Daily - Go to TTD's Tape of Stock Charts - Wednesday, February 15
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Daily - Go to TTD's Tape of Stock Charts - Wednesday, February 15 |
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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, February 13 |
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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 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.
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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. Trading Strategies Bullish 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) Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance) |
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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 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 - 4
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Small number of breakouts today. Stock market sells off sharply. Bulls be watchful now as stock market is stretched to the upside. Momentum appears to be weakening.
(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
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TTD's Quality Rating of Stock - MELI - ABOVE AVERAGE |
MELI, based in Buenos Aires, provides e-commerce services in South America. Annual revenues: $274 million. MELI's stock breaks out today from an 11-week, cup-and-handle base. The move carries the stock to a new high, which is bullish. So far today, MELI is trading a heavy 1.1 million shares, almost triple its normal daily volume of 439,000 shares. 
MELI's stock pushed higher around the middle of the morning and it cleared its base with strong intraday volume. The stock hit a peak of 100.43.
The stock then backed off, rallied and then trended sideways in the afternoon.
MELI said it will make a presentation at the Morgan Stanley Technology, Media and Telecom Conference on February 29.
MELI is a leading stock that has performed well since coming public in 2007.
MELI's tape action shows the recent block trades.
One can see the price for the blocks climbing from $92.38 to a peak of 99.24. A key bullish trade came in the morning when a block of 8,626 shares (duplicated) crossed the tape at 96.80. That was up from the prior block trade at $95.23.
MELI runs the largest online trading platform in Latin America.
The company provides e-commerce services in Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru, Uruguay and Venezuela.
The company recently launched online trading platforms in Costa Rica, the Dominican Republic and Panama.
The company is in a market with over 55 million people and the region has one of the world's fastest-growing Internet penetration rates.
MELI's 12-month performance chart shows the stock appreciating 38% versus a 2% gain for the S&P 500 index. The red bars show insider selling and it has been heavy at times.
MELI's long-term chart shows the stock trading around 30 when it came public in 2007. The stock climbed to a peak of 80 in 2007. However, it fell during the bear market. However, it has since made a strong come back making a 10-fold move.
MELI's daily chart shows a classic cup-and-handle base set up and a breakout. The base was formed after the stock rallied from 50 to 96. The basing work was done above a rising 50-day moving average line, which is bullish. .
The spread widens today with volume expanding - all bullish.
The TTD momentum indicator (top of chart) is bullish.
The accumulation -distribution line (bottom of chart) is trending higher and compliments the pattern of the price in a bullish way.
Analysts expect MELI to report a 38% gain in earnings for 2011 to $1.76 a share from $1.27 a year ago.
Net for the fourth quarter should climb 41% to 51 cents a share from 36 cents the year before.
Looking out to 2012, profits are projected to climb 32% to $2.32 a share from the anticipated $1.76 a share expected for 2011. The stock sells with a price-earnings ratio of 42 based on 2012 net. That is reasonable.
Net for the first quarter of this year is expected to jump 47%. That would be a modest acceleration in earnings growth. Net is expected to be 47 cents a share, up from 32 cents the year before. 
Strategy Opinion: MELI's breakout looks solid. TTD is targeting the stock for a move to 118. A protective stop can be placed near 94.
TTD rates MELI an excellent intermediate-term play provided earnings remain on course.
Sponsorship: Excellent. The largest fund holder is Fidelity Contrafund with a 3.5% stake. The 4-star rated fund was a recent buyer of 78,700 shares. Also, 5-star rated Morgan Stanley Inst. Mid Cap Growth Fund was a recent purchaser of 703,252 shares. MELI has 544.1 million shares outstanding. Institutions hold 73% of the stock.
Insider Activity: Bearish. Insiders were heavy and consistent sellers last year. The most recent sellers were around $85. Right now, 8 analysts follow the stock, 6 have a buy, the same as three months ago.
Stock Performance Chart with Quarterly Earnings Markers
Insider Activity - Buying in Green - Selling in Red
| TTD's Breakout Profile
Rating Mercadolibre Inc. (MELI) |
| TTD Check List | Bullish | Bearish | Neutral |
| Near 52-week High | YES | ||
| Volume | 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 | 14 | 0 | 0 |
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - VRSK - AVERAGE |
| TTD's Quality Rating of Stock - EGY - AVERAGE |
| TTD's Quality Rating of Stock - UNH - 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 - 3
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small number of breakdown stocks today. Stock market weakening now. Bears be alert.
DGI, based in Longmont, Co., produces commercial high-resolution earth imagery products and services. Annual revenues: $323 million. DGI's stock, an IPO from 2009, falls sharply today with heavy volume. The decline sets off a TTD short play. There was no news. The company will report earnings on February 28. The Street has been forecasting higher net. So far today, DGI is trading a heavy 2.7 million shares, 13 times its normal daily volume of 226,000 shares. TTD sees more on the downside. 
DGI's stock fell sharply in the morning and hit an intraday low of 13.78. It then staged a rally to regain some of its lost ground.
TTD's clip of the tape shows the recent big block trades.
One can see heavy selling pressure coming in the morning. A key bearish trade came when a block of 4,000 shares crossed the tape at $15.32. That was down from the prior block at $17.27.
Analysts are forecasting DGI to post a 300% gain in fourth quarter net to 12 cents a share compared with 3 cents a year ago. For the year 2011, net should come in at 12 cents a share, down from 13 cents the year before. This year, the Street is projecting a big 514% surge in net to 75 cents a share.
The tape action would indicate that some bearish news should be coming.
The company's products include DigitalGlobe System, QuickBird satellite, ImageAtlas; and GlobeXplorer. DigitalGlobe System offers collection and archival of geospatial information data and QuickBird satellite provides commercial resolution imaging systems.
DigitalGlobe operates a constellation of high resolution earth imaging satellites, possesses an imagery network and offers geoinformation products
DGI's daily chart shows the stock declining from 26 to 16. The stock then trended sideways trying to form a bottom. However, today, it spikes lower on big volume. The stock's technical gave no sign of coming weakness.
Strategy Opinion: TTD is targeting DGI for a decline to 12.50 within the next few months, or sooner. A protective stop buy can be placed at 16.30.
| TTD's Quality Rating of Stock -DGI - 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.”
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.)
