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.
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)
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance)
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 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 - 21
Overall Quality of Breakouts - ABOVE AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list large with some good looking plays. Bulls can be venturesome. Stock market holds near-term up trend.
(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 Bearish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - CP - ABOVE AVERAGE
CP, based in Calgary, Canada, operates a railway system servicing cities in Canada and the U.S. Annual revenues: $6 billion. CP's stock breaks out today from a 12-week flat base. The move carries CP to a new all-time high. Volume is running at 872,471 shares. Its average daily volume is 831,000 shares.
TTD highlighted CP as a breakout at our midsession video show.
CP's 10-minute chart shows the stock pushing higher in the morning and getting over its breakpoint line.
Railroad stocks were strong Wednesday. Norfolk and Southern Corp. (NSC) broke out too.
CP's 10-minute chart shows the stock heading north in the morning and clearing its base.
The stock paused around mid day. Then late in the afternoon it moved higher again.
CP's tape action shows the recent big block trades.
One can see the price for the blocks climbing from $153.96 a few day's ago to as high as $157.13.
A key bullish trade came in the morning when a block of 6,311 shares crossed the tape at $155.86.
That was up from the prior block at 154.65.
CP has 14,700-mile network serving the principal business centres of Canada, from Montreal to Vancouver, British Columbia and the United States Midwest and Northeast regions.
The company's network is consisted of four primary corridors: Western, Eastern, Central and the Northeast United States.
The Western Corridor links Vancouver with Thunder Bay, Ontario, which is the western Canadian terminus of its Eastern corridor.
The Western Corridor provides access to the Port of Thunder Bay, Canada’s Great Lakes bulk terminal.
Its business includes bulk, which include grain, coal, and sulphur and fertilizer; merchandise, which include forest products, industrial and consumer products, and automotive; and intermodal.
CP's 12-month performance chart shows the stock appreciating 30% vs. a 20% gain for the S&P 500 index.
CP's long-term chart shows the stock climbing from 10 back in 2000 to a peak of 90 in 2007.
The stock then took a dive during the bear market falling to 25 in early 2009. Since then the stock has been riding the rails higher.. The push to a new high could draw in more buying Wednesday.
TTD's daily chart shows the stock climbing from 120 back in September to 150 by October. The stock put down a flat base with some heavy accumulation in late January.
The breakout today is modest with average volume. It will be important for CP to show a good follow through.
However, the stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) is in a solid up trend and broke out before the price of the stock. That indicates good underlying buying.
TTD sees CP's earnings outlook being a key driver to send the stock higher.
This year, analysts project a 35% jump in net to $7.78 a share from the $5.77 a year ago.
The stock sells with a price-earnings ratio of 20.. TTD sees that as low making the stock attractive to value-growth investors.
Looking ahead to 2015, the Street projects net will climb 22% to $9.50 a share from the anticipated $7.78 a share this year.
Quarterly earnings growth should continue to be strong and show a modest acceleration in growth. That is bullish.
Net for the first quarter should climb 34% to $1.62 a share from $1.21 a year ago.
For the second quarter, net should jump 38% to $1.91 a share from the $1.39 the year before.
Strategy Opinion: TTD is targeting CP for a trip to 185 off this breakout. A protective stop can be placed near 150. It will be important for CP to show a follow through move on the breakout.
TTD rates CP a good intermediate-term play due to its solid earnings outlook.
Sponsorship: Excellent. The largest fund holder is 4-star rated Fidelity Contrafund with a 3.8% stake. It has held its position steady.
The 4-star rated Harbor Capital Appreciation Funds was a recent purchaser of 220,713 shares. It has a 1.0% stake.
CP has 175.4 million shares outstanding. Institutions hold 79% of the stock.
Insider Activity: Not available. Currently, 15 analysts follow the stock, 9 have a buy, up from 8 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Canadian Pacific Railway Ltd. - (CP)
|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 - BOFI - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - GOMO - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - URI - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - PNR - 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 rally. Bears remain conservative.
ATLS, based in Pittsburgh, Pa., operates natural gas gathering, processing and treating services. Annual revenues: $2.3 billion. ATLS's stock falls sharply today after the company reported a large loss for the third quarter. So far today, ATLS is trading a heavy 1.7 million shares, five times its average daily volume of 260,000 shares.
ATLS reported a fourth quarter loss of 94 cents a share compared with a loss of 22 cents a year before.
The stock fell steadily in the morning and then cut below its support line.
ATLS then trended sideways through the mid-part of the day. Then late in the afternoon, it resumed its decline and closed near its low for the session of 43.66.
ATLS's tape action shows the recent block trades.
One can see the price for the blocks declining from $47.14 to as low as $43.79.
A key bearish trade came in the morning when a block of 20,000 shares crossed the tape at $45.10. That was down from the prior block at $46.45.
ATLS operates natural gas processing plants and natural gas gathering pipelines.
The company's business is conducted in the midstream segment of the natural gas industry through two reportable segments: Mid-Continent and Appalachia.
The Mid-Continent segment operates natural gas processing plants and natural gas gathering systems which gathers gas from wells and central delivery points and delivers the natural gas to APL's processing and treating plants, as well as third-party pipelines.
The Appalachia segment operates natural gas gathering systems in the Appalachian Basin in Pennsylvania.
Analysts are looking for an improvement in results in 2014.
ATLS's chart shows the stock declining from 55 to around 45. The stock trended sideways the past several weeks in an attempt to form a bottom. However, today it falls sharply undercutting key technical support.
Strategy Opinion: TTD is targeting ATLS for a decline to 38 within the next few months, or sooner. A protective stop buy can be placed near 45.
|TTD's Quality Rating of Stock - ATLS - 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.)