Go to TTD's Stock Market Show for February 19 - Friday - Breakout stocks and key stock - Intuitive Surgical Inc. (ISRG)) - (14 minutes)
Go to TTD Stock Market Shows for Latest Week:
Monday - Featue stock - Cardtronics Inc. (CATM) - 12 minutes)
Tuesday- Feature Stock - Tempur Pedic Intl. (TPX) - (12 -minutes)
Wednesday- Feature stock - Capella Education (CPLA) - (13 minutes)
Thursday- Feature on Priceline.com Inc. (PCLN) - (15 minutes)
Friday -Feature Stock - Intuitive Surgical Inc. (ISRG) - ( 14 - minutes)
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" (swing trades). Ideally suited for entry into stocks on pullbacks within overall up trend. Good for trading range markets
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns
Conservative Bearish Investors (swing traders). "Bargain Bearish Plays" to Sell Short. Ideally suited for trading range markets with overall market down trend.
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 These are for conservative bullish Investors The strategy is called swing trading. These long buys are ideally suited for entry into stocks on pull backs within overall up trend. They are good for trading range markets. These stocks can give a good return in a week or two. They can also explode into a breakout and a powerful advance.
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 Bearish bargain play stocks to sell short. These issues are usually in down trends and are poised to rollover after a minor rally. They often can provide a conservative bear with a good entry point.
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 firstname.lastname@example.org.For service, email Beverly Owen email@example.com. TTD’s Tel: 1-480-926-1680.
Ticker Tape Digest's Midsession Stock Market Video Show
(Posted 12:30 to 1 p.m. NYSE Time)
Go to Shows for Latest Week: Monday
Stocks Screened - 8,200
Bull side - Breakout shows some good plays. Big aerospace stocks breaking out. Bulls can be venturesome, but continue to watch all stops. The stock market continues to rally across a potential trading range.
(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 Bearish, Nasdaq Bearish
TTD's Quality Rating of Stock - WBMD - AVERAGE
WBMD, based in New York, provides health information services to consumers, physicians and healthcare professionals through its public and private online portals, and health-focused publications. Annual revenues: $412 million. WBMD's stock gaps higher and out of a six-week flat base today. The drive for the move was a report of better than expected earnings for the fourth quarter. So far today, WBMD is trading a hefty 2.6 million shares, 13 times its normal daily volume of 212,000 shares.
TTD highlighted WBMD as a breakout at our midsession show on the Web Friday.
WBMD's 5-minute chart shows the stock driving higher in the morning to clear its breakpoint line at 40.39.
The stock then sagged back a bit but then rallied again in the late morning. The breakout was very impressive.
The trigger: WBMD reported fourth quarter net from operations hit 92 cents a share, up sharply from 8 cents a share a year ago. That was well above Street expectations. The stock picked up a big buy recommendation from Citigroup. WBMD also reported revenues for the year of $138 million, which topped the $135 expected by the Street.
WBMD plans to make a presentation at the Goldman Sachs Technology Conference on Wednesday, Feb. 24 in New York.
WBMD's tape action showed some key accumulation before the earnings announcement.
One can see on Nov. 18, Thursday, a big block of 29,200 shares crossed the tape at $39.62. That was up sharply from the prior block trade that went off at $39.17. The tape action indicated aggressive institutional buying prior to the earnings.
WBMD Health Network includes www.WebMD.com, its primary public portal for consumers, and www.Medscape.com, its primary public portal for physicians and other healthcare professionals.
The company provides branded health and wellness content, tools and services. The Company operates in two segments: Online Services and Publishing.
WBMD's 12-month performance chart shows the stock appreciating 110% versus a 40% gain for the S&P 500 index. It is a leader among the internet related plays.
WBMD's long-term chart shows the stock coming public in 2005 and trading around 24. It climbed to a peak of 63 by late 2007, just prior to the onset of the bear market. During the bear market it was pulled down to 13. It has since rallied strongly and is now 41.
WBMD's daily chart shows the recent advance from 33 to 39. The stock then put down a small flat base. Notice that the volume for the base showed a good contraction just prior to today's breakout. That is bullish showing that profit taking from the prior run up was probably exhausted.
The gap breakout today is bullish coming with big volume.
The stock's TTD momentum indicator (top of chart) is bullish.
The accumulation - distribution line (bottom of chart) has hit a new peak. it is confirming the breakout.
The company reported 2009 net increased to $1.39 a share compared with 11 cents a year ago.
This year, analysts have been forecasting a 76% surge in WBMD's earnings. Looking out to 2011, they see net rising another 52%. So, the Street is expecting a big improvement in profits the next two years.
The company is expected to show 20% growth in revenues.
Strategy Opinion: WBMD's breakout today is impressive technically. TTD is targeting the stock for a move to 50 within the next few months, or sooner. A protective stop can be placed near 38. TTD rates WBMD a good intermediate-term play.
Sponsorship: Very Good. The largest fund holder is 4-star rated Fidelity VIP Contrafund with a 3% stake. It was a recent seller of 226,000 shares. A key buyer recently was 4-star rated Vanguard Explorer Fund which purchased 504,891 shares. WBMD has 57.9 million shares outstanding.
Insider Activity: Neutral. Insiders were recent buyers using stock options. They bought at $27. The have done much selling lately. Right now, 10 analysts follow the stock, 6 have a buy, up from 5 three months ago.
Stock Performance Chart for 12 months with Quarterly Earnings Markers.
