Go To Prior Days TTD "Pro Reports"
Aggressive Investors Bullish - Go To TTD Pre-Market Opening Breakout Watch List - Thursday, January 14
Aggressive Investor Bullish- Go To TTD Quick Trade Setups (win rate 70%) - Thursday, January 14
Conservative Investors Bullish (swing traders) - Go To TTD Bargain Trade Setups - Monday, January 11 - Weekly
Go to TTD's Stock Market Show for January 14 - Thursday - Breakout stocks and Feature stock - Baidu Inc. (BIDU) - (14 minutes)
Go to TTD Stock Market Shows for Latest Week:
Monday - Featue stock - Limited Inc. (LTD) - 15 minutes)
Tuesday- Feature Stock - Perigo Co. (PRGO) - (14 -minutes)
Wednesday- Feature stock - Merck & Co. (MRK) - (14 minutes)
Thursday- Feature on Baidu Inc. (BIDU) - (14 minutes)
Friday -Feature Stock - United Parcel Service (UPS) - ( 14 - minutes)
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
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" (swing trades). Ideally suited for entry into stocks on pullbacks within overall up trend. Good for trading range markets
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns
Conservative Bearish Investors (swing traders). "Bargain Bearish Plays" to Sell Short. Ideally suited for trading range markets with overall market down trend.
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.
TTD's Breakout Stocks - Long 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.
TTD Quick Trade Stocks - Long 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.
TTD's Bargain Buy Trades - Long These are for conservative bullish Investors The strategy is called swing trading. These long buys are ideally suited for entry into stocks on pull backs within overall up trend. They are good for trading range markets. These stocks can give a good return in a week or two. They can also explode into a breakout and a powerful advance.
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.
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 Bearish bargain play stocks to sell short. These issues are usually in down trends and are poised to rollover after a minor rally. They often can provide a conservative bear with a good entry point.
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 email@example.com.For service, email Beverly Owen firstname.lastname@example.org. TTD’s Tel: 1-480-926-1680.
Ticker Tape Digest's Midsession Stock Market Video Show
(Posted 12:30 to 1 p.m. NYSE Time)
Go to TTD Stock Market Show For - January 14
Go to Shows for Latest Week: Monday
Stocks Screened - 8,200
Bull side - Good number of breakouts today with several leading stocks moving out. Stock market still hangs tough for bulls who should continue to pursue good quality breakout plays. Today, hotel stocks dot the breakout list.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) NYSE Bullish, Nasdaq Bullish
TTD's Quality Rating of Stock - BIDU - ABOVE AVERAGE
BIDU, based in China, is a Chinese-language Internet search provider. Annual revenues: $599 million. BIDU's stock rises sharply today sending the leading stock to a new high. The driver: Talk that new competitor Google may exit the Chinese market. So far today, BIDU is trading 5.8 million shares, triple its normal daily volume of 2 million shares.
BIDU's stock rose sharply on Wednesday when Google said it might leave the Chinese market because of security concerns above its search system. The system was hacked.
BIDU's stock dipped a bit in premarket trading prior to Thursday's opening. However, the stock turned higher in the morning and trended higher most of the day. It hit a peak of 467.95.
BIDU's recent block trades show a good flow institutional money into the stock. The block trade prices climbed from $391.81 on Tuesday to a peak of $447.70. Of course, the price today moved sharply higher from that point.
BIDU operates Baidu Online Network Technology Co., Ltd. (Baidu Online), its wholly owned subsidiary in Beijing, China.
The company also conducts its operations in China through Baidu Netcom Science Technology Co., Ltd. (Baidu Netcom), which holds the licenses and approvals necessary to operate the Company’s Websites and provide online advertising services.
In January 2008, the Company launched a Japanese search service at www.baidu.jp, run by Baidu Japan. The Company’s Japanese search services enable users to find relevant information online, including Web pages, images, multimedia files and blogs, through links provided on its Websites.
BIDU's stock is a leader and making new all-time highs.
