Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, May 16 |
Go to Video Show - "How to Make Money With Breakout Stocks" Go to Video Show -TTD Performance 2008 Long and Short |
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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.
Ticker Tape Digest's Trading Strategies Overview and Performance Bullish Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." 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. Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns |
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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.
1 - TTD's Breakout Stocks - Long - (Intermediate-term long plays) these 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.
2 -TTD Quick Trade Stocks - Long - (Short-term long plays 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.
3 - TTD's Bargain Buy Trades - Long - (Long Term long plays. 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.
4 - 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 - 9
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Several interesting breakouts. Restaurant stocks moving out. Stock Market holds its ground. Bulls be selective market still vulnerable.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
(See Top Performing Breakout Stocks for 2011)
TTD's Quality Rating of Stock - IFSIA - ABOVE AVERAGE |
IFSIA, based in Atlanta, Ga., produces and sells carpet for business. Annual revenues: $990 million. IFSIA's stock breaks out today from a 7-week, cup-and-handle base. The move comes with light volume so far of 267,785 shares. Its average daily volume is 334,000 shares. IFSIA is poised to show strong profits this year and next.
TTD highlighted IFSIA as a breakout at our midessions video show on the Web Thursday.
IFSIA's 10-minute chart shows the stock spiking higher in the morning and clearing its base.
However, it did fade back to the breakpoint. Then in the afternoon it pushed higher again.
Although, IFSIA is lightly traded, the stock has a high beta of 2.39 versus 1.00 for the stock market. That means IFSIA is more than twice as volatile as the stock market.
TTD's clip of the tape shows the recent block trades in IFSIA.
One can see the price for the blocks climbing from $19.54 to a peak of $19.86 in the morning.
A key bullish block trade came in the morning when 1,175 shares (duplicated) crossed the tape at $19.71, up from the prior block trade at $19.54.
IFSIA makes and installs carpet, carpet tile and two-meter roll goods.
They provide specialized carpet replacement, installation and maintenance services through their Re:Source Americas service network.
The company's
specialty products operations produce raised/access flooring systems,
antimicrobial additives, adhesives and various other specialty chemical
compounds and products.
IFSIA's 12-month performance chart shows the stock appreciating 58% versus a 20% gain for the S&P 500 index. Notice on the chart the stock tends to rise after its earnings report.
IFSIA's long-term chart shows the stock in position to make a 12-year high. It just needs to get above $20.54. Its all-time high is $22.87 made back in 1998. A push to a new high could draw in more buying even though the stock is thin.
IFSIA's daily chart shows the stock trending higher from 14 to 19. The base is well formed and above the rising 50-day moving average line. That shows it is in a strong up trend.
IFSIA's TTD momentum indicator (top of chart) has been bullish for about three months. That is impressive.
The accumulation - distribution line (bottom of chart) broke out to the upside before the price of the stock. That was a good lead indicator. It shows there is strong underlying buying going on.
This year, IFSIA's earnings are projected to jump 52% to 90 cents a share from 59 cents a year ago. The stock sells with a price-earnings ratio of 21, which is low given the projected earnings growth.
Going out to 2012, the Street looks for a 26% gain in net to $1.13 a share from 90 cents a year ago.
Net for the upcoming second quarter is expected to surge 70% to 20 cents a share from 12 cents a year ago. The highest estimate is at 23 cents a share. The company tends to come in right on the nose of estimates. Once in a while it will surprise on the upside.
Strategy Opinion: IFSIA is not a glamour stock, but its one that is working higher nicely. TTD is targeting IFSIA for a move to 24 within the next few months, or sooner. A protective stop can be placed near 17.20. TTD rates IFSIA a very good intermediate-term play provided earnings meet expectations.
Sponsorship: Very Good. 5-star rated Ridgeworth Mid-cap Value Equity Fund was a recent buyer of 107,199 shares. It now has a 1.7% stake. Another key buyer was 4-star rated CRM Small Cap Value Fund which purchased 749,900 shares. IFSIA has 72.2 million shares outstanding.
Insider Activity: Neutral. Insiders were buyers recently, but turned around and sold. The latest selling was at $18.65. Seven analysts follow the stock, 3 have a buy, down from 4 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
TTD's Breakout Profile
Rating Interface Inc. - (IFSIA) |
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 - DISCA - ABOVE AVERAGE |
TTD's Quality Rating of Stock - MAKO - AVERAGE |
TTD's Quality Rating of Stock - DRI - AVERAGE |
TTD's Quality Rating of Stock - EAT - 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 - 4
Stocks Screened - 8,300
Long-Term Environment for bears: Neutral.
Bear Side - Only a few breakdown stocks today as stock market rises slightly. Bears be selective. TTD's short from Wednesday was Citi Trends Inc. (CTRN) at 17.24. The stock has declined to 16.50 and is working well for bears.
SMT, based in Canada, makes education tools. Annual revenues: $778 million. SMT's stock falls sharply today in heavy trading. The drop was triggered by the company reporting a decline in net for the fiscal fourth quarter ended March 30. So far today, SMT is trading 8.6 million shares, 31 times its average daily volume of 274,000 shares.
TTD highlighted SMT as a short at our midsession show on the Web Thursday.
The company reported adjusted fiscal fourth quarter net of one cent a share versus 3 cents a year ago. Overall net for fiscal 2011 came in at 53 cents a share, down from 81 cents a year ago.
SMT's stock moved lower in premarket trading. It hit an intraday low of 7.02 in the afternoon. The stock continued to remain weak going into the close.
TTD's clip of the tape shows heavy institutional selling pressure. A key bearish block came late in the day when 50,000 shares crossed the tape at $7.10. That was down from the prior block trade at $7.29.
SMT produces interactive technology products for education, business and government/
The company is a global provider of interactive whiteboards and complementary solutions.
SMART Board interactive whiteboards combine the simplicity of a whiteboard and the power of a computer. By touching the surface of a SMART Board interactive whiteboard, the user can control computer applications, access the Internet, write in digital ink and save and share work.
SMART Technologies complements its interactive whiteboards with a range of modular and integrated interactive technology products and solutions, including hardware, software and content created by both its user community and professional content developers.
This year ending March of 2012 the Street is forecasting a 22% gain in net to 81 cents a share from 67 cents a year ago. Net for the upcoming first fiscal quarter, though, should be down 34%.
SMT's daily chart shows the stock with a gap drop on big volume. The action would indicate investors were surprise.
Strategy Opinion: TTD is targeting SMT for a decline to 5 within the next few months, or sooner. A protective stop buy can be placed near 8.
TTD's Quality Rating of Stock - SMT - 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.)