Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Friday, May 15
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Friday, May 15 |
| 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 - 3
Stocks Screened - 8,200
Bull side - Only a few breakout stocks today as stock market pulls back. Quality of breakouts low. Bulls be patient and very selective.
(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 Bearish
Market (Monthly) NYSE Bullish, Nasdaq Bullish
| TTD's Quality Rating of Stock - IHS - BELOW AVERAGE |
IHS, based in Englewood, Co., provider of critical information, decision-support tools. They include document records and other items. Annual revenues: $880 million. IHS's stock breaks out from an eight-week flat base today on expanding volume. The stock is acting well and trading near its high for the session. Volume is running at 533,538 shares. Its average daily volume is 296,000 shares. 
IHS stock pushed higher gradually in the morning. It rested through midday and then came on strong late in the session.
The stock's rise today came against a stock market with a down draft. That was encouraging. TTD's clip of the tape highlights a big block of 10,000 shares that crossed on a nice up tick to $43.33 from the prior trade at $43.30.
IHS is a provider of critical information and services to four industries. They are energy (52% of sales), engineering (35%), security (10%), and environment (3%).
The company serves clients in more than 100 countries, and about half of its revenue comes from overseas. Major clients include Boeing, Lockheed Martin, ExxonMobil, and Chevron.
TTD's performance chart for the past six months shows IHS's stock climbing 38%. That compares with a 5% rise in the S&P 500 index. So, IHS has been outperforming recently.
TTD's long-term chart shows IHS coming public around 20 in late 2005. The stock soared to a peak of 72 by late 2007. It was swept lower to 29 during the bear market. However, in recent months it has been trending higher.
IHS's daily chart shows the stock with a run up to 48 in January. The stock then drifted back to 38, rallied modestly and then set up a nice flat base bracketed between 40 and 44.
The base is tight which is bullish. The stock's technicals are extremely bullish.
The stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) has hit a new peak. That is impressive it shows that there is strong buying going on in the stock. Notice the AD line did not fall back much when the stock worked lower earlier in the year.
IHS is a mid-teen growth company.
Net for the fiscal second quarter ending May 30 should increase 14% to 42 cents a share from 37 cents a share a year ago. The highest estimate on the Street is at 42 cents. So, the estimate is tight.
At a recent analysts meeting IHS said revenues this year would increase 12% to 16%. It also said adjusted EBITDA growth would be 21% to 24%.
For the year, analysts look for net of $1.84 a share. Comparable results were not available. Going out to fiscal 2010 ending November 30, analysts project a 17% increase in net to $2.15 a share.
Strategy Opinion: IHS is a turnaround stock that is now working higher with modest earnings growth. TTD sees the stock as a trading play as a breakout. TTD is targeting the stock for a move to 52. A protective stop can be placed near 42. TTD rates IHS an average intermediate-term play. We give it a below average breakout rating because it is not back to a new high, or 52-week high.
Sponsorship: Good. The top three fund holders all have a 4-star rating. The largest fund holder is T. Rowe Price Mid-Cap Growth Fund with a 2.4% stake. Funds have not been big buyers of the stock recently. IHS has 63 million shares outstanding. Funds hold 14.5 million shares.
Insider Activity: Neutral. Light buying and selling by insiders. Four analysts follow the stock and all have a buy, up from just 2 buys three months ago.
Stock Performance Chart for 6 months with Quarterly Earnings Markers.
| TTD's Breakout Profile
Rating IHS Inc. (IHS) |
| 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 | 1 | 4 |
(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 - JST - 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 - 7
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Good number of breakdown stocks today, but very selective. Stock market continues to show signs of a pull back. Bears remain alert.
(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.)
NATI, based in Austin, Tex., supplies computer-based instrumentation software and hardware products to scientists. Annual revenues: $785 million. NATI's stock breaks down today with big volume. The company is expected to show a sharp decline in profits this year. TTD sees more on the downside. So far today, NATI is trading 867,983 shares, double its normal daily volume of 372,000 shares. 
NATI's stock is off almost a point. The stock fell sharply in the morning and a mini-bounce and then moved lower again. It trended sideways in the afternoon.
TTD's clip of the tape shows the big block trades today. One can see the price for the blocks declining from $20.34 to $20.09. The tape action indicates clear institutional selling pressure.
NATI's customers use the company's products to measure electrical signals, such as voltage, and to observe physical phenomena, such as temperature.
The company sells application, instrumentation, and driver software under brand names such as LabVIEW, LabWindows, ComponentWorks, Lookout, BridgeVIEW, GPIB, and VXI in the United States and abroad. It also makes measurement instruments.
This year, analysts predict profits will tumble 66% to 38 cents a share from $1.10 a year ago. Net for the upcoming second quarter should sink 77% to 7 cents a share from 32 cents a year ago.
TTD's daily chart shows NATI's stock rolling over after a rally move from 16 to 22. The key to the pattern is the pick up in volume on the decline today. The stock's TTD momentum indicator (top of the chart) is now bearish.
Strategy Opinion: NATI's decline today coupled with the big drop in earnings coming makes the stock an ideal bear play. TTD is targeting NATI for a drop to 16 within the next few months, or sooner. There is a chance for a deeper drop. A protective stop buy can be placed near 21.50.
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.)
