Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Wednesday, February 20
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Wednesday, February 20 |
| Go to Video Show - "How to Make Money With Breakout Stocks" |
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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 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 leo@tickertapedigest.com.For service, email Beverly Owen owen@tickertapedigest.com. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 3
Stocks Screened - 8,200
Bull side - Only a few breakouts today as market sells off sharply. Bulls be conservative and patient.
Long-Term Environment for bulls: Neutral
Market Status (Daily) - NYSE Bearish, Nasdaq Bearish
Market Status (Weekly) -NYSE Bullish, Nasdaq Bearish
ICLR, based in Dublin, Ireland, provides clinical research services to the biotech and drug industries worldwide. Annual revenues: $456 million. ICLR surges out of its base today after reporting favorable earnings that topped analysts estimates. The stock's gap breakout comes from a six-week flat base. Volume so far today is running at a heavy 862,157 shares, eight times its normal daily volume of 113,000 shares.
The stock got off to a strong start in the morning. TTD's clip of the tape shows a big block of 39,799 shares crossing at 69. The trade - the largest of the day - came on a sequence started by an up tick from $68.99.
TTD sees the stock attracting good institutional buying off its earnings report.
TTD featured the stock as a breakout at our midsession show on the Web today.
The company has 41 offices in 27 countries. It gets 42% of its revenue from outside the United States. The clinical research segment accounts for 90% of sales, with central laboratory services contributing the rest.
The Company has successfully conducted over 1,900 development projects and over 2,300 consultancy engagements across all major therapeutic areas. The firm has 5,600 employees.
The stock's gap breakout was triggered when it reported fourth quarter earnings jumped 36% to 53 cents a share from 39 cents a year ago. The 53 cents topped the consensus estimate on the Street of 50 cents a share and the highest estimate of 51 cents a share.
Revenues rose 38% for the quarter.
A look at TTD's daily chart shows the basing pattern which was formed after the stock broke out from a base at 60 in December. The structure of the base was not that good. The stock spent quite a bit of time at the lower part of the base.
However, ICLR now looks to be in play. The stock's TTD momentum indicator (top of the chart) is now strongly bullish. The accumulation - distribution line (bottom of chart) has tuned up nicely.
This year, analysts are forecasting a 27% improvement in net to $2.35 a share from $1.86 a share in 2007. The stock is selling with a price-earnings ratio of 29 which is reasonable.
The company is experiencing a good expansion in profit margins. The company said it had record bookings for the fourth quarter of $344 million.
For the upcoming first quarter, ICLR's earnings should increase 25% to 53 cents a share from 42 cents a year ago.
Strategy Opinion: ICLR is the star of today's session. TTD is looking for the stock to advance to 82 within the next few months. a protective stop can be placed near 65. TTD rates ICLR a good intermediate-term play.
Sponsorship: Good. The largest fund holder is 3-star rated Wasatch Global Sciences and Technology with a 1.1% stake. The fund was a recent buyer of 44,000 shares.
Insider Activity: Not available. Seven analysts follow the stock and all have a strong buying. Wow! That is impressive. Three months ago, 5 analysts followed the stock and all had a strong buy. So, the stock is attracting more interest.
| TTD's Breakout Profile
Rating Icon Plc (ICLR) |
| TTD Check List | Bullish | Bearish | Neutral |
| Near 52-week High | YES | ||
| Volume Expansion | 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 | 14 | 0 | 0 |
(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 - 13
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Good number of breakdown stocks today as market turns down. Bears continue to 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.)
LNET, based in Sioux Falls, S.D., supplies guest-room entertainment and information services to the lodging industry in the United States and Canada. Annual revenues: $422 million. LNET falls sharply today on massive volume. The drop was triggered by a report of a big fourth quarter loss. So far today, LNET is trading 1.7 million shares, six times its normal daily volume of 283,000 shares. TTD sees more to go on the downside.
TTD's clip of the tape shows the stock falling sharply in the morning. A block of 5,890 shares crossed the tape on a big down tick to $15.15 from the prior trade at $15.74. The tape action indicated aggressive selling.
LNET provides services such as on-demand movies, interactive video games, satellite-delivered cable programming, video checkout, room service ordering, and TV Internet.
The company also markets its services around the world through licenses with selected partners.
LNET reported a fourth quarter loss of 87 cents a share compared with a loss of one cent a share a year ago. The Street was looking for a loss of 78 cents a share with the largest estimated loss at 87 cents a share. So, the results were a disappointment and the stock was punished.
TTD's daily chart shows LNET in a down trend. The stock recently tried to rally, but today's gap lower sets the stage for more on the downside. The stock's TTD momentum indicator (top of the chart) is very bearish. The accumulation - distribution line (bottom of chart) is moving lower indicating clear heavy selling pressure.
TTD is targeting LNET for a decline to 9.50 within the next few months.
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.)
