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 Trading Strategies Overview and Performance
Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns.
Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit."
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.
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns
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 - 35
Overall Quality of Breakouts - Above Average
Stocks Screened - 8,300
Bull side - Large number of breakouts today with some high quality plays. February is generally a seasonally bearish months. Bulls watch all stops.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
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 - BIDU - ABOVE AVERAGE
BIDU is a Chinese-language Internet search provider. Annual revenues: $1.2 billion. BIDU's stock is one of the strongest in the stock market. Today, BIDU breaks out from a 15-week, flat base and makes a new high. TTD had BIDU as a stock to accumulate recently. The key driver today was BIDU's report of strong profits. So far today, BIDU is trading 21.9 million shares, triple its normal daily volume of 7.1 million shares.
TTD highlighted BIDU as a breakout at our midsession show on the Web Tuesday.
The stock responded very bullishly to the earnings news.
TTD's 10 minute chat shows BIDU breaking out in premarket trading. The stock then trended sideways the rest of the day holding comfortably over its breakpoint.
The stock had split 10-for-1.
The stock's tape action today shows the big block trades.
The price for the blocks climbed from $107.51 to a peak of $118.40. That showed good institutional buying interest off the earnings report.
A key bullish trade was a block of 235,137 shares (duplicated) crossing at $116.22, up from the prior block at $108.63.
The company conducts its operations in China principally through Baidu Online Network Technology (Beijing) Co., Ltd.
It also operates in China through Baidu Netcom Science Technology Co., Ltd., which holds the licenses and approvals necessary to operate the Company’s Websites and provide online advertising services.
BIDU launched a Japanese search service at www.baidu.jp, run by Baidu Japan. Its Japanese search services enable users to find relevant information online, including Web pages, images, multimedia files and blogs.
BIDU offers a Chinese-language search platform on its Website www.baidu.com. It provides Chinese-language Internet search services to enable users to find relevant information online.
BIDU reported net for the fourth quarter jumped to 50 cents a share. That was four cents a share above the consensus estimate on the Street of 46 cents a share. The company has been consistent in topping the Street consensus estimate. It did it again and also boosted its forecast of revenues for the first quarter.
BIDU's 12-month performance chart shows the stock appreciating 170% versus an 18% gain for the S&P 500 index. BIDU is a top performer.
BIDU's long-term chart shows the stock starting to trade in late 2005 at 8. The stock then soared to 40 by late 2007. It had major pull back during the 2008-2009 bear market. However, it has since turned higher and is in a strong up trend and making new all-time highs. The stock has been sensational. The push to a new high Tuesday could bring in more buying from the new-high crowd.
BIDU's daily chart shows the stock putting down a three month flat base after it climbed from 70 to 115.
The breakout today is very good coming with expanding volume and a gap move. Gap breakouts can be strong especially if triggered by a good earnings report - such as BID showed.
The stock's TTD momentum indicator (top of chart) is bullish.
The accumulation - distribution line (bottom of chart) is in a strong up trend that compliments the pattern of the stock.
This year, analysts forecast a 57% surge in net to $2.41 a share from $1.53 a share a year ago. The stock sells with a price-earnings ratio of 48. That would appear high, but is justified by BIDU's strong earnings growth. The p/e ratio has come down from the past.
The company is benefiting from its expansion and the use of new features on the Web service.
Net for the upcoming first quarter should climb 111% to 43 cents a share from 20 cents a year ago. The highest estimate on the Street is at 47 cents a share. The consensus estimate has been moving up.
Strategy Opinion: BIDU is a leader. TTD is targeting BIDU for a move to 140. A protective stop can be placed near 108. TTD rates BIDU an excellent intermediate term play as long as earnings remain on course.
Sponsorship: Very Good. The largest fund holder is 4-star rated T.Rowe Price Growth Stock Fund with a 1.4% stake. It was a recent seller of 177,800 shares. The second largest fund holder is Vanguard International Growth Fund with a 1.2% stake. It was a recent seller of 238,410 shares. The largest buyer recently was 5-star rated Fidelity Contrafund which purchased 129,500 shares. BIDU has 347.8 million shares outstanding.
Insider Activity: Not available. Currently, 19 analysts follow the stock, 13 have a buy, down from 12 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Baidu Inc. - (BIDU)
|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 - SOHU - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - GPOR - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - ULTA - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - UPS - 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 - 3
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of breakdown stocks today as stock drives higher. Bears be selective and watchful. TTD's feature short from Monday was Cellcom Israel Ltd. (CEL) - 30.63, down 0.69. Today, the stock is trading at 30.52 and working fine for bears.
List of Stocks To Sell or Short
VVUS, based in Mountain View, Ca., develops drugs. Annual revenues: $8.7 million. VVUS's stock falls sharply today after the FDA denied approval of a weight-loss drug from Orexigen. The news was bearish because VVUS had a weight-loss drug rejected by the FDA last year. So far today, VVUS is trading 12.1 million shares, four times its normal daily volume of 2.9 million shares.
VVUS's stock gapped lower in the morning, but then bounced up. However, afterwards the stock trended lower. It hit an intraday low of $7.27.
TTD's clip shows the recent big block trades.
One can see the price for the blocks declining from $8.95 to as low as $7.48. A key bearish trade today came when 25,000 shares crossed the tape at $8.30. That was down sharply from the prior block at $8.95.
VVUS develops therapeutic products for underserved markets. Its investigational product pipeline includes two late-stage clinical product candidates. One of these investigational products, Qnexa, has completed Phase III clinical trials for obesity, and Phase II clinical trials for diabetes and obstructive sleep apnea.
The company had one drug approved by the FDA, and several investigational product candidates in late stages of clinical development, that are focused on market opportunities in obesity and related morbidities, including sleep apnea and diabetes, and sexual health.
This year, analysts forecast a loss of 76 cents a share compared with an expected loss of 96 cents a share for 2010.
VVUS's daily chart shows the stock gapping lower today. It had been showing weakness prior to the drop. The stock's TTD momentum indicator (top of chart) has been bearish for two weeks. The accumulation - distribution line (bottom of chart) is in an overall down trend.
Strategy Opinion: TTD is targeting VVUS for a decline to 6 within the next few months or sooner. A protective stop can be placed near 8.50.
|TTD's Quality Rating of Stock - VVUS - 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.)
Copyright - Ticker Tape Digest - 2011