stocks

Ticker Tape Digest presents its daily breakout and Short Selling report. It contains Breakout Stocks and Stocks under Significant Accumulation.

Data is from tape action for the day. These stocks are most suitable for aggressive investors seeking ideal entry points for leading stocks.

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

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. TTD often suggests using stop buy orders to enter. It is very important to buy a breakout stock as close as possible to the break point. 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.

Breakout Stocks

Bull side - Only a small number of breakouts today as market moves higher. Bulls be selective. TTD's momentum indicators on daily chart showing set up for a probable consolidation.

Today's Featured Stock

HMS Holdings Inc. (HMSY) - 35.65, up 1.03 - Breakpoint 35

Profits to Jump 31% this Year, TTD Targets 44

TTD's Quality Rating of Stock - HMSY - ABOVE AVERAGE

HMSY, based in New York, provides health-care cost containment and payment-accuracy services to government-sponsored health programs in the United States. Annual revenues:; $174 million. HMSY, a stock TTD has featured in recent weeks, push out from a nine-week flat base today on expanding volume. The stock is close to making an all-time high. It just needs to get over 37.09. If that happens it could draw in more buying from the new high crowd.

TTD highlighted HMSY prior to the breakout at our midsession show on the Web.

HMSY is trading 527,273 shares so far today. The stock's average daily volume is 362,000 share. Intraday, the stock showed a nice pick up in volume around 1p.m.when it cleared the base.

TTD's clip of the tape shows the big block trades the past two days. One can see the price for the blocks working their way up from $33.70 to $35.64. That shows good institutional buying interest. A key trade was a block of 16,040 shares that crossed at $34.62. (It was reported twice)

HMSY's services aid states in recovering amounts due from third-party insurers, while avoiding and reducing future costs.

The company's clients include state Medicaid agencies, government-sponsored managed care plans, child support agencies, the Veterans Health Administration, and other public programs. The company should do well as agencies try to cut costs.

HMSY is a leader. TTD's performance chart shows HMSY appreciating 75% the past 12 months. That compares with a 35% decline in the S&P 500 index.

HMSY's daily chart shows the stock in a 9-week flat base. It attempted a breakout in mid-March but it did not work. The stock did some zig-zagging but then moved back up to the top of its base. Today, it clears the key resistance near 35.

The stock's accumulation - distribution line (bottom of chart) is bullish overall, although it has flattened out a bit. That is okay it shows there has been no heavy selling in recent weeks when HMSY drifted lower. Notice on the daily chart how volume contracted. That is bullish.

The TTD momentum indicator (top of the chart) is neutral.

HMSY recently said with increasing unemployment driving acceleration of the Medicaid program's growth rate, and as states under fiscal duress focus ever more attention on cost containment, the firm is positioned for continued solid revenue and earnings growth in 2009.

That is working out as the company said.

For the second quarter, the Street is forecasting a 25% increase in net to 24 cents a share from 19 cents a year ago. The highest estimate on the Street is at 25 cents a share.

TTD sees chances for that to be topped, which would be bullish.

Analysts project 2009 net will climb 31% to $1.05 a share from 80 cents in 2008. In our prior report when the Street was looking for $1.01 a share, TTD said it anticipated the estimate being boosted. It was.

The stock sells with a price-earnings ratio of 33 based on the 2009 estimated net. TTD sees that as reasonable. Looking out to fiscal 2010, the Street looks for a 27% rise in net to $1.34 a share. The prior estimate was at $1.25 a share.

Strategy Opinion: HMSY is a leader. The breakout today looks good supported by strong earnings. Aggressive investors can take a full position, conservative ones scale-in. TTD is targeting HMSY for a move to 44. A protective stop can be placed near 33, which is tight. TTD rates HMSY a very good intermediate-term play provided earnings remain on target. The stock may move slowly. So one must be patient.

Sponsorship: Very Good. The largest fund holder is 5-star rated Fidelity Contrafund with a 1.5% stake. It was a recent buyer of 102,000 shares. A key buyer recently was 5-star rated Van Kampen Small Cap Growth Fund, which purchased 180,000 shares.. HMSY has 25 million shares outstanding. Funds hold 7.5 million shares.

Insider Activity: Neutral. Insiders have been buyers using stock options, but in many cases they have turned around and sold. Six analysts follow the stock, 5 have a buy, up from 4 three months ago.

Stock Performance Chart for 12 months with Quarterly Earnings Markers.

All Timely Breakout Stocks From Tape Action Today

(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.

(Trading strategy: One should buy breakout stocks at breakpoint by using market order or stop buy)

Ticker Tape Digest’s

Stocks To “Sell or Short”

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.

Bear Side - Small number of breakdown stocks today as stock market rallies strongly. Bears be conservative, but alert.

List of Stocks To Sell or Short

(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.)

Commentary on TTD’s Feature Bear Play

Linear Technology Inc. (LLTC) - 21.13, down 0.44

Profits to Drop 50% Next Two Quarters, TTD Sees slide to 16

LLTC, based in Milpita, Ca., makes standard high-performance analog integrated circuits. Annual revenues: $1.2 billion. LLTC's stock falls today and undercuts key support despite a rally in the stock market. The stock has been acting week in recent sessions. With weak earnings coming this fiscal year (June 30) and next, TTD sees potential for more on the downside.

LLTC is trading 6.6 million shares so far today. Its average daily volume is 6 million shares.

The stock declined in the morning, staged a rally around midday and then coasted in the afternoon.

TTD's clip of the tape highlights a big block of 108,100 shares that crossed in the morning. It went off at 20.99, within a sequence started by a down tick from 20.995. TTD sees the tape action indicating subtle institutional distribution.

LLTC's sells to the industrial, automotive, communications, and high-end consumer electronics markets.. It offers more than 7,000 types of products to more than 15,000 original-equipment manufacturers globally.

Most of its products support functions such as power management, data interface, and conversion. More than 70% of its revenue is derived from international markets.

This fiscal year ending June 30 analysts predict a 22% decline in net to $1.33 a share from $1.71 a year ago. Going out to fiscal 2010, the Street looks for a 23% drop to $1.03 a share. The upcoming quarter, the fourth ending June 30, net should slump 51% to 22 cents a share from 46 cents a year ago. The first fiscal quarter of 2010, net should drop 52%.

TTD's daily chart shows the stock cutting below key support at $21.37. The stock's TTD momentum indicator (top of chart) is bearish.

Strategy Opinion: LLTC's weak earnings and the stock's move lower opens the door for bears. TTD is targeting LLTC for a decline to 16 within the next few months, or sooner. We view the stock as a trading short. A protective stop buy can be placed near 22.50.

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.)

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

Ticker Tape Digest

Friday - May 8, 2009

Breakout Stocks

Today's Featured Stock

HMS Holdings Inc. (HMSY) - 35.65, up 1.03 - Breakpoint 35

Profits to Jump 31% this Year, TTD Targets 44

All Timely Breakout Stocks From Tape Action Today