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 - 5
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Only a few breakouts today as stock fades in the afternoon to finish broadly lower. Bulls be patient. Market is now in a pullback phase.
(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 - PRCP - AVERAGE |
PRCP, based in Plymouth, Mich., produces software and other products to improve manufacturing in the auto and forest industries. Annual revenues: $59 million. PCRP, a small cap play, breaks out today with expanding volume. So far today, PRCP is trading 128,770 shares, triple its normal daily volume of 35,000 shares.
PRCP is a speculative breakout, but one with upside prospects based on improving profits.
PRCP's 10-minute chart shows the stock advancing on Thursday to near its breakpoint line.
Friday, the stock punches through the resistance holds its gain despite weakness in the stock market late in the day.
PRCP's tape action shows the recent big block trades.
One can see the price of the blocks climbing from $7 to $7.32.
A key bullish trade came late in the morning when 2,200 shares crossed at $7.30 that was up from the prior block trade at $7.15.
PRCP produces information based process measurement and guidance solutions.
Its products are designed to improve quality, increase productivity and decrease costs in the automotive and forest products industries.
PRCP goal is to develop systems with proprietary software and hardware to minimize the need for customer application engineering.
PRCP's 12-month performance chart shows the stock gaining 60% versus a 22% rise in the S&P 500 index. Notice how on PRCP's chart that the stock shot higher after the past two earnings reports. That shows the stock is in favor and being accumulated.
PRCP's long-term chart shows the stock soaring from 88 cents back in 2001 to a peak of 16 in 2007. The stock was then dragged down in the bear market to a low of $2.25. It has since been working higher. There is long-term upside resistance in 8 to 10 area. If it can push through that zone, it would be very bullish.
PRCP's daily chart shows the stock spiking up from 5 back in January to around 7 in February. The stock then sagged back and formed a base.
Today, it push out of the base as volume is starting to pick up .
Analysts forecast net for the fiscal year ending June 30 should hit 18 cents a share compared with a loss of 9 cents a year ago.
Net for the fourth quarter, though, is expected to be just 4 cents a share, down from 6 cents a year ago. However, the past two quarters PRCP has surprised big on the upside. It topped the consensus estimate by 600% and 650%. Thus, surge in the stock off the prior earnings reports.
Going out to fiscal 2012, the Street projects a 44% gain in net to 26 cents a share from 18 cents a year ago.
Sales growth is running at 38%. PRCP is benefiting from strong sales and bookings.
Strategy Opinion: TTD is targeting PRCP for a move to 9.30 off this breakout. The stock is speculative and only suitable for aggressive investors. A protective stop can be placed near 6.60. TTD rates PRCP an average intermediate-term play with a lot depending on profits.
Sponsorship: Average. The largest fund holder is Royce Value Trust with a 4% stake. It has held its position steady.
Insider Activity: Neutral. Not much action. One analysts follows the stock and has a buy.
Stock Performance Chart with Quarterly Earnings Markers.
TTD's Breakout Profile
Rating Perception Inc. - (PRCP) |
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 | 11 | 2 | 1 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - RNR - AVERAGE |
TTD's Quality Rating of Stock - CHU - AVERAGE |
TTD's Quality Rating of Stock - S - BELOW AVERAGE |
TTD's Quality Rating of Stock - BRCD - 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 - 8,300
Long-Term Environment for bears: Neutral.
Bear Side - Small number of breakdown stocks today, but some interesting shorts. Bears be selective. Nasdaq now in a trading range.
LPS, based in Jacksonville, Fla., provides technology and services to the mortgage industry. Annual revenues: $2.4 billion. LPS's stock falls sharply today with heavy volume. The move undercuts key technical support. So far today, LPS is trading 2.4 million shares, double its normal daily volume of 989,000 shares. TTD sees more on the downside.
TTD highlighted LPS as a short at our midsession video show on the Web Friday.
LPS's stock fell sharply in the morning hitting a low of 26.77. The stock then rallied through midsession. However, in the late afternoon it turned South again.
TTD's clip of the tape shows the recent big block trades.
One can see the price of the blocks declining from $28.47 to as low as 26.89. A key bearish trade came when a block of 35,000 shares crossed in the morning at $27.35. That was down sharply from the prior block at $28.09.
The stock is under heavy institutional selling pressure. Also, there were repots of large put buying in the stock. There was some negative chatter about the company.
LPS provides technology and services to the mortgage industry. The company offers lead generation, origination, servicing, portfolio retention and default.
About fifty percent of all U.S. mortgages are serviced using LPS' Mortgage Servicing Package. In fact, many of the nation's top servicers rely on MSP, including seven of the top ten and sixteen of the top twenty. LPS also offers proprietary mortgage and real estate data and analytics for the mortgage market.
This year, analysts forecast a small gain in net to $3.52 a share from $3.50 a year ago. Net for the upcoming second quarter should drop 10% to 80 cents a share from 89 cents a year ago.
LPS's daily chart shows the stock trending lower from 34 down to 28. The stock tried to hold support, but today breaks hard to the downside. The stock's TTD momentum indicator (top of chart) is bearish.
Strategy Opinion: TTD is targeting LPS for a decline to 23 with potential for even more if some bearish news comes out. A protective stop buy can be placed near 28.
TTD's Quality Rating of Stock - LPS - 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.”
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(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.)