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 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 - 2
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Breakouts list remains small as stock market continues to shows heavy and subtle selling in 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 Bearish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - PRGO - AVERAGE
PRGO, based in Allegan, Mich., produces generic drugs. Annual revenues: $2.4 billion. PRGO's stock, highlighted by TTD on Wednesday, breaks out today from a four-month, flat base and hits a new all-time high. So far today, PRGO is trading a heavy 3.6 million shares, six times its normal daily volume of 575,000 shares. The stock moved higher after announcing plans for an acquisition.
TTD spotlighted PRGO as a breakout at our midsession video show on the Web Thursday.
PRGO's daily chart shows the stock breaking out in the morning on strong volume. The stock hit a peak in the morning and then trended sideways.
In the afternoon, it tried to push higher.
PRGO said it agreed to buy Paddock labs for $540 million. PRGO said the deal will add 5 cents a share to annual earnings.
The stock market took the news very bullishly.
PRGO's tape action shows the big block trades.
One can see the price for the blocks climbing from $67.30 to a peak of $72.73. That shows very aggressive institutional buying interest.
A key bullish trade was a block of 29,700 shares at $72.73. That was up from the prior block traded at $71.49. That came later in the day. So, it showed institutions were still seeking to buy.
PRGO also produces nutritional products, infant formulas, active pharmaceutical ingredients and drug and medical diagnostic products.
The company’s primary markets are in the United States, Israel, Mexico, the United Kingdom and Australia.
PRGO's 12-month performance chart shows the stock appreciating 68% versus an 18% gain for the S&P 500 index.
PRGO's long-term chart shows the stock climbing from 15 back in 2005 to a peak of 43 in 2008. It was then dragged back to 20 due to the bear market. The stock then turned higher and has more than tripled. It is in a strong up trend long-term.
PRGO's daily chart shows the stock setting up a base with clear resistance at 68. The breakout today comes with a widening of the spread and big volume. So, technically it is bullish and probably signals a surprise.
The stock's TTD momentum indicator (top of chart) is neutral.
The accumulation-distribution line(bottom of chart) lags the price pattern. That shows there was under some distribution. So, the stock needs to be watched.
PRGO is poised to show a strong fiscal second quarter ending December 31. Net should jump 33% to 93 cents a share from 70 cents a year ago.
The highest estimate on the Street is at 98 cents a share. TTD sees very goo chances for an upside surprise, and possibly a big surprise. In the prior quarter, PRGO topped the consensus estimate by 10 cents a share, or by 13%.
Net for the fiscal year ending June of 2011 should rise 29% to $3.68 a share from $2.85 a year ago. The stock sells with a price-earnings ratio of 19. TTD sees that as reasonable.
Strategy Opinion: PRGO's breakout comes with a big boost from its acquisition news. TTD is targeting the stock for a move to 80 within in the next few months, or sooner. A protective stop can be placed near 67. TTD rates PRGO an average intermediate-term play.
Sponsorship: Good. The largest fund holder is 4-star rated Vanguard Health Care Fund with a 3.5% stake. It was a recent seller of 400,000 shares. A key buyer recently was Sequoia Fund, 5-star rated, which purchased 529,800 shares. PRGO has 92.2 million shares outstanding.
Insider Activity: Neutral. Not much action lately. Currently, 16 analysts follow the stock, 9 have a buy, up from 6 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Perrigo Co. - (PRGO)
|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 - RJF - 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 - 11
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Breakdown list starts to expand as stock starts to work lower. Bears be more aggressive looking for stocks with fundamental flaws.
STX, based in Dublin, makes hard disk drives for computers. Annual revenues: $11.1 billion. STX's stock gaps lower today after the company reported a sharp drop in earnings for the fiscal second quarter ending December 30. So far today, STX is trading a heavy 29 million shares, four times its normal daily volume of 7.2 million shares. TTD sees more on the downside.
STX reported net for the fiscal second quarter declined to 31 cents a share from $1.02 a year ago. The Street was looking for 33 cents a share. So, the net was down and below Street estimates.
The stock worked lower in the morning. It hit an intraday low at $12.90. It rallied modestly in the afternoon to trim its loss.
TTD's clip of the tape shows the recent big block trades.
One can see a key bearish block trade coming in the morning when 155,560 shares crossed the tape at $13.44. That was down sharply from the prior block trade at $14.28. The tape action showed heavy institutional selling pressure.
Another bearish block came in the afternoon when 250,000 shares (duplicated) crossed at $13.
STX produces a wide range of disk drives. Its products are used in enterprise servers, mainframes and workstations and desktop and notebook computers.
The company sells its disk drives primarily to major original equipment manufacturers, distributors and retailers. STX also provides storage services for small- to medium-sized businesses, including online backup, data protection and recovery solutions.
Analysts forecast net for the fiscal year ending June 30 will drop 60% to $1.34 a share from $3.33 a year ago.
STX's daily chart shows the gap breakdown today with expanding volume. The stock's TTD momentum indicator (top of chart) is bearish.
Strategy Opinion: TTD is targeting STX for a decline to 10.30 within the next few months, or sooner. A protective stop buy can be placed near 14.30
TTD's Quality Rating of Stock -STX - BELOW 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.)