How To Use TTD's Tactical Bargain Buys (Slide Show)

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Ticker Tape Digest

"Tactical Bargain Trades"

Selections for Monday - May 5, 2003

How to make Money with TTD's Tactical Bargain Plays

TTD will list the best looking tactical bargain buys weekly. During the week we may add other stocks if they look good.

TTD will give a brief analysis of (1) the company's earnings prospects or the key fundamentals, (2) where we would buy the stock, (3) an exit strategy, (4) the profit potential we see and (5) a specific day one might want to sell, all or part of the position. We will track these stocks on a daily basis giving you our insights.

Some suggestions: Bargain buying of stocks requires one to be emotionally comfortable buying a stock that has recently declined. However, you may be surprised at how some of these stocks seem to "come alive" in just a few days. Often a good profit can be achieved in about 10 trading days.

TTD's proprietery method of nailing the bottom is very good. The method works very well in a trading or whipsaw type stock market.

TTD's exit strategy is not based on the price of the stock, but on our momentum indicator. In some cases we will give a stock a lot of room. It is always best to diversify a portfolio to spread risk.

The stocks selected in most, but not in all cases, will be of companies showing good earnings growth. However, TTD does seek out issues with a unique theme such as a new product or other development that could drive the stock higher.

Ticker Tape Digest's "tactical bargain trades" are long plays with a high percentage win rate that gives an investors an excellent opportunity to get a very good investment return.

TTD screens some 7,000 stocks to find those issues that have pulled back recently and are now positioned to move higher during the next four weeks. This tactical buying strategy seeks stocks showing strong up tick volume on their pullbacks to compliment the technical analysis done by TTD.

Selections for Monday - May 5, 2003

Smith International Inc. (SII)

*Name*	*Symbol*	*Buy Price*	*Target in 4 Weeks*	*Protective Stop sell*
Smith International	SII	36.25	41	32

Stock Strategy
SII
Smith International is part of the oil service sector which will show strong earnings growth this year.
The stock broke out from a base by moving through 37. It has since drifted back but continues to show excellent accumulation on the tape. TTD sees SII heading higher and also being a good play further out this year.

Smith International (SII) of Houston, Tex., makes premium drill bits, drilling fluids, and related products and, via its Smith Services unit, offers drilling-related services. Smith International's M-I unit sells fluids used to cool and lubricate drill bits and prevent pipes from clogging. M-I owns sites from which it mines some of the barite and bentonite used to make drilling fluids. Smith International's Wilson Supply business provides pipes and fittings, tools, and maintenance and janitorial supplies, primarily to oil and mining companies. The company's Smith Bits unit produces drill bits and other drilling equipment. The US accounts for about half of Smith International's sales.

Cheesecake Factory Inc. (CAKE)

*Name*	*Symbol*	*Buy Price*	*Target in 4 Weeks*	*Protective Stop sell*
Cheesecake Factory Inc.	CAKE	32.57	38	28

Stock Strategy
CAKE
CAKE had a recent pull back from 35 to 31. During that sell off, TTD spotted very strong accumulation on the tape. We see the stock now poised to rally.

Cheesecake Factory Inc. of Calabasas Hills, Ca., operates more than 60 upscale casual-dining restaurants that offer some 200 menu items ranging from sandwiches and salads to steaks and seafood. The highlight of the menu, of course, is the chain's namesake dessert item, which comes in about 40 varieties, including Chocolate Tuxedo Cream Cheesecake and Kahlua Cocoa Coffee Cheesecake. Each unit sports a unique design, but all are characterized by over-the-top opulence and Las Vegas-style glitz. In addition to its flagship concept, the company operates three Grand Lux Cafes and sells its cheesecakes to grocery stores and food-service facilities

Performance of TTD Tactical Bargain Buys This Year

Updated as of May 5

(Edate=Date of buy entry)

Selections for Monday - April 28, 2003

Laboratory Corp. America (LH)

*Name*	*Symbol*	*Buy Price*	*Target in 4 Weeks*	*Protective Stop sell*
Laboratory Corp America	LH	27.29	30.50	25.50

Stock Strategy
LH
LH went through a sharp decline from 52 in mid-2002. It hit a bottom at 20 late last year and ever since has been trending higher. On this mini-pullback TTD sees an opportunity to enter.
The company will show a 22% rise in net this year and 18% next year. It sells with a price-earnings ratio of only 12 based on this year's net. An excellent value/growth play.

