Daily - Go to TTD's Tape of  Stock Charts - Tuesday, February 15

Daily - Bullish Investors  - Go To TTD Pre-Market Opening Breakout Watch  List and Performance -  Tuesday, February 15

Ticker Tape Digest

Tuesday - February 15, 2011

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.

 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.

 1 - TTD's Breakout Stocks - Long - (Intermediate-term long plays)  these 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.

  2 -TTD Quick Trade Stocks - Long - (Short-term long plays 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.

 3 - TTD's Bargain Buy Trades - Long - (Long Term long plays.  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.

  4 - 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  leo@tickertapedigest.com.For service, email Beverly Owen owen@tickertapedigest.com. TTD’s Tel: 1-480-926-1680.   

Breakout Stocks

Total Buy Breakouts so far today - 9

Overall Quality of Breakouts - BELOW AVERAGE

Stocks Screened - 8,300

Bull side - Breakout number drops off and so does quality. Stock market off Tuesday. Bulls be selective as stock market is extended and volume is contracting. It is vulnerable.

 (Put mouse on Dow chart to see Nasdaq chart)

Long Term Environment for bulls:  Neutral

Market (Daily) - NYSE Bearish, Nasdaq Bullish

Market (Weekly) - NYSE Bullish, Nasdaq Bullish

Market  (Monthly) - NYSE Bullish, Nasdaq Bullish 

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action - Tuesday - February 15

(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. They are ranked according to percentage change and classified as leaders or other. (Trading strategy: One should buy breakout stocks at breakpoint by using market order or stop buy)All Timely Breakout Stocks From Tape Action Today )  

(Go to Top Performing Breakout Stocks for 2011 - Update February 14)

Today's Featured TTD Breakout Stock

Jazz Pharmaceuticals Inc. (JAZZ) - 24.17, up 0.98 - Breakpoint 91.43

Hits All-time High, Profits to leap 65% This Year, TTD Targets 30

  JAZZ, based in Palo Alto, Ca.,  is developing drugs to meet needs in neurology and psychiatry. Annual revenues: $128 million. JAZZ's stock breaks out today from a six-week flat base and hits a new all-time high. The stock came public back in 2007 and traded at 15 at that time. So far today, JAZZ is trading 1.5 million shares, double its normal daily volume of 713,000 shares.

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

  JAZZ's 10-minute chart shows the stock pushing sharply higher in the morning. The stock then pulled back below its breakpoint line.

  However, later it regained its upside momentum, broke out again and held its breakout through the afternoon.

  TTD's clip of the tape shows the recent big block trades.

  One can see the price for the blocks working higher from $22.85 to a peak of $24.09 in the morning.

 A key bullish trade on the tape was 12,541 shares (duplicated) that crossed at $23.24. That was up from the prior block trade at $22.50.

  JAZZ markets two products: Xyrem (sodium oxybate) for the treatment of both cataplexy and excessive daytime sleepiness in patients with narcolepsy; and Luvox CR (fluvoxamine maleate) for the treatment of both obsessive compulsive disorder and social anxiety disorder.

  Its marketed products and late-stage product candidate are Xyrem (sodium oxybate) oral solution, Luvox CR (fluvoxamine maleate) Extended-Release Capsules and JZP-6 (sodium oxybate).

  Its other product candidates in clinical development are oral tablet forms of sodium oxybate; JZP-8 (intranasal clonazepam); JZP-4 (elpetrigine), and JZP-7 (ropinirole gel).

  JAZZ's 12-month performance chart shows the stock appreciating 125% versus a 22% gain for the S&P 500 index. JAZZ has been one of the hottest stocks of the past 2 years soaring from 55 cents to a peak of 24.   

  JAZZ's long-term chart shows the stock in a powerful up trend and making new highs. The push to a new high today could well bring in buying on Wednesday from the new high crowd.

  JAZZ's daily chart shows the stock surging from 10 to 24 and then setting up a flat base. Today's breakout looks solid coming with good volume despite a drop in the stock market.

  The stock's TTD momentum indicator is neutral

  The accumulation - distribution line (bottom of chart) is in a strong up trend indicating solid underlying buying and no unusual distribution.

