Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Wednesday, February 6
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Wednesday, February 6 |
| 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 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 leo@tickertapedigest.com.For service, email Beverly Owen owen@tickertapedigest.com. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 1
Stocks Screened - 8,200
Bull side - Only one breakout stock today as market turns south in the afternoon. Bulls be conservative and patient.
Long-Term Environment for bulls: Neutral
Market Status (Daily) - NYSE Bearish, Nasdaq Bearish
Market Status (Weekly) - NYSE Bearish, Nasdaq Bearish
SLH, based in San Ramon, Ca., provides software and services to the automobile insurance claim processing industry. Annual revenues: $485 million. SLH breaks out from a nine-week, cup-and-handle base today after reporting strong earnings for the fiscal second quarter ended Dec. 31. So far today, SLH is trading 1.2 million shares, four times its normal daily volume of 276,000 shares.
The stock did show some distribution on the tape during the day. However, in the morning, one of the largest trades of the day crossed the tape.
TTD's clip shows it as a big block of 25,000 shares crossing at $25. That was within a sequence started by an up tick from a trade at $24.99.
The company was started in 2005. It has operations in 45 countries, serving 900 automobile insurance companies, 33,000-plus collision repair facilities, 7,000 independent assessors, and 3,000 automotive recyclers.
The company went public in May 2007.
TTD's daily chart shows the stock with an excellent move higher from 17 to 25. The stock then went into a flat basing pattern. However, it eventually evolved into a cup-and-handle base.
The stock's surge higher today on strong volume was in response to the favorable quarterly earnings. Net for the fiscal second quarter (Dec. 31) came in at 29 cents a share, up from 23 cents a share a year ago.
The 29 cents a share topped the consensus estimate of 25 cents a share and also the highest of 26 cents a share. The stock's response to the news was very bullish and signaled that the Street may have to revise upward its outlook for the fiscal year.
The stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line has been working higher the past few months.
The Street is currently forecasting a 3% increase in net for the fiscal year ending June 30. They have been looking for $1.08 a share, up from $1.05 a share.
TTD sees those estimates moving up. TTD looks for a 10% gain in net to $1.15 a share from $1.05 a year ago. Although the annual gain is not impressive, a key factor that could push the stock higher is that net for the fiscal third quarter will be very good compared with a year ago. The Street sees fiscal third quarter net at 28 cents a share compared with a loss of 46 cents a share a year ago.
Strategy Opinion: SLH is an average breakout play with improving results that are surprising the Street. TTD sees the stock with a shot to advance to 32 within the next few months. A protective stop can be placed near 23.50, which is tight. TTD rates the stock an average intermediate-term play with a lot depending on earnings for the next few quarters.
Sponsorship: Very Good. The largest fund holder is 5-star rated Federated Kaufmann Fund with a 3.5% stake. It was a recent buyer of 184,000 shares. The largest buyer recently was Fidelity Low-Priced Stock Fund, 4-star rated, which purchased 1 million shares.
Insider Activity: Very Bearish. Insiders have been heavy sellers in recent months. Three analysts follow the stock, 2 have a buy, the same as three months ago.
| TTD's Breakout Profile
Rating Solera Holdings Inc. (SLH) |
| 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 | 11 | 0 | 3 |
(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 - 13
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Large list of breakdown stocks today. Stock Market fell big on Tuesday, today an early rally try fizzles. Bears be aggressive.
(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.)
DBTK, based in Southboro, Ma., is a software developer company focused on reducing downtime and protecting data for business-critical systems. Annual revenues: $80 million. DBTK takes a dive today on big volume as it forecasts lower earnings for the first quarter. The stock is down about 4 points so far today. Volume has swelled to 3.3 million shares, eight times its average daily volume of 398,000 shares.
TTD's clip of the tape shows one of the largest trades of the session. It is a big block of 40,000 shares crossing on a down tick to $11.33 from the prior trade at $11.34. The action showed heavy institutional selling pressure.
DBTK was floated around 10 in early 2007. It soared to 26 by yearend 2007. Now it is in a clear down trend.
The company forecast lower profits for the first quarter. Currently, analysts are forecasting a 21% decline in net to 10 cents a share from 13 cents a year ago. For all 2008, the Street expects DBTK's profits to decline 4% to 62 cents a share from 65 cents a share in 2007.
DBTK sells, and supports its software for Microsoft server environments. The company sells its software through its in-house sales force as well as through partner server manufacturers, such as Dell Computer and Hewlett-Packard.
TTD's daily chart shows DBTK topping at 26 and then trending lower. It tried to rally from 15, but today's gap breakdown sets the stock back in motion to the downside. The stock's technicals are extremely bearish. The TTD momentum indicator (top of the chart) is extremely bearish. The accumulation - distribution line (bottom of chart) is accelerating to the downside indicating heavy selling pressure.
TTD is targeting DBTK for a decline to 7.50 within the next few months. The stock is a good short play for an aggressive bear.
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.)
