Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Thursday, February 12
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Thursday, February 12 |
| Go to Video Show - "How to Make Money With Breakout Stocks" |
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Go to Video Show - "How to Make Money With Breakout Stocks" |
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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 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 today - 0
Stocks Screened - 8,200
Bull's Strategy - No breakouts today as stock maket acts weak with the Dow Industrials violating key support in the morning, but rallying in the last hour. Bulls remain cautious and patient.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Unfavorable
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) -NYSE Bearish, Nasdaq Bearish
Market (Monthly) NYSE Bearish, Nasdaq Bearish
(No Breakouts Today. So, TTD highlights a stock nearing its breakpoint.)
| TTD's Quality Rating of Potential Breakout Stock - EBS - ABOVE AVERAGE |
EBS, based in Gaithersburg, Md., develops immune-related products, consisting of vaccines and therapeutics that assist the body’s immune system to prevent or treat disease. Annual revenues: $232 million. EBS is one of the strongest stocks in the market the past 12 months. (see TTD's performance chart). The stock is now in a seven-week flat base. Today, it acted strong moving higher despite a drop in the stock market. TTD sees the stock in a good spot to breakout. One can set a stop buy at 27.30 to catch the breakout. 
So far today, EBS is trading 581,789 shares. Its average daily volume is 678,000 shares.
TTD's clip of the tape shows the recent big block trades. A key trade came around midday on Thursday when a big block of 58,000 shares crossed the tape at $24.55. Looking at the sequence prices of the blocks, that was a big jump in price.
TTD sees the tape action indicating good institutional accumulation as the stock bases.
EBS’s marketed product, BioThrax® (Anthrax Vaccine Adsorbed), is the only vaccine approved by the U.S. Food and Drug Administration for the prevention of anthrax infection.
The company's development pipeline includes programs focused on anthrax, botulism, typhoid, tuberculosis, hepatitis B and chlamydia.
Obviously, EBS could well be a big play if there is any kind of bio-attack by terrorists. One should keep the stock in mind.
TTD's performance chart shows EBS' stock has appreciated a sensational 210% the past 12 months. That is much better than the 38% drop in the S&P 500 index.
TTD's long-term chart shows EBS' stock soaring from 5 late last year to 24. It remains in a strong up trend long-term.
TTD's daily chart shows the current basing pattern. The stock peaked near 27 in December. It has since settled back.into a flat base. The stock's push higher today could mean the formation of a cup-and-handle base, or a push out of the base. It remains to be seen.
What is impressive is that EBS' technicals are very bullish. The TTD mommentum indicator (top of the chart) is strongly bullish.
The accumulation - distribution line (bottom of the chart) surprisingly did not give any ground when the stock pulled back in January. That says that buyers are still dominating.
EBS will report year end results on March 5, Thursday. The Street expects net for the year to be down 9% to 70 cents a share from 77 cents a year ago.
TTD believes that number has been discounted by the market already.
The key will be the foreast for 2009.
Currently, analysts are forecasting a big 61% jump in profits for 2009 to $1.13 a share from 70 cents a year ago. So, the stock sells with a price-earnings rato of just 22 based on 2009 net. TTD sees that as low and attractive for value-growth investors.
Profits for the first quarter this year should increase 23% to 30 cents a share from 24 cents a year ago. The company made a statement on Jan. 9 that some of its revenues from biothrax will show up in the first quarter instead of the fourth quarter of 2008. This year, it expectws 25% to 30% growing in annual revenues.
Strategy Opinion: EBS is a leader. TTD suggests a stop buy at 27.20 to enter. If a breakout takes place, we look for the stock to advance to 34. A protective stop can be placed near 25. TTD rates EBS a very good intermediate-term play if earnings remain on course.
Sponsorship: Good. A key fund holder is 5-star rated TFS Market Neutral Fund with a 0.32% stake. It was a recent buyer of 23,000 shares. The largest fund holder is 2-star rated Vanguard Strategic Equity Fund with a 1% stake. It was a recent buyer of 19,000 shares.
Insider Activity: Neutral. Insides have been buyers of the stock around $22. They turned around and sold. Just one analyst follows the stock and is neutral.
Stock Performance Chart for 12 months with Quarterly Earnings Markers.
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TTD's Profile Rating Emergent BioSolutions Inc. (EBS) |
| 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 | 11 | 0 | 3 |
(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.
None
Charts of Breakout Stocks
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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 - 14
Stocks Screened - 8,200
Long-Term Environment for bears: Favorable.
Bear Side - Large number of breakdown stocks today. Bears be venturesome as market is vulnerable to the downside. TTD's short from Wednesday, Great Plains Energy Inc. (GXP) - 15.17, off 4.38, is down today. It is off 0.31 to 15.08
(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.)
GLT, based in York, Pa., produces engineered products, fiber and overlay papers, and printing and converting papers. Annual revenues: $1.3 billion. GLT's stock fell sharply today after the company reported a big drop in quarterly earnings. So far today, GLT's volume is running at 368,270 shares. Its average daily volume is 266,000 shares. TTD sees more on the downside.
TTD's clip of the tape shows the big block trades for the past two sessions. One can see how the price for the blocks fell from $8.19 to $7.51. The tape action shows clear institutional selling pressure.
GLT reported fourth quarter earnings dropped to 30 cents a share from $1.12 a share a year ago. The Street was looking for earnings of 33 cents a share. So, results were a disappointment.
This year, analysts predict GLT's profits will fall 40% to 65 cents a share.
GLT's engineered products include specialty materials used in signage, labels, tickets, and cards. Its fiber and overlay papers are primarily used in coffee filters and tea bags. Its printing and converting papers are used in envelopes and books.
TTD's daily chart shows the stock in a recent drop from 16 to 8. It tried to form a bottom. However, today's sharp drop with a widening of the spread is very bearish.
TTD is targeting GLT for a decline to 5 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.)
