By Leo Fasciocco -- TTD
Ticker Tape Digest presents its daily breakout and Short Selling report. It contains Breakout Stocks and Stocks under Significant Accumulation.Data is from tape action for the day. These stocks are most suitable for aggressive investors seeking ideal entry points for leading stocks.
These stocks will do very well during bull markets and strong market rallies.
TTD also presents Stocks To Sell or Sell Short.These issues are suitable for aggressive investors willing to take short positionsboth as trades or for longer-term plays. These stocks will do very well during bear markets or market corrections
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Total Buy Breakouts so far today - 8
Stocks Screened- 8,200
Bull side - Small list of breakouts today with just a few high-growth firms. Bulls be cautious.
Long-Term Environment for bulls: Favorable.
Market Status (Daily) - NYSE Bearish, Nasdaq Bearish
Market Status (Weekly) - NYSE Bearish, Nasdaq Bearish
CYBS, based in Mountain View, Ca., provides software and services that help ensure that e-commerce and other Internet-based transactions are processed securely. Annual revenues: $50 million. CYBS drives higher today despite a weak stock market to breakout from a seven-month flat base. The move carries the stock to a six-year high. It was triggered by favorable earnings.
TTD highlighted CYBS as a breakout at our midsession show on the Web today.
So far today, CYBS is trading 509,352 shares, triple its normal daily volume of 188,000 shares.
The stock worked higher in the morning with good tape action. A look at TTD's clip of the tape shows one of the largest trades of the session. It is a big block of 21,000 shares that crossed the tape on a modest up tick to $12.34 from the prior trade at $12.33.
CYBS' software is used to process credit card payments and electronic checks, as well as to screen for payment fraud.
The software's other applications manage gift certificate programs and verify personal information. The company's software can be integrated with other enterprise applications from vendors such as Microsoft, Oracle, and SAP. In addition to its software, CYBS offers outsourced payment processing and fraud detection services.
Technically, CYBS is well formed with clear upside resistance at 12. Today' push through that area comes with good volume. What draws TTD to the stock is that the TTD momentum indicator (top of the chart) is very bullish. Nice.
The accumulation - distribution line (bottom of the chart) has already broken out to the upside. That was a good advance signal.
TTD's weekly chart shows CYBS remaining in a nice up trend. The basing work it did, although long in duration, sets the stock up nicely to make a significant move.
CYBS said GAAP earnings per share for the fourth quarter of 2006 was 34 cents compared with 14 cents a year ago. Non-GAAP net was 9 cents a share compared to 6 cents a year ago.
Revenues for the fourth quarter climbed 40%.
For 2006, the company posted a 56% jump in GAAP net income to 39 cents a share from 26 cents a year ago.
CYBS said it signed over 1,800 new customers in the fourth quarter, including: Abe's of Maine, Iron Mountain Information Management, Next Day Blinds, Shell Global Solutions, Sonoco Products Company and the Smithsonian Institute. It said net new customers added this quarter increased the company's total customer count to about 18,000.
CYBS said Non-GAAP net income for the first quarter should be 4 cents a share. That is in line with Street estimates 2 to 4 cents a share. A year ago, the firm earned 2 cents a share.
Non-GAAP net income for 2007 should be 36 to 38 cents a share, CYBS said. That would compare with 29 cent sa share for 2006. So, the percent gain should be 24% to 31%.
Strategy Opinion: CYBS's breakout is significant. TTD suggests a full position. We are calling for the stock to advance to 16.50 within a few months. A protective stop can be placed near 11.80. TTD rates CYBS a very good intermediate-term play provided earnings meet expectations.
Sponsorship: Good. Fidelity Funds have been buyers recently. The largest fund holder is Fidelity Small Cap Stock Fund, 3-star rated, which recently purchased 1.6 million shares. It has a big 4.5% stake. Also, Fidelity OTC Fund, 3-star rated, was a recent buyer of 542,000 shares. It has a 4.2% stake.
Insider Activity: Slightly Bearish. Some light insider selling took place around 11.50. There was no insider buying lately. Nine analysts follow the stock, 5 have a buy, up from 3 three months ago.
|TTD's Breakout Profile
Cybersource Corp. (CYBS)
|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|
(The breakout List gives all stocks breaking out of a base of five weeks or more. These stocks have a good chance to trend higher. However, a stop should be used to avoid those that do not work.
(Trading strategy: One should buy breakout stocks at breakpoint by using market order or stop buy)
Ticker Tape Digests 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 - 9
Stocks Screened - 8,200
Long-Term Environment for bears: Unfavorable.
Bear Side - Breakdown list expands with some stocks getting hit hard. Bears can be venturesome. TTD's recent short Mothers Work (MWRK) falls 1.27 to 31.97 today.
(Trading strategy: These stocks can be sold short, or if held should be sold. If a stock is sold short, a protective stop buy should be placed. Short plays work best when the stock market is in a down trend.)
MRTN, based in Mondovi, Wis., is a trucking firm. The long-haul carrier uses refrigerated and insulated trailers to convey a variety of food products and other temperature-sensitive materials. It also hauls general commodities. Annual revenues: $460 million. MRTN's stock falls sharply on heavy volume today. The move violates key support at 16.50. The move was triggered by weak earnings. TTD sees the stock has a good trading short.
So far today, MRTN is trading 463,189 shares, about six times its normal daily volume of 85,000 shares. The selling pressure continues into the afternoon. TTD spotted one of the largest trades of the day, a big block of 19,800 shares crossing on a down tick to $14.80 from $14.81. That indicates continued selling pressure.
MRTN operates throughout the US and in parts of Canada. Its average haul is about 950 miles.
The company's fleet includes about 2,600 tractors and 3,400 trailers. In addition to freight transportation, the company offers logistics services. Among MRTN's largest customers are General Mills (15% of sales), Kraft, and Procter & Gamble. Chairman, president, and CEO Randy Marten owns 24% of the stock.
The company reported fourth quarter net decline to 24 cents a share from 32 cents a year ago. The Street was looking for 31 cents a share. The lowest estimate by analysts was at 29 cents a share. So, the net was a big disappointment. For bears, it was good news.
Technically, the stock gapped lower on the news with heavy volume. MRTN's TTD momentum indicator is now bearish (see top of the chart). The accumulation - distribution line is trending lower. TTD sees MRTN as a trading short play. We are calling for the stock to decline to 11 within a few months.
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. Some of the charts are from Telescan, Insight Trading, First Alert and other sources.)