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 for the Long Term." Ideally suited for entry into top performing big cap stocks on pullbacks within overall up trend.
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns
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.
1 - TTD's Breakout Stocks - Long - (Intermediate-term long plays) these 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.
2 -TTD Quick Trade Stocks - Long - (Short-term long plays 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.
3 - TTD's Bargain Buy Trades - Long - (Long Term long plays. 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.
4 - 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 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
Total Buy Breakouts so far today - 7
Overall Quality of Breakouts - BELOW AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list still small with many energy plays dominating it. Market still remains vulnerable. Bulls must now be conservative and selective. Watch all stops. (Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
(Go to Top Performing Breakout Stocks for 2011 - Update February 22)
TTD's Quality Rating of Stock - WBMD - ABOVE AVERAGE
WBMD, based in New York, provides health information via the web and publications. Annual revenues: $504 million. WBMD's stock breaks out today from a seven-week flat base. The move carries the stock to a 52-week high. So far today, WBMD is trading 1.3 million shares, four times its normal daily volume of 256,000 shares.
TTD highlighted WBMD as a breakout at our midsession show on the Web Thursday.
WBMD's 10-minute chart shows the stock gapping higher in the morning on big volume.
It then trended sideways.
WBMD reported net for the fourth quarter of 59 cents a share. That topped the consensus estimate on the Street of 43 cents a share.
It was a significant upside surprise coming on a 22% increase in revenues.
Morgan Stanley raised its estimates on WBMD. It now see the company earnings this year of $1.30 a share, up from a prior forecast of $1.19 a share. Going out to 2012, the broker boosted its earnings forecast to $1.77 a share from $1.75.
Overall, the consensus estimate on the Street is that WBMD will show just a 2% gain in net to $1.22 a share. In 2012, they look for a 32% jump in net to $1.62 a share.
WBMD's tape action shows the recent big blocks.
One can see the price for the blocks rising from $53.05 to $56.37.
A key bullish trade was a block of 19,744 shares (duplicated) that crossed at $56.35. That was up sharply from the prior block at $53.75. That showed aggressive institutional buying.
WBMD provides health information to consumers, physicians and healthcare professionals through its websites and publications.
The WebMD 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 WebMD Health Network had an average of 61 million users per month.
WBMD's 12-month performance chart shows the stock appreciating 35% versus a 20% gain for the S&P 500 index.
WBMD's long-term chart shows the stock coming public in 2005 and trading around 25. The stock climbed to a peak of 63.49 during the bull market. It then tumbled back down to $13.67 during the bear market. It has since made a remarkable recovery and is in a strong up trend.
WBD's daily chart show the stock with a breakout near 35 in January. The stock then stalled and formed a base on top of a base. Today, it gaps out strongly.
The base is well formed showing a good contraction in volume in the late stages.
The stock's accumulation - distribution line (bottom of chart) is in a strong up trend and revealed strong buying going on during the most recent basing work.
WBMD is poised to show strong profits for the next two quarters.
Analysts forecast net for the first quarter will increase 40% to 14 cents a share from 10 cents a share a year ago. The highest estimate on the Street is at 15 cents a share.
TTD sees good chances for an upside surprise. The past four quarters, WBMD topped the consensus estimate by one to four cents a share.
Looking out to the second quarter, net is expected to leap 60% to 21 cents a share from 13 cents a year ago.
Strategy Opinion: TTD is targeting WBMD for a move to 65 off this breakout. A protective stop can be placed near 53. TTD rate WBMD an average intermediate-term play.
Sponsorship: Excellent. The largest fund buyer recently was 4-star rated Putnam Voyager Fund which purchased 442,700 shares. Also, 5-star rated Wells Fargo Advantage Growth Fund added 146,000 shares. WBMD has 58.4 million shares outstanding.
Insider Activity: Neutral. Insiders have been buyers using stock options. They have done some selling. The most recent selling was at $53.57. Right now, 8 analysts follow the stock, 4 have a buy, the same as three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Webmed 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|
Charts of Selected Breakout Stocks
|TTD's Quality Rating of Stock - LGCY - AVERAGE|
|TTD's Quality Rating of Stock - MCF - AVERAGE|
|TTD's Quality Rating of Stock - KOG - AVERAGE|
|TTD's Quality Rating of Stock - BRNC - BELOW 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 -7
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of breakdown stocks today, but some interesting plays. Bears be selective. Stock market still vulnerable.
FCN, based in Baltimore, is a financial consulting firm. Annual revenues: $1.4 billion. FCN's stock falls sharply today after the company reported a big drop in fourth quarter earnings. So far today, FCN is trading 2.4 million shares, six times its normal daily volume of 408,000 shares. The stock is a low beta issue, but one that is breaking hard to the downside. TTD sees more for bears.
FCN reported net for the fourth quarter declined to 23 cents a share from 71 cents a year ago.
The 23 cents was well below the consensus estimate at 54 cents a share and also below the lowest Street estimate of 50 cents a share.
The stock gapped lower in the morning and then trended sideways most of the day. In the late afternoon, it started to rollover for another leg down.
The stock was responding very bearishly to the earnings disappointment.
The tape action shows the big block trades. One can see the price for the blocks declining from $36.23 to as low as $33.55. A key bearish trade was a block of 22,400 shares that crossed at $33.55.
FCN provides services for restructuring, financing and credit issues and indebtedness. It also does forensic accounting and litigation services, mergers and acquisitions, antitrust and competition matters, electronic discovery, management and retrieval of electronically stored information.
It operates in the United States and 21 foreign countries.
Analysts expect net for the first quarter to decline 15% to 57 cents a share from 67 cents a year ago. Overall, net for 2011 is projected to rise 12%.
FCN's daily chart shows the breakdown below key support and the big increase in volume. The stock's accumulation - distribution line (bottom of chart) has rolled over and shows heavy selling pressure.
Strategy Opinion: TTD is targeting FCN for a decline to 28 within the next few months or sooner. A protective stop buy can be placed near 34.70.
|TTD's Quality Rating of Stock - FCN - 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.”
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(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.)