  This year, analysts forecast a 65% jump in net to $2.05 a share from the anticipated $1.25 for 2010. The stock sells with a price-earnings ratio of just 11. TTD sees that as low given the growth rate. That means the stock could have potential to move even higher based on valuation.

 Net for the fourth quarter and year should be reported March 3. The Street looks for year net to come in at $1.25 a share compared with a loss of 23 cents a share a year ago. For the fourth quarter, they look for a 217% surge in net to 54 cents a share from 17 cents a year ago.

 Net for the upcoming first quarter should climb 217% to 38 cents a share from 12 cents a year ago. JAZZ has a tendency to slightly exceed Street estimates. So, there is a chance for a mild upside surprise. The strong technical action of the stock may affirm that.

 Strategy Opinion: JAZZ is in a strong up trend. TTD is targeting the stock for a move to 30. A protective stop can be placed near 22. TTD rates JAZZ a very good intermediate-term play even though it has already moved up sharply.

 Sponsorship: Good. Many top funds holding the stock were recent buyers. The largest fund holder is BlackRock Small Cap Growth Equity Fund with a 3% stake. The 3-star rated fund was a recent buyer of 1.2 million shares. Also, 4-star rated Fidelity Select Health Care Fund was a recent purchaser of 250,000 shares. JAZZ has 39 million shares outstanding.

 Insider Activity: Slightly Bearish. Insiders were sellers late last year. The latest selling was at $18.57. Five analysts follow the stock, 3 have a buy, up from 2 three months ago.

Stock Performance Chart with Quarterly Earnings Markers.

Charts of Selected Breakout Stocks

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.

Shorts from tape action so far today - 4

Stocks Screened - 8,300

Long-Term Environment for bears: Unfavorable.

Bear Side - Only a few breakdown stocks today even as stock market moves lower. Bears be ready to become very aggressive. Market looks toppy.  TTD's short play from Monday was Best Buy Inc. (BBY) - 33.12, down 0.48. today the stock has moved down to $32.88 and is working well for bears.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Capella Education Co. (CPLA) - 52.47, down 10.92

Profit's Disappoint, Plans Cutbacks, TTD Sees Drop to 44

  CPLA, based Minneapolis, is an online postsecondary education services company. Annual revenues: $406 million. CPLA's stock falls sharply today in heavy trading. The fall came when CPLA posted lower than expected earnings and also announced job cutbacks. So far today, CPLA is trading 1.4 million shares, seven times its normal daily volume of 211,000 shares. TTD sees more on the downside.

  CPLA reported net for the fourth quarter of $1.09 a share, up from 88 cents a share. The Street consensus was at $1.11 a share and the highest estimate was at $1.19 a share.

  The company said it is experiencing weaker demand for education, regulatory uncertainty and increased competition. The company said it will make workforce reductions to reduce costs.

  CPLA's stock gapped lower in the morning. It touched a momentary bottom around noon. The stock then tried to rally but the faded back again. It is currently trading near its low for the day.

  TTD's clip of the tape shows the recent big block trades. One can see the price for the blocks hitting a peak of $62.37 on Monday. However, today the price for the blocks tumbled to $52.90. The tape action showed clear institutional selling pressure.

   CPLA offers a variety of doctoral, master’s and bachelor’s programs. It offers 1,050 online courses and 36 academic programs with 124 specializations to 34,000 students.

  This year, analysts have been forecasting a 13% rise in net to $4.12 a share from $3.64 in 2010. TTD sees potential for the 2011 estimate to be cut.

   CPLA's chart shows the stock with several gap drops the past several months. The drop seems to come as a surprise. However, the accumulation - distribution line (bottom of chart) has been bearish.

   Strategy Opinion:  TTD is targeting CPLA for a decline to 44 within the next few months, or sooner. A protective stop buy can be placed near 54.50.

TTD takes no responsibility for trading by those using this information. The stocks presented in our report are those we deem the best looking "Day Trades" for the long side. We take no responsibility for the accuracy of this data, although every effort is made to present the information correctly. Copyright Ticker Tape Digest.

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.)