Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Wednesday, May 13
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Wednesday, May 13 |
| Go to Video Show - "How to Make Money With Breakout Stocks" |
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Go to Video Show - "How to Make Money With Breakout Stocks" Go to Video Show -TTD Performance 2008 Long and Sh
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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 - 0
Stocks Screened - 8,200
Bull side - No breakouts today as stock market moves broadly lower. TTD expected a pull back. Bulls be patient, watchful and conservative at this time.
(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 found no breakouts today. So, we feature a stock near its breakpoint.)
| TTD's Quality Rating of Stock - RAX - AVERAGE |
RAX, based in San Antonio, Tex., provides managed hosting services and data and network services for business customers. Annual revenues: $532 million. RAX, a recent IPO from late last year is parked in a five-week base. It has been acting strong and TTD sees chances for a breakout to the upside. Earnings growth for the next two quarters should show be solid. TTD suggests accumulation of a partial stake in anticipation of a breakout through $9.80.
So far today, RAX is off slightly as the stock market declines broadly.
RAX moved lower in the morning, but then rallied to 9 by around noon. It drifted lower in the afternoon.
TTD spotted some strong accumulation in RAX today. Our clip of the tape shows a big block of 17,800 shares crossing on a big up tick to $8.50 from the prior trade at $8.38. Notice on the tape that in just a few trades the stock ran up from $8.27 to the peak at $8.50 with the big buying.
TTD sees the tape action indicating aggressive buying by an institution or big holder.
RAX specializes in database and systems design, network security, and enterprise e-mail services. It has around 62,000 customers and operates eight data centers located in Texas, Virginia, and the United Kingdom. The company was founded in 1998.
RAX reported a few days ago that net income for the first quarter increased 20% to 6 cents a share from 5 cents a year ago. Revenues soared to $145 million from $119 million. The good earnings growth should continue.
TTD's six-month performance chart shows RAX's stock appreciating 40%. It easily outperformed the S&P 500 index which was up just 2%.
TTD's weekly chart shows RAX's stock peaking at 12 last year. It then declined with the bear market. It has since turned up nicely and is acting well.
RAX's daily chart shows the strong advance and the subsequent basing work. The base is a bit short in time. It is currently bracketed between 8 and 10. TTD marked off a breakpoint at $9.75.
What is impressive, is that RAX's accumulation - distribution line (bottom of chart) is in a strong up trend. That shows the advance and the basing work so far is bullish.
The TTD momentum indicator (top of the chart) is neutral.
RAX is benefiting from an increase in customer count. At the end of the first quarter it had 62,078 customers, up from 53,300 customers at the end of the fourth quarter.
Net for the upcoming second quarter is expected to increase 16% and then accelerate to a 28% gain in the third quarter.
Net for the second quarter should be up 25% tot 5 cents a share, up from 4 cent a year ago. The third quarter should show the same results.
The Street expects net for the year, to be 20 cents a share compared with 19 cents a year ago. However, the key could well be next year. That is when analysts project a 66% surge in net to 33 cents a share from 20 cents this year.
Strategy Opinion: RAX, a recent IPO, is a speculative stock, but one with improving earnings and stock price that is now in an up trend. TTD suggests accumulation of a partial stake. Further buying can be done on a breakout over $9.80. TTD is targeting the stock for a move to $13 after a breakout. A protective stop can be placed near $8.80 after a breakout. TTD rates RAX a good intermediate-term play.
Sponsorship: Not available. RAX has 117 million shares outstanding.
Insider Activity: Not available. Eight analysts follow the stock, 7 have a strong buy. Wow!
Stock Performance Chart for 6 months with Quarterly Earnings Markers.
| TTD's Breakout Profile
Rating Rackspace Hosting Inc. (RAX) |
| 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 | 9 | 0 | 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
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 - 7
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Breakdown stock list expands as stock market moves broadly lower. Chances good for more on the downside. TTD's feature short on Tuesday, Deckers (DECK) falls 4.69 to 50.25 today. It is working great 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.)
CIR, based in Burlington, Ma., makes valves and related items that are used in fluid-control systems. Annual revenues: $790 million. CIR's stock breaks sharply lower today undercutting clear support near 25. The stock, which is in a long-term down trend, had rallied the past several weeks. Now it is heading south. To put the pressure on the downside is the fact that earnings this year will fall 49%. So far today, CIR is trading a light 89,459 shares. Its average daily volume is 216,000 shares. 
Despite the light volume, TTD still sees good chances on the downside for bears.
CIR gapped lower at the opening and drifted modestly lower the rest of the day. It did not stage one rally try. That says buying interest is almost nil.
TTD's clip of the tape shows a big block of 8,000 shares crossing at $23.50. That trade, and a few other block trades came after the stock moved lower on a down tick from $23.51. The tape action confirms that the heavy action is on the sell side.
CIR's products include motor-operated valves, compression-tube fittings, pilot-operated and direct-steam regulators, instrument ball and needle valves, cylinders and cylinder valves, safety and relief valves, and steam water heaters.
The company's valves are primarily used in processing industries, oil and gas production, pipeline construction, military and commercial aircraft, and maritime manufacturing.
This year, analysts forecast a 49% drop in CIR's earnings to $2.12 a share from $4.13 a year ago. The next two quarters will be especially weak. The Street expects net for the second quarter to drop 65% and then in the third quarter another 64%.
TTD's chart shows CIR staging a nice rally. But now, it is breaking down. The TTD momentum indicator (top of the chart) is bearish. The AD line is holding.
Strategy Opinion: TTD is targeting CIR for a drop to 18 within the next few months or sooner. A protective stop buy can be placed near 25.
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.)
