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 - 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 - 3
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Breakouts list small as stock market shows heavy and subtle selling the Nasdaq market. Bulls be careful now and selective. (Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Market (Daily) - NYSE Bullish, Nasdaq Peaked
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - TITN - AVERAGE
TITN, based in Fargo, N.D., runs agricultural and construction equipment stores in the U.S. Annual revenues: $978 million. TITN's stock clears a nine-week, cup-and handle base type setup today. The stock hits a new 52-week high. So far today, TITN is trading 340,579 shares, double its normal daily volume of 170,000 shares.
TTD highlighted TITN as a breakout at our midsession video show on the Web Wednesday.
TITN's 10-minute chart shows the stock breaking out on Tuesday. The stock pushed higher today to put some distance over its breakpoint line.
The action the past two sessions is very bullish.
TITN's tape action shows the recent big block trades.
One can see the first block trade today came in at 2,186 shares with a nice up tick to $23.80 from the prior block trade at $23.70.
The stock's second block Wednesday was at $24.30. That was up sharply from the prior price. That shows some aggressive buying.
TITN is a retailer of Case IH Agriculture equipment and a retail dealer of New Holland Agriculture, Case Construction and New Holland Construction equipment in the U.S.
The company operates in two segments: Agriculture and Construction.
The agricultural equipment, which the company sells and services includes machinery and attachments for uses ranging from large-scale farming to home and garden use.
The construction equipment includes heavy construction and light industrial machinery for commercial and residential construction, road and highway construction, and mining.
TITN's 12-month performance chart shows the stock appreciating 82% versus an 18% gain for the S&P 500 index. The stock has performed very well.
The long-term chart of TITN shows the stock coming public in late 2007 and trading near $12. The stock climbed to a peak of 34 in 2008, but then fell back during the bear market to 9. It has since been trending higher.
TITN's daily chart shows the stock in an up trend climbing from 14 to 22. The stock then set up a base and broke out with expanding volume. Today, the stock follows through.
The stock did not form the handle portion of the base. So, the breakout is either very strong, or the stock may need to pause soon, to rest up.
The base showed a good contraction in volume near the low. That is bullish.
The TTD momentum indicator (top of the chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) mirrors the price action. That is okay.
TITN should show an acceleration in quarterly earnings growth. Net for the fiscal fourth quarter ending January 30 should climb 84% and then in the fiscal first quarter 100%.
Accelerating quarterly earnings growth can often be a strong driver to send a stock higher.
Net for the fiscal fourth quarter should come in at 35 cents a share, up from 19 cents a year ago, according to analysts. The highest estimate is at 37 cents a share. TTD sees chances for an upside surprise. In the prior quarter, TITN topped the consensus estimate by 6 cents a share, or by 17%.
Looking ahead to the fiscal first quarter net is expected to climb to 18 cents a share from 9 cents a year ago.
Overall, profits for the fiscal year ending January 30, 2011, is projected to rise 14% to $1 a share from 88 cents a year ago. Going out to fiscal 2012, the Street looks for net to climb 29% to $1.29 a share from $1 expected in 2010.
Strategy Opinion: TTD is targeting TITN for a move to 30 within the next few months, or sooner. A protective stop can be placed near 22. TTD rates TITN a good intermediate-term play.
Sponsorship: Good. The largest fund holder is 3-star rated Columbia Small Cap Value II Fund with a 3.5% stake. It was a recent buyer of 100,000 shares. TITN has 17.9 million shares outstanding.
Insider Activity: Neutral. Some light selling the past few months. The latest selling was at $19.56. Six analysts follow the stock, 2 have a buy, the same as three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Titan Machinery Inc. - (TITN)
|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 -FRM - AVERAGE|
|TTD's Quality Rating of Stock - PSO - 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 - 3
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Breakdown list small today. However, stock market starting to decline. Bears be adventuresome now and alert for new short plays. TTD's short from Tuesday was Vector Group Ltd. (VGR) - 16.29, down 0.96. Today, the stock has fallen to 15.90 and is working well for bears.
CSGS, based in Englewood, Co., provides customer interaction management solutions to the North American market. Annual revenues: $523 million. CSGS's stock falls below key technical support today with a significant expansion in volume. So far today, CSGS is trading 385,118 shares, almost triple its normal daily volume. TTD sees more on the downside.
CSGS is expected to show good earnings for the fourth quarter. So, the weak technical action on the tape may be an indication of some problems.
CSGS' stock drifted lower in the morning. Around noon, the stock turned down sharply. It hit an intraday low of $18.41 around 1 p.m. The stock then trended sideways the rest of the day.
The Company provides outsourced customer care and billing solutions to the cable and direct broadcast satellite industry.
CSG also provides what it calls Intelligent Customer Communications solutions to facilitate interactions between clients and their end customers through various touch points. They include electronic communication channels, such as the Internet; voice and text messaging, and print.
.Net for the upcoming fourth quarter is expected to rise 44% to 58 cents a share from 40 cents a year ago.
Looking out to 2011, analysts expect a slowdown in earnings with net for the year rising just 6% to $2.12 a share from the anticipated $2.01 for 2010.
CSGS's chart shows the stock just dipping below key technical support. The TTD momentum indicator (top of chart has been mostly bearish for the past several months.
Strategy Opinion: TTD is targeting CSGS for a decline to 15 within the next few months, or sooner. A protective stop buy can be placed near 19.90.
TTD's Quality Rating of Stock -CSGS - AVERAGE
TTD columnist Leo Fasciocco has covered the stock market for over 30 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.)