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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 positionsboth as trades or for longer-term plays. These stocks will do very well during bear markets or market corrections
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Total Buy Breakouts so far today - 22
Stocks Screened- 8,200
Bull side - Large number of breakouts even though market is mixed today. Bulls be selective.
Long-Term Environment for bulls: Favorable.
Market Status (Daily) - NYSE Bearish, Nasdaq Bullish
Market Status (Weekly) - NYSE Bullish, Nasdaq Bullish
OMX, based in Naperville, Il., is the third largest office products retailer in North America. It ranks behind Staples and Office Depot. OMX has nearly 900 superstores mostly in the U.S. OMX, which was up nicely on Wednesday, blows out of its nine-week flat base and hits a new 52-week high. The move comes on a big expansion in volume.
So far today, OMX is trading 2.2 million shares, more than double its normal daily volume of 745,000 shares.
The stock is showing very good tape action. One of the largest trades of the day is highlighted by TTD in our clip of the tape. It is a big block of 50,000 shares crossing on a modest up tick to $54.25 from the prior trade at $54.24.
OMX sells about 8,000 name-brand and OfficeMax-branded products, including paper, pens, forms, and organizers, as well as office furniture and a wide range of technology products.
The company also provides printing and document services through its CopyMax store-within-a-store. In addition to its retail outlets, the company's contract division sells directly to business and government customers through field agents, telesales, and catalogs.
OMX should be checking in with a big gain for 2006. The Street is forecasting profits rebounded to $2.01 a share from a weak 24 cents a share a year ago. The key for the stock is the solid outlook this year.
OMX's net for this year should climb 28% to $2.58 a share from the anticipated $2.01 for 2006. The stock sells with a price-earnings ratio of 20 based on this year's projected net. That is well below the earnings growth rate. So, the stock is a good value-growth play.
A look at TTD's daily chart shows the well formed flat base. The move today is a good carry over of the action from the day before. The stock's TTD momentum indicator is solidly bullish. The accumulation - distribution line lags. However, we can see that righting itself easily.
TTD's long-term chart of OMX shows the stock moving to a new all-time high. That should bring in buying from the new-high crowd because of the strong earnings outlook.
OMX's net for the fourth quarter should be very strong - 40 cents a share, up sharply from 7 cents a year ago. TTD sees that news discounted into the price of the stock. The highest estimate on the Street is at 42 cents a share. If that is top by at least 10% the stock could well react well.
Net for the first quarter this year should rise 19% to 92 cents a share from 77 cents a share a year ago.
Strategy Opinion: OMX is on its way. TTD sees OMX has a solid bullish play in the retail sector. We suggest a full position on this breakout. TTD looks for a move to 62 within the next few months. A protective stop can be placed near 49.80. TTD rates OMX a very good intermediate-term play.
Sponsorship: Very Good. There has been good buying the top fund holders lately. The largest buyer recently was 3-star rated Fidelity Equity - Income II fund which picked up 650,000 shares. Another big buyer was 3-star rated George Putnam Fund of Boston, which purchased 603,000 shares.
Insider Activity: Neutral. Not much activity lately. Four analysts follow the stock, one has a buy, up from none three months ago. Many analysts are neutral.
| TTD's Breakout Profile
Rating Officemax Inc. (OMX) |
| 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 | 12 | 0 | 2 |
(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)
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 - 6
Stocks Screened - 8,200
Long-Term Environment for bears:
Bear Side - Only a few breakdowns today as market acts weak today. Bears be selective seeking fundamentally damaged stocks.
(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.)
ISLN, based in Seattle, develops disk-based storage systems designed to store and deliver large digital files, including images, video, and audio content. Today, this small cap play falls sharply after reporting a loss for the quarter. ISLN is a recent new issue that traded as high as 28 late last year. Trading so far today is running at 1.8 million shares, five times its normal daily volume of 199,000 shares.
The stock got off to a bearish start today. TTD's clip of the tape shows the largest block of the day so far. It was 60,000 shares crossing on a big down tick to $21.24 from the prior trade at $21.49. The action showed a very bearish response to the news.
The Isilon IQ, which makes use of the OneFS distributed file system, is a clustered storage system.
The company markets its products to health care providers, media companies, oil and gas firms, and other enterprises with digital imaging and content delivery operations. Atlas Venture investment firm owns 28% of Isilon stock and Sequoia Capital 22%.
ISLN came in with a loss of 72 cents a share for the fourth quarter. That compares with a loss of 78 cents a share a year ago. The company put a positive spin on the results noting there was a big increase in revenues for the quarter.
However, the stock's reaction is the key here. The stock breaks below key support at 22. ISLN's accumulation- distribution line breaks down confirming the heavy selling pressure. TTD is calling for ISLN to decline to 16 within the next few months. We see ISLN as a good trading short play.
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.)