|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 firstname.lastname@example.org.For service, email Beverly Owen email@example.com. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 3
Stocks Screened - 8,200
Bull side - Very few breakout stocks today as market falls sharply. Bulls be conservative and patient.
Long-Term Environment for bulls: Neutral
Market Status (Daily) - NYSE Bearish, Nasdaq Bearish
Market Status (Weekly) - NYSE Bullish, Nasdaq Bearish
OMI, based in Glen Allen, Va., distributes medical products. Annual revenues: $6.7 billion. OMI breaks out from a seven-week, flat base today and hits a new high. That is very significant since very few stocks are making new highs due to the stock market's decline of the past few months. Trading in OMI swelled to 1.4 million shares, triple its normal daily volume of 370,000 shares.
TTD highlighted OMI as a breakout at our midsession show on the Web Tuesday.
TTD's table shows the tape action around midday and highlights a big block of 30,000 shares that crossed on an up tick to $43.88 from the prior trade at $43.86.
The action showed very good institutional buying OMI despite a big decline in the stock market during the day.
OMI distributes name-brand and private-label medical and surgical products, such as disposable gloves, surgical gowns, and wheelchairs to acute-care hospitals and integrated health networks.
The company also sells diabetic supplies and kits direct to customers.
OMI checked in with a fourth quarter profit of 56 cents a share, up from 18 cents a share a year ago. The 56 cents a share topped the consensus estimate on the Street of 52 cents a share, which was also the highest. TTD has said if a company can top the highest estimate on the Street with net, the stock can often times move higher that day and for the next several weeks. TTD sees that possibility here with OMI.
For the year, OMI posted a profit of $1.81 a share, up from $1.22 a year ago. The Street was expecting just $1.75 a share. The company cited improved sales and a reduction in the cost for long-term debt for the gain.
OMI also lifted its quarterly dividend to 20 cents a share, an 18% increase from the prior rate.
TTD's daily chart shows OMI pushing through upside resistance at 43.50. The move comes on a nice expansion in volume. The stock's TTD momentum indicator (top of the chart) is very bullish.
The accumulation - distribution line (bottom of the chart) is lagging. It will be important to see the AD line improve.
This year, analysts forecast a 26% increase in OMI's profits to $2.321 a share from the $1.81 in 2007. The stock sells with a 19 price-earnings ratio based on projected 2008 net. TTD sees that as reasonable.
Net for the upcoming first quarter will be very strong. Analysts predict an 87% jump to 51 cents a share from 27 cents a year ago.
Strategy Opinion: OMI is a conservative breakout play, although one that has good fundamentals. The stock has a low beta of 0.18. The beta of the market is 1.00. Nevertheless, TTD sees the stock working higher to 52 within the next few months. A protective stop can be placed near 41. TTD rates OMI an average intermediate-term play.
Sponsorship: Very Good. The largest fund holder is 5-star rated Vanguard Health Care Fund with a 5.5% stake. It has kept its position stable. The largest fund buyer lately was 3-star rated Legg Mason Partners Small Cap Growth Fund which purchased 253,000 shares recently.
Insider Activity: Slightly Bullish. Some light insider buying took place recently. Five analysts follow the stock, 3 have a buy, up from 2 three months ago.
|TTD's Breakout Profile
Owens & Minor Inc. (OMI)
|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
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 - 7
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Small number of breakdown stocks today even though market falls sharply on bearish economic news. Bears be aggressive. TTD's feature short play from Monday, Microstrategy Inc. (MSTR) falls 2.95 to 65.54 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.)
PPG, based in Des Moines, Iowa, provides financial services, including retirement, investment, and insurance products. Annual revenues: $10.9 billion. PFG falls sharply today to set off a TTD short play. The stock took a dive at the opening when the company reported disappointing earnings. So far today, the stock is down 5 points. Volume is running at 7.5 million shares, almost triple its average daily volume of 2.6 million shares.
TTD's clip of the tape shows the stock coming under heavy selling pressure around midday. A big block of 116,500 shares crossed on a down tick to $54.78 from the prior trade at $54.81. The action showed a resumption of selling after the initial fall in the morning. That would indicate some big holders of the stock want out.
The company's largest revenue source is retirement services, where it is an industry leader in providing 401(k) plans to small and medium-sized businesses.
PFG also offers retail banking products via direct mail and the Internet. The company is also active in several emerging markets such as Chile, Mexico, Hong Kong, Brazil, India, China, and Malaysia.
Today, PFG reported net income for the fourth quarter dropped to 13 cents a share from $1.04 a year ago. The big drop included a $50 million loss from the subprime mortgage crisis. This year, analysts are forecasting an 11% increase in net.
Technically, the stock is very bearish and suitable for an aggressive bear. The stock's rollover from 70 to 56 set the stock in motion on the downside. The feeble rally try was snuffed out as the stock gaps lower today on big volume. TTD is targeting PFG for a drop to 44 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.)