Laboratory Corp. America of Burlington, N.C. provides clinical laboratory services around the world. LabCorp performs some 4,000 types of tests for such clients as hospitals, pharmaceutical firms, physicians, HMOs, government agencies, and employers.
Its services include routine testing, such as urinalyses, HIV tests, and Pap smears. LabCorp also offers specialty testing services, including clinical research, paternity and forensics tests, and predictive testing for breast and ovarian cancer.

Quest Diagnostics Inc. (DGX)

*Name*	*Symbol*	*Buy Price*	*Target in 4 Weeks*	*Protective Stop sell*
Quest Diagnostics Inc.	DGX	57.20	64	54

Stock Strategy
DGX
DGX has been forming a long bottoming pattern after a pull back from a peak of 96 about a year ago. Near-term the stock rallied from 48 to 63. It has since drifted back to 57. The tape action is very good. TTD sees DGX set to move higher again.
Net should rise 29% this year and 18% next year. The stock sells with a price-earnings ratio of only 14. Given a 20 p/e the stock has potential to get to 80. It is a superb buy here

Quest Diagnostics Inc. (DGX), based in Teterboro, N.J., is a leading clinical lab. The company performs more than 130 million tests annually, including cholesterol, HIV, and alcohol tests. The firm has laboratories throughout the US and in Mexico and the UK.
Quest Diagnostics also performs esoteric testing (complex, low-volume tests) and clinical trials. Nearly a third of its clinical trial testing is for druggernaut GlaxoSmithKline. The company serves doctors, hospitals, HMOs, and other labs, as well as corporations, government agencies, and prisons

Selections for Monday - April 21, 2003

Vital Images Inc. (VTAL)

*Name*	*Symbol*	*Buy Price*	*Target in 4 Weeks*	*Protective Stop sell*
Vital Images Inc.	VTAL	11.93	14	10.20

Stock Strategy
VTAL
VTAL has been one of the strongest stocks of the past six months climbing from 6 to 13. It has since pulled back around 11. TTD sees good chances for a rally to carry it back to around 14.

Vital Images Inc. (VTAL)of Plymouth, Min., makes medical visualization and analysis software used primarily in clinical diagnosis, disease screening, and therapy planning. The firm's software applies computer graphics and image-processing technologies to data supplied by computed tomography (CT) scanners and magnetic resonance imaging (MRI) devices.
Vital Images' flagship product Vitrea 2 creates two- and three-dimensional views of the human body, enabling physicians and surgeons to see internal structures and recognize potential abnormalities. The company markets its products to hospitals and diagnostic imaging manufacturers. Toshiba America accounts for about a quarter of sales

Dendrite International Inc. (DRTE)

*Name*	*Symbol*	*Buy Price*	*Target in 4 Weeks*	*Protective Stop sell*
Dendrite International Inc.	DRTE	8.66	10.30	7.90

Stock Strategy
DRTE
DRTE is a strong stock having advance from 5 late last year to a peak of 10. The stock has since pulled back in an orderly way to consolidate. The stock is now set up to resume its advance.

Dendrite International (DRTE) of Morristown, N.J. offers services and software that manage and analyze sales efforts for the pharmaceutical and consumer packaged goods industries. Dendrite's flagship WebForce Suite consists of applications that help sales forces access product information and physician databases, evaluate competitors, and catalogue client and prospect data, among other things. While WebForce is designed for multinational pharmaceutical companies, Dendrite also markets to midsized businesses. The company's top two customers, Pfizer and Bristol-Myers Squibb, accounted for about 45% of revenues.

Selections for Monday - April 14, 2003

Williams-Sonoma Inc. (WSM)

*Name*	*Symbol*	*Buy Price*	*Target in 4 Weeks*	*Protective Stop sell*
Williams-Sonoma Inc.	WSM	21.73	25	18

Stock Strategy
WSM
WSM made a bottom near 21. It is now well positioned to rally, possibly to the upper 20s.
WSM has been showing very good accumulation. Earnings growth has been solid.

