|Go to Video Show - "How to Make Money With Breakout Stocks"|
By Leo Fasciocco -- TTD
Ticker Tape Digest presents its daily breakout and Short Selling report. It contains Breakout Stocks and Stocks under Significant Accumulation.
Data is from tape action for the day. These stocks are most suitable for aggressive investors seeking ideal entry points for leading stocks.
These stocks will do very well during bull markets and strong market rallies.
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 corrections
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.
TTD often suggests using stop buy orders to enter. It is very important to buy a breakout stock as close as possible to the break point. 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.
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.
Total Buy Breakouts so far today - 4
Stocks Screened - 8,200
Bull side - Very few breakouts. Market shakes off early selling and rallies in the afternoon. Bulls be patient and selective.
Long-Term Environment for bulls: Neutral
Market Status (Daily) - NYSE Bullish, Nasdaq Bullish
Market Status (Weekly) -NYSE Bullish, Nasdaq Bearish
AXYS, based in Rocky Hill, Ct., makes opto-electronic products and components. Annual revenues: $184 million. AXYS breaks out powerfully today after reporting favorable earnings. The breakout comes from a 11-week basing pattern. Volume so far today is running at 600,000 shares, 12 times its normal daily volume.
TTD highlighted AXYS as a breakout on our flash ticker early in the day and then covered the stock in our midsession report.
TTD's clip of the tape shows one of the larger trades in the morning. It is a big block of 15,000 shares crossing at $45.22. That came within a sequence started by an up tick from $45.38.
AXYS products include electromagnetic subsystems, specialty alternating- and direct-current motors, position- and pressure-sensing components, laser scanners, transformers, connectors, and electronic filters.
The company markets its products to users in the aerospace, telecommunication, defense, and office-equipment industries. Axsys also owns Telic Optics, a manufacturer of infrared optical devices.
AXYS reported fourth quarter net jumped 64% to 36 cents a share from 22 cents a share a year ago. The earnings topped Street estimates by 3 cents a share.
The results exclude a special gain of 24 cents a share from the sale of the firm's distribution products business.
Revenues for the quarter climbed to $48 million from $34 million a year ago.
AXYS is a stock TTD has been commenting on recently. Today's breakout is impressive in that the spread (range from high to low) expands sharply and the stock hits a new high, which could well bring in buying from the new high crowd on Thursday.
The breakout also shows a big increase in volume another plus for bulls. (See TTD's long-term chart)
Technically, the stock looks very good. The TTD momentum indicator (top of the chart) is strongly bullish.
The accumulation - distribution line (Bottom of chart) has hit a new peak. So, all systems are go!
This year, analysts are forecasting a 28% increase in profits to $1.68 a share. The stock sells with a modest price-earnings ratio of 26 based on this year's projected net. Profits for the first quarter should do very well. Analysts expect net to leap 36% to 37 cents a share from 27 cents a share a year ago.
Strategy Opinion: AXYS breakout looks good. TTD is targeting the stock for a move to 54 within a few months. A protective stop can be placed near 40 and should be honored. TTD rates AXYS a good intermediate-term play provided earnings remain on course.
Sponsorship: Very Good. The top fund holder is 5-star rated Royce Micro-Cap Fund with a 2.4% stake. It was a recent buyer of 19,000 shares. The company has 10 million shares outstanding. Funds hold 1.6 million shares.
Insider Activity: Slightly Bullish. Insiders have been solid buyers lately. They've done just a little selling. Five analysts follow the stock, only one has a buy, 4 are neutral. TTD sees chances for upgradings.
|TTD's Breakout Profile
CF Industries Inc. (CF)
|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.
(Trading strategy: One should buy breakout stocks at breakpoint by using market order or stop buy)
Charts of Breakout Stocks
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 - 14
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Good number of breakdown stocks today outnumbering breakout stocks. Wireless stocks take a hit on concern about competition. Bears be venturesome.
(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.)
NTRI, based in Horsham, Pa., provides weight management and fitness products and services. Annual revenues: $775 million. NTRI plunges today on massive volume as the company forecast a weak 2008. TTD sees the stock losing institutional sponsorship and a good short play. So far today, volume has swelled to 8.8 million shares, five times its normal daily volume of 3.2 million shares.
The stock remained under selling pressure throughout the day. TTD's clip of the tape shows a big block of 25,000 shares crossing on a modest down tick to $16.95. The stock has come under heavy selling pressure today.
The Company offers a weight loss program based on portion-controlled and lower Glycemic Index prepared meals. The program has no membership fees and provides free online and telephone counseling.
The company reported net for 2007 increased to $3.05 a share from $2.39 a share a year ago.
However, the NTRI said net for the fourth quarter declined 47% to 31 cents a share. It blamed higher costs from the discontinuation of the Slim and Tone business.
The weak results should continue into 2008. Analysts predict net for the first quarter will drop 11% to 93 cents a share from $1.04 a share the year before. Net for the second quarter is expected to fall 17%.
TTD's daily chart shows NTRI in a down trend. Today it "falls off a cliff." The gap drop today is extremely bearish. Technically, the stock is perfect play for an aggressive bear. The stock's TTD momentum indicator (top of the chart) is very bearish. The accumulation - distribution index (bottom of chart) is moving lower indicating now nibbling by institutions. TTD is calling for NTRI to be trimmed down to $13.50.
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.)