Daily - Go to TTD's Tape of Stock Charts - Friday. April 25, 2014 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, April 21, 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 - 3
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list small and extremely selective. Bulls be conservative and watchful. Stock market turns down hard within its trading range. Earnings will continue to be a key factor.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Stock Market Momentum
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bearish
Ticker Tape Digest's
TTD's Quality Rating of Stock - HBI - ABOVE AVERAGE |
HBI, based in Winston-Salem, N.C., makes clothes such as T-shirts, bras, panties, men’s underwear, children’s underwear, activewear, socks and hosiery. Annual revenues: $4.6 billion. HBI's stock breaks out today from a nine-week flat base. The move came after the company lifted its earnings outlook for the year. So far today, HBI is trading 2.3 million shares, double its average daily volume of 911,000 shares.
TTD highlighted HBI as a breakout at our midsession video show on the Web Friday.
HBI's 10-minute chart shows the stock surging higher in the morning. The stock hit an intraday peak of 81.83 in the morning. That came despite the stock market taking a big dive.
HBI then pulled back a bit as the day wore on, but it held above its breakpoint line
HBI's tape action shows the recent block trades.
One can see the price for the blocks climbing from $75.22 in the prior session to as high as $80.58 on Friday.
A key bullish trade came late on Thursday when a block of 3,300 shares crossed the tape at $78.
That was up from the prior block trade at 75.22 on 13,700 shares.
Then later the price for the blocks worked higher. However, in the final hour of trade a massive block of 196,000 shares crossed the tape at $78.845.
That was up slightly from the prior trade at $78.84 on 100 shares.
HBI operates in four segments: Innerwear, Activewear, Direct to Consumer and International.
These segments are organized by product category, geographic location or distribution channel.
Innerwear sells intimate apparel, men’s underwear, children’s underwear and socks. The Activewear sells seasonal clothes licensed logo apparel in collegiate bookstores and other channels.
The direct to consumer includes the company-operated outlet stores, catalogs and website operations that sell its branded products directly to consumers.
The International unit sells to Asia, Latin America, Canada and Australia.
HBI's 12-month performance chart shows the stock appreciating 60% versus a 10% gain for the S&P 500 index.
HBI's long-term chart shows the stock coming public in 2006 and trading at $20. The stock rose to a peak of $37 in 2008. The stock then fell back to 5 in early 2009 due to the bear market.
Since then, HBI has worked higher soaring to 78.
HBI's daily chart shows the stock rising from 60 in October to 76 by February. The stock broke out of the base in late March. However, it faded back into the base without showing any follow through.
The stock regrouped and Friday gap out of its base with expanding volume.
HBI's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line has backed off a bit. However, it remains in a modest up trend.
The company boosted its year forecast in the morning.
This year, HBI is projecting earnings of $4.80 to $5 a share. That is a boost from its prior forecast.
The current Street forecast is at $4.72. That boos in the estimate got the stock going on the upside Friday.
Going out 2015, analysts are currently forecasting a 12% gain in net to $5.27. That will most like have to be lifted.
Earnings for the upcoming second quarter are expected to climb 22% to $1.45 a share from $1.19 a year ago. The company has topped the Street estimate the past nine quarters. TTD sees good chances for another upside surprise.
The highest estimate for the second quarter is at $1.53 a share.
Going out to the third quarter, analysts are looking for a 23% gain in net to $1.51 a share from $1.23 in the prior year.
Strategy Opinion: TTD is targeting HBI for a move to 94 off this breakout. A protective stop can be placed near 75.
TTD rates HBI an average intermediate-term play.
Sponsorship: Average. The largest fund holder is the 4-star rated Vanguard Selected Value Fund with a 2.3% stake. It was a recent seller of 204,900 share.
A key large buyer recently was 4-star rated American Century Growth Fund which purchased 365,600 shares.
HBI has 99.5 million shares outstanding. Institutions hold 92% of the stock.
Insider Activity: Slightly Bearish. Insiders were recent buyers using stock options from $11 to $13 a share. They were sellers around $75 to $76.
Currently, 8 analysts follow the stock, 4 have a buy, down from 6 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
TTD's Breakout Profile
Rating Hanesbrands Inc. - (HBI) |
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 | 12 | 0 | 2 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - TSO - AVERAGE |
TTD's Quality Rating of Stock - LSTR - 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 - 10
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Stock market falls sharply and broadly Friday. The market continues to trade in a range. Bears be selective. TTD's short from Thursday was Heico Corp. (HEI) at 55.76. It is trading at 54.95 Friday and working well for bears.
CYOU, based in China, operates a online games in China. Annual revenues: $738 million. CYOU's stock declines today undercutting key technical support. So far today, CYOU is trading a heavy 516,900 shares, double its average daily volume of 255,000 shares. TTD sees more on the downside.
TTD highlighted CYOU as a short at our midsession video show on the Web Friday.
CYOU's stock fell sharply in the morning. It hit an intraday low of 27.69 in the morning. The stock then lifted slightly and trended sideways going into the afternoon.
Then late in the afternoon, it lifted to almost get even, but then it fell back again.
CYOU's tape action shows the recent block trades.
One can see the price for the blocks declining from $27.70 a few sessions ago to as low as $26.43.
A key bearish trade came in the morning when a block of 15,000 shares crossed the tape at $26.77. That was down sharply from the prior block at $27.25 on 8,800 shares.
The Company develops, licenses and operates new MMOGs and Web and mobile games.
It also owns and operates the 17173.com website, an information portal for gamers in China.
CYOU operates its current games under the item-based revenue model, meaning game players can play games for free, but may choose to buy prepaid game cards that are used to pay for virtual items. They are non-physical items that game players can purchase and use within a game, such as gems, pets, fashion items, magic medicine, riding animals, hierograms, skill books and fireworks, to enhance the game-playing experience.
Analysts expect CYOU to show a loss of 41 cents a share this year. That compares with a profit the year before. For the upcoming first quarter, they look for a loss of 36 cents a share and then in the second quarter a loss of 8 cents a share.
CYOU's daily chart shows the stock breaking down in October. It then trended mostly sideways. Today, the stock cuts below key technical support. CYOU's TTD momentum indicator (top of chart) is now bearish.
Strategy Opinion: TTD is targeting CYOU for a decline to 21 within the next few months, or sooner. A protective stop buy can be placed near 27.50.
TTD's Quality Rating of Stock - CYOU - 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.)