Daily - Go to TTD's Tape of Stock Charts - Wednesday, February 2
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Daily - Go to TTD's Tape of Stock Charts - Wednesday, February 2 |
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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - January 31 |
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Go to Video Show - "How to Make Money With Breakout Stocks" Go to Video Show -TTD Performance 2008 Long and Short |
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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.
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Ticker Tape Digest's Trading Strategies Overview and Performance Bullish 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. Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns
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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 leo@tickertapedigest.com.For service, email Beverly Owen owen@tickertapedigest.com. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 17
Overall Quality of Breakouts - Above Average
Stocks Screened - 8,300
Bull side - Goon number of breakouts today with several high quality plays. Stock Market continues to show good resilience to selling. Bulls be selective and very watchful since the advance is now 4 months old.
(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
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TTD's Quality Rating of Stock - BSFT - ABOVE AVERAGE |
BSFT, based in Gaithersburg, Md., produces software for fixed-line, mobile and cable service providers. Annual revenues: $79 million. BSFT, a small cap play, breaks out today from a five-week flat base and hits a new high. The stock is on of the hottest in the stock market now. So far today, BSFT is up sharply in price and trading 1.3 million shares, four times its normal daily volume of 311,000 shares. 
TTD highlighted BSFT as a breakout at our midsession video show on the Web Wednesday.
BSFT's 10-minute chart shows the stock driving higher in the morning on strong volume. It cut across its breakpoint and continued higher.
It is impressive action.
Today, the company said it completed interoperability testing with the Grandstream Networks operations.
BSFT makes the Broadworks software. It enables customers to provide a range of cloud-based, or hosted, IP multimedia communications. BSFT is a hot speculative stock. The company gave a presentation at the Needham Growth Conference on January 11. 
BSFT's tape action shows the recent big block trades.
One can see the price for the blocks soaring from $27.71 to $33.72. A key bullish trade came in the afternoon when 20,000 shares crossed the tape at $33.72. That was up from the prior block trade at $29.73.
The tape action showed aggressive institutional buying.
The company’s software, BroadWorks, enables its service provider customers to provide enterprises and consumers with a range of cloud-based, or hosted, IP multimedia communications. They include hosted IP private branch exchanges, video calling, unified communications, collaboration, and converged mobile and fixed-line services.
BroadWorks performs a network function by serving as the software element that delivers and coordinates voice, video and messaging communications through a service provider’s IP-based network. BroadWorks is the voice and multimedia application server. The software is installed on industry-standard servers, typically located in service providers’ data centers.
BSFT's performance chart shows the stock appreciating 300% the past 3 months. That is sensational. The stock has easily outperformed the S&P 500 index.
BSFT's long-term chart is short since the stock came public in June and traded around 8. It has already quadrupled. The push to a new high could well attract more buying from aggressive investors.
BSFT's daily chart shows the stock soaring from 10 in November to 30. the stock then pulled back and formed a small flat base. Today's breakout comes with a widening of the spread, which is bullish.
The volume expansion is bullish too.
The stock's TTD momentum indicator (top of chart) is slightly bullish.
The accumulation - distribution line (bottom of chart) is in a strong up trend showing the stock has not been under any subtle distribution.
The company will report 2010 results on Feb. 14.
Analysts are looking for a profit of 19 cents a share compared with a loss of 21 cents a share a year ago.
Net for the fourth quarter is expected to soar to 26 cents a share from one cent a year ago. The company surprised big in the third quarter. So, there are chances for an upside surprise for the fourth quarter.
The Street is projecting net for 2011 to soar 143% to 45 cents a share from the anticipated 19 cents a share for 2010.
Strategy Opinion: BSFT is hot. The stock is quite extended off its base. TTD suggests a scale-in strategy. TTD is targeting BSFT for a move to 40 within the next few months, or sooner. A protective stop can be placed near 30. TTD rates BSFT a good intermediate-term play. It does have potential to do extremely well if its business swells.
Sponsorship: Excellent. The largest fund holder is Fidelity OTC Fund, 4-star rated, with a big 5.7% stake. It was a recent buyer of 678,970 shares. Also, the second largest fund holder is Fidelity Blue Chip Growth Fund, 4-star rated, with a 3.8% stake. It was a recent buyer of 749,000 shares. BSFT has 25.3 million shares outstanding.
Insider Activity: Bearish. Insiders were heavy sellers late last year. The latest selling was at $26.40. Four analysts follow the stock, and the all have buy, up from 3 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
| TTD's Breakout Profile
Rating Broadsoft Inc. - (BSFT) |
| 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 | 13 | 1 | 0 |
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - INFA - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - CVLT - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - ADS - AVERAGE |
| TTD's Quality Rating of Stock - RIO - 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 - 4
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small number of breakdown stocks today as stock market shows little change. Bears remain patient and selective now. Market still vulnerable to a pull back.
List of Stocks To Sell or Short
HSP, based in Lake Forest, Il., produces drugs and medication delivery systems. Annual revenues: $4 billion. HSP's stock falls sharply today in heavy trading after the company reported disappointing earnings for the fourth quarter. So far today, HSP is trading 9.5 million shares, nine times its normal daily volume of 1.2 million shares. 
TTD highlighted HSP as a bear play at our midsession show on the Web Wednesday.
The company reported net for the fourth quarter declined to 77 cents a share from 87 cents a year ago.
The 77 cents was below the consensus estimate of 93 cents a share and also the lowest estimate on the Street of 84 cents. The stock responded very bearishly to the news.
The stock gapped lower in the morning. It hit an intraday low of $49.76 in the morning. It then lifted slightly and then trended sideways.
HSP produces generic acute-care and oncology injectables, as well as integrated infusion therapy and medication management systems.
Its products are used by hospitals, clinics, home healthcare providers and long-term care facilities.
It has five key business areas: the Americas; Europe, Middle East and Africa, and Asia Pacific
This year, the Street was forecasting a 25% increase in net to $4.32 a share. However, HSP said it was lower its 2011 forecast to $3.90 to $4 a share.
The stock's chart shows a gap drop with heavy volume. That is very bearish.
Strategy Opinion: TTD is targeting HSP for a decline to 45 within the next few months or sooner. A protective stop can be placed near 53.
| TTD's Quality Rating of Stock - HSP - 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.)
Copyright - Ticker Tape Digest - 2011
