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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 - Only 2 breakouts today. Stock market works lower with heavy selling in the NASDAQ. Bulls be patient and watchful. Market will need time to bottom and turn. Notice the Dow monthly has turned bearish now. So, TTD rates the Long-term outlook as neutral now.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bearish, Nasdaq Bearish
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TTD's Quality Rating of Stock - PPO - AVERAGE |
PPO, based in Charlotte, N.C., makes specialized microporous membranes used in separation and filtration processes. Annual revenues: $517 million. PPO's stock clears its six-week flat base today and makes a 52-week high. The move is impressive coming when the stock market is in a steep decline. The company recently reported strong quarterly earnings.
TTD highlighted PPO as a breakout at our midsession show on the Web Friday.
PPO's 10-minute chart shows the stock edging over its breakpoint line late on Thursday. On Friday morning, it cleared the base breakpoint easily.
The stock held its breakout throughout the day as its volume slowed after the heavy trading in the morning.
So far today, PPO is trading 1.5 million shares, five times its normal daily volume of 268,000 shares.
PPO came in with earnings on May 5. The company reported a big jump in net to 39 cents a share from seven cents a year ago. The consensus estimate on the Street was at 13 cents a share. So, the earnings were a big surprise. That should cause analysts to boost their earrings projections for the year.
PPO's clip of the tape shows the big block trades. 
There were two key block trades. The first was a block of 56,700 shares that crossed at $20.49. That was up from the prior block at $19.38.
A short time later a big block of 117,900 shares crossed at $20.53. That was higher than the prior block.
The tape action showed aggressive institutional buying.
PPO’s products are used for energy storage and separations media.
During the fiscal year ended January 2, 2010, the energy storage segment accounted for 71% of its net sales. Primary applications for its membranes in this segment are lithium batteries and lead-acid batteries. Lithium batteries are the power source in a variety of electronics applications ranging from notebook computers and mobile phones to cordless power tools.
PPO's 12-month performance chart shows the stock appreciating 170% versus a 30% gain for the S&P 500 index.
PPO's long-term chart shows the stock coming public in 2007. It rose to a peak of 29.26 in 2008. It then went into a tailspin due to the bear market. It hit a low of $2.38 in 2009. Ouch! However, it has since rallied strongly and is now in an up rend.
PPO's daily chart shows the stock breaking out on Thursday. Today, the stock follows up. The move on Thursday came with a strong expansion in volume.
The structure of the base was bullish. It also set up above the 50-day moving average line. That shows the stock was still in a good up trend.
PPO's accumulation - distribution line (bottom of chart) has spiked to the upside. That is good confirmation that strong buying is coming into the stock.
This year, analysts were forecasting a 6% drop in PPO's net. However, with the good numbers for the quarter TTD expects net to be up 15% to 85 cents a share from 74 cents a year ago.
Next year, analysts have been forecasting a 30% gain in net.
PPO is poised to show a strong second quarter. The Street is forecasting a 39% jump in net to 17 cents a share from 12 cents a year ago. The highest estimate is at 21 cents a share.
In the reported first quarter, PPO showed a 33% increase in sales. The gain reflected improvement in all sectors of PPO's business.
Strategy Opinion: TTD is targeting PPO for a move to 24.50 within the next few months, or sooner. A protective stop can be placed near 17.50. TTD rates PPO an average intermediate-term play.
Sponsorship: Very Good. Some top funds were recent buyers. 4-star rated Wells Fargo Advantage Small Cap Growth Fund was a recent purchase of 211,300 shares and 4-star rated Van Kampen Small Cap Growth Fund picked up 461,000 shares. PPO has 44.4 million shares outstanding.
Insider Activity: Neutral. Not much activity lately. Eight analysts follow the stock, 5 have a buy, down from 6 three months ago.
Stock Performance Chart for 12 months with Quarterly Earnings Markers.
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TTD's Profile Rating Polypore International Inc. - (PPO) |
| 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 |
(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 - KRA - 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 - 12
Stocks Screened - 8,2007
Long-Term Environment for bears: Neutral.
Bear Side - Good number of short plays today. Many bear-type stocks are extended to the downside due to the sharp stock market selloff. Bears be selective. TTD's short play from Thursday was JDS Uniphase Corp. (JDSU) - 10.93, down 2.77. Today, the stock is down to 10.37 and 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.)
AMAG, based in Cambridge, Mas., is a biotech firm developing therapeutic iron compound to treat iron deficiency anemia and imaging agents to aid in the diagnosis of cancer and cardiovascular disease. Annual revenues: $30 million. AMAG's stock declines today to resume its down trend. The stock has now made a 52-week low. TTD sees more on the downside. 
AMAG's stock had a gap lower on March 28. It lifted slightly (see daily chart). However, now it is rolling over and is heading south.
The stock fell at the opening today. It had a slight bounce up and then trended sideways.
AMAG's clip of the tape shows the big block trades late yesterday and Friday morning. One can see a key trade this morning when a block of 3,688 shares crossed at $31.80. That was down sharply from the prior block trade that went off at $32.25.
The tape action showed institutional selling pressure in the morning. There was a block of 5,800 shares that traded around noon at $31. So, there was some nibbling. However, the pressure on the stock still looks in place.
AMAG sells two approved products, Feraheme (ferumoxytol) Injection for intravenous and GastroMARK. On June 30, 2009, Feraheme was approved for marketing by the FDA for use as an IV iron replacement therapy for the treatment of iron deficiency anemia in adult patients with chronic kidney disease.
This year, analysts forecast a loss of $3.88 a share compared with a loss of $5.46 a share a year ago. For the upcoming second quarter, AMAG should show a loss of 98 cents a share compared with a loss of $1.55 a share a year ago.
AMAG's daily chart shows the stock breaking below key support at $33.14. The stock had shown heavy selling pressure in early February.
Strategy Opinion: TTD is targeting AMG for a decline to 25 within a few months or sooner. A protective stop buy can be placed near 33.
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.)
