Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Tuesday, February 24
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Tuesday, February 24 |
| 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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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 today - 0
Stocks Screened - 8,200
Bull's Strategy - No breakouts today. However, market rallies sharply sending TTD's daily market averages into bullish mode. (see CCI momentum indicator). Bulls now should be very alert looking for breakout plays. Today's rally looks like short covering. A follow through move in a few days would be very bullish.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Unfavorable
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) -NYSE Bearish, Nasdaq Bearish
Market (Monthly) NYSE Bearish, Nasdaq Bearish
(No Breakouts Today. TTD features a stock close to breaking out)
| TTD's Quality Rating of Stock - CPLA - ABOVE AVERAGE |
CPLA, based in Minneapolis, is an online post-secondary education company.
Annual revenues: $260 million. CPLA is part of the strong acting educational
group. Today, the stock moves higher in concert with the stock market's snap back rally. TTD found no breakouts today. However, CPLA is moving into position and could breakout at any time.
The company will be reporting strong earnings this year.
CPLA is trading 303,690 shares so far today. Its average daily volume is 311 000 shares.
The stock rose sharply in the morning, sagged back in the afternoon, but has come on late in the session.
TTD's clip of the tape shows a block of 5,121 share crossing on a big up tick to $59.49 from the prior trade at $58.81. The tape action showed aggressive institutional buying. The company is expected to show big earnings in the upcoming first quarter.
CPLA is a regionally accredited, exclusively online post-secondary education company. It offers bachelor's, master's, and doctoral programs in health and human services, business management, information technology, and education. The company reports that more than 80% of students are enrolled in master's or doctoral programs. At the end of 2007,CPLA had roughly 22,300 students.
TTD's performance chart shows CPLA's stock has appreciated 10% the past 12 months. It has outperformed the S&P 500 index which is down 42% during the same time. CPLA's stock has done very well the past few months.
CPLA's stock came public in late 2006 and traded around 23. It climbed to a
peak of 75. Afterwards it went into an intermediate-term pull back (see TTD's
long-term chart). The stock is now in a base after being in an up trend. 
CPLA's daily chart shows the stock rallying from 35 to 60. It is now in a flat base and in an overall up trend. The stock poked its head out of the base six sessions ago. It just needs to push through the resistance with more vigor.
A key could be a breakout with a big expansion in volume.
The base structure is bullish with volume contracting near the lows.
The fact the stock has come close to the breakpoint three times in recent weeks means it has potential to push through it. It is spending a lot of time at the upper end of its base. That is good news for bulls.
The stock's TTD momentum indicator (top of chart) is now bullish.
The accumulation - distribution line (bottom of chart) is now edging higher.
The technical indicators for the stock have improved in recent weeks.
CPLA's earnings for the upcoming first quarter should surge 44% to 45 cents a share from 31 cents a share a year ago. The highest estimate on the Street is at 47 cents a share. TTD sees potential for a mild upside earnings surprise. The past three quarters CPLA surpassed the consensus Street estimate by 2 to 4 cents a share.
Looking out to the year, analysts expect net to climb 31% to $2.18 a share from $1.66 a year ago. The stock sells with a price-earnings ratio of 27. TTD sees that as reasonable. Going out to 2010, the Street projects a 30% gain in net to $2.84 a share.
The company is benefiting from its ability to be open to Army personnel taking education courses. With the chance of many troops in Iraq coming home it could boost their business.
Strategy Opinion: TTD suggests a stop buy at 61.10 to enter on a breakouts. TTD is targeting the stock for a move to 74 after a breakout. A protective stop can be placed near 56 after a breakout giving it room. TTD rates CPLA a good intermediate-term play because of its solid earnings outlook.
Sponsorship: Very Good. The largest fund holder is 5-star rated Baron Small Cap Fund with a big 5.3% stake. It was a recent buyer of 125,000 shares. Also, 3-star rated T. Rowe Price New Horizons Fund was the largest buyer purchasing 507,000 shares. It is the second largest holder with a 4.4% stake. CPLA has 16 million shares outstanding. Funds hold 5.9 million shares.
Insider Activity: Neutral. Some light buying and selling by insiders. Currently, 11 analysts follow the stock, 8 have a buy, up from 6 three months ago.
Stock Performance Chart for 12 months with Quarterly Earnings Markers.
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TTD's Profile Rating Capella Education Co. - (CPLA) |
| 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 | 10 | 0 | 4 |
(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 - 10
Stocks Screened - 8,200
Long-Term Environment for bears: Favorable.
Bear Side - Good number of breakdown stocks today even though the stock market rallies broadly in snap back action. The market trend still favors 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.)
RSH, based in Fort Worth, Tex., operates about 6,000 stores. Around 4,500 of them are company-owned and 1,500 franchised). It also has 700 kiosks selling mobile phones throughout the U.S. Annual revenues: $4.3 billion. RSH's stock gaps sharply lower today in heavy volume. The trigger setting off the decline was a report of lower and disappointing earnings. TTD sees more on the downside even though there is a selling stampede today. 
TTD highlighted RSH as a short at our midsession show on the Web today.
So far today, RSH is trading 9.7 million shares, about triple its average daily volume of 2.6 million shares.
TTD's clip of the tape shows a big block of 113,100 shares crossing in the morning on a big down tick to $8.08 from the prior trade at $8.54. The tape action indicated heavy institutional selling pressure.
RSH took a dive in the opening off the bearish earnings news. It was unable to rally effectively during the day, although the stock market did surge in the afternoon.
RSH reported net for the fourth quarter declined to 50 cents a share from 77 cents a year ago. The 50 cents was below the consensus estimate of 73 cents a share and the lowest estimate of 67 cents. So, it was a big disappointment and the stock got punished.
RSH stores carry mobile phones, electronic parts and accessories, home electronics, computers, video games, and other gadgets. The company makes some of its products and provides repair services for its own and third-party products.
TTD's daily chart shows RSH falling from 20 to 8. It then tried to form a bottom and rally. It got to about 12, but now breaks down very bearishly. The TTD momentum indicator (top of chart) is extremely bearish.
TTD is targeting RSH for a decline to 6.50 within the next few months, or sooner.
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.)