Williams-Sonoma Inc. (WSM) of San Francisco, Ca., sells bedding, cookware, furniture, and tableware. The company's retail chains, Williams-Sonoma and larger Grand Cuisine (upscale cookware), Pottery Barn and larger Design Studio (housewares, furniture), and Hold Everything (storage items) sell wares through nearly 480 stores in 41 states, Washington, DC, and Toronto. In addition, Williams-Sonoma distributes seven catalogs, including the Chambers catalog (bed and bath products). It operates about 15 Williams-Sonoma outlet stores, four e-commerce Web sites, and runs an online bridal registry.

Selections for Monday - April 7, 2003

International Game Technology Inc. (IGT)

*Name*	*Symbol*	*Buy Price*	*Target in 4 Weeks*	*Protective Stop sell*
International Game Technology Inc.	IGT	82.18	92	105

Stock Strategy
IGT is a leader in the gaming sector. The company has been showing solid 20% earnings growt h the past several years.
IGT had a technical breakout from a base at 80 on March 17. The stock rose to 87. It has since pulled back nicely with very good accumulation. TTD now sees IGT at an ideal buy point after a pull back.

International Game Technology Inc. (IGT) is the largest designer and manufacturer of slot machines (it controls about two-thirds of the US market), and it also produces video gaming, player tracking, and accounting systems.
Products include reel-type slot machines (Vision Series, S2000), video gaming machines (iGame-Plus, Game King), video gaming terminals for government-sponsored lotteries, and progressive jackpot slot-machine networks (MegaJackpots) that link slot machines from several casinos to increase jackpot payoffs.

Selections for Monday - March 31, 2003

EOG Resources Inc. (EOG)

*Name*	*Symbol*	*Buy Price*	*Target in 4 Weeks*	*Protective Stop sell*
EOG Resources Inc.	EOG	40.09	45	37.50

Stock Strategy
EOG is a conservative tactical bargain buy. The stock is now around 40 and showing strong accumulation. TTD has now received a buy signal. TTD is spotting strong action starting to develop in the oil and gas sector.
EON moved up to 42.50 in early March. It has since pulled back to 40. The tape has been so strong that a rally to the mid-40s has a high probability.

EOG Resources Inc. (EOG) of Houston, Tex., is an independent oil and gas company is engaged in exploring for natural gas and crude oil and developing, producing, and marketing those resources. EOG, an independent offspring of the once powerful Enron, has proved reserves of 4.1 trillion cu. ft. of natural gas and 85 million barrels of crude oil, condensate and natural gas liquids.
The company operates in major production basins in Canada, offshore Trinidad, and in the US. EOG is boosting its North American exploration activities and expanding its reserves.

Selections for Monday - March 24, 2003

Cognizant Tech Solutions Inc. (CTSH)

*Name*	*Symbol*	*Buy Price*	*Target in 4 Weeks*	*Protective Stop sell*
Cognizant Technology	CTSH	64.77	73	36

Stock Strategy
CTSH has been one of the strongest stocks of the past two years. It ran up from 20 back in September 2001 to a peak of 76. It has since been in an intermediate-term correction.
CTSH pulled back from 76 to 56, a 20 point correction. It made a bottom in late January. Afterwards it rallied to 70 by early March (see chart) and then pulled back again. TTD now sees the stock as setting up well to move higher again. The tape action has been modestly bullish. Net will rise 29% this year. TTD sees the stock participating in the market's new up trend.

Cognizant Technology (CTSH),based in Teaneck, N.J. provides application maintenance services, software development and integration, and reengineering services for legacy systems, primarily to medium-sized and large businesses. Most of its sales are to customers in North America, which include IMS Health, First Data, and ACNielsen. The company's software development centers are located in India, Ireland, and the U.S.

