TTD does not publish Friday, We resume Tuesday. Have a nice 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 Trading Strategies Overview and Performance
Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns.
Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit."
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.
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns
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 email@example.com.For service, email Beverly Owen firstname.lastname@example.org. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 15
Overall Quality of Breakouts - BELOW AVERAGE
Stocks Screened - 8,300
Bull side - Breakouts continued at a good pace, but quality is lower. . Stock market edges higher. 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 Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
(Go to Top Performing Breakout Stocks for 2011 - Update February 14)
TTD's Quality Rating of Stock - TYPE - AVERAGE
TYPE, based in Woburn, Mas., provides text imaging solutions. Annual revenues: $102 million. TYPE's stock breaks out with a gap move today after reporting a big earnings upside surprise. So far today, TYPE is trading 487,438 shares, almost five times its normal daily volume of 97,400 shares. The stock is a small cap play and is most suitable for aggressive investors.
TTD highlighted TYPE as a breakout at our midsession show on the Web Thursday.
TYPE's 10-minute chart shows the stock with a gap move higher in the morning on strong volume.
the stock then trended sideways the rest of the day holdings its gain.
TYPE reported net for the fourth quarter jumped to 17 cents a share from 11 cents a year ago.
The 17 cents topped the consensus estimate of 13 cents a share and also the highest estimate of 14 cents a share. TTD has said when a company can top the highest estimate and the stock jumps, the issue has the potential to move higher for the next few weeks. That is because analysts will have too boost year estimates and go back and reevaluate the company.
TYPE's tape action sows the big block trades recently.
One can see a key bullish block crossing in the morning of 4,241 shares (duplicated) at $12.76. That was up sharply from the prior block trade at $11.59.
The price for the blocks worked higher.
TYPE's products and services enable users to develop embedded solutions for print. It also can provide dynamic content for a variety of content. ,
Its technologies and fonts enable the display and printing of digital content. Its software technologies have been deployed across, and embedded in a range of consumer electronics devices, including laser printers, digital copiers, mobile phones, digital televisions, set-top boxes, navigation devices and digital cameras.
The company licenses its text imaging solutions to device makers, independent software vendors and creative and business professionals.
TYPE's 12-month performance chart shows the stock appreciating 30% versus a 20% gain for the S&P 500 index.
TYPE's long-term chart shows the stock coming public in 2007 and trading around $12. The stock climbed to $17.60 that year. However, it was dragged lower during the bear market falling to $1.90. It has since made a remarkable comeback.
TYPE's daily chart shows the stock breaking out from a six-week flat base with a gap move. That is very bullish. The stock did have a breakout from a base back in early December, but then faded.
The stock has been in a nice up trend since October participating in the stock market's up trend.
The stock's TTD momentum indicator (top of chart) is solidly bullish. The accumulation - distribution line (bottom of chart) is in a strong up trend and compliments the stock's price advance.
This year, analysts have been forecasting a 17% increase in TYPE's earnings to 55 cents a share. TTD expects that to be bumped up by the Street.
The stock sells with a price-earnings ratio of 24, which is reasonable.
Net for the upcoming first quarter is expected to rise 8% to 12 cents a share from 11 cents a year ago. TTD believes TYPE has the strength to top that estimates. The company has said it expects net to be 12 to 14 cents a shares.
Strategy Opinion: TYPE's breakout is strong supported by very good earnings. TTD is targeting TYPE for a move to 17 within the next few months, or sooner. A protective stop can be placed near 12 giving it room. TTD rates TYPE a good intermediate-term play with a lot riding on its earnings.
Sponsorship: Excellent. The largest fund holder is 5-star rated Fidelity Small Cap Discovery Fund with a big 7% stake. It was a recent buyer of 503,802 shares. The second largest fund holder is 5-star rated JP Morgan Small Cap Equity Fund with a 3.7% stake.. TYPE has 35 million shares outstanding.
Insider Activity: Neutral. Insiders were buyers using stock options to get in at $2.50. The latest selling was at $12.03. Six analysts follow the stock, and all 6 have a buy, the same as three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Monotype Imaging Holdings Inc. (TYPE)
|TTD Check List||Bullish||Bearish||Neutral|
|Near 52-week High||YES|
|Price Trend - Daily||YES|
|Price Trend - Long Term||YES|
|Price Daily Spread||YES|
|Base - A-D||YES|
|Prior Breakout Success||YES|
Charts of Selected Breakout Stocks
|TTD's Quality Rating of Stock - EMN - AVERAGE|
|TTD's Quality Rating of Stock - FICO - AVERAGE|
|TTD's Quality Rating of Stock - WLK - AVERAGE|
|TTD's Quality Rating of Stock - CYMI - 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 - Only a few breakdown stocks today. Bears remain patient and watchful.
DWA, based in Glendale, Ca., produces animated films. Annual revenues: $703 million. DWA's stock slides below key technical support today. However, the key point is that volume is picking up on the downside. The stock fell sharply three sessions ago with big volume. So far today, DWA is trading 1.4 million shares, double its normal daily volume of 650,000 shares.
DWA's stock moved lower in the morning today with heavy intraday volume. It staged a modest lift and then trended sideways the rest of the day.
TTD's clip of the tape shows the recent big block trades. One can see the price for the blocks falling from $29.10 to as low as $28.
A key bearish trade came in the morning when a block of 27,368 shares (duplicated) crossed the tape at $28.26. That was down sharply from the prior price at $29.10.
The tape action showed strong institutional selling pressure.
DWA produces animated films and characters for the movie, theatrical, home entertainment, television and merchandising market..
The Company’s films are distributed worldwide by Paramount Pictures Corporation. During the year ended December 31, 2009, the Company released 18 animated films including Shrek the Third, Shrek 2 and Madagascar. Its wholly owned subsidiary is DreamWorks Animation Home Entertainment, L.L.C
Net for 2010 is expected to be up only 3% to $1.76 a share from $1.70 a year ago. Net for the upcoming first quarter should decline 10% to 22 cents a share from 24 cents a year ago.
DWA's chart shows the stock sliding from 37 down to 27. The stock tried to rally off a bottoming pattern. However, it failed and is now breaking to the downside.
Strategy Opinion: TTD is targeting DWA for a decline to 23.50. TTD sees the stock as a trading short. A protective stop buy can be laced near 29.50.
|TTD's Quality Rating of Stock - DWA - 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.”
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(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.)