BIDU's 12-month performance chart (see below) shows the stock appreciating 310% compared with a 30% gain for the S&P 500 index.
BIDU's long-term chart shows the stock soaring from 78 in 2005 to a peak of 385 in 2007. The stock then fell sharply during the bear market. However, it has since comeback strongly.
BIDU's daily chart shows the stock advancing from 280 to 440. The stock then put down a flat base. However, the base looked suspect. Just a few sessions ago, BIDU's stock began to roll over.
However, all that changed due to the "Google dynamic" which put BIDU's stock back in play.
The past two sessions the stock has rallied strongly with good volume.
The stock's accumulation - distribution line (bottom of chart) has turned up smartly indicating good demand for the stock. The TTD momentum indicator lags. TTD sees that improving in coming sessions.
For 2009, analysts expect BIDU's to post a 40% increase in net to $6.19 a share from $4.43 a year ago. The stock sells with a price-earnings ratio of 74. That is high. So, the stock is not for the faint of heart.
Looking out to 2010, analysts predict a 38% improvement in net to $8.55 a share from the anticipated $6.19 a year ago.
Those estimates could get a boost if Google exits China. That would make the search-advertising market more lucrative for BIDU.
BIDU should post a 37% increase in net for the fourth quarter to $1.67 a share from $1.22 a year ago. The highest estimate on the Street is at $1.78 a share. TTD sees chances for an upside surprise. The past two quarters, BIDU topped the consensus estimate by 27 cents a share and 15 cents.
Strategy Opinion: BIDU is a leader. The breakout looks good and is driven by a fundamental development. However, TTD would suggest some caution and just scale-into the stock with a partial position. TTD is targeting BIDU for a move to 520. A protective stop can be placed near 420. TTD rates BIDU a very good intermediate-term play provided earnings remain on target.
Sponsorship: Very Good. The largest fund holder is CGM Focus Fund with a 2% stake. The 3-star rated fund has held its position steady. The second largest holder is 5-star rated Thornburg Intl. Value Fund with a 1.3% stake. It has held its stake steady. BIDU has 34.7 million shares outstanding.
Insider Activity: Not available. Currently, 15 analysts follow the stock, 7 have a buy, down from 8 three months ago.
Stock Performance Chart for 12 months with Quarterly Earnings Markers.
TTD's Breakout Profile Rating
Baidu Inc. - (BIDU)
|TTD Check List||Bullish||Bearish||Neutral|
|Near 52-week High||YES|
|Price Trend - Daily||YES|
|Price Trend - Long Term||YES|
|Price Daily Spread||YES|
|Base - A-D||YES|
|Prior Breakout Success||YES|
(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. They are ranked according to percentage change and classified as leaders or other. (Trading strategy: One should buy breakout stocks at breakpoint by using market order or stop buy)
Charts of Selected Breakout Stocks
|TTD's Quality Rating of Stock - CMG - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - MHS - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - CEE - AVERAGE|
|TTD's Quality Rating of Stock - MEND - AVERAGE|
NEOG, based in Lansing, Mich., makes diagnostic kits for use with food and animal safety. Annual revenues: $126 million. NEOG's stock is set up in a five-week flat base. The stock is a small cap play that should show solid 20% plus earnings growth in fiscal 2010 ending May 30. TTD sees the stock in a good spot to be accumulated in anticipation of a breakout.
NEOG is a thinly traded stocks. Today, it is not showing much change. Volume is running at a very light 20,394 shares. Its average daily volume is 83,000 shares.
The company has 22.5 million shares outstanding. Although the stock is thinly traded, it could have the potential to move up quickly if profits are strong.
Today, NEOG traded in a narrow range.
The recent tape action shows the big block trades. One can see the price for the blocks climbing from $23.87 to a peak of $24.16. The tape action showed institutional nibbling on the stock.
NEOG operates in the food safety and the animal safety area. The company makes diagnostic test kits and complementary products marketed by to food producers and processors to detect dangerous substances in human food and animal feed.