Selections for Monday - March 17, 2003

Deere & Co. (DE)

*Name*	*Symbol*	*Buy Price*	*Target in 4 Weeks*	*Protective Stop sell*
Deere& Co.	DE	39.24	45	36

Stock Strategy
DE has moved lower since peaking at 51 in early December. TTD has now picked up a buy signal. It is also being accompanied by a pattern of strong accumulation.
DE will also be showing strong earnings for the next several quarters. TTD sees excellent chances for a rally to kick in. We see low risk on the downside.

Deere & Co. (DE) of Moline, Il., is one of the world's two largest makers of farm equipment (CNH Global is the other). Deere also is a leading producer of industrial, forestry, and lawn-care equipment. Its farm equipment includes tractors, tillers, harvesting machinery, and soil-preparation machinery. Deere's construction equipment includes backhoes and excavators. Deere also makes drivetrain components, diesel engines, chain saws, leaf and snowblowers. The company has sold its Homelite consumer products division and is consolidating operations and cutting jobs

Selections for Monday - March 7, 2003

Mercury Interactive Inc. (MERQ)

*Name*	*Symbol*	*Buy Price*	*Target in 4 Weeks*	*Protective Stop sell*
Mercury Interactive Inc.	MERQ	31.77	37	28

Stock Strategy
MERQ is a turnaround technology stock that rallied from 15 last October to 38. The stock has since drifted back to 30. TTD is picking up good accumulation and earnings growth will be strong. We expect earnings for the year to rise 29% to 93 cents a share from 72 cents a year ago. Net for the first quarter will surge 47% and in the second quarter 46%. The stock is showing good accumulation as it pulls back. We are very bullish on MERQ

Mercury Interactive Inc. (MERQ), of Sunnyvale, Ca., makes software for testing and analyzing the performance of enterprise and Web-based applications. Mercury's products allow customers to analyze and eliminate Web site performance bottlenecks, automate quality assurance testing, and reduce hardware and operational expenses.
The company also offers services such as consulting, maintenance, and training. Customers include Charles Schwab, Nokia, Microsoft, and Target. Mercury is expanding its hosted applications, which complement its software by offering real-time monitoring and load testing services for Web sites.

Selections for Monday - March 3, 2003

Adtran Inc. (ADTN)

*Name*	*Symbol*	*Buy Price*	*Target in 4 Weeks*	*Protective Stop sell*
Adtran Inc.	ADTN	32.20	38	28

Stock Strategy
ADTN is a leading stock. It has pulled back from 40 in January to the low-30s. Now TTD is getting a buy signal which is being supported by strong accumulation on the tape.

Adtran Inc. of Huntsville, Ala., offers more than 500 high-speed digital transmission products used to enable Internet access, telecommunications, and computer networking over copper telephone lines. Its equipment support popular standards such as frame relay, integrated services digital network, digital subscriber line, and T1. Customers include Verizon, SBC Communications, and Sprint. ADTRAN also customizes its products for private-label distribution through resellers. Co-founders Mark Smith (CEO) and Lonnie McMillian own 32% and 14%, respectively, of the company.
ADTN is a leading stock. TTD is forecasting a 30% increase in earnings this year with net climbing to $1.10 a share from 85 cents a year ago.

Hutchinson Technology (HTCH)

*Name*	*Symbol*	*Buy Price*	*Target in 4 Weeks*	*Protective Stop sell*
Hutchinson Technology	HTCH	21.64	27	19

Stock Strategy
HTCH was one of the strongest stocks in the past six months. It peaked near 27 earlier this year and then pulled back to 21. TTD now sees HTCH triggering a buy. We also are seeing a good pick up in accumulation on the tape.

Hutchinson Technology is a maker of disk drive suspension assemblies. These support the read-write head above the spinning magnetic disk in hard drives, typically at a height of about a millionth of an inch -- 3,000 times thinner than a piece of paper. The company's products include conventional assemblies, trace suspension assemblies, and accessories such as base plates and flexures. Hutchinson supplies a select number of large disk drive makers; its top five customers (TDK, Seagate, IBM, Read-Rite, and Alps Electric) account for more than 80% of sales.
HTCH earnings will be very strong for the next two quarters. TTD sees net for the fiscal second quarter ending March 30 surging to 59 cents a share from 3 cents a year ago. For the fiscal third quarter ending June 30, we see net climbing to 47 cents a share from 13 cents a year ago.

