Daily - Go to TTD's Tape of Stock Charts - Tuesday, February 17, 2015 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Tuesday, February 17, 2015 |
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.
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 high 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 - 10
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout showing some Chinese leaders breaking out. Stock market shows little change for the day. Bulls be selective.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Stock Market Momentum
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 - CBPO - ABOVE AVERAGE |
CBPO, based in China, produces medical products to treat blood. Annual revenues: $228 million. CBPO's stock breaks out Tuesday from a 16-week flat base. The move carries the stock to a new all-time high. So far today, CBPO is trading 165,376 shares. Its average daily volume is 111,000 shares.
CBPO was highlighted by TTD earlier this year as a potential breakout.
CBPO's stock rose sharply in the morning and cleared its breakpoint line. The stock then trended sideways into the close. There was some intraday profit taking late in the session.
The stock's push higher came when CBPO said it would release its fourth quarter net on March 4.
Selected Chinese stocks were strong for the day.
CBPO has a beta of 1.66 versus 1.00 for the stock market. So, the stock is more volatile than the market.
CBPO's tape action shows the recent block trades. They are small because the stock is thinly traded.
One can see the price for the blocks climbing from $69 in the prior session to as high as $73.78.
A key bullish trade came when a block of 1,445 shares (duplicated) crossed the tape at $69.38.
That was up from the prior block trade at $69 on 1,238 shares.
CBPO is engaged in the research and sales of plasma-based medical products to hospitals and other health care facilities in China.
Its subsidiary, Shandong Taibang Biological Products Co. Ltd., operates from its manufacturing facility in Taian City, Shandong Province.
The company's principal products include its approved human albumin and immunoglobulin products.
These products are used to increase blood volume and its immunoglobulin products.
CBPO came public in 2006 and traded at $3. The stock fell to $1.05 in 2008 due to the bear market.
However, it ran up to $18.73 in early 2011. Then it pulled back and consolidated for the next year and half.
The stock broke out to the upside in late 2012 around 10.
It has soared to an all-time high of 74.82 Tuesday. The push to a new high could draw in more buying.
CBPO's daily chart shows the stock advancing from around 50 back in October to around 70 by November.
The stock then formed a tight flat base above its rising 50-day moving average line. The base showed a good contraction in volume in December.
The past few weeks volume has been picking up indicating subtle accumulation.
The breakout looks solid with a good widening of the daily spread. (range from high to low)
The TTD momentum indicator (top of chart) is solidly bullish.
The accumulation - distribution line (bottom of chart) is trending higher. That is bullish.
Analysts are forecasting a 34% jump in CBPO's earnings for 2014. They look for $2.62 a share, up from $1.96 the year before. They have been lifting their estimate modestly.
The stock sells with a price-earnings ratio of 27 based on 2014 net. TTD sees that as reasonable.
Looking ahead to 2015, the Street looks for a 27% jump in net to $3.32 a share from the anticipated $2.62 in 2014.
CBPO's earnings for the fourth quarter should jump 34% to 43 cents a share from 32 cents a year before.
Looking ahead to the first quarter of 2015, they predict a 26% increase in net to 88 cents a share from 70 cents in the prior year.
Strategy Opinion: TTD is targeting CBPO for a move to 90. A protective stop can be placed near 69.
TTD rates CBPO a good intermediate-term play provided earnings meet expectations. There is also a chance for a stock split.
Sponsorship: Average. The largest fund buyer recently was 3-star rated Touchstone Small Cap Growth Fund which purchased 17,311 shares. It has a 0.18% stake.
CBPO as 24.7 million shares outstanding. Institutions hold 50% of the stock and insiders 22%.
Insider Activity: Neutral. Insiders were light sellers around $25 back in 2014. Overall, they have not been that active.
Currently, 4 analysts follow the stock and all have a buy, up from 3 buys three months ago. CBPO has a book value of $7.88.
Stock Performance Chart with Quarterly Earnings Markers.
TTD's Breakout Profile
Rating China Biologic Products Inc. - (CBPO) |
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 - VIPS - ABOVE AVERAGE |
TTD's Quality Rating of Stock - LMNS - ABOVE AVERAGE |
TTD's Quality Rating of Stock - MAR - AVERAGE |
TTD's Quality Rating of Stock - BC - 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: Neutral.
Bear Side - Small list of shorts today. Stock market continues to hold long-term up trend. Dow in a trading range, Nasdaq has moved above it. Bears remain conservative.
HLX, based in Houston, provides services for offshore oil drilling. Annual revenues: $1.1 billion. HLX's stock falls sharply Tuesday after the company reported a sharp drop in quarterly earnings. that disappointed the Street. So far today, HLX is trading a heavy 5.7 million shares, almost four times its average daily volume of 1.5 million shares. TTD sees more on the downside.
TTD highlighted HLX as a short at our midsession video show on the Web Tuesday.
HLX reported net for the fourth quarter fell to 8 cents a share from 35 cents a year ago.
The Street was looking for 24 cents a share with the lowest estimate being at 16 cents a share. So, results were very bearish.
HLX's stock gapped lower in the morning and fell to an intraday low of 15.51. The stock then lifted slightly to cut into its deficit.
HLX's tape action shows the recent block trades.
One can see the price for the blocks falling from $19.09 to as low as $15.57.
A key bearish trade came in the morning when a block of 80,147 shares crossed the tape at $17.45. That was down from the prior block trade at $19.08 on 42,034 shares.
HLX provides special services to the offshore energy industry, primarily in the Gulf of Mexico, North Sea, the Asia Pacific, and West Africa regions.
The company operates through Well Intervention, Robotics, and Production Facilities segments.
It engineers, manages, and conducts well construction, intervention, and asset retirement operations in water depths ranging from 200 to 10,000 feet.
The firm operates remotely operated vehicles, trenchers, and ROVDrills for offshore construction, maintenance, and well intervention services.
The company offers production services, such as inspection, repair, and maintenance of production structures, trees, jumpers, risers, pipelines, and subsea equipment.
For 2015, analysts have been forecasting a 16% decline in net. Profits for the first quarter are expected to fall 27%.
HLX's daily chart shows the stock falling from 27 in November down to 17 by January. Today, The stock falls again and undercuts near-term support with a big expansion in volume. The stock's TTD momentum indicator (top of chart) is now bearish.
Strategy Opinion: TTD is targeting HLX for a decline to 13 within the next few months, or sooner. A protective stop buy can be placed near 17.70.
TTD's Quality Rating of Stock - HLX - 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: Beverly 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.)