The company's animal safety segment is engaged in the development of pharmaceuticals, rodenticides, disinfectants, vaccines, veterinary instruments, topicals and diagnostic products for the animal safety market.
NEOG's long-term chart shows the stock as a steady climber and able to withstand stock market pull backs. Since 2000 it has soared from 5 to 24. It remains in a long-term up trend.
NEOG's daily chart shows the stock breaking out from a base at 23 in December. The stock stalled in its move and then set up another base. It is small buy part of a typically bullish pattern.
The current base is five-weeks. It is a tight trading range and is above a 50-day moving average line.
The TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) is trending steadily higher. It compliments bullishly the price pattern of the stock.
NEOG's net for the fiscal year ending May 30, 2010 should increase 21% to 75 cents a share from 61 cents a year ago.
The stock sells with a price-earnings ratio of 32. That is a bit high considering the earnings growth rate. However, the consistency of earnings makes up the difference.
Going out to fiscal 2011 ending in May, analysts project a 15% gain in net to 86 cents a share from the anticipated 75 cents in fiscal 2010.
The company is benefiting from strong sales of its food safety products. Revenue growth is running at 13%.
Net for the upcoming fiscal third quarter ending Feb. 28 should jump 28% to 16 cents a share from 13 cents a year ago. The highest estimate on the Street is at 19 cents a share. The company tends to meet or top the consensus estimate by one to two cents a share.
Strategy Opinion: NEOG appears to be moving higher in a conservative and orderly way. TTD suggests accumulation of a partial stake with further buying to be done on a move over 24.75. TTD is targeting NEOG for a run to 30 after a breakout. A protective stop can be placed near 23 after a breakout. TTD rates NEOG a very good intermediate-term play.
Sponsorship: Very Good. The largest fund holder is Brown Capital Management Small Co. Fund, 5-star rated, with a 3.5% stake. It was a recent buyer of 63,343 shares.
Insider Activity: Neutral. Insiders were buyers of the stock recently using stock options. They turned around and sold. Five analysts follow the stock, 2 have a buy, down from 3 three months ago.
Conservative Investors Bearish (swing traders) - Go To TTD Bargain Short Trade Setups - Monday, January 11 - Weekly
Ticker Tape Digest’s Daily List of “Stocks To 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: Unfavorable.
Bear Side - Only a few breakdown stocks today. Bears remain patient and selective.
(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.)
DCP, based in Falls Church, Va., is a provider of law enforcement training and support and security services. Annual revenues: $3.2 billion. DCP's stock falls below key support today with expanding volume. The stock has been trending lower. TTD sees more on the downside. So far today, DCP is trading 457,467 shares. Its average daily volume is 363,000 shares.
DCP's stock moved lower in the morning. It touched a low of 13.06 in the morning and it came on heavy volume. The stock then tried to consolidate, but it drifted lower the rest of the day unable to mount a rally.
TTD's clip of the tape in the morning shows a series of block trades. The price for the trades worked lower from $13.64 to $13.31. The tape action indicated consistent selling pressure on the stock.
The company will report net for the fiscal third quarter ending Dec.30 on February 4. The Street is forecasting an 18% rise in net to 40 cents a share from 34 cents a year ago.
The Company’s customers include the Department of Defense, foreign governments, commercial customers and certain other United States federal, state and local government departments and agencies.
Revenue from the United States government accounts for 96% of revenues.
DCP's net for the year ending March 30 should increase 19% to $1.56 a share from $1.31 a year ago.
DCP's daily chart shows the stock trending lower. It tried to hold support near 14, but is breaking down. The stock's TTD momentum indicator (top of chart) is very bearish. The accumulation - distribution line (bottom of chart) is very bearish too.
Strategy Opinion: There was no news on DCP. So, the drop could be anticipating some problems. TTD is targeting DCP for a decline to 10.30 within the next few months, or sooner. A protective stop buy can be placed near 14.40.
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.)