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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, May 14 |
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Go to Video Show - "How to Make Money With Breakout Stocks" |
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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 Daily schedule guide for TTD subscribers 1. Pre-market - check Breakout Watch List and Quick Trades. 2. Morning - (11:30 - 12 A.M.) - check breakout stocks tape and breakout chart slide show. 3. Midday (1 P.M.) check TTD Midsession Report and see market video show. 4. After close (4 P.M.) check final TTD Report for day. Trading Strategies Bullish Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. (See Performance) Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." (See Performance) Conservative Investors "Bargain Buy Trades for the Long Term." Ideally suited for entry into top performing big cap stocks on pullbacks within overall up trend.(See Performance) Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance) |
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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 - Long Term. These are for conservative bullish Investors These long-term buys are ideally suited for entry into stocks on pull backs within overall up trend. These stocks can give a good return long-term especially during a bull market.
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 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.
Breakout Stocks
Total Buy Breakouts so far today - 4
Overall Quality of Breakouts - Below Average
Stocks Screened - 8,300
Bull side - Small number of breakouts. Bulls be very selective. Stock market still in a trading range. Potential for a turn up. (Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Stock Market Momentum:
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bearish, Nasdaq Bearish
Ticker Tape Digest's
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TTD's Quality Rating of Stock -CYBX - ABOVE AVERAGE |
CYBX, based in Houston, produces medical devices to
treat epilepsy.
Annual revenues: $212 million. CYBX's stock breaks out today from an
12-week flat base and hits a six-year high. So far today, CYBX is
trading 167,622 shares. Its average daily volume is 190,000
shares. CYBX will soon report net for the fiscal fourth quarter ending April 30 soon. The Street is expecting a 36% jump in net. 
TTD highlighted CYBX recently.
Today, CYBX's 10-minute chart shows the stock pushing higher in the morning and breaking clear of its breakpoint line. The stock then faded a bit in the afternoon.
TTD's clip of the tape shows the action for Tuesday for CYBX.
One can see the price for the blocks climbing from $38.86 on Monday to a peak of $39.85.
The block trades today are much smaller than in the prior session. The key bullish trade today was a block of 1,003 shares that crossed at $39.85. That was up from the prior block at $38.21, on 18,601 shares. 
CYBX makes medical products to treat epilepsy and other debilitating neurological disorders using a therapy, vagus nerve stimulation.
The company's initial target market - epilepsy - is the world's second most prevalent neurological disorder. It is characterized by seizures.
Vagus nerve stimulation with the Cyberonics NCP System was approved for use as an adjunctive therapy to reduce the frequency of seizures in adults and adolescents with medically refractory partial onset seizures.
CYBX's 12-month performance chart shows the stock appreciating 21% versus a breakeven for the S&P 500 index.
CYBX's long-term chart shows the stock climbing to a peak of 47 in 2005. The stock then went into a down trend and declined to 10 in 2008 being dragged lower by the bear market. It has since turned up strongly.
CYBX's daily chart shows the stock climbing from 30 in December to a
peak of 39 in March.. The stock then set up a tight flat base bracketed between 36 and 39 roughly. 
Today, it breaks out with volume picking up. That is good action given that the stock market moved lower.
CYBX's TTD momentum indicator (top of chart) has been mostly bullish for several months.
The accumulation - distribution line (bottom of chart) broke out to the upside a few weeks ago. That was a good lead indicator that the price of the stock could breakout too - and it did!
This fiscal year ending April 30 analysts forecast a 28% increase in net to $1.29 a share from $1.01 a year ago. They recently boosted their annual estimate.
The stock sells with a price-earnings ratio of 30. TTD sees that as reasonable.
Net for the upcoming fiscal fourth quarter should leap 36% to 35 cents a share from 26 cents a year ago. The highest estimate on the Street is at 36 cents a share. TTD sees chances for a mild upside surprise. The prior two quarters CYBX topped the consensus estimate by 12 cents a share and 2 cents a share.
Going out to fiscal 2013 ending in April, analysts project at 19% gain in net to $1.54 a share from the anticipated $1.29 in fiscal 2012
Net for the fiscal first quarter ending in July should climb 29%.
The Street looks for 36 cents a share, up from 28 cents a year
ago.
. Strategy Opinion: TTD is targeting the stock for a move to 50 off this breakout. That is up from our prior target of 48. A protective stop can be placed near 37, which is tight.
TTD rates CYBX a good intermediate-term play provided earnings remain on course.
Sponsorship: Average. The largest fund holder is Fidelity Growth Strategies Fund with a 3.8% stake. The 2-star rated fund was a recent seller of 150,200 shares. A key buyer recently was 4-star rated CREF Stock Fund which picked up 18,200 shares. CYBX has 27.5 million shares outstanding. Institutions hold 89% of the stock.
Insider Activity: Bearish. Insiders have been steady sellers. Some have sold after exercising options at $12.95 to $17. They sold at $38 recently. Currently, 9 analysts follow the stock, 7 have a buy, the same as three months ago.
Stock Performance Chart with Quarterly Earnings Markers
Insider Activity - Buying in Green - Selling in Red
| TTD's Breakout Profile
Rating Cyberonics Inc. - (CYBX) |
| 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 |
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - LNCE - AVERAGE |
| TTD's Quality Rating of Stock - ANEN - BELOW AVERAGE |
| TTD's Quality Rating of Stock - SYPR - AVERAGE |
| TTD's Quality Rating of Stock - SUSS - 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 - 12
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Good number of breakdown stocks today. Energy and metals are a bearish sector. Bulls be selective. TTD's short from Monday was Cellcom Israel Ltd. (CEL) at 10.52. Today, the stock has plunged to 8.95 and is working great for bears.
BTU, based in St. Louis, produces coal. Annual revenues: $8.3 billion. BTU's stock falls sharply today with heavy volume. The move undercuts near-term support causing the stock to resume its down trend. So far today, BTU is trading a heavy 10.2 million shares. Its average daily volume is 7 million shares. TTD sees more on the downside. 
BTU's stock declined steadily during the day. In the afternoon, it was still working lower. Its intraday low was at 26.09.
The tape action for BTU is show by its recent big block trades.
One can see the price for the blocks working lower from $28.31 to $26.75. A key bearish trade came when a block of 84,458 shares crossed the tape in the morning at $27.33. That was down from the prior block trade at $28.05.
BTU is largest private-sector coal company in the world.
The company offers a broad portfolio of coal supplies including coal produced from operations that Peabody Energy manages or owns majority interests in along with brokered coal secured by Peabody Coaltrade.
This year, analysts forecast a 36% drop in BTU's earnings to $2.68 a share from $4.17 a year ago. Net for the upcoming second quarter is expected to plunge 51% to 54 cents a share from $1.11 a year ago.
BTU's daily chart shows the stock trending lower from 48 down to 28. It tried to form a bottom but instead is now breaking down with volume picking up.
Strategy Opinion: TTD is targeting BTU for a drop to 21.50 within the next few months or sooner. A protective stop buy can be placed near 27.80.
| TTD's Quality Rating of Stock -BTU - BELOW AVERAGE |
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.)
