Ticker Tape Digest's

Feature Stock Under Accummulation

TTD’s Feature Stock Under Accumulation

Ticker Tape Digest - (Trading strategy: Purchase of these stocks is done when either the stock is still in a base, or has emerged and is acting very bullish. Purchase while a stock still is basing should be a scale-in strategy with the final buying to be done on a breakout from a base. Buying of these stocks when they are trending higher can be done aggressively.)

Gulfport Energy Corp. (GPOR) - 13.92

Set a Stop Buy at 14.70 to Catch the Breakout

Net to soar 88% this year and 64% next year, TTD Targets 19 after a Breakout.

TTD's Quality Rating of Stock - GPOR - AVERAGE

October 1, 2010 - GPOR, based in Oklahoma, City, is an oil and natural gas exploration and production company. Annual revenues: $103 million. GPOR's stock is in a six-month flat base. The stock has rallied to the top of the base four times and has been turned back each time. Now it moves again to attack the top of its base. This time the stock is showing good volume as it advances. With strong profits coming in the third quarter, TTD sees good chances for a breakout.

So far today GPOR's stock is up slightly. Volume is running at 245,820 shares. The stock's average daily volume is 191,000 shares.

Today, GPOT's stock bounced around in the morning. In the afternoon it worked modestly higher.

TTD's clip of the tape shows GPOR's big block trades of the past few days.

One can see the price of the blocks eventually working higher from $13.35 to a peak of $13.90.

Although the blocks are not large the pattern shows good institutional nibbling. A key bullish trade came Friday morning when a big block of 5,701 shares crossed at $13.90 (duplicated). That was up sharply from the prior block trade at $13.10. That showed aggressive bargain hunting.

GPOR's principal producing properties are located along the Louisiana Gulf Coast in the West Cote Blanche Bay, Hackberry fields, and in West Texas in the Permian Basin.

The company holds a significant acreage position in the Alberta oil sands in Canada, through its interest in Grizzly Oil Sands ULC.

It also has interests in entities that operate in Southeast Asia, including the Phu Horm gas field in Thailand. The Company’s wholly owned subsidiary, Grizzly has 527,000 acres under lease.

GPOR's long-term chart shows the stock surging from 3 in 2004 to a peak of 25 in 2007. The stock was then dragged lower during the bear market. The stock bottomed in early 2009 around 2.50. It has since been in a solid up trend.

GPOR's daily chart shows the six-month flat base. The most recent shakeout was much more than the prior ones. Now the stock is coming back strongly.

The stock's TTD momentum indicator (top of chart) is strongly bullish.

The accumulation - distribution line (bottom of chart) is in a strong up trend and has already broken out to the upside. That could be a good lead indicator that the price of the stock may breakout soon.

This year, GPOR's earnings are projected to surge 88% to $1.04 a share from 55 cents a year ago. The stock sells with a price-earnings ratio of 13. TTD sees that as extremely low and attractive for value investors.

Going out to next year, analysts look for a 64% gain in net to $1.70 a share from the anticipated $1.04 a share this year.

Net for the upcoming third quarter should show a 68% jump to 27 cents a share from 16 cents a year ago. The highest estimate on the Street is at 29 cents a share.

Going out to the fourth quarter, earnings should climb 40% to 29 cents a share from 21 cents a year ago.

Strategy Opinion: TTD sees GPOR setting up for a breakout. TTD suggests accumulation of a partial stake in GPOR with a view to completing a stake on a breakout over 14.70. TTD is targeting GPOR for a move to 19 after a breakout. TTD suggests a protective stop near 13.50 after a breakout. TTD rates GPOR an excellent intermediate-term play provided earnings remain on course.

Sponsorship: Excellent. The largest fund holder is IVA Worldwide with a 2.4% stake. It was a recent buyer of 1 million shares. GPOR has 44.6 million shares outstanding. i

Insider Activity: Neutral. Not much activity. Five analysts follow the stock and all 5 have a buy, up from 3 three months ago.