stocks

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.

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

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.

Bull's Strategy - Just a few breakouts today with the overall quality average. Stock market in a good rally phase within an overall trading range. Bulls should be alert for breakouts with good earnings prospects.

Today's Feature Breakout Stock

Telecommunication Systems Inc. (TSYS) - 9.04, up 0.46 - Breakpoint 8.65

Profits to Jump 43% This Year, TTD Targets 12

TSYS, based in Annapolis, Md., provides wireless network application software and services, as well as communications engineering services. Annual revenues: $180 million. TSYS breaks out from an 8-week, cup-and-handle type-base today. The stock hits a 4-year high. The breakout came in the morning. So far today, TSYS is trading 1.1 million shares, triple its normal daily volume of 358,000 shares.

TTD highlighted TSYS as a breakout at our midsession show on the Web.

The stock moved higher in the morning peaking around 11 a.m. It then gave some ground in the late afternoon. TTD's clip of the tape shows the big block trades for the session.

One can see the block trade in the morning went off at $8.65. The price then worked higher during the day for the blocks. The latest trade for a big block went off at $9.09. The tape action indicates overall demand for the stock by institutions.

TTD's performance chart shows TSYS is one of the best performing stocks in the market. The past 12 months the stock has appreciated about 150%. That compares with a 35% decline in the S&P 500 index. Since last March, TSYS has climbed from $2.90 to 9.

TSYS's software allows wireless carriers and enterprises to provide their customers and employees with real-time wireless access to the Internet, corporate intranets, and e-mail.

The company services include network design, installation and operation, engineering and analysis, and complex program management. TSYS's customers include government agencies and software developers and communications equipment vendors.

TTD's daily chart shows the breakout of TSYS today from a small base of eight weeks. However, it one goes back further the long-term picture shows a breakout from a seven month, cup-and-handle base. The key, though, is the stock's push to a new 52-week high.

The stock's technicals are solidly bullish. The TTD momentum indicator (top of the chart) is modestly bullish.

The accumulation - distribution line (bottom of chart) has broken out to the upside. That is good confirmation that there is good underlying buying in the stock.

This year, analysts predict TSYS' earnings will soar 43% to 50 cents a share from 35 cents a share a year ago. The stock sells with a price-earnings ratio of 18, which is reasonable given the growth rate for the year.

The first quarter will be soft. Analysts look for an 18% drop in net to 9 cents a share from 11 cents a year ago. Earnings will pick up in the second quarter when net is projected to rise 19% to 11 cents a share from 9 cents the year before.

The company reported fourth quarter net last week. The good news: Revenues more than doubled to $79 million from $37 million the year before. The company made bullish comments about this year based on its strong backlog.

Strategy Opinion: TTD is targeting TSYS for a move to 12. A protective stop can be placed near 8. The stock is a low-priced issue. So, it is best suited for aggressive investors. TTD rates TSYS an average intermediate-term play provided earnings remain on course.

Sponsorship: Very Good. One of the largest buyers of the stock recently was 5-star rated TFS Market Neutral Fund which purchased 173,000 shares. The largest fund holder is 3-star rated Perritt Micro Cap Fund with a 1.6% stake. It has held its position steady.

Insider Activity: Slightly Bearish. Insiders did more selling than buying in recent months. They have been exercising options at a low price of a around $1.28 and turning around and selling. Four analysts follow the stock, 3 have a buy, up from 2 three months ago.

Stock Performance Chart for 12 months with Quarterly Earnings Markers.

Timely Breakout Stocks From Tape Action Today

(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

Stocks To “Sell or Short”

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.

Bear Side - Small list of breakouts today but some interesting plays. Bears be selective as market tries to rally across trading range. TTD's short from Friday was Skechers USA Inc. (SKX) - 7.42, off 2.67. Today, SXK declines 0.22 to 7.20. It is working well for bears.

List of Stocks To Sell or Short

(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.)

TTD’s Feature Bear Play

Mercury General Corp. (MRCY) - 34.60, off 6.60

Reports Large Loss, TTD Sees Fall to 25

MRCY, based in Chelmsford, Ma., is an insurance firm. It operates in the property and casualty market, where it focuses on low-cost auto insurance for individuals. Annual revenues: $211 million. MRCY's stock falls sharply today after the company reported a large loss for the fourth quarter. MRCY is trading 1.2 million shares, triple its normal daily volume of 389,000 shares. TTD sees more on the downside.

TTD's clip of the tape shows the big block trades today. One can see how the price for the blocks fell from $37.05 in the morning to $36.48. The steady institutional selling pressure on the stock is bearish. It indicates institutions are fleeing the stock.

Today, the company reported a fourth quarter loss from operations of 48 cents a share compared with a profit of 69 cents a share a year ago.

The company said it was hit by realized investment losses of about $141.6 million. The company has frozen salaries for all employees and has stopped hiring except for certain positions. It is also evaluating other cost reduction measures.

Analysts said the issue was that the company had significant exposure to California basic municipal bonds. Some of those did poorly in the quarter,. The company is not likely to shift its focus from California until it can solve pricing issues in New Jersey, its other biggest market, analyst said.

TTD's daily chart shows MCY gaping in lower on big volume. The stock had been trying to firm and rally. That has failed.

TTD is targeting MCY for a drop to 25 within the next few months or sooner. The stock is a very good looking short for bears.

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.)

TTD Check List	Bullish	Bearish	Neutral
Near 52-week High	YES
Volume Expansion	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	10	2	2

Ticker Tape Digest

Monday - February 9, 2009

Today's Feature Breakout Stock

Telecommunication Systems Inc. (TSYS) - 9.04, up 0.46 - Breakpoint 8.65

Profits to Jump 43% This Year, TTD Targets 12

Timely Breakout Stocks From Tape Action Today