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 - 13
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Good number of breakouts with some interesting plays. Bulls be selective. Stock market near to clear trading range.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
(See Top Performing Breakout Stocks for 2011- 2012)
TTD's Quality Rating of Stock - MR - AVERAGE
MR, based in China, makes medical devices. Annual revenues: $1 billion. MR's stock breaks out today from a six-month flat base. The move carries the stock to a two-year high. So far today, MR is trading a heavy 2.2 million shares, three times its normal daily volume of 730,000 shares.
TTD highlighted MR as a breakout at our midsession video show on the Web Tuesday.
MR's stock rose steadily in the morning cutting across its breakpoint line. The stock then trended sideways holding its ground nicely above the breakpoint.
The stock showed good volume in the morning when it cleared its base. (see 10 minute chart).
MR's tape action shows the recent big block trades.
One can see the price climbing gradually from $34.68 a few sessions ago to a peak of $36.678 late on Tuesday.
A key bullish block sequence came in the morning when 100,000 shares crossed at $35.75 up from $35.50.
That was followed by a block of 500,000 shares crossing at $35.80, up from the prior block of $35.75.
MR makes medical devices in China with a growing presence worldwide.
The company offers products across three business areas: patient monitoring devices, diagnostic laboratory instruments, and ultrasound imaging systems.
MR is based in Shenzhen, China, and has twenty nine local sales and services offices in China, as well as sales and services offices in Boston, Istanbul, London and Vancouver.
MR's 12-month performance chart shows the stock appreciating 25% versus a 14% gain for the S&P 500 index.
MR's long-term chart shows the stock going public in 2006 and trading around $17. The stock climbed to a peak of $45.19 in 2007.
However, it fell back to a low of $12.31 in 2008 due to the bear market. It has since made a comeback over the past few years.
MR's daily chart shows the stock in a long flat base. There was a violent shakeout in January that drove the stock down to as low as $28. It has since made a strong comeback.
Today's breakout comes with strong volume. The TTD momentum indicator (top of chart) is solidly bullish.
The accumulation - distribution line (bottom of chart) has turned up showing good underlying buying.
Notice during the shakeout drop earlier the AD line held well.
For 2012, analysts forecast a 16% rise in net to $1.71 a share from the $1.47 a year ago. The stock is selling with a price-earnings ratio of 21. TTD sees that as reasonable.
For the upcoming fourth quarter, profits should rise 21% to 50 cents a share from 41 cents a year ago. The highest estimate on the Street is at 53 cents a share. MR tends to come in slightly below the Street forecast. The stock's reaction to the earnings report varies. (see table below)
Looking ahead to 2013, analysts expect a 16% gain in net to $1.99 a share from the anticipated $1.71 this year. For the first quarter net should rose 20% to 38 cents a share from the 32 cents a year ago.
Strategy Opinion: TTD is targeting MR for a move to 44 off this breakout. A protective stop can be placed near 34.
TTD rates MR an average intermediate-term play.
Sponsorship: Good. The top four fund holders have a 4-star rating. One of them the Manning & Napier World Opportunities Fund was a recent buyer of 256,540 shares. It has a 2.2% stake.
The largest fund holder is American Funds New Perspective Fund with a 2.9% stake.
MR has 117.7 million shares outstanding. Institutions hold 90% of the stock.
Insider Activity: Not available. Eight analysts follow the stock and all 8 have a strong buy, up from 7 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Mindray Medical Intl. Inc. - (MR)
|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 - JAH - AVERAGE|
|TTD's Quality Rating of Stock - BRLI - AVERAGE|
|TTD's Quality Rating of Stock - HD - AVERAGE|
|TTD's Quality Rating of Stock - KR - 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 - 1
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Only one short play. Bears be conservative. Stock market has potential to breakout and clears its resistance area of the past few months.
IPXL, based in Hayward, Ca., makes drugs to treat nervous problems. Annual revenues: $600 million. IPXL's stock falls sharply today as volume swells to 3.5 million shares, five times its normal daily volume 602,000 shares. TTD sees more on the downside.
IPXL was highlighted as a short at TTD's video show at midday.
IPXL's stock gapped lower in the morning. It hit an intraday low of 18.90. The stock then lifted slightly during the day.
The stock's tape action sows heavy institutional selling pressure. There were two key bearish trades.
The first came at the opening when a block of 50,000 shares crossed the tape at $19.03. That was down from the prior block at $21.40.
The second came when a block of 199,100 shares crossed at $19.13. That was down from the prior block at $19.26.
IPXL said the U.S. Food and Drug Administration (FDA) issued a complete response letter regarding the New Drug Application for RYTARY, an extended-release capsule formulation of carbidopa-levodopa, a potential treatment for the symptomatic treatment of Parkinson's disease currently under review in the U.S.
The letter indicates that the FDA requires a satisfactory re-inspection of the company's Hayward facility as a result of the warning letter issued in May 2011 before the company's NDA may be approved. That was due to the facility's involvement in the development of RYTARY, and supportive manufacturing and distribution activities. During the assessment, the company withdrew the Hayward site as an alternative site of commercial production at launch.
IPXL develops generic drugs and branded drugs. It focuses on controlled-release generic versions of selected brand-name drugs. In the brand-name drug, the company is developing products to treat central nervous system disorders.
Analysts are forecasting a 47% drop in IPXL's earnings to 95 cents a share from the anticipated $1.78 a share for 2012.
IPXL's daily chart shows the stock gapping lower on big volume. The stock took a big dive back in October. So, it is in a clear down trend.
Strategy Opinion: TTD is targeting IPXL for a drop to 15.50 within the next few months, or sooner. A protective stop buy can be placed near 20.60.
|TTD's Quality Rating of Stock - IPXL - 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.)