Daily - Go to TTD's Tape of Stock Charts - Tuesday, April 30, 2013 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, April 29, 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 - 20
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Big list of breakouts today with some very good looking plays. Bulls be venturesome. Stock market still holds 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 Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
(See Top Performing Breakout Stocks for 2011- 2012)
TTD's Quality Rating of Stock - CTRX - ABOVE AVERAGE |
CTRX, based in Lisle, Ill., provides pharmacy benefits management services and healthcare IT solutions. Annual revenues: $9.9 billion. CTRX's stock breaks out today from a nine-week, cup-and-handle base. The stock, a leader, has pushed to a new all-time high which is bullish.
TTD featured CTRX as a potential breakout recently.
So far today, CTRX is up nicely. Volume is running at 1.6 million shares. Its average daily volume is 1.2 million shares.
CTRX's 10-minute chart shows the stock advancing strongly in the morning. The stock peaked at 58.18 in the early afternoon.
Later in the day, the stock drifted back a bit, but held over the breakpoint line.
TTD's clip of the tape shows the recent big block trades.
One can see the price of the CTRX blocks rising from $56.61 to a peak of $57.78 early in the session.
The key bullish trade came in the morning when a block of 30,000 shares crossed the tape at $57.78. That was up from the prior block trade at $56.61.
Late in the morning another key bullish trade crossed at $55.25 on a block of 25,000 shares.
CTRX provides pharmacy benefits management services and healthcare IT solutions to the healthcare benefits management industry.
The company's products combine software, application processing services and professional services, designed for large firms.
CTRX services the drug supply chain, such as Federal, provincial, and, state and local governments, pharmacy benefit managers, managed care organizations, retail pharmacy chains and other healthcare companies.
CTRX's 12-month performance chart shows the stock appreciating 28% versus a 15% gain for the S&P 500 index.
CTRX's long-term chart shows the stock soaring from $1.14 back in 2005 to a peak of $7.87 in 2007. The stock then pulled back to 2.88 in 2008 due to the bear market. The price is adjusted for two 2-for-1 stock splits, one in 2010 and another in 2012.
The past several years the stock ha been pushing steadily higher.
CTRX's daily chart shows the stock climbing from 42 in October to 57 by March.
The stock put down a well-formed cup-and-handle base and today's breaks out with a modest pick up in volume.
The stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) has turned up and compliments the price pattern in its recent weeks of action.
This year, analysts project earnings should leap 57% to $1.87 a share from $1.19 a year ago.
Looking ahead to 2014, profits should climb 26% to $2.35 a share from the anticipated $1.87 this year.
The company should show an acceleration in earnings growth the next two quarters. That should be a key driver to send it higher.
Net for the first quarter is expected to leap 58% to 41 cents a share from 26 cents a year ago. The highest estimate on the Street is at 46 cents a share. TTD sees good chances for a modest upside earnings surprise. The prior two quarters, CTRX topped the consensus estimate by 5 cents a share and one cent.
Going out to the second quarter, net should surge 83% to 45 cents a share from 25 cents the year before.
The company is getting a good flow of new contracts.
Strategy Opinion: TTD is targeting CTRX for a move to 70 within the next few months, or sooner. A protective stop can be placed near 53.50
TTD rates CTRX an excellent intermediate-term play provided earnings continue to meet expectations.
Sponsorship: Excellent. The four largest fund holders are all rated 5-star. The largest fund holder is T. Rowe Price Health Sciences Fund with a 2.4% stake. It was a recent buyer of 25,000 shares. The 5-star rated Wells Fargo Advantage Growth Fund recently added 50,000 shares.
CTRX has 205.9 million shares outstanding. Institutions hold 96% of the stock.
Insider Activity: Not available. Currently, 17 analysts follow the stock, 13 have a buy, up from 12 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
TTD's Breakout Profile
Rating Catamaran Corp. - (CTRX) |
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 - GTLS - ABOVE AVERAGE |
TTD's Quality Rating of Stock - GIB - ABOVE AVERAGE |
TTD's Quality Rating of Stock - SSNC - ABOVE AVERAGE |
TTD's Quality Rating of Stock - LKQ - ABOVE 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 - 3
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Only a few breakdown stocks today. Bears be selective. Stock market still holds in overall up trend.
PBI, based in Stamford, Con., produces software and hardware for businesses. Annual revenues: $4.9 billion. PBI's stock falls sharply today after the company reported sharply lower earnings for the first quarter. So far today, PBI is trading a heavy 23.8 million shares, six times its normal daily volume of 4.1 million shares. TTD sees more on the downside.
TTD highlighted PBI as a short at our midsession video show on the web Tuesday.
PBI reported first quarter net declined to 42 cents a share from 64 cents a year ago.
The stock fell steadily during the morning. It hit an intraday low of 13.12. The stock then trended sideways through the midday. Late in the day, it lifted a bit to trim a small part of its loss.
PBI's tape action shows the recent big block trades.
One can see the price for the blocks declining from $15.92 to as low as $13.39.
A key bearish trade came in the morning when a block of 414,874 shares crossed the tape at $14.25. That was down sharply from the prior block at $16.20.
PBI produces software and hardware to enable physical and digital communications. The products include rental of postage meters and the sale of mailing equipment.
This year, analysts are forecasting a 13% drop in net to $1.91 a share from $2.18 a year ago.
PBI's daily chart shows the stock gapping lower with big volume. The stock undercuts near-term support.
Strategy Opinion: TTD is targeting PBI for a decline to 10.50 within the next few months or sooner. A protective stop can be placed near 15.10.
TTD's Quality Rating of Stock - PBI - 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.)