Selections for Tuesday - February 18, 2003

Biosite Inc. (BSTE)

*Name*	*Symbol*	*Buy Price*	*Target in 4 Weeks*	*Protective Stop sell*
Biosite Inc.	BSTE	32.70	38	30

Biosite Inc. of San Diego, makes diagnostic products. Its products include its Triage Drugs of Abuse Panel and Triage TOX Drug Screen, single-sample urine tests that identify commonly abused drugs. Its Triage C. difficile and Triage Parasite Panels detect intestinal parasites and other pathogens.
The company's Triage BNP Test aids in diagnosing congestive heart failure. Fisher Scientific, which distributes many of Biosite's products in the US, accounts for more than 80% of company sales. The Biosite Discovery program is a collaborative research effort to identify new protein markers for diseases.
BSTE's earnings this year should rise 63% this year to $1.40 a share from 86 cents a year ago. TTD sees strong earnings for the first two quarters this year, with gains of 182% in the first quarter and 75% in the second quarter.
BSTE's stock has pulled back since peaking at 40 in mid-January. TTD now sees a rally set to start.
.

Hewlett-Packard Co. (HPQ)

*Name*	*Symbol*	*Buy Price*	*Target in 4 Weeks*	*Protective Stop sell*
Hewlett-Packard	HPQ	17.80	21	15.80

Hewlett-Packard (HPQ) of St. Palo Alto, Ca., is a major producer of computers and printers. HP provides enterprise and consumer customers a full range of high-tech products, including personal computers, servers, storage products, printers, software, and computer-related services. The company has seen extensive restructuring under the leadership of CEO Carly Fiorina, who spearheaded the largest deal in tech sector history: the acquisition of Compaq Computer in a stock transaction valued at approximately $19 billion.
HPQ, a Dow blue chip stock, should show a 48% increase in earnings for the fiscal year ending Oct. 30 to $1.18 a share from 80 cents a year ago. TTD sees net for fiscal 2004 climbing to $1.48 a share, a 25% increase.
The stock has begun to turn up after a correction. TTD is fiding strong accumulation on the tape with many big block trades going off on up ticks.

Affiliated Computer Services Inc. (ACS)

*Name*	*Symbol*	*Buy Price*	*Target in 4 Weeks*	*Protective Stop sell*
Affiliated Computer Services Inc.	ACS	45.36	52	42

Affiliated Computer Services Inc. (ACS) of Dallas, Tex., provides business and technology outsourcing services for commercial clients and government agencies. ACS's business process outsourcing service offerings include processing, scanning, and analyzing company documents such as health care claims and financial transactions. ACS also provides systems integration and technology outsourcing services, including infrastructure and applications outsourcing, network management, e-business, information security, and technical support and training services.
ACS's earnings for the fiscal year ending June 30 should rise 24% to $2.18 a share from $1.76 a year ago.
The stock is one of the strongest issues of the past two years. Most recently it peaked at 56 in January and then pulled back to low-40s.
TTD is now picking up good accumulation and our momentum indicator is triggering a buy.

Selections for Monday - February 14, 2003

Stryker Corp. (SYK)

*Name*	*Symbol*	*Buy Price*	*Target in 4 Weeks*	*Protective Stop sell*
Stryker Corp.	SYK	61.90	67 to 69	59.90

Stryker Corp. (SYK) is one of the leading medical stocks of the past few months. It rose from 46 back in August to 69 in January. It has since gone into a correction despite reporting favorable earnings. The selloff came and sent SYK's stock dwon from 69 to 60 - a 13% correction. The stock however showed tremendous up tick volume while going down in price. That indicated aggressive accumulation on the weakness. Now, TTD has a buy signal with our momentum indicator. The stock is an excellent buy here for bargain players. We see very good chances of a rally back to the prior peak. SYK has been showing solid 20% earnings growth.

