Daily - Go to TTD's Tape of Stock Charts - Thursday, February 16 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, February 13 |
Go to Video Show - "How to Make Money With Breakout Stocks" |
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TTD does not publish Friday. We resume Tuesday. Have a good holiday
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. 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 - 11
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Good number of breakouts today. Stock market drives sharply higher Thursday. Bulls can be venturesome. Stock market holds in up trend with momentum still bullish.
(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
TTD's Quality Rating of Stock - CELG - ABOVE AVERAGE |
CELG, based in Summit, N.J., produces drugs to treat cancer and immune-inflammatory related diseases. Annual revenues: $4.8 billion. CELG's stock breaks out today from a 5-week flat base. The move carries the stock closer to a new all-time high. CELG is trading 2.6 million shares. Its average daily volume is 3.3 million shares.
TTD highlighted CELG as a breakout at our midsession video show on the Web Thursday.
CELG's 10-minute chart shows the stock pushing over its breakpoint on Wednesday, but then fading back.
Thursday, the stock breaks out in the morning over its breakpoint and holds.
The stock is trading at 75.51. It just needs to get over 77.39 to make a new all-time high. If it can do that it could attract more buying.
CELG's tape action shows the recent big block trades.
One can see the price for the blocks climbing from $74.60 to a peak of $75.51.
A key bullish trade came in the morning when a block of 11,700 shares crossed the tape at $75.22. That was up from the prior block at $74.54. The tape showed good institutional buying interest around midday.
CELG develops orally administered, small molecule drugs for the treatment of cancer and immunological diseases.
Its primary commercial-stage products include Revlimid, Vidaza, Thalomid and Abraxande. It also has licensing deals with Novartis. CELG has also been active in making acquisitions.
CELG's 12-month performance chart shows the stock appreciating 40% the past 12-months compared with a 3% gain for the stock market. The stock has been in a long-term consolidation pattern. It now looks like it is emerging into an overall up trend that could turn into a long-term up trend due to its strong earnings outlook. .
CELG's long-term chart shows the stock soaring from 5 back in 2003 to a peak of 77 in 2008. The stock then fell back to 39 during the beat market that ended in 2008. It has since worked its way back but its been gradual.
CELG's daily chart shows the stock climbing from 52 to a peak of 67 in October. The stock then pulled back and formed a cup-and-handle base. It broke out and moved higher.
Next, and most recently it formed a flat base. Today, CELG clears the base. It attempted a breakout on Wednesday with volume but faded a bit.
CELG's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) is in an up trend and is showing strong buying. That bodes well for a follow through of Thursday's breakout.
For 2012, analysts forecast a 29% jump in CELG's earnings to $4.41 a share from $3.43 a year ago. The stock sells with a price-earnings ratio of 17. TTD sees that as low making the stock a good value-growth play.
Looking out to 2013, Wall Street projects an 18% gain in net to $5.18 a share from the anticipated $4.41 this year.
Net for the upcoming first quarter should soar 45% to $1.03 a share from 71 cents a year ago. The highest estimate on the Street is at $1.12 a share. TTD sees chances for an upside surprise. In the prior quarter, CELG topped the consensus estimate by 2 cents a share and the quarter before that by 11 cents a share.
CELG has been aggressive in making acquisitions and deals to expand operations.
Strategy Opinion: TTD is targeting CELG for a move to 90. A protective stop can be placed near 70 giving the stock room.
TTD rates CELG a good intermediate-term play. The stock is part of TTD's long-term portfolio of stocks.
Sponsorship: Excellent. A key fund buyer recently was 4-star rated Fidelity Contrafund which purchased 571,300 shares. Also, 4-star rated Harbor Capital Appreciation Fund was a recent buyer of 162,946 shares. CELG has 443.9 million shares outstanding. Institutions hold 84% of the stock.
Insider Activity: Bullish. Insiders have been selective buyers of the stock in recent months. Their latest buys have come around $61. Currently, 27 analysts follow the stock, 19 have a buy, down from 21 three months ago.
Stock Performance Chart with Quarterly Earnings Markers
Insider Activity - Buying in Green - Selling in Red
TTD's Breakout Profile
Rating Celgene Corp. - (CELG) |
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 | 13 | 0 | 1 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - CRMT - AVERAGE |
TTD's Quality Rating of Stock - EAT - AVERAGE |
TTD's Quality Rating of Stock - MCRS - AVERAGE |
TTD's Quality Rating of Stock -XLNX - 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 - 1
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Only one short play as stock market rallies strongly and broadly. Bears remain patient and watchful.
DGIT, based in Irving, Tex., provides digital advertising services. Annual revenues: $292 million. DGIT's stock falls sharply today after company reported disappointing earnings for the fourth quarter. The stock falls to a five-year low. So far today, DGIT is trading a heavy 2.6 million shares, eight times its normal daily volume of 340,000 shares. TTD sees more on the downside.
TTD highlighted DGIT as a short at our midsession video show on the Web Thursday.
The company reported net for the fourth quarter declined to 16 cents a share from 51 cents a year ago. The stock took the news bearishly.
DGIT's fell in the morning. It hit an intrdaday low of 10.88. The stock then trended sideways during the afternoon.
DGIT's tape action shows the recent big block trades. One can see a bearish block crossing in the morning when 12,200 shares were traded at $11.77. That was down sharply form $14 on the prior block trade.
DGIT provides digital technology services that enable the electronic delivery of advertisements, syndicated programs, and video news releases to traditional broadcasters, online publishers and other media outlets.
The Company also provides digital advertising campaign management solutions to media agencies and advertisers.
Analysts forecast a 34% drop in earnings for 2012 to $1.18 a share from $1.80 a year before. Net for the first quarter is expected to plunge 86%.
DGIT's chart shows the stock falling from 33 to 11. The stock then trended sideways and most recently tried to rally. However, today's gap drop sends the stock falling below key support.
Strategy Opinion: TTD is targeting DGIT for a decline to 8.30 within the next few months or sooner. A protective stop buy can be placed near 11.70.
TTD's Quality Rating of Stock -DGIT - 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.)