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Weekly - Bullish Investors Go To TTD Bargain Setups - Feature - Monday, May 3 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, May 3 |
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Go to Video Show - "How to Make Money With Breakout Stocks" Go to Video Show -TTD Performance 2008 Long and Short |
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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.
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Ticker Tape Digest's Trading Strategies Overview and Performance Bullish Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." Conservative Investors "Bargain Buy Trades" (swing trades). Ideally suited for entry into stocks on pullbacks within overall up trend. Good for trading range markets Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns Conservative Bearish Investors (swing traders). "Bargain Bearish Plays" to Sell Short. Ideally suited for trading range markets with overall market down trend. |
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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 These are for conservative bullish Investors The strategy is called swing trading. These long buys are ideally suited for entry into stocks on pull backs within overall up trend. They are good for trading range markets. These stocks can give a good return in a week or two. They can also explode into a breakout and a powerful advance.
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 Bearish bargain play stocks to sell short. These issues are usually in down trends and are poised to rollover after a minor rally. They often can provide a conservative bear with a good entry point.
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.
Stocks Screened - 8,200
Bull side - Again a modest number of breakouts today. Stock market rallies strongly. The recent action would indicate a consolidation in the major averages is not taking place. Bulls be selective and watch all protective stops.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
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TTD's Quality Rating of Stock - VASC - AVERAGE |
VASC, based in Minneapolis, makes medical products to control bleeding. Annual revenues: $68 million. VASC is a small cap medical play that breaks out today from a 10-week, cup-and-handle base. The move was triggered by VASC making an acquisition and firming its estimate of second quarter net. So far today, VASC is trading 130,943 shares, triple its normal daily volume of 44,000 shares. The stock is a thinly traded issue. 
TTD highlighted VASC as a breakout at our midsession show on the Web Monday.
VASC's 10 minute chart shows the stock spiking higher in the morning to easily clear its breakpoint line.
The stock pushed higher and then around midday backed off a bit. It then firmed in the afternoon.
TTD's clip of the tape shows VASC's recent big block trades. One can see the price working up from $9.66 to $10.32. A key trade came in the morning when a block of 3,000 shares crossed the tape at $10.20. That was up from the prior block trade at $9.90. 
VASC focuses on providing solutions to interventional cardiologists and interventional radiologists worldwide.
The company's hemostat (blood clotting) products principally consist of the D-Stat Dry hemostat, a topical thrombin-based pad with a bandage used to control surface bleeding, and the D-Stat Flowable, a thick yet flowable thrombin-based mixture for preventing bleeding in subcutaneous pockets.
Its extraction catheters consist of the Pronto V3 and Pronto LP extraction catheters.
The company's vein products include the Vari-Lase endovenous laser. Its access products include micro-introducer kits, MICRO Elite and EXPRO Elite snares, the Guardian hemostasis valve and guide wires used in connection with percutaneous access to the vasculature.
VASC offers catheters for clinical uses, including the Langston dual lumen catheters and Twin-Pass dual access catheters.
VASC's 12-month performance chart shows the stock appreciating 50% versus a 33% gain for the S&P 500 index.
VASC's long-term chart shows the stock in a seven-year consolidation pattern after rallying from its low in 2003. If the stock can make a multi-year high that would be extremely bullish. TTD sees that as a distinct possibility. 
VASC's daily chart shows the stock advancing from 8 in February to almost 10. The stock then formed its base with the work being done above a rising 50-day moving average line.
The structure of the base is bullish.
The stock's TTD momentum indicator (top of the chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) is acting well. Notice that when VASC pulled back in March, the AD line held. That shows there was not much selling pressure. Also volume contracted nicely.
VASC said today said it will acquire the Vascular Access product line of Escalon Medical Corp. The stock's response to the news appeared to be bullish.
VASC also boosted its earnings forecast for this year to 55 to 59 cents a share.
The Street was forecasting a 30% increase in net this year to 43 cents a share from 33 cents a share a year ago. So, the boost in the profit outlook was significant. The stock sells with a price-earnings ratio of 18 based on the new earnings forecast.
Net for the upcoming second quarter should rise 8% to 10 cents a share from 9 cents a year ago. Profit growth should accelerate in the third quarter with net climbing 33% to 12 cents a share from 9 cents a year ago.
Strategy Opinion: VASC's breakout today is impressive coming with bullish news. TTD is targeting VASC for a move to 13 within the next few months, or sooner. A protective stop can be placed near 9.20. TTD rates VASC a stock most suitable for aggressive investors. TTD sees VASC as a good intermediate-term play provided earnings meet expectations.
Sponsorship: Very Good. One of the largest fund holder is 5-star rated EQ/GAMCO Small Company Value Fund with a 1.4% stake. The biggest buyer lately was 3-star rated Allianz CCM Emerging Cos Fund, which picked up 79,050 shares. VASC has 16.7 million shares outstanding.
Insider Activity: Neutral. Not much activity although many stock options were awarded. Five analysts follow the stock, and all 5 have a buy. Wow!
Stock Performance Chart for 12 months with Quarterly Earnings Markers.
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TTD's Breakout Profile Rating Vascular Solutions Inc. - (VASC) |
| 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 | 11 | 0 | 3 |
(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)
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - DISH - AVERAGE |
| TTD's Quality Rating of Stock - VRX - AVERAGE |
| TTD's Quality Rating of Stock - FRO - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - HLF - AVERAGE |
Ticker Tape Digest’s Daily List of “Stocks To 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 - 8,2007
Long-Term Environment for bears: Unfavorable.
Bear Side -Breakdown list remains good. Bears be selective and treat stock market as a trading range with a potential for a breakdown at times. TTD's short play from Friday was Athenahealth Inc. (ATHN) - 29.36, down 5.99. Today the stock has dropped to 28.52 and is working well for bears.
(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.)
. CGA, based in China, produces fertilizer and agricultural products. Annual revenues: $41.8 million. CGA's stock falls sharply today on heavy volume. The stock move represents a cut below key support and is technically bearish. So far today, CGA is trading 849,493 shares, double its normal daily volume of 327,000 shares.
CGA's stock has been acting weak in recent weeks. Today, the stock worked lower in the morning and hit a bottom at 11.90. It attempted a rally but failed and fell back. The stock then trended sideways in the afternoon.
TTD's clip of the tape shows CGA's big block trades recently. One can see the price for the blocks bouncing around. However, a key trade was a block of 13,100 shares that crossed at $12.10 in the morning. That was down from the prior block trade that went off at $12.14.
TTD sees that as an important bearish trade.
CGA. operates through two subsidiaries in China, TechTeam Jinong Humic Acid Product Co., Ltd. and Xi’an Jintai Agriculture Technology Development Company.
The company sells its products through a network of 530 regional distributors covering 21 provinces, four autonomous regions and three municipal cities in China. It sells more than 130 different fertilizer products.
Net for the fiscal year ending June 30 should rise 13% to 88 cents a share from 78 cents a share a year ago. However, the next two quarters, the second half, will be weak. Net for the fiscal third quarter should be up only 2% and then in the fiscal fourth quarter down 7%.
CGA's daily chart shows the stock working lower the past few months. Today, it undercuts key support. The stock's TTD momentum indicator (top of chart) has been bearish for weeks. That shows there has been heavy selling pressure. Today, the stock cracks!
Strategy Opinion: TTD is targeting CGA for a decline to 10. A protective stop buy can be placed near 12.80. TTD sees potential for a big break to the downside.
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.)
