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 - 11
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Breakout list has several interesting plays. Stock market remains in up trend. Bulls be selective. Moving toward February which is a bearish seasonal period.
(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 - PCLN - ABOVE AVERAGE
PCLN, based in Norwalk, Ct., provides an online travel service system. Annual revenues: $5.1 billion. PCLN's stock jumps sharply today to breakout from an eight-month base. The stock is a leader that is in position to make an all-time high. So far today, PCLN is trading a heavy 1.6 million shares, triple its normal daily volume of 502,000 shares.
PCLN's stock rove higher in the morning, paused around midday and then advanced strongly into the close.
The action was very strong. (See PCLN's 10-minute chart.
The stock spent a long-time basing. The action is very bullish.
TTD's clip of the tape shows the recent block trades.
One can see the price for the blocks climbing from $671.84 on Thursday to as high as $696 on Friday.
A key bullish trade came in the morning when a block of 4,617 shares (duplicated) crossed the tape at $682. That was up from the prior block trade at $679.55.
The final block at $696 indicated aggressive institutional buying.
PCLN provides e-commerce pricing system known as a demand collection system that enables consumers to use the Internet to save money on a wide range of products and services/
It also allows sellers to generate incremental revenue.
The firm uses a simple and compelling consumer proposition - Name Your Own Price - priceline.com collects consumer demand, in the form of individual customer offers guaranteed by a credit card, for a particular product or service at a price set by the customer.
PCLN's 12-month performance chart shows the stock appreciating 35% versus a 13% gain for the S&P 500 index.
PCLN's long-term chart shows the stock climbing from 7 back in 2003 to a peak of 144 in 2008. The stock then was dragged lower by the bear market falling back to 45. Since then, PCLN has surged higher. It is one of the best performing stocks of the current bull market.
PCLN's daily chart shows the stock peaking at 774 in April. The stock then made a top and pulled back into a consolidation pattern.
The base is long. However, today, the stock punches through key resistance. That signals a breakout.
PCLN's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) has been acting weak, but looks now to be starting to turn up.
Analysts expect PCLN to check in with a 33% jump in earnings for 2012 to $29.79 from $22.32 a year ago. The stock sells with a price-earnings ratio of 23. TTD sees that as reasonable.
Net for the fourth quarter should show a 26% improvement to $6.17 a share from $4.91 a year ago. The highest estimate on the Street is at $6.57 a share. TTD sees excellent chances for an upside surprise. The prior four quarters, PCLN topped the consensus by 66 cents a share, 50 cents, 35 cents and 12 cents.
Looking ahead to 2013, the Street is forecasting a 21% gain in net to $35.95 from the anticipated $29.79 for 2012.
Profits for the first quarter should climb 23% to $4.90 a share from $3.98 a year ago.
Strategy Opinion: PCLN is a leader that is now coming back to life. TTD is targeting PCLN for a move to 830 off this breakout. A protective stop can be placed near 103.
TTD rates PCLN an excellent intermediate-term play provided earnings remain on course. There is also a chance for a stock split that could push the stock.
Sponsorship: Very Good. The largest fund holder is 4-star rated T. Rowe Price Growth Stock Fund with a 2.5% stake. It was a recent seller of 61,800 shares. The largest buyer recently was JP Morgan Large Cap Growth Fund, 4-star rated, which purchased 15,000 shares.
PCLN has 49.9 million shares outstanding. Institutions hold 99% of the stock.
Insider Activity: Bearish. Insiders have been steady sellers. The most recent selling came in January at $657. Currently, 18 analysts follow the stock, 14 have a buy, the same as three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Priceline.com - (PCLN)
|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 - CF - AVERAGE|
|TTD's Quality Rating of Stock - AZZ - AVERAGE|
|TTD's Quality Rating of Stock - PG - AVERAGE|
|TTD's Quality Rating of Stock - IT - 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 - 10
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Large number of short plays with gold and silver stocks taking the biggest hit. Bears be selective as stock market continues to work higher.
KGC, based in New York, produces gold. Annual revenues: $4.1 billion. KGC's stock falls sharply today as the gold sector continues to work to the downside. So far today, KGC is trading 12.3 million shares, almost double its normal daily volume of 7.3 million shares. TTD sees more on the downside.
TTD highlighted KGC as a short at our midsession video show on the Web Friday.
KGC's stock broke sharply to the downside in the morning extending its decline from Thursday. The stock hit an intraday low of 8.47 in the morning.
The stock then trended sideways through the afternoon.
KGC's tape action shows the recent big block trades.
One can see the price of the blocks declining from $9.41 to as low as $8.50.
A key bearish block came when a 103,971 shares crossed the tape a $8.88. That was down from the prior block at $8.98. The tape action showed heavy institutional selling pressure.
KGC's mines are in South America, North America, West Africa and Russia.
For 2012, analysts expect a 4% decline in net to 74 cents a share from 77 cents a year ago. Going out to 2013, analysts are forecasting a 45% jump in net to $1.08 a share from the anticipated 74 cents for 2012. Those forecasts could get changed.
KGC's daily chart shows the stock cutting below key support with an expansion in volume. The stock's accumulation - distribution line (bottom of chart) has turned down indicating heavy selling pressure.
Strategy Opinion: TTD is targeting KGC for a drop to 6.50 within the next few months or sooner. A protective stop buy can be placed near 9.10.
|TTD's Quality Rating of Stock - KGC - 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.)