Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Friday, February 1
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Friday, February 1 |
| Go to Video Show - "How to Make Money With Breakout Stocks" |
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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 positions both as trades or for longer-term plays. These stocks
will do very well during bear markets or market corrections
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. TTD often suggests using stop buy orders to enter. It is very important to buy a breakout stock as close as possible to the break point. 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.
TTD also has special feature sections on Educational Tips on Investing.
To email Mr. Leo Fasciocco leo@tickertapedigest.com.For service, email Beverly Owen owen@tickertapedigest.com. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 8
Stocks Screened - 8,200
Bull side - Breakout list expands modestly as stock market continues to rally. Bulls remain alert and selective. Today, coal stocks dominate the breakout list.
Long-Term Environment for bulls: Neutral
Market Status (Daily) - NYSE Bullish, Nasdaq Bullish
Market Status (Weekly) - NYSE Bullish, Nasdaq Bullish
CHU, based in China, is the country's second-largest cellular carrier, with a 30% market share. Annual revenues: $11.8 billion. CHU breaks out from a 13-week, flat base today an hits a new high. The stock is leader in the telecom sector. So far today, CHU is trading 1.3 million shares. The stock's average daily volume is 1.9 million shares.
CHU showed very good tape action in the morning when it started to move higher. TTD's table highlights a big block of 10,500 shares that crossed on a modest up tick to $24.06 from the prior trade at $24.05.
Notice after that big block trade the stock jumped to $24.20. It headed even higher as the day wore on.
CHU has 150 million customers using both GSM and CDMA technologies. The company also offers long-distance, data, and Internet services.
Wireless services account for 96% of the firm's business. The Chinese government's share in the firm will drop to 71.4% after SK Telecom's convertible bonds convert.
CHU's flat base was very well formed. The stock showed a good contraction of volume near the lows of the base. Also, the pull backs in the price of the stock during the basing work were less as the base drew on.
That developed what is known as a "wedge to the upside."
The stock's technicals are very good. The TTD momentum indicator (top of the chart) is very bullish. The accumulation - distribution line (bottom of chart) is trending higher and is confirming today's breakout of the price.
TTD's long-term chart of CHU shows the stock now trending higher and in a very good bull market.
This year, analysts forecast a 17% increase in net to 89 cents share from the anticipated 76 cents a share for 2007. The stock sells with a 27 price-earnings ratio.
Strategy Opinion: TTD sees CHU as a good big cap trading play on this breakout. We are calling for the stock to advance to 30 within the next few months. The stock might be able to do very well near-term if the stock market turns strong. A protective stop can be placed near 23.
TTD rates CHU a good intermediate-term play for conservative players.
Sponsorship: Very Good. The largest fund holder is Fidelity Overseas Fund, 4-star rated, with a 1.9% stake. It was a recent buyer of 2.6 million shares. The second largest fund holder is Evergreen Emerging Markets Growth Fund.
Insider Activity: Not available. Currently, seven analysts follow the stock, 4 have a buy, the same as three months ago.
| TTD's Breakout Profile
Rating China United Telecommunications Corp. (CHU) |
| TTD Check List | Bullish | Bearish | Neutral |
| Near 52-week High | YES | ||
| Volume | YES | ||
| Tick Volume | YES | ||
| Price Trend - Daily | YES | ||
| Price Trend - Long Term | YES | ||
| Price Daily Spread | YES | ||
| Base Structure | YES | ||
| Base - A-D | YES | ||
| Earnings-Quarterly | YES | ||
| Earnings-Long Term | YES | ||
| Earnings Outlook | YES | ||
| Industry Group | YES | ||
| Prior Breakout Success | YES | ||
| Fund Sponsorship | YES | ||
| Total Score | 11 | 0 | 3 |
(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)
Charts of Breakout Stocks
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 - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Only a few breakdown stocks today. However, the plays provide very aggressive bears with some interesting plays. Several bear plays continue to work well. Yesterday's bear plays moving lower Friday include: Dyncorp (DCP) off 1.46 to 19.04 and Covance (CVD) down 1.17 to 81.84.
(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.)
DRIV, based in Eden Prairie, Min., provides outsourced e-commerce solutions to thousands of software developers, high-tech manufacturers, and retailers. Annual revenues: $335 million. DRIV's stock falls sharply today after the company's earnings fell below Street estimates. So far today, DRIV is trading 4.8 million shares, four times its normal daily volume of 1.2 million shares.
TTD's clip of the tape shows that DRIV came under heavy selling pressure early in the session. A big block of 35,125 shares crossed the tape on a down tick to $31.38 from the prior trade at $31.41. The action showed institutional selling pressure in the morning.
DRIV came in with net for the fourth quarter of 46 cents a share, up from 36 cents a share a year ago. However, the Street was looking for 53 cents a share.
DRIV offers the design, development, and hosting of online stores; order management; fraud prevention screening; tax compliance. This year, analysts forecast a 25% increase in net to $1.98 a share from $1.58 a share.
TTD's daily chart shows DRIV's stock in an overall down trend. DRIV burped higher a few weeks ago, but that mini-rally dissipated. TTD sees today's gap drop as very bearish. The stock's accumulation - distribution line is in a steep down trend. That indicates selling pressure is strong. TTD is calling for DRIV to 24 within the next 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.”
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. Some of the charts are from Telescan, Insight Trading, First Alert and other sources.)
