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 - 16
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list large with some good looking plays. Earnings now coming in and will have an impact on stocks. Stock market mixed, blue chips weak, small caps strong.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Stock Market Momentum
Market (Daily) - NYSE Bearish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - EXP - ABOVE AVERAGE
EXP, based in Dallas, makes cement and wallbard. Annual revenues: $804 million. EXP's stock breaks out today from a 9-month, cup-and-held base. The stock has been in good position to breakout as it recently has been holding near the top of its base. So far today, EXP is trading 845,218 shares, about double its average daily volume of 469,000 shares.
TTD highlighted EXP as a breakout at our midsession video show on the Web. The stock was also highlighted recently as one to accumulate.
EXP's 10 minute chart shows the stock clearing its breakpoint line in the morning. The stock then pushed higher to reach a peak around noon. In the early afternoon, EXP trended sideways.
Then late in the day it resumed its advance hitting an intraday peak of 81.01.
EXP's tape action shows the recent block trades.
One can see the price for the blocks climbing from $78.06 a few sessions ago to as high as $80.89.
A key bullish trade came in the morning when a block of 10,000 shares crossed the tape at $80.01.
That was up sharply from the prior block trade at $79.68.
Then late in the day a massive block of 80,785 shares crossed at $80.89. That was up from the prior block at $80.23. The size of the block gave indication of massive institutional accumulation.
EXP makes cement, gypsum wallboard, recycled paperboard and concrete.
The company mines limestone and gypsum..
EXP's 12-month performance chart shows the stock appreciating 25%. That compares with a 24% gain for the S&P 500 index.
EXP's long-term chart shows the stock coming public in 2004 and trading around 18.50. The stock soared to a peak of 74 in 2006 and then split 3-for -1.
The stock eventually fell to a low of 13 in 2008 due to the bear market.
It has since made a sensational recovery soaring to an all-time high of 81.01 Wednesday. The move to a new all-time high could well draw in more buying from the new-high crowd..
EXP's daily chart shows the stock climbing to a peak near 80 in early November from 65 back in September. Near-term, the stock set up a very good looking cup-and-handle base.
Long-term, going back 9 months, it has the same look.
The breakout today comes with a nice widening of the daily trading spread and good volume.
The TTD momentum indicator (top of chart) is bullish.
The accumulation - distribution line (bottom of chart) compliments the price action.
Analysts are forecasting EXP will rack up a 68% gain in earnings for the fiscal year ending in March of 2014.
They look for $2.74 a share, up from $1.63 a year ago.
The stock sells with a price-earnings ratio of 27. TTD sees that as low given the strong earnings outlook. The p/e is well below the 68% projected growth rate.
Going out fiscal 2015 ending in March, the Street is looking for a 58% jump in net to $4.32 a share from the anticipated $2.74 this fiscal year.
Net for the upcoming fiscal third quarter ending in December should jump 73% to 75 cents a share from 43 cents a year ago. The highest estimate on the Street is at 77 cents a share. Analysts have trimmed their estimates recent.
EXP tends to come in close to the consensus estimate. (See table)
Looking out to the fiscal fourth quarter ending in March, profits are expected to climb 40% to 59 cents a share from 42 cents a year before.
Strategy Opinion: TTD is targeting EXP for a move to 100 off this breakout. A protective stop can be placed near 76.
TTD rates EXP a very good intermediate-term play due to its strong earnings outlook.
Sponsorship: Excellent. The largest fund holder is 5-star rated MainStay Marketfield I Fund with a 5.2% stake. It was a recent buyer of 347,529 shares. Also, the 4-star rated Fidelity Select Materials Fund purchased 123,602 shares. It has a 0.86% stake.
EXP has 50 million shares outstanding. Institutions hold 95% of the stock.
Insider Activity: Bearish. Insiders have been getting stock options at $11 to $31 a share. They have been steady sellers around $72 to $78.
Currently, 8 analysts follow the stock, 4 have a buy, up from 3 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Eagle Materials Inc. - (EXP)
|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 - EQT - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - TXN - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - HURN - AVERAGE|
|TTD's Quality Rating of Stock - EAT - 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 - 5
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of shorts. Retail stocks lead bear plays. Stock market continues to hold up trend. Bears remain conservative.
FE, based in Akron, Ohio, provides electrical services to some 6 million customers. Annual revenues: 14.8 billion. FE's stock falls today and cuts below key technical support. With profits to decline in 2013 and 2014, TTD sees more on the downside. So far today, FE is trading a heavy 12.7 million shares, triple its average daily volume of 4.1 million shares.
TTD highlighted FE as a short at our midsession video show on the Web Wednesday.
The stock, down in the prior session, fell Wednesday morning and hit an intraday low of 30.86. The stock then rallied to 31.81.
However, in the afternoon, it turned lower again.
FE's tape action shows the recent block trades.
One can see the price for the blocks falling from $33.01 to as low as $31.43.
The Company includes one of the nation's investor-owned electric systems and a diverse generating fleet with a total capacity of nearly 23,000 megawatts. It serves 6 million customers in the Midwest and mid-Atlantic regions.
Analysts expect earnings for 2013 to decline 11% to $2.96 a share from $3.33 a year before. Going out to 2014, they look for net to fall another 6% to $2.79 a share.
Net for the upcoming fourth quarter should decline 14%.
FE's daily chart shows the stock dropping form 38 in November to 31. It tried to form a bottom. However, it is now breaking down again with expanding volume.
Strategy Opinion: TTD is targeting FE for a drop to 26 within the next few months. A protective stop buy can be placed near 32.70
|TTD's Quality Rating of Stock - FE - 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.”
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.)