Davita Inc. (DVA)

*Name*	*Symbol*	*Buy Price*	*Target in 4 Weeks*	*Protective Stop sell*
Davita Inc.	DVA	23.40	26 to 27	22.50

DaVita Inc. (DVA) is a medical firm that provides dialysis services. The stock has been in a broad basing pattern with upside resistance at 26. It has since pulled back to the 23 area. Although the stock still appears to be in a down trend, TTD is picking up a clear buy signal with our momentum indicator. Also there has been solid accumulation as the stock corrected down from 25.75 to 23.40. Although the stock is still in a trading range, TTD sees good chances for a rally back up through the trading range and to the 26 area. Net this year should rise 14%.

Selections for Monday - February 3, 2003

Chico's Fas Inc. (CHS)

*Name*	*Symbol*	*Buy Price*	*Target in 4 Weeks*	*Protective Stop sell*
Chico's Fas	CHS	18.21	22 to 24	16.50

Chico's Fas Inc. (CHS) was a leader in the retail apparel sector. The stock ran up from 13.50 in August (see chart below) and hit a peak of 23.70 in December. The stock has since pulled back to the 18 area. TTD is picking up strong accumulation in the stock. On January 29, there was heavy buying with up tick volume of 967,600 shares. TTD's momentum indicator has flashed a buy.
CHS' earnings for the fiscal year ending Jan. 31 should rise 51% to 76 cents a share from 50 cents a year ago. This fiscal year TTD expects a 22% rise in net to 93 cents a share.

P.F. Chang's China Bistro Inc. (PFCB)

*Name*	*Symbol*	*Price*	*Target in 4 Weeks*	*Protective Stop sell*
P.F. Chang's China Bistro	PFCB	35.25	39 to 40	33.50

P.F. Chang's is a leading restaurant stock.The stock rose from 26.50 in September to a peak of 39 in early January. The stock has since pulled back to aroun 35. TTD's momentum indicator is flashing a buy signal. That is being confirmed by a pattern of very good accumulation.
The technical pattern is vey bullish with a high probability of a move higher.
This year, TTD is forecasting a 27% increase in net to $1.03 a share from 81 cents a year ago.

Entercom Communications Inc. (ETM)

*Name*	*Symbol*	*Price*	*Target in 4 Weeks*	*Protective Stop sell*
Entercom Communications Inc.	ETM	48.80	53 to 55	46

Entercom Communications (ETM) is the fourth largest radio broadcasting firm in the U.S. The stock pulled back from a peak of 55 in November to around 48. The stock has been showing very good accumulation for months. Most especially the stock has been under very good accumulation as it pulled back the past two weeks.
ETM has tended to trade in a range between 46 and 55 the past few months. TTD sees very good chances for a rally at least across the trading range. Earnings have been improving sharply. This year, TTD is forecasting a 26% rise in net to $1.37 a share from an anticipated $1.09 in 2002.

Wal-Mart Stores Inc. (WMT)

*Name*	*Symbol*	*Price*	*Target in 4 Weeks*	*Protective Stop sell*
Wal-Mart Stores Inc.	WMT	47.80	53 to 55	45.50

Wal-Mart Stores Inc. (WMT) is one of the largest discount retail store operators in the U.S. The blue chip stock is part of the Dow Jones Industrial average. WMT peaked at 58 last October. The stock has since pulled back to around 47. TTD has been finding extremely heavy accumulation. Our momentum indicator for WMT has a very high success rate when it clicks in a buy as it has done now. Although the gains tend to be modest, we see WMT as a low risk play here.
WMT's earnings for the fiscal year ending Jan. 30 should be up 19% to $1.78 a share from $1.50 a year ago. Looking out to fiscal 2004, TTD sees a 14% gain in net to $2.04 a share.

Prior Reports of TTD' Tactical Bargain Buys

February - 2003

TTD Bargains For February 3, 2003

TTD Bargains For March 14, 2003

TTD Bargains For March 24, 2003

TTD Bargains For March 31, 2003

TTD takes no responsibility for trading by those using this information. The stocks presented in our report are those we deem the best looking "Tactical Bargain Trades" for the long side. We take no responsibility for the accuracy of this data, although every effort is made to present the information correctly. Copyright Ticker Tape Digest.