Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Tuesday, May 19
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Tuesday, May 19 |
| 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 - 4
Stocks Screened - 8,200
Bull side - Only 4 breakout stocks today. The best ones are in China. Bulls be selective and patient looking for the above average breakouts.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) -NYSE Bullish, Nasdaq Bullish
Market (Monthly) NYSE Bullish, Nasdaq Bullish
| TTD's Quality Rating of Stock - ASIA - ABOVE AVERAGE |
ASIA, based in China, was founded in the U.S. in 1993. It gets most of its revenue from mainland China. The firm provides information technology services. Annual revenues: $176 million. ASIA's stock breaks out powerfully today with big volume. TTD featured the stock recent as one to accumulate. The breakout came late in the morning and was accompanied by strong volume intraday. Today, several leading Chinese stocks were on the move such as Shanda Interactive (SNDA)
.
TTD featured ASIA as a breakout at our midsession show on the Web today.
ASIA is trading a hefty 2.6 million shares, almost triple its normal daily volume of 943,000 shares.
TTD's clip of the tape highlights the block trades today. One can see the price for the blocks climbing from $18.20 in the morning to a peak of $19.65. It then backed off a bit. Notice the blocks today were all in the 5,000 range.
ASIA provides both telecom software solutions and IT security products and services.
The firm's main services are billing, customer relationship management, and business intelligence for the country's main wireless operators.
ASIA is one of the few stocks making a multi-year high. TTD's performance chart for the past 12 months shows ASIA appreciating about 45% compared with a 35% drop in the S&P 500 index. ASIA is a leader.
TTD's
long-term chart shows the stock having climbed from 4 in 2006 to the high-teems.
The push to a new 52-week high today could well bring in more buying by the new-high
crowd on Wednesday.
ASIA's daily chart shows the stock climbing from 9 in January to 18 by late March. The stocks base was bracketed between roughly 15 and 18. The base was well formed.
The stock's technicals are bullish. The TTD momentum indictor (top of the chart) is modestly bullish.
The accumulation - distribution line (bottom of chart) is in a strong up trend. That shows the buying in the stock has been strong. Also, there has been no subtle distribution going on.
ASIA recently won a contract to develop in China a nationwide email system for China Unicom.
This year, analysts predict a 34% increase in net to 71 cents a share from 53 cents a year ago. The stock sells with a price-earnings ratio of 24, which is reasonable given the projected earnings growth.
Going out to 2010, the Street predicts a 33% gain in net to 95 cents a share.
ASIA recently reported first quarter net that rose aided by a strong 55% increase in revenues. Gross margins expanded to 54% from 51%. The company cited strong gains in the telecom unit.
For the second quarter, earnings should rise 33% to 16 cents a share from 12 cents a year ago. The highest estimate on the Street is at 18 cents a share. That was bumped up recently from 16 cents. TTD sees chances for a modest upside surprise. The past two quarters, ASIA topped the consensus Street estimate by one cent and five cents a share.
Strategy Opinion: ASIA's breakout is impressive. The stock's move to a new high could bring in more buying on Wednesday. TTD is targeting ASIA for a move to 24 within the next few months, or even sooner. A protective stop can be placed near 18 after a breakout. TTD rates ASIA a very good intermediate-term play because of its strong earnings outlook.
Sponsorship: Excellent. The largest fund holder is 5-star rated Fidelity Contrafund with a 1.9% stake. It was a recent buyer of 825,000 shares. Also, 4-star rated Fidelity Advisor New Insights Fund purchased 148,000 shares. ASIA has 43 million shares outstanding. Funds hold 6.5 million shares.
Insider Activity: Slightly Bearish. There was one key sell. It was by CEO Steve Zhang who sold 122,000 shares at $17.20. Three analysts follow the stock and all 3 have a buy. There were 4 buys three months ago.
Stock Performance Chart for 12 months with Quarterly Earnings Markers.
| TTD's Breakout Profile
Rating Asiainfo Holdings Inc. (ASIA) |
| 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)
Charts of Breakout Stocks
| TTD's Quality Rating of Stock - SNDA - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - MCCC - BELOW AVERAGE |
| TTD's Quality Rating of Stock -PGR - 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 - 3
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Just a few breakdown stocks as stock market holds tight today. Bears be very selective and conservative.
(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.)
CEPH, based near Philadelphia, is a drug firm that specializes in the development of therapeutics for central nervous system disorders, pain, and cancer. Annual revenues: $2 billion. CEPH's stock drops sharply today as it cuts below key technical support. The stock is trading 1.6 million shares. Its average daily volume is 1.7 million shares. TTD sees more on the downside. 
CEPH's stock turned south at the opening and did not bottom until 1 p.m. It then spent the rest of the afternoon trending sideways. TTD's clip of the tape shows the big block trades in CEPH the past two sessions.
One can see the price for the blocks declined from $65.13 to $62.53 with a burp higher on the latest trade. TTD sees the tape action indicating clear institutional selling pressure
Cephalon's key product, Provigil, treats excessive sleepiness. Two other leading products, Fentora and Actiq, manage pain related to cancer. Cephalon's other drugs help treat leukemia, seizures, and muscle spasms.
Although CEPH's earnings growth should be good, the stock is acting very bearishly. This year, analysts forecast a 20% increase in net to $5.78 a share from $4.82 a year ago.
TTD's daily chart shows CEPH's stock falling from 80 down to 60. It had a bounce and then tried to form a bottom. However, today the stock drops below key support.
Strategy Opinion: TTD sees CEPH as a trading short for bears. TTD is targeting the stock for a decline to 55 within the next few months, or sooner. A protective stop buy can be placed near 64.50.
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.)