TTD's Breakout Profile Rating
WebMD Health Corp. - (WBMD)
|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|
(The “breakout List” gives all stocks breaking out of a base of five weeks or more. These stocks have a good chance to trend higher. However, a stop should be used to avoid those that do not work. They are ranked according to percentage change and classified as leaders or other. (Trading strategy: One should buy breakout stocks at breakpoint by using market order or stop buy)
Charts of Selected Breakout Stocks
|TTD's Quality Rating of Stock - ISRG - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - SAPE - AVERAGE|
|TTD's Quality Rating of Stock - XLNX - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - BA - AVERAGE|
CNK, based in Plano, Tex., operates movie theaters. Annual revenues: $1.8 billion. CNK's stock is in a seven-week flat base and close to breaking out to the upside. CNK will soon report earnings (on Thursday, February 25). TTD is anticipating strong results. We see that development as the possible catalyst to drive the stock out from its base. TTD suggests accumulation.
CNK's stock is up slightly so far today. Volume is running at a light 560,000 shares. Its average daily volume is 1.2 million shares.
CNK's tape action is bullish. A look at CNK's recent big block trades shows the stock climbing from $15.21 to a $15.39. A key trade was a big block of 16,4000 shares that crossed at $15.26. That was up sharply from the prior block trade at $15.13.
TTD sees that as subtle institutional accumulation prior to the earnings report.
CNK runs theatres in the United States, Brazil and Colombia. It operates 429 theatres and 4,783 screens in 38 states, one Canadian province and 12 Latin American countries.
Its theatres in the United States are primarily in mid-sized United States markets, including suburbs of metropolitan areas. During 2008, it acquired two theatres with 28 screens, built 10 theatres with 128 screens and closed six theatres with 68 screens.
CNK's long-term chart shows the stock coming public and trading around 20 in 2007. The stock was pulled lower in the bear market touching 7. It has since rallied strongly doubling the past 12 months. The stock is now trending higher. There is key long-term overhead resistance around 15 A push through that area would be very bullish.
CNK's daily chart shows the stock rallying from 9 to 15. The subsequent basing work is very bullish. The stock has set up a trading range between 14 and 15. That is tight, which is bullish.
The basing work is being done above a rising 50-day moving average line showing the stock remains in a good up trend.
CNK's TTD momentum indicator (top of chart) is solidly bullish.
The accumulation - distribution line (bottom of chart) has hit a new peak and has already broken out to the upside. That is a good lead indicator of a potential breakout for the price of the stock.
Analysts expect CNK's net for the fourth quarter to jump 70% to 17 cents a share from 10 cents a year ago.
The highest estimate on the Street is at 28 cents a share. That is high indicating some see chances for a big quarter. If so, the stock could do very well.
Net for 2009 should climb 50% to 72 cents a share from 48 cents a year ago. The stock sells with a price-earnings ratio of 21. TTD sees that as reasonable and a good value play.
Looking out to 2010, the Street is forecasting a 25% gain in net to 90 cents a share from the anticipated 72 cents for 2009.
Strategy Opinion: CNK is setting up very well. The key of course will be the earnings. TTD suggests accumulation of a partial stake with further buying to be done on a move over 15.55. TTD is targeting the stock for a move to 21 after a breakout. A protective stop can be placed at 14 after a breakout. TTD rates CNK an above average intermediate-term play because of its strong earnings outlook.
Sponsorship: Very Good. The largest fund holder is 5-star rated JP Morgan Small Cap Equity Fund with a 1.4% stake. It was a recent buyer of 38,200 shares. A key buyer recently was 4-star rated Wells Fargo Advantage Small Cap Growth Fund which purchased 184,100 shares. CNK has 109 million shares outstanding.
Insider Activity: Bearish. Insiders were heavy sellers recently. A key seller was several partnerships. They sold at $14.33. Currently, 17 analysts follow the stock, 11 have a buy, the same as three months ago.
Ticker Tape Digest’s Daily List of “Stocks To 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 - 8,200
Long-Term Environment for bears: Neutral.
Bear Side - Just a few breakdown stocks today. Bears be patient and watchful. TTD's short from Thursday was Arbitron Inc. (ARB) - 22.92, down 2.45. Today, the stock is trading at 22.62 and working well for bears.
(Trading strategy: These stocks can be sold short, or if held should be sold. If a stock is sold short, a protective stop buy should be placed. Short plays work best when the stock market is in a down trend.)
UEIC, based in Cypress, Ca., makes universal wireless control products and audio-video accessories for home entertainment systems. Annual revenues: $311 million. UEIC's stock falls sharply today after the company forecast lower than expected earnings for the first quarter. The stock is trading 321,751 shares, six times its normal daily volume.
The stock gapped sharply lower at the opening hit a low of 20.25. It lifted slightly and then trended sideways the rest of the day.
TTD's clip of the tape shows the price for blocks dropping at the opening. A key trade was a big block of 50,000 shares that crossed at $21.30. That was down sharply from the prior block trade at $21.62. The tape action indicated heavy institutional selling in this thinly traded issue.
UEIC said earnings for the first quarter would be 12 to 16 cents a share. That was well below the consensus Street estimate of 24 cents a share.
For the year, the company estimated net would be $1.20 to $1.35 a share. The consensus on the Street was at $1.47 a share.
UEIC also develops software and firmware solutions that enable devices, such as televisions, set-top boxes, stereos, automotive audio systems and cell phones to wirelessly connect with home networks and interactive services.
UEIC's chart shows the stock gapping lower from a head-and-should pattern. The big volume today marks the pattern as very bearish.
Strategy Opinion: TTD is targeting UEIC for a decline to 16 within the next few months, or sooner. A protective stop buy can be placed at 22.80.
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. Some of the charts are from Telescan, Insight Trading, First Alert and other sources.)