal year ending in September, analysts are forecasting a 43% jump in net to $6.40 a share from $4.48 a year ago.
TTD sees chances for the estimate to get a boost after the favorable quarterly report.
The stock sells with a price earnings ratio just 15. TTD sees that as extremely low making the stock a very good valuation play for conservative investors.
Going out to fiscal 2014, profits should climb 39% to $8.93 a share from the anticipated $6.40 this fiscal year.
Net for the upcoming fiscal third quarter ending in June should show a strong 72% leap to $1.63 a share from 95 cents a year ago. The highest estimate on the Street is at $1.94 a share. So, some see a big quarter.
Going out to the fiscal fourth quarter, profits should surge 74% to $2.42 a share from $1.39 a year ago.
Strategy Opinion: RKT is strong stock with big earnings gains to come.
TTD is targeting the stock for a move to 115, up from our prior target of 110. A protective stop can be placed near 94.
TTD rates RKT a very good intermediate-term play.
Sponsorship: Excellent. The largest fund buyer recently was 5-star rated American Century U.S. Mid Cap Value Fund which bought 1.3 million shares. It is the largest fund holder with a 1.8% stake. Also, the 5-star rated J Hancock3 Disciplined Value fund was a recent purchaser of 13,625 shares.
RKT has 71.8 million shares outstanding. Institutions hold 86% of the stock.
Insider Activity: Bearish. Insiders were steady sellers the past few months. Some were buyers using stock options at $32 to $35. Currently, 11 analysts follow the stock, 8 have a buy, up from 6 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
TTD's Breakout Profile
Rating Rock-Tenn Co. - (RKT) |
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 | 14 | 0 | 0 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - LL - ABOVE AVERAGE |
TTD's Quality Rating of Stock - RNR - ABOVE AVERAGE |
TTD's Quality Rating of Stock - LF - ABOVE AVERAGE |
TTD's Quality Rating of Stock - UTHR - AVERAGE |
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 - 4
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small number of breakdown stocks today as stock market turns mixed. Bears be selective. Stock market in a trading range. TTD's short from Tuesday was Idexx (IDXX) at 86.66. Today, IDXX has declined to 84.45 and is working well for bears.
DV, based in Downers Grove, Il., provides education services through several schools. Annual revenues: $2 billion. DV's stock falls sharply today after the company reported disappointing earnings. So far today, DV is trading a heavy 3.6 million shares, six times its normal daily volume of 584,000 shares. TTD sees more on the downside.
TTD highlighted DV as a short at our midsession video show on the Web Wednesday.
The company reported earnings for the fiscal third quarter ended March dropped to 88 cents a share from $1 a year ago. Also, the company said enrollment declined.
The stock responded bearishly to the news. DV's stock gapped lower in the morning. It hit an intraday low of 26.70. The stock then trended sideways the rest of the day unable to rally.
The stock's tape action shows the recent block trades. One can see the price for the blocks declining from $34.03 on Tuesday to as low as $26.85 on Wednesday.
A key bearish trade came when a block of 41,977 shares crossed the tape in the morning at $27.23. That was down from the prior block at $34. The tape action showed heavy institutional selling pressure.
DV operates DeVry Institutes of Technology, Denver Technical College, Keller Graduate School of Management and Becker Conviser CPA Review.
It also runs DeVry Institutes, DeVry Canada, Inc., Denver Technical College and Keller Graduate School of Management are a part of DeVry University.
This fiscal year ending in June, the Street is forecasting a 17% drop in net to $2.68 a share from $3.22 a year ago. Going out to fiscal 2014, analysts expect only a 2% rise in net.
DV's daily chart shows the stock advancing the past several months. Today's drop looks like a surprise for the stock market.
Strategy Opinion: TTD is targeting DV for a decline to 22 within the next few months, or sooner. A protective stop buy can be placed near 28.20
TTD's Quality Rating of Stock - DV - BELOW AVERAGE |
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.)