Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Tuesday, May 12
|
Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Tuesday, May 12 |
| Go to Video Show - "How to Make Money With Breakout Stocks" |
|
Go to Video Show - "How to Make Money With Breakout Stocks" Go to Video Show -TTD Performance 2008 Long and Sh
|
|---|
By Leo Fasciocco -- TTD
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.
These stocks will do very well during bull markets and strong market rallies.
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 corrections
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.
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.
Total Buy Breakouts so far today - 4
Stocks Screened - 8,200
Bull side - Only a few breakouts today. Overall quality is low. Market mixed today. From the bulls point of view, it looks like it needs a rest. Bulls be patient and alert.
(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
| TTD's Quality Rating of Stock - HMIN - BELOW AVERAGE |
HMIN, based in China, is an operator of Chinese economy hotels. Annual revenues: $250 million. HMIN breaks out from a five-week flat base today in heavy trading. The stock rallied from 8 back in March to 14 to set up its base. The stock is a turnaround play with strong earnings projected to come in the second half of this year. 
TTD highlighted HMIN as a breakout at our midsession show on the Web. We give it a below average breakout rating because it is not near a new high.
So far today, HMIN is trading a heavy 1.1 million shares, four times its normal daily volume of 232,000 shares. That is very important and tells us that there is strong interest in the stock.
TTD's clip of the tape today shows a block of 11,861 shares crossing at $14.97. The trade came on a sequence started by an up tick.
HMIN's stock moved higher in the morning and peaked around 10 a.m. at 15.69. It slipped back and then trended sideways the rest of the day.
HMIN chain provides comfortable, standardized rooms with amenities such as high-speed Internet access and business centers. Home Inns has 350 hotels throughout nearly 80 primary and secondary Chinese markets. It also operates a loyalty program with 600,000 members.
TTD's six-month performance chart shows HMIN's stock appreciating 70% easily outperforming the S&P 500 which is flat during the same time.
HMIN came public in late 2006. The stock climbed to 50, fell back, moved back to 50 in late 2007, and then rolled over and suffered through the bear market. 
TTD's daily chart shows HMIN coming back to life. Since March it has surged from 8 to 15. The five-week base is well constructed showing a "wedge" to the upside. By that we mean HMIN showed smaller pull backs as it based. That is usually bullish.
The stock's accumulation - distribution line (bottom of chart) rose sharply during the stock's recent advance. However, it has weakened a bit. So, one must be very watchful of the stock.
This year, analysts look for an 11% increase in net to 39 cents a share from 35 cents a year ago. The stock sells with a 38 price-earnings ration. That is high.
The key to the stock is that the Street projects a 55% jump in net next year to 60 cents a share from the anticipated 39 cents a share this year.
Revenues in the first quarter increased 49%. However, analysts expect only flat earnings in the second quarter at 4 cents a share. In the third quarter, they look for a robust 64% surge in net to 20 cents a share from 12 cents a year ago.
The stock's technical action could well have discounted the flat quarter. So, the issue could perform well as the Street concentrates more on prospects for the second half of this year.
The company is continuing to expand by opening new hotel-motels. In the first quarter, it opened 51 new motels.
Strategy Opinion: HMIN is a speculative breakout play. TTD sees chances for a move to 19. A protective stop can be placed near 13.80. TTD rates HMIN an average intermediate-term play. TTD is impressed by the sponsorship.
Sponsorship: Excellent. The largest fund holder is 5-star rated Wells Fargo Advantage Small Cap Opportunity Fund with a 1.3% stake. The second largest fund holder is 5-star rated Schroder U.S. Opportunities Fund with a 0.45% interest.
Insider Activity: Not available. Six analysts follow the stock, 3 have a buy, the same as three months ago.
Stock Performance Chart for 6 months with Quarterly Earnings Markers.
| TTD's Breakout Profile
Rating Home Inns & Hotels Management Inc. (HMIN) |
| 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 | 7 | 2 | 5 |
(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)
Charts of Breakout Stocks
| TTD's Quality Rating of Stock - LORL - BELOW AVERAGE |
| TTD's Quality Rating of Stock - BVN - BELOW AVERAGE |
| TTD's Quality Rating of Stock - SA - 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 - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Very few breakdown stocks today as stock market turns mixed. Bears be patient and selective looking for stocks with damaged fundamentals. TTD's short from Monday was VF Corp. (VFC). It is working well for bears. VFC is off 0.66 to 55.56 so far today.
(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.)
DECK, based in Goleta, Ca., makes footwear for outdoor sports and recreational activities, as well as for casual use. Annual revenues: $690 million. DECK's stock breaks down today undercutting near-term technical support. Analysts expect the company to report a loss for the third quarter. So far today, DECK is trading a light 352,139 shares. Its average daily volume is 859,000 shares.
TTD's clip of the tape shows one of the largest trades of the day. It is a block of 10,000 shares crossing on a down tick to $54.875 from the prior trade at $54.90. The tape action indicates clear institutional selling pressure.
DECK's stock moved lower in the morning. Hit a min-bounce up around 11. In the afternoon, it trended sideways and then staged a modest lift to cut its loss from earlier in the session.
The stock has a beta of 2.35 versus 1.00 for the stock market. So, DECK tends to be twice as volatile as the market.
DECK's footwear trademarks include Teva sports sandals, Ugg Australian sheepskin boots; Simple shoes and boots that combine casual and athletic footwear; and Picante casual apparel.
Teva sports sandals have traditionally accounted for well over half of the company's sales. The company's principal customers include outdoor and specialty retailers.
For the upcoming fiscal second quarter, a light quarter for the firm's business, analysts expect DECK to show a loss of 10 cents a share compared with a profit of 39 cents a year ago. For the year, they see net about flat with a year ago.
DECK's stock suffered through the bear market hitting a bottom around 37 after being as high as 166 in late 2007. The stock rallied from 37 recently to 65, but now it is rolling over again. The stock's TTD momentum indicator (top of the chart) is bearish.
Strategy Opinion: TTD sees DECK as a good trading short for bears. We are targeting the stock for a decline to 48 within the next few months, or sooner. A protective stop buy can be placed near 56.
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.)
