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
Daily schedule guide for TTD subscribers
1. Pre-market - check Breakout Watch List and Quick Trades.
2. Morning - (11:30 - 12 A.M.) - check breakout stocks tape and breakout chart slide show.
3. Midday (1 P.M.) check TTD Midsession Report and see market video show.
4. After close (4 P.M.) check final TTD Report for day.
Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. (See Performance)
Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." (See Performance)
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.(See Performance)
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance)
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 - Long Term. 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.
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 email@example.com.For service, email Beverly Owen firstname.lastname@example.org. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 6
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Small number of breakouts. Bulls be very selective. Stock market still trying in "dancing in place" within a trading range. (Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Stock Market Momentum:
Market (Daily) - NYSE Bullish, Nasdaq Bearish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - NATH - ABOVE AVERAGE
NATH, based in Jericho, N.Y., operates some 200 fast food outlets in 18 states. Annual revenues: $71 million. NATH, a microcap stock, breaks out today from a six-month base. The move carries the stock to a new all-time high. So far today, NATH is trading a light 4,754 shares. Its average daily volume is 12,200 shares.
TTD highlighted NATH as a breakout at our midsession video show on the Web Monday.
The stock rose steadily through the day even though the stock market was mixed. The stock has a beta of just 0.33 versus 1.00 for the stock market.
So NATH tends to be a slow mover. However, it has made a lot of ground moving higher It has more than tripled since 2009.
TTD's 10-minute chart shows NATH moving steadily higher starting on last Friday.
The stock's tape action shows the recent block trades and of course the are small. The company has only 4.5 million shares outstanding.
One can see the price for the blocks rising from $34.05 a few days ago to a peak of $35.83 Monday/
A key bullish block came on Friday when 500 shares crossed at $34.38. That was up from the prior block at $34.08.
NATH operates and franchises some 200 fast-food outlets in 18 states and Puerto Rico.
The company's Nathan's Famous restaurants feature all-beef frankfurters, fried potatoes, chargrilled hamburgers, chicken sandwiches, seafood and fried chicken.
It also sells breakfast items, salads, snacks, and beverages.
Besides traditional restaurants, Nathan's outlets include carts, kiosks, snack bars, racetracks, and convenience stores.
NATH's 12-month performance chart shows the stock appreciating 70% versus an 18% gain for the S&P 500 index. Notice on the chat the green bar showing insider buying taking place in November and then the stock performing very well afterwards.
NATH's long-term chart shows the stock climbing from $3.40 back in 2003 to a peak of 35 - that's some gravey for the long-term holders - a 10-fold move. So, the stock is hot.
NATH's daily chart shows the stock climbing from 22 back in June to 34 by August.
It then trended sideways. Most recently the stock set up a well-formed base around 34. It has now broken out.
The stock's TTD momentum indicator (top of chart) is solidly bullish.
The accumulation - distribution line is in an up trend showing that the price advance is supported by good buying.
Net for the fiscal year ending March of 2013 should climb 33% to $1.70 a share from $1.28 a year ago. The stock sells with a price-earnings ratio of 20. TTD sees that as reasonable at this time.
Going out to fiscal 2014, the Street currently projects a 13% gain in net to $1.92 a share from the anticipated $1.70 for fiscal 2013.
Net for the next two quarters will be strong.
Profits for the fiscal third quarter ending in December should jump 32% to 33 cents a share from 25 cents a year ago. Then, for the fiscal first quarter ending in March net should rise 33% to 32 cents a share from 24 cents a year ago.
Strategy Opinion: TTD is targeting NATH for a move to 42 off this breakout. One will need to be patient. A protective stop can be placed near 33.
TTD rates NATH an average intermediate-term play.
Sponsorship: Excellent. the top four fundholders all have a 5-star rating. The largest fund holder is Teton Westwood Might Mites AAA fund with a 4% stake. It was a recent buyer of 600 shares. Institutions hold 44% of the stock.
Insider Activity: Bearish. Insiders were recent buyers from $5.62 to $15.42. They have not done any selling lately. No analysts follow the stock.
Stock Performance Chart with Quarterly Earnings Markers
Insider Activity - Buying in Green - Selling in Red
|TTD's Breakout Profile
Nathans Famous Inc. - (NATH)
|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|
Charts of Selected Breakout Stocks
|TTD's Quality Rating of Stock - CPA - AVERAGE|
|TTD's Quality Rating of Stock - RNR - AVERAGE|
|TTD's Quality Rating of Stock - HTHT - BELOW AVERAGE|
|TTD's Quality Rating of Stock - HWD - BELOW 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 - 2
Stocks Screened - 8,300
Long-Term Environment for bears: Neutral.
Bear Side - Only a few breakdown stocks today. However, a recent leader Apple Inc. (AAPL) continues its descent.
AAPL, based in Cupertino, Ca., produces computers, iphones and ipads. Annual revenues: $156.5 billion. AAPL's stock breaks down today an undercuts near-term support. The stock, a former leader, has been trending lower. Quarterly earnings growth is expected to slow.
So far today, AAPL is trading 20.9 million shares. Its average daily volume is 17.2 million shares.
The stock fell sharply in the morning and finally hit an intraday low at 498.51. There were reports it was cutting back on orders for new tech supplies.
AAPL's tape action shows the recent big block trades. One can see the price for the blocks dropping from $520.32 a few days ago to $502.
The tape action shows consistent institutional selling pressure. A key bearish block came in the morning when 399,115 shares crossed in the morning at $503, down from the prior block at $507.50.
APPL makes mobile communication and media devices, personal computers, and portable digital music players.
The company's products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and Mac OS X operating systems, iCloud, and a range of accessory.
TTD pointed out back in October that AAPL had peaked as it broke down from a head-and-shoulder technical topping pattern.
Analysts expect AAPL's earnings for the fiscal first quarter ending in December will decline 3% and then in the fiscal second quarter slip 1%. Overall, for fiscal 2013 ending in September AAPL's net should rise 11% to $48.79 a share from $44.15 the year before.
AAPL's daily chart shows the stock breaking below key support near 505. The stock's TTD momentum indicator (top of chart) is bearish. The accumulation - distribution line (bottom of chart is in a clear down trend showing consistent selling pressure.
Strategy Opinion: TTD is targeting AAPL for a drop to 450 within the next few months. A protective stop buy can be placed near 513.
|TTD's Quality Rating of Stock - AAPL - 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.)