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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, May 2 |
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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 for the Long Term." Ideally suited for entry into top performing big cap stocks on pullbacks within overall up trend. Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns |
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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.
1 - TTD's Breakout Stocks - Long - (Intermediate-term long plays) these 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.
2 -TTD Quick Trade Stocks - Long - (Short-term long plays 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.
3 - TTD's Bargain Buy Trades - Long - (Long Term long plays. 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.
4 - 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 - 12
Overall Quality of Breakouts - ABOVE AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list small. but some high quality small cap issues breakout. Stock market remains in overall up trend, but is now drifting back. Bulls be alert for quality plays breaking out.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
(See Top Performing Breakout Stocks for 2011)
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TTD's Quality Rating of Stock - LXU - ABOVE AVERAGE |
LXU, based in Oklahoma City, makes a variety of chemical products. Annual revenues: $610 million. LXU's stock breaks out today from a seven-week flat base. The breakout comes with a gap move to the upside on big volume. It was triggered by LXU's report of strong profits for the first quarter. So far today, LXU's volume is running at a heavy 1.6 million shares, eight times its normal daily volume of 228,000 shares.
TTD highlighted LXU as a breakout at our midsession video show on the net.
LXU's 10-minute chart shows the stock gapping higher in the morning and cutting across its breakpoint.
The stock then consolidated its gain. It responded well to the report of earnings for the first quarter jumping to 90 cents a share from 7 cents a year ago.
The 90 cents topped the consensus estimate of 63 cents a share and also the highest estimate on the Street of 67 cents a share.
The bullish response to the news indicated it was a surprise. Usually when a company can top the highest estimate, the stock has the potential to push higher for the next few weeks. TTD sees that potential with LXU. 
TTD's clip of the tape shows the recent block trades.
One can see the price for the blocks climbing from $36.99 to a peak of $43.80. The price for the blocks continued to rise indicating aggressive institutional buying. A key bullish block trade came when 23,631 shares crossed the tape at $41 in the morning. That was up sharply from the prior block trade at $36.99.
LXU makes chemicals for explosives, agricultural and industrial acids markets; the manufacture and sale of a broad range of hydronic fan coils and water source heat pumps.
They also make products used in commercial and residential air conditioning systems; and the manufacture of certain automotive and industrial products, including automotive bearings and other automotive replacement parts.
LXU's 12-month performance chart shows the stock appreciating a sensational 150% versus a 20% gain for the S&P 500 index.
LXU's stock came public in late 2003 and traded around 5. The stock soared to a peak of 28 by late 2007. It was pulled lower during the bear market falling to 6 - a round trip. The stock has since made an even more impressive comeback surging to 44. It is in position to make a new high.
LXU's daily chart shows the stock climbing from 19 back in October to a peak of 40 in March. The stock then trended sideways in a well formed flat base.
The stock worked to the lower part of the base. However, today it explodes to the upside with a powerful breakout.
The stock has been riding the 50-day moving average line higher.
The accumulation - distribution line (bottom of chart) is in an overall up trend. It has pushed higher to compliment the price breakout.
This year, analysts have been forecasting a 120% jump in net to $2.93 a share from the $1.33 a year ago. That estimate could get boosted. The stock sells with a price-earnings ratio of 14. TTD sees that as attractive for value investors.
Looking out to 2012, the Street projects a 17% gain in net to $3.43 a share from the anticipated $2.93 this year.
LXU's strong first quarter net reflected a big improvement in sales, which climbed to $177 million from $130 million a year ago.
The Street expects net for the second quarter to leap 231% to 89 cents a share from 27 cents a year ago. The highest estimate on the Street is at $1.10 a share. So, another big quarter is coming.
Strategy Opinion: TTD is targeting LXU for a move to 54 within the next few months. A protective stop can be placed near 39. TTD rates LXU a very good intermediate-term play.
Sponsorship: Average. The largest fund buyer recently was 3-star rated Scout Small Cap Fund which purchased 196,000 shares. It has a 0.93% stake in LXU. LXU has 21.2 million shares outstanding.
Insider Activity: Slightly Bearish. Insiders have been light but steady sellers of the stock. The latest selling was at $39.80. Four analysts follow the stock 3 have a buy, down from 4 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
| TTD's Breakout Profile
Rating LSB Industries Inc. - (LXU) |
| 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 | 13 | 0 | 1 |
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - SBH - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - IFSIA - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - WCG - BELOW AVERAGE |
| TTD's Quality Rating of Stock -TACT - BELOW 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 - 5
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of breakdown stocks today. Bears remain selective seeking stocks with fundamental problems. TTD's short from Thursday was Aeropostale Inc. (ARO) at 21.51. Today, the stock is down to $20.80 and working well for bears.
GSIT, based in Santa Clara, Ca., produces electronic products for the telecom industry. Annual revenues: $97 million. GSIT's stock falls sharply today in heavy trading as the company reports disappointing earnings for the quarter. So far today, GSIT is trading 1 million shares, 8 times its normal daily volume of 127,000 shares. TTD sees more on the downside.
GSIT reported net for the fiscal fourth quarter ended March 31 declined to 11 cents a share from 14 cents a year ago. The Street was expecting 15 cents a share. The lowest estimate was at 13 cents a share. So, results were well below estimates.
The stock responded in a bearish way. It fell sharply in pre-market trading. It hit an intraday low of 6.22. in the morning. It then lifted slightly and trended sideways.
GSIT's tape action shows its recent big block trades.
One can see the price for the blocks declining from $8.28 to as low as $6.41.
A key bearish trade came when a big block of 19,180 shares crossed the tape in the morning at $6.68. That was down from the prior block trade at $8.28.
GSIT produces high-performance static random access memory, or SRAM, products primarily for networking and telecommunications equipment.
The company's products are in networking and telecommunications equipment, including multi-service access routers, universal gateways, enterprise edge routers, service provider edge routers, optical edge routers, fast Ethernet switches, gigabit Ethernet switches, wireless base stations, asymmetric digital subscriber line modems, wireless local area networks.
This fiscal year ending March of 2012, analysts forecast a 10% gain in net. The company noted net for the reported fourth quarter contained a greater provision for taxes. Revenues for the quarter were $21.9 million versus $21.2 million a year ago.
GSIT's chart shows the stock weakening in recent months after peaking near 10. The tape action gave no hint of problems. So, the news came as a surprise.
Strategy Opinion: TTD is targeting GSIT for a decline to 4.80 within the next few months or sooner. A protective stop buy can be placed near 7.30.
| TTD's Quality Rating of Stock - GSIT - 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.)
