Daily - Go to TTD's Tape of Stock Charts - Tuesday, February 5
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Daily - Go to TTD's Tape of Stock Charts - Tuesday, February 5 |
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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, February 4 |
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(ABAX) - (12 Minutes) 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 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 Daily schedule guide for TTD subscribers 1. Pre-market - check Breakout Watch List and Quick Trades. 2. Morning - (11:30 - 12 A.M.) - check breakout stocks tape and breakout chart slide show. 3. Midday (1 P.M.) check TTD Midsession Report and see market video show. 4. After close (4 P.M.) check final TTD Report for day. Trading Strategies Bullish Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. (See Performance) Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." (See Performance) 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.(See Performance) Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance) |
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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.
Breakout Stocks
Total Buy Breakouts so far today - 6
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Breakout list small as stock market advances broadly. Bulls remain selective. Market remains in an up trend, but some distribution noticed.
(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
(See Top Performing Breakout Stocks for 2011- 2012)
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TTD's Quality Rating of Stock - OCN - ABOVE AVERAGE |
OCN, based in Atlanta, provides financial services for mortgage loans and asset management. Annual revenues: $765 million. OCN' stock breaks out today from a three-month, cup-and-handle base. The move carries the stock to a new all-time high. 
TTD highlighted OCN as a breakout at our midsession video show on the Web Tuesday.
So far today OCN is trading 2.5 million shares. Its average daily volume is 1.8 million shares.
The stock is a strong performer in the financial sector. 
OCN's 10-minute chart shows the stock clearing its breakpoint in the morning. It then pushed higher again and also once again near the final hours of trading.
The action during the day was very bullish. One can also see a good pick up in volume when OCN advanced. That is very bullish showing good accumulation.
OCN's tape action shows the recent block trades.
One can see the price for the blocks advancing from $39.31 to as high as $40.59.
A key bullish trade came around midday when a block of 25,000 shares crossed the tape at $40.59. That was up from the prior block trade at $39.89.
The tape showed good institutional buying.
OCN is a financial services holding company. They are into asset acquisition and resolution, residential finance, commercial finance, investment management and hotel operations.
The company primarily specializes in the acquisition and resolution of non-performing or underperforming loans.
OCN's 12-month performance chart shows the stock appreciating a sensational 170% versus an 18% gain for the S&P 500 index.
The chart shows some heavy insider selling in December.
OCN's long-term chart shows the stock climbing from back in 2010 to a peak of 41. The push to a new high could bring in more buying from the new-high crowd on Wednesday. TTD has featured OCN in prior reports recently. 
OCN's daily chart shows the stock climbing from 20 back in August to a peak near 40 by October.
The stock then spent several months basing and formed a cup-and-handle base.
The breakout today looks good with a widening of the daily trading spread and an expansion in volume.
This year, analysts are forecasting a hefty 212% surge in profits to $4.50 a share from an anticipated $1.44 for 2012.
The stock sells with a price-earnings ratio of just 9 based on projected 2013 net. TTD sees that as low making the stock attractive to value investors.
Net for the upcoming first quarter should leap 226% to 81 cents a share from 25 cents a year ago. That would be an acceleration in quarterly earnings growth from the anticipated 114% gain in next for the fourth quarter of 2012. 
The highest estimate on the Street is at 61 cents a share. The company has had a tendency to report slightly below the consensus. So, one needs to be watchful of the stock.
Strategy Opinion: TTD is very bullish on OCN. We are targeting the stock for a move to 50 off this breakout.
However, one must be patient. A protective stop can be placed near 38. TTD rates OCN a very good intermediate-term play provided earnings remain on course.
Sponsorship: Excellent. The largest fund holder is 4-star rated Neuberger Berman Genesis Fund with a 2.8% stake.
It was a recent buyer of 3.7 million shares. Also, 4-star rated Fidelity VIP Contrafund was a recent buyer of 93,900 shares. It has a 1.6% stake.
OCN has 135 million shares outstanding. Institutions hold 79% of the stock.
Insider Activity: Not available. Six analysts follow the stock and all 6 have a buy, up from 4 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
| TTD's Breakout Profile
Rating Ocwen Financial Corp. - (OCN) |
| 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 | 14 | 0 | 0 |
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - PBH - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - RBC - AVERAGE |
| TTD's Quality Rating of Stock - DDS - AVERAGE |
| TTD's Quality Rating of Stock - CPSS - 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. Stock market holds long-term up trend. Bears be conservative.
ACI, based in St. Louis, produces coal. Annual revenues: $4.4 billion. ACI's stock breaks down below key technical support today to resume its down trend. The stock was as high as 77 back in 2008. So far today, ACI is trading a heavy 27.3 million shares, double its normal daily volume of 10.8 million shares. 
TTD highlighted ACI as a short at our midsession video show on the Web Tuesday.
The stock gapped lower in the morning. It hit an intraday low around noon at $6.14. The stock then trended sideways unable to lift.
ACI's tape action shows the recent big block trades.
One can see the price for the blocks declining from $6.93 to as low as $6.18.
A key bearish trade came in the morning with a block of 249,790 shares that crossed the tape at $6.64. That was down from the prior block at $6.93. The tape showed strong institutional selling pressure.
ACI is engaged in the mining, processing and marketing of low-sulfur bituminous coal.
The company sells its coal primarily to electric utilities in the eastern United States. The Company also exports coal, primarily to European customers
This year analysts are forecasting a loss of 79 cents a share compared with a loss of 32 cents a share for 2012.
ACI's daily chart shows the stock cutting below key near-term support with volume. The stock's accumulation - distribution line (bottom of chart) is in a steady down trend indicating clear heavy selling pressure for the past few months.
Strategy Opinion: TTD is targeting ACI for a decline to 4.80 within the next few months, or sooner. A protective stop buy can be placed near 7.10.
| TTD's Quality Rating of Stock - ACI - BELOW 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.)
