Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Thursday, February 7
|
Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Thursday, February 7 |
| 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 leo@tickertapedigest.com.For service, email Beverly Owen owen@tickertapedigest.com. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 3
Stocks Screened - 8,200
Bull side - Only a few breakout stocks today. Stock market rallies intraday, but then fades a bit. Bulls remain conservative and patient.
Long-Term Environment for bulls: Neutral
Market Status (Daily) - NYSE Bearish, Nasdaq Bearish
Market Status (Weekly) - NYSE Bearish, Nasdaq Bearish
RBCN, based in Franklin Park, Il., is an electronic materials provider that develops monocrystalline sapphire and other crystalline products for light-emitting diodes (LEDs). Annual revenues: $31 million. RBCN breaks out from a seven-week flat base today on light volume. The stock came public in November and traded in the high teens. It moved to the low-20s and has been acting strong.
TTD highlighted RBCN at our midsession show on the Web Thursday as a stock that could breakout at any time. We also featured it as an issue to accumulate on our Feb. 1 TTD Pro report.
So far today RBCN is trading 86,669 shares. Its average daily volume is 84,000 shares.
TTD's clip of the tape shows RBCN working higher late in the morning from $24.81 to $24.95. The quick move higher on light volume is impressive and shows the ease of price movement higher.
RBCN's crystalline products are also used for radio frequency integrated circuits, blue laser diodes, optoelectronics and other optical applications.
The Company applies its proprietary crystal growth technology to produce very high-quality sapphire in a form that allows for volume production of various sizes and orientations of substrates and windows.
RBCN is a vertically-integrated manufacturer with capabilities in crystal growth, high precision core drilling, wafer slicing, surface lapping, large-diameter polishing and wafer cleaning processes. It is developing larger diameter products to support next-generation LED, RFIC and optical window applications.
RBCN's daily chart shows the stock in a solid up trend having advanced from 15. The stock then set up a double-bottom or "W" base. The breakout today looks good in that RBCN was able to hold its gain despite a late afternoon selloff.
The stock's TTD momentum indicator (top of the chart) is solidly bullish.
The accumulation - distribution line (bottom of chart) is trending higher nicely. It broke out to the upside a few days ago. That was a good lead indicator that a breakout could come.
RBCN will report fourth quarter and 2007 net Feb. 14. Analyst look for net to come in at 5 cents a share for the quarter. Comparable results were not available.
Net for the year 2007 should be 21 cents a share.
The key for the stock is a potential big year in 2008. Analysts forecast net this year will jump 76% to 37 cents a share from the anticipated 21 cents for 2007. The stock sells with a 64 price-earnings ratio. That is reasonable given the projected growth rate.
Strategy Opinion: RBCN is a good looking IPO stock that is acting exceptionally strong in a bearish market. TTD is targeting the stock for a move to 32 within a few months. A protective stop can be placed near 24, which is tight, and up sharply from our prior analysis last week.
TTD still rates RBCN a good intermediate-term play suitable for aggressive investors.
Sponsorship: Not available. The company has 19 million shares outstanding.
Insider Activity: Not available. Two analysts follow the stock and both have a strong buy.
| TTD's Breakout Profile
Rating Rubicon Technology Inc. (RBCN) |
| 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 | 0 | 1 |
(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 - 11
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Large number of breakdown stocks today. Bears continue to be aggressive. Look for companies to continue to give weak earnings forecasts.
(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.)
SCSS, based in Minneapolis, makes air beds and other sleep-related products such as foundations, frames, and pillows. Annual revenues: $800 million. SCSS falls sharply after reporting a big drop in fourth quarter earnings. The decline comes with massive volume of 4.5 million shares, almost five times its normal daily volume of 891,00 shares.
TTD's clip of the tape shows SCSS heading south early in the session. A big block of 50,000 shares crossed the tape on a big down tick to $5.63 from the prior trade at $5.71. That indicates heavy institutional selling pressure.
SCSS reported fourth quarter net declined to 5 cents a share from 20 cents a share a year ago. The stock took the news very bearishly. Looking out to the first quarter of this year, analysts predict a 27% drop in net to 15 cents a share from 21 cents a year ago.
Net for all 2008 is currently projected to rise 12% to 64 cents a share from 57 cents a share. However, there is a chance earnings projections for the year could be reduced. Today, Morgan Keegan cut its rating on the stock.
The company's mattresses have adjustable firmness levels and range in prices up to $2,600. The company sells through 400 Select Comfort stores across the United States, as well as through leased departments such as in Bed Bath & Beyond stores.
TTD's daily chart shows SCSS stock in a clear down trend with its accumulation - distribution line moving lower indicating clear selling pressure. TTD sees the stock as a good short play for aggressive bears. TTD is calling for SCSS to decline to 3 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.)
