|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 email@example.com.For service, email Beverly Owen firstname.lastname@example.org. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 5
Stocks Screened - 8,200
Bull side - Small list of breakout stocks today. However, there are some good growth plays. Bulls remain conservative.
Long-Term Environment for bulls: Neutral
Market Status (Daily) - NYSE Bearish, Nasdaq Bearish
Market Status (Weekly) - NYSE Bearish, Nasdaq Bearish
CHDX, based in Bethesda, Md., provides healthcare services in the People’s Republic of China. Annual revenues: $114 million. CHDX is one of the big stars of today's sessions breaking out from a 13-week flat base on expanding volume. The trigger for the push higher was a report of strong earnings for the fiscal third quarter ended Dec. 31. So far today, CHDX is trading 375,511 shares, almost triple its normal daily volume of 136,000 shares.
TTD highlighted CHDX as a breakout very early in the session on our Flash Ticker and at midday on our Web show.
The stock shot out of the blocks at the opening on the strong net. The tape did show some profit taking. However, the issue was able to weather nicely the stock market selloff in the afternoon.
TTD's clip of the tape highlights a block trade of 4,770 shares crossing at 37. The trade came within a sequence started by an up tick from $35.90.
CHDX operates with three business units. The first is the Medical Capital Equipment, second, Heathcare Products Distribution, and third, Healthcare Services. Medical Capital Equipment.
Healthcare Products Distribution supplies various retail and hospital products, such as pharmaceutical drugs. Healthcare Services operates numerous medical facilities.
CHDX reported earnings for the fiscal third quarter jumped to 42 cents a share from 9 cents a share a year ago. The 42 cents a share surpassed the consensus estimate of 26 cents a share, which was also the highest estimate on the Street. The stock's positive response to the news was very bullish.
TTD's long-term chart of CHDX shows the stock in a powerful bull market phase. It is a leader among small cap medical plays.
TTD's daily chart shows the gap breakout to the upside. Gap breakouts are often very bullish. In this case, it looks very good because volume has not been overdone Some gap breakouts that come with massive volume often burn out quickly. TTD does not see that with CHDX.
The structure of the stock's base is very good. There was a breakout in January, which failed. However, the stock firmed up afterwards.
CHDX's TTD momentum indicator (top of the chart) is extremely bullish.
The accumulation - distribution line (bottom of chart) is in an overall up trend and showing good buying support for the stock's price advance.
TTD sees the strong quarter prompting analysts to boost year estimates.
TTD is forecasting that CHDX's net for the fiscal year ending March 31 should soar 91% to 84 cents a share from 44 cents a year ago. The Street had been projecting 71 cents a share.
Revenue growth is running at 19%. The company is benefiting from strong profits from its Healthcare Services Group.
Looking out to fiscal 2009 ending March, CHDX's profits should rise 28%.
Strategy Opinion: TTD is very bullish on CHDX. The powerful earnings are the key. TTD is targeting CHDX for a move to 46 within the next few months. A protective stop can be placed near 35. TTD rates CHDX a very good intermediate-term play with potential to surprise on the upside.
Sponsorship: Very Good. The largest fund holder is Federated Kaufmann Fund, 5-star rated, with a big 4.1% stake. It has held its position steady. The second largest fund holder is 4-star rated Bridgeway Ultra-Small Company Fund with a 1% stake.
Insider Activity: Neutral. Light buying by insiders took place in recent months. They turned around and sold. Just 2 analysts follow the stock, both have a buy. TTD sees chances for more brokerage coverage.
|TTD's Breakout Profile
Chindex International Inc. (CHDX)
|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 - 8
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Small number of breakdown plays today but some interesting ones. Bears be selective, but remain aggressive as stock market is still in a down trend.
(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.)
RTEC, based in Flanders, N.J., designs and develops process-control metrology systems. Annual revenues: $182 million. RTEC is a small cap tech play that today fall sharply after reporting a fourth quarter loss. TTD sees the stock moving lower due to weak fundamentals. So far today, RTEC is trading 404,920 shares, double its normal daily volume of 213,000 shares.
TTD's clip of the tape shows the stock coming under selling pressure in the morning as it declines from $9.40 to $9.34 in just a few trades.
RTEC reported a drop in fourth quarter results to a loss of 2 cents a share from a profit of 29 cents a share a year ago. The Street was looking for a profit of 4 cents a share, which was also the lowest estimate. So, the loss was a big surprise.
Revenues for the fourth quarter tumbled 40%.
RTEC's systems measure thickness and other properties of the thin films applied during the fabrication of integrated circuits. Its MetaPULSE family of systems allows customers to simultaneously measure the properties of up to six metal or other opaque film layers.
This year, analysts have been forecasting a 25% increase in RTEC's earnings. TTD sees those estimates having to be cut.
TTD's daily chart of RTEC shows the stock in a steady decline from 18 just a few months ago to 8. Today's breakdown is extremely bearish, especially since it is triggered by the loss. The stock is damaged and should come under further selling pressure. RTEC has a beta of 2.30 which means it is twice as volatile as the stock market.
TTD sees RTEC as a good short for aggressive bears. We are looking for RTEC to drop to 6.50 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.)