|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 email@example.com.For service, email Beverly Owen firstname.lastname@example.org. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 9
Stocks Screened - 8,200
Bull side - Breakout list expands modestly as market rallies. Bulls be alert and aggressive looking for stocks of big earnings firms breaking out.
Long-Term Environment for bulls: Neutral
Market Status (Daily) - NYSE Bullish, Nasdaq Bullish
Market Status (Weekly) -NYSE Bullish, Nasdaq Bullish
SMTS, based in Troy, Mich., markets the INVOS Cerebral Oximeter, a noninvasive device used to monitor the blood oxygen levels in the brain. Annual revenues: $40 million. SMTS is a small cap medical play. Today, the stock breaks out from a five-week base on expanding volume. So far in this session, SMTS is trading 372,579 shares. Its average daily volume is 197,000 shares.
The stock pushed sharply higher today participating nicely in the stock market's rally. TTD's clip of the tape shows one of the largest trades today.
It is a block of 8,900 shares going off on a modest up tick to $28.50 from the prior trade at $28.49. The action showed good institutional buying.
The stock is thin with only 13 million shares outstanding. Some 47 funds hold 2.2 million shares.
SMTS seeks to develop medical products various diseases that effect the kidneys and the bowels. Outside the United States, Edwards Lifesciences markets the INVOS System in Japan and Tyco markets the system in Europe, Canada, the Middle East, and Africa.
SMTS also developed and markets the CorRestore System, which is used in cardiac repair and reconstruction.
TTD's long-term chart of SMTS shows the stock with a sensation run up from 1.70 in early 2003 to a peak of 36.95 in late 2005. The stock then went into a severe pull back. The action was typical given the thrust higher.
Now, SMTS is showing signs of moving higher and rechallenging its prior peak near 37.
TTD's daily chart shows the "small base" and the breakout. Notice the significant pick up in volume today relative to the most recent sessions. TTD sees that as very bullish and similar to what happened in mid-January, when the stock began a move.
SMTS' TTD momentum indicator top of the chart is modestly bullish. The accumulation - distribution line (bottom of chart) is extremely bullish and shows no signs of any heavy profit taking.
SMTS' earnings for the upcoming fiscal first quarter ending February 28 should jump 33% to 16 cents a share from 12 cents a year ago. The highest estimate on the Street is at 16 cents. TTD sees chances for a mild upside surprise.
For the fiscal year ending November 2008, SMTS' profits should rise 16% to 77 cents a share from 67 cents a year ago. The stock sells with a price-earnings ratio of 37. TTD sees that as a big high. However, going out to fiscal 2009, SMTS' earnings are projected to jump 35% to $1.04 a share. The company's revenue growth in the latest quarter was 47%.
Strategy Opinion; SMTS is a strong acting stock now. TTD is looking for SMTS to advance to 36 within the next few months. A protective stop can be placed near 27 and should be honored. TTD rates SMTS a good intermediate-term pay with potential to surprise on the upside with earnings.
Sponsorship: Average: The key fund holder is Fidelity Lo-Priced Stock Fund with a 2.2% stake. The Fund was a recent buyer of 50,000 shares. Also, 4-star rated Bridgeway Ultra-Small Company Fund was a recent purchaser of 32,000 shares and 5-star rated ING FMR Diversified Mid Cap added 22,000 shares.
Insider Activity: Neutral. Insiders have been buyers lately, but have turned around and sold. Three analysts follow the stock, one has a buy, 2 are neutral.
|TTD's Breakout Profile
Somantics Corp. (SMTS)
|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 - 3
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Only a few breakdown stocks today as stock market rallies broadly. Bears now be more conservative and selective.
(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.)
KSWS, based near Los Angeles, makes athletic footwear for sports use, fitness activities, and casual wear. Annual revenues: $426 million. KSWS falls sharply at today's opening bell after reporting weak earnings. So far today, the stock is trading 1.9 million shares, six times its average daily volume of 337,000 shares. TTD sees more on the downside with KSWS.
TTD's clip of the tape shows the stock still under selling pressure in the afternoon. A big block of 24,900 shares crossed the tape on a significant down tick to $15.40 from the prior trade at $15.45. The action showed the stock still under institutional selling pressure.
KSWS reported a plunge in fourth quarter profits to 2 cents a share from 31 cents a share a year ago. The Street was expecting just a drop to 5 cents a share. So, earnings were not only bad. They were very bad.
Revenues for the quarter fell to $78 million from $93 million a year ago.
The company's principal product line is the Classic, originally developed in 1966 as a tennis shoe. Since then, the Classic has evolved from a high-performance shoe into a casual, lifestyle shoe. The company also markets tennis, training, and children's footwear. International sales account for more than half of total revenue.
The outlook for earnings still looks bleak. This year, analysts predict a 10% decline in net to 93 cents a share.
TTD's daily chart of KSWS shows a classic breakdown for a short play. The stock gapped lower on big volume. The TTD momentum indicator (top of chart) and the accumulation - distribution line (bottom of chart) are both bearish. TTD is targeting KSWS for a jog down to 11.50 within a 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.)