|Go to Video Show - "How to Make Money With Breakout Stocks"|
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 email@example.com.For service, email Beverly Owen firstname.lastname@example.org. TTD’s Tel: 1-480-926-1680.
Stocks Screened - 8,200
Bull's Strategy- Just a few breakouts again today. Bulls still need to remain watchful and patient. The market needs to firm and start to rally to support good movement in breakout stocks.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Unfavorable
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) -NYSE Bearish, Nasdaq Bearish
Market (Monthly) NYSE Bearish, Nasdaq Bearish
|TTD's Quality Rating of Breakout Stock - SXCI - AVERAGE|
SXCI, based in Milton, On., provides pharmacy benefits management services and Health Care Information Technology solutions to the healthcare benefits management industry. Annual revenues: $590 million. SXCI breaks out from a six-week, cup-and-handle base today, with a big pick up in volume. The stock was featured in "TTD's Breakout Watch List." So far today, SXCI is trading 453,009 shares, almost triple its normal daily volume of 177,000 shares.
TTD highlighted SXCI as a breakout at our midsession show on the Web Monday.
The stock moved higher in the morning and then spent the rest of the day trending sideways. TTD's clip of the tape shows a big block of 9,900 shares crossing on a nice up tick to $19.75 from the prior trade at $19.70. The tape action showed good institutional buying interest in the stock.
SXCI's product offerings and solutions combine a wide range of PBM services, software applications, application service provider processing services and professional services.
They are designed for many of the largest firms in the pharmaceutical supply chain, such as employers, health plans, Federal, provincial, and, state and local governments, pharmacy benefit managers, retail pharmacy chains and other healthcare intermediaries.
SXCI's performance chart of the past 12 months shows the stock appreciating 25%. That easily outperforms the 40% drop in the S&P 500 index. One can see the stock has performed very well after reporting earnings the past two quarters. That is interesting considering net for the fourth quarter will be weak.
TTD's long-term chart of SXCI shows the stock as a big winner from 2005 to 2007 as it soared from 5 to 32. Afterwards the stock pulled back into an intermediate-term consolidation.
TTD's daily chart shows SXCI acting strong despite the overall weakness in the stock market. The stock surged from 11 to 19. It then set up a small cup-and-handle base. Today, it breaks out nicely by showing a widening of spread (range from high to low). That shows ease of price movement.
The stock's technicals are impressively bullish. The TTD momentum indicator (top of the chart) is bullish and getting stronger. The accumulation - distribution line (bottom of chart) is trending strongly higher. That indicates good demand for the stock.
The stock appears to be discounting the company's near-term earnings report. The Street expects net for the fourth quarter to be down 29% to 13 cents a share from 18 cents a share a year ago.
That should put net for 2008 at 57 cents a share, down 7% from the 61 cents a share in 2007.
The bullish good news: Net for this year is projected to climb 37% to 78 cents a share from the anticipated 57 cents a share in 2008.
The company is growing via acquisitions and the win of new contracts. Late last year, it acquired Zynchros, a privately-held developer of management solutions.
Strategy Opinion: SXCI's breakout today is technically good. The only reservation is the near-term earnings. TTD suggests scaling into the stock. We are targeting the stock for a move to 24 within the next few months. A protective stop can be placed near 18.20 and should be honored. TTD rates SXCI an average intermediate-term play.
Sponsorship: Very Good. The largest fund holder is 4-star rated Federated Kaufmann Fund with a big 4.2% stake. It has held its position steady. The largest fund buyer lately was 4-star rated BlackRock Global Small Cap Fund which picked up 124,000 shares.
Insider Activity: Neutral. Insiders were buyers using stock options. They turned around and did slightly more selling than buying. Currently, 14 analysts follow the stock, 9 have a buy, up from 8 three months ago.
Stock Performance Chart for 12 months with Quarterly Earnings Markers.
SXC Health Solutions Corp. (SXCI)
|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.
Charts of Breakout Stocks
|TTD's Quality Rating of Breakout Stock - LINC - ABOVE 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 - 11
Stocks Screened - 8,200
Long-Term Environment for bears: Favorable.
Bear Side - Good number of breakdown stocks today. They out number breakouts. Stock market is vulnerable to more on the downside as it tests its key support area. A breakdown could trigger some panic selling. Bears still have the advantage in the market.
(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.)
MVL, based New York, produces toys and licenses and distributes entertainment media based on their line of popular characters, such as the X-Men, Iron Man, and Spider Man. Annual revenues: $560 million. MVL's stock breaks below key support today and resumes its down trend after peaking at 38 last year. With profit growth to contract sharply this year, TTD sees more on the downside. So far today, MVL is trading 940,342 shares. Its average daily volume is 839,000 shares.
TTD highlighted MVL at our midsession show on the Web Monday.
MVL gapped lower in the morning, had a minor lift and then trended lower the rest of the day. TTD's clip of the tape shows a block of 4,500 shares crossing on a modest down tick to $26.65 from the prior trade at $26.66.
The company's product line includes toys, feature films, DVDs, video games, and television shows based on plotlines developed in Marvel's publishing division. MVL sells its toys and media to retailers and special merchandisers in the United States and Europe.
This year, analysts predict a 50% drop in net to $1.30 a share from an anticipated $2.60 a share in 2008. The weakness in earnings appears to be anticipated by the market. Net for the fourth quarter should rise. However, net in the first quarter is expected to be down 21%. The stock tends to move up or down well in anticipation of earnings.
TTD's daily chart shows the bounce rally MVL had from 24 to 30. The stock then weakened a bit pulling back to 28. Today, it breaks below key support. The TTD momentum indicator ( top of the chart) is bearish. The accumulation - distribution line which was acting bullish is now trending lower.
TTD is targeting MVL for a decline to 21 within the next few months or sooner.
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.)