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.
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.
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)
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance)
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 firstname.lastname@example.org.For service, email Beverly Owen email@example.com. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 12
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Breakout list expands as stock market rallies on light volume. Bulls be selective. Market extended and due for a consolidation.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Market (Daily) - NYSE Bullish, 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)
TTD's Quality Rating of Stock - LNKD - ABOVE AVERAGE
LNKD, based in Mountain View, Ca., provides a website for professionals. Annual revenues: $836 million. LNKD's stock breaks out today from a six-month cup-and-handle base. The move triggered by strong earnings carries the stock to a new high. LNKD is an extremely high p/e ratio stock. Thus, it is most appropriate for aggressive investors.
TTD highlighted LNKD as a breakout at our midsession video show on the Web Friday.
The stock pushed higher in the morning and then trended sideways in the afternoon holding a good chunk of its gain for the day. LNKD put in a good performance off the earnings report.
LNKD posted net for the fourth quarter of 35 cents a share. That was well above Street consensus estimates of 19 cents a share.
The company also give favorable projections for 2013.
LNKD came public two years ago. It was a hot IPO that has bounced around the past several months. The stock has now pushed into a solid up trend.
TTD's clip of the tape shows LNKD's recent block trades.
One can see some key institutional buying coming in early on Friday.
A key trade came when a block of 46,000 shares crossed the tape at $134.60. That was up sharply from the prior block at $124.09.
The strong institutional buying continued toward the close.
A key bullish trade late in the session came when a block of 30,254 shares crossed the tape at $150.48. That was up from the prior block at $148.90.
LNKD is an online professional network which allows members to create, manage, and share their professional identity online.
Its platform also provides members with applications and tools to search, connect, and communicate with business contacts, learn about career opportunities, join industry groups, research organizations, and share information.
The company also offers services like hiring solutions, marketing solutions and other services.
LNKD's stock has appreciated 90% the past 12 months versus a 16% gain for the S&P 500 index. (See chart)
LNKD's long-term chart shows the stock coming public back in May of 2011. The stock soared to a high of 125.50 last summer. It then pulled back. The push to a new high Friday is very bullish showing strong demand for this speculative internet play.
LNKD's daily chart shows the stock gapping higher on the earnings news with strong volume.
The stock looks to close near the high of the day. If so, that would be bullish since it indicates very little profit taking on this big surprise move.
The stock's TTD momentum indicator (top of chart) is strongly bullish. It has been mostly bullish for the past two months.
The accumulation - distribution line (bottom of chart) is in a strong up trend. That shows there is consistent and steady buying in the stock. That is bullish.
This year, analysts have been forecasting a 113% jump in net to 49 cents a share from 23 cents a year ago. The stock sells with a price-earnings ratio of 306 based on 2013 net. That is extremely high. So, one needs to be very watchful of the stock.
Going out to 2014, profits are projected to climb 127% to $1.11 a share from the anticipated 49 cents this year.
Net for the upcoming first quarter is expected to be up only 4 cents a share, down from 9 cents a year ago.
However, for the second quarter net is expected to leap 196% to 12 cents a share from 4 cents the year before. The highest estimate on the Street is at 18 cents a share.
Strategy Opinion: LNKD is a stock most suitable for aggressive investors due to its high p/e ratio.
TTD is targeting the stock for a move to 180. A protective stop can be placed near 142. TTD rates LNKD an average intermediate-term play.
Sponsorship: Bullish. The largest fund holder is 4-star rated Harbor Capital Appreciation Fund with a 2.1% stake. It was a recent seller of 5,097 shares. The second largest fund holder is Fidelity Contrafund, 4-star rated, with a 2.1% stake. It was a recent buyer of 534,267 shares. .
LNKD has 107 million shares outstanding. Institutions hold 89% of the stock. It has been rising.
Insider Activity: Bearish. Insiders have been buyers using stock options. The price was not disclosed. They have been steady sellers with the latest selling price being 123.38. Currently, 29 analysts follow the stock, 15 have a buy, down from 16 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Linkedin Corp. - (LNKD)
|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|
Charts of Selected Breakout Stocks
|TTD's Quality Rating of Stock - LL - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - GOOG - AVERAGE|
|TTD's Quality Rating of Stock - MOH - AVERAGE|
|TTD's Quality Rating of Stock - LOPE - 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 - 8
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Good number of breakdown stocks today. Several issues knocked down to weak earnings. TTD's short from Thursday was Orasure Technologies Inc. (OSUR) at $6.10. Today, the stock has declined to $6.06 and is working okay for bears.
GUID, based in Pasadena, Ca., provides services for computer investigations via software. Annual revenues: $129 million. GUID's stock falls sharply today after reporting lower profits for the fourth quarter. So far today, GUID is trading a heavy 1.2 million shares, 17 times its normal daily volume 68,000 shares. TTD sees more on the downside.
TTD highlighted GUID as a short at our midsession video show on the Web Friday.
GUID reported net for the fourth quarter declined to 7 cents a share from 9 cents a year ago.
The stock fell sharply on the news gapping lower in the morning. It hit an intraday low of 8.99. It then lifted slightly and trended sideways the rest of the day.
The stock's tape action shows the recent big block trades. One can see the price for the blocks declining from $12.16 a few sessions ago to $9.41. A key bearish trade came in the morning when 20,210 shares crossed the tape at $9.50, down from the prior block at $11.87.
The tape action showed an urgency to sell by institutions.
GUID uses its EnCase platform to provide government, corporate and law enforcement organizations to conduct thorough, network-enabled, and court-validated computer investigations of any kind.
The program can respond to eDiscovery requests, conduct internal investigations, respond to regulatory inquiries or perform data and compliance auditing - all while maintaining the integrity of the data.
Analysts are forecasting a loss of 2 cents a share for the quarter compared with a loss of 3 cents a year ago. Net for the year, though, is projected to rise 47% to 28 cents a share from 19 cents the year before.
GUID's daily chart shows the stock with a gap drop to the downside on big volume. The action of the stock would indicate the news came as a bearish surprise.
Strategy Opinion: TTD is targeting GUID for a drop to 7.40 within the next few months, or sooner. A protective stop buy can be placed near 10.70.
|TTD's Quality Rating of Stock - GUID - 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.”
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(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.)