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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 positionsboth as trades or for longer-term plays. These stocks will do very well during bear markets or market corrections
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Total Buy Breakouts so far today - 6
Stocks Screened- 8,200
Bull side - Only a few breakouts today. Overall quality is below average. Bulls be selective.
Long-Term Environment for bulls: Favorable.
Market Status (Daily) - NYSE Bullish, Nasdaq Bearish
Market Status (Weekly) - NYSE Bullish, Nasdaq Bearish
CPA, based in Panama, transports passengers and cargo across the Americas and the Caribbean. Its unit Copa Airlines serves about 30 destinations in 20 countries from its hub in Panama City with a fleet of about two dozen jets. Annual revenues: $609 million. CPA breaks out from a 13-week, double-bottom, or "W" base today. The move which comes on strong volume was triggered by a bullish earnings report.
TTD highlighted CPA as a breakout at our midsession show on the Web Wednesday.
The stock was also featured as one to accumulate in the TTD Pro report of May 9.
So far today, CPA is trading 1 million shares, triple its normal daily volume of 318,000 shares. The tape action is good. TTD's clip (see table) shows a big block of 10,000 shares crossing the tape on a big up tick to $66.35 from the prior trade at $66.20.
CPA checked in with net for the first quarter of $1.12 a share, up 49% from the 75 cents a share a year ago. The $1.12 topped the consensus estimate on the Street of 79 cents a share and also the highest of $1.08. TTD has said if a company can top the highest estimate on the Street for the quarter there is a good chance the stock will rise on the news and move higher for the next few weeks.
CPA has a code-sharing partnership with US-based Continental Airlines. Copa Holdings' AeroRepública unit, acquired in 2005, serves a dozen cities in Colombia, plus Panama City.
CIASA, a company controlled by several Copa Holdings officers and their families, owns a 29% equity stake in the company and all of the voting stock.
CPA's double bottom base was well defined.
The subsequent rally to the top of the base resulted in a handle set up with low volume. That is ideal. The double bottom base is also well seen in TTD's weekly chart. It also shows well within the major up trend for the stock. (See below).
CPA's TTD momentum indicator on the daily chart is bullish and has been for several weeks. The accumulation - distribution line (see bottom of the chart) is in a solid up trend.
This year, CPA's profits should climb 29% to $4.01 a share from $3.12 a year ago. The stock sells with a price-earnings ratio of 15. TTD sees that as attractive for value-growth investors since the p/e is below this year's earnings growth rate.
Next year, analysts forecast a 19% gain in net to $4.78 a share.
Near-term CPA will show an acceleration in quarterly earnings growth. That is often a key driver that can send a stock higher.
Net for the first quarter showed a rise of 49%. The second quarter should be up over 50%.
Strategy Opinion: CPA's breakout today is impressive. TTD was looking for the stock to get to 78. We are sticking with that target. A protective stop can be placed near 62. TTD rates CPA an excellent intermediate-term play because of the stock earnings outlook and reasonable valuation.
Sponsorship: Excellent. Five of the top 6 fund holders have a 5-star rating, highest possible. That is extremely impressive. The largest fund holder is 4-star rated Fidelity Growth Company Fund with a 5.1% stake. It was a recent buyer of 100,000 shares.
Insider Activity: Not available. Three analysts follow the stock, and all have a strong buy.
| TTD's Breakout Profile
Rating Copa Holdings SA (CPA) |
| 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 | 14 | 0 | 0 |
(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 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 - 4
Stocks Screened - 8,200
Long-Term Environment for bears: Unfavorable.
Bear Side - Only a few breakdown stocks today as market lifts. Bears remain alert as market looks vulnerable to a pull back.
(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.)
RTSX, based in Fort Myers, Fla., operates about 75 freestanding and hospital-based radiation therapy centers with most in Florida. Annual revenues: $294 million. RTSX gaps lower today to set off a TTD short play. Volume so far today is running at a heavy 2.9 million shares, six times its normal daily volume of 468,000 shares.
The tape action was bearish too. TTD's clip of the tape shows a big block of 10,000 share crossing on a nice down tick to $25.31 from the prior trade at $25.34. The action indicated clear institutional selling pressure.
TTD did spot any news to account for the drop. To us, that is bearish meaning there is something "bearish in the air."
Earlier this month, RTSX reported first quarter net rose to a modest 41 cents a share from 39 cents a year ago. Second quarter net is expected to be up 15% to 42 cents a share from 37 cents a year ago.
The company also does business as 21st Century Oncology. It offers a variety of radiation therapy services, including linear accelerators for treatment of deep-seated tumors, brachytherapy for treatment directly into affected areas, seed implantation for prostate cancer, and stereotactic radiosurgery for treating brain tumors.
The centers are equipped with treatment planning simulators and a computer-based system for treatment planning and verification.
The stock has been in a down trend sliding from 35 late last year to 28. Today, it resumes its down trend. Its TTD momentum indicator (top of the chart) is bearish. There accumulation - distribution line (see bottom of the chart) has been acting bullish. TTD is targeting RTSX for a decline to 20 within the next few months. TTD sees RTSX as a trading short with potential for a downside surprise.
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.)