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 firstname.lastname@example.org.For service, email Beverly Owen email@example.com. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 7
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Modest number of breakouts. Some interesting plays. Breakdown in the Nasdaq now a problem for bulls. Also, bullish seasonal pattern coming to an end. (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 - OII - ABOVE AVERAGE
OII, based in Houston, provides engineered services and products to the oil industry. Annual revenues: $2.6 billion. OII's stock breaks out today form a four-month, cup-and-handle base. The move - a strong one - carries the stock to a new all-time high with expanding volume.
So far today, OII is trading 1.3 million shares, almost double its normal daily volume of 724,00 shares.
The stock rose sharply in the morning and peaked later in the day at 59.24. The stock trended sideways in the afternoon holding most of its gain.
The breakout in the morning came with strong volume.
TTD's clip of the tape shows the recent big block trades.
One can see the price for the blocks climbing from $56.13 a few sessions ago to a peak of $58.98 Tuesday morning.
A key bullish trade came in the morning when a block of 24,155 shares crossed the tape at $57.23. That was up sharply from the prior block trade at $56.13.
Then later in the session a block of 18,800 shares crossed in the afternoon at $58.79, up from the prior block at $58.77.
There was some selling late in the day near the close when a largest block of the day crossed. It was 45,491 shares at $58.68. That was down from the prior block at $58.81.
OII provides engineered services and hardware to customers who operate in marine, space and other harsh environments.
The company supplies a comprehensive range of integrated technical services to a wide array of industries and is one of the world's largest underwater services contractors
OII's 12-month performance chart shows the stock appreciating 37% versus a 14% gain for the S&P 500 index. The recent red bars on the chart shows insider selling late in the year.
OII's long-term chart shows the stock climbing from $5.80 back in 2003 to a peak of 42 in 2007. The stock then fell sharply during the bear market hitting a low of 10 in late 2008.
Since then the stock has been driving sharply higher. The push to a new high could bring in more buying Wednesday.
OII's daily chart shows the stock advancing from 44 back in June to a peak near 58 in September.
The stock then put in a lot of time forming an orderly base. The breakout today is ideal coming with expanding volume and a widening of the daily trading spread.
OII's TTD momentum indicator (top of chat) is strongly bullish
The accumulation - distribution line (bottom of chart) is in a strong up trend indicating solid buying supporting the breakout.
For 2012, analysts forecast a 31% jump in earnings to $2.63 a share from $2.01 a year ago. The stock sells with a price-earnings ratio of 22. TTD sees that as reasonable.
Looking out to 2013, profits are projected to climb 22% to $3.22 a share from the anticipated $2.63 a share for 2012.
Net for the fourth quarter should leap 32% to 72 cents a share from 54 cents a year ago. The highest estimate on the Street is at 73 cents a share. OII tends to come in close to the consensus estimates. TTD does not expect any earnings surprises.
Going out to the first quarter of 2013, profits should climb 42% to 67 cents a share from 47 cents a year ago.
Strategy Opinion: OII's breakout looks solid and earnings strong. TTD is targeting the stock for a push to 70 off this breakout. A protective stop can be placed near 54.
TTD see OII as a very good intermediate-term play.
Sponsorship: Average. The largest fund holder is Neuberger Berman Genesis Fund with a 3.7% stake. However, the 4-star rated fund was a recent seller of 1.4 million shares.
The largest buyer recently was 4-star rated Artisan Mid Cap Fund which purchased 173,800 shares.
OII has 108 million shares outstanding. Institutions hold 90% of the stock.
Insider Activity: Bearish. Insiders have been selling heavily the past several months. The latest selling was around $52. They have done no buying. Currently, 16 analysts follow the stock, 10 have a buy, the same as three months ago.
Stock Performance Chart with Quarterly Earnings Markers
Insider Activity - Buying in Green - Selling in Red
|TTD's Breakout Profile
Oceaneering International Inc. - (OII)
|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 - MDSO - AVERAGE|
|TTD's Quality Rating of Stock - SNTS - AVERAGE|
|TTD's Quality Rating of Stock - RRTS - AVERAGE|
|TTD's Quality Rating of Stock - ABC - 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 - 4
Stocks Screened - 8,300
Long-Term Environment for bears: Neutral.
Bear Side - Small number of breakdown issues today. However, some interesting plays. Bears be venturesome. Apple Inc. (AAPL) TTD's short from Monday at 503.49 falls to 485.92 Tuesday. It is off 15.83. It is working well for bears.
BODY, based in Jacksonville, Fla., operates women's clothing stores. Annual revenues: $310 million. BODY' stock falls sharply today after the company forecast weak earnings for 2012. So far today, BODY is trading 1.1 million shares, six times its normal daily volume of 168,000 shares. TTD sees more on the downside.
The stock was highlighted as a short at TTD's midsession video show on the Web Tuesday.
BODY said earnings for 2012 would come between 68 to 70 cents a share. The Street was expecting net of 83 cents a share.
The news was taken bearishly by the market. BODY's stock gapped sharply lower in the morning. It hit an intraday low of 8.23. It then bounced up slightly and then trended sideways the rest of the day.
BODY's tape action shows the recent big block trades.
One can see the price for the blocks falling from $9.87 to as low as $8.25.
A key bearish block came when a block of 5,821 shares (duplicated) crossed the tape at $8.51. That was down from the prior block at $9.66. The tape indicated aggressive institutional selling pressure.
BODY is a specialty retailer offering apparel and accessories. Its stores feature tops, dresses, bottoms, jewelry, accessories and shoes sold under its Body Central and Lipstick labels.
It operates specialty apparel stores under the Body Central and Body Shop banners, as well as a direct business comprised of Body Central catalog and e-commerce website.
The Street is forecasting a 4% decline in net for the fiscal first quarter. For 2013, they were projecting a 20% gain in net. However, that could come down.
BODY's daily chart shows the stock gapping lower with big volume. The stock's accumulation - distribution line (bottom of chart) is extremely bullish.
Strategy Opinion: TTD is targeting BODY for a decline to 6 within the next few months, or sooner. A protective stop can be placed near 8.90.
|TTD's Quality Rating of Stock - BODY - BELOW 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.)