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
Daily schedule guide for TTD subscribers
1. Pre-market - check Breakout Watch List and Quick Trades.
2. Morning - (11:30 - 12 A.M.) - check breakout stocks tape and breakout chart slide show.
3. Midday (1 P.M.) check TTD Midsession Report and see market video show.
4. After close (4 P.M.) check final TTD Report for day.
Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. (See Performance)
Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." (See Performance)
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.(See Performance)
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance)
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.
TTD's Breakout Stocks - Long 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.
TTD Quick Trade Stocks - Long 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.
TTD's Bargain Buy Trades - Long - Long Term. 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.
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 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 - 7
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Breakout list shows some very good looking plays for aggressive bulls. Stock market flipping back and forth in trading range.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bearish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
(See Top Performing Breakout Stocks for 2011- 2012)
TTD's Quality Rating of Stock - ATHN - ABOVE AVERAGE
ATHN, based in Watertown, Ma., provides internet-based business services for physician practices. Annual revenues: $422 million. ATHN's stock breaks out today from a six-week flat base. The move carries the stock close to a new-all-time high. TTD spotted up on ATHN as a potential breakout earlier in the week.
The stock was also featured at TTD's midsession video show on the Web.
So far today, ATHN is trading a heavy 1 million shares, almost triple its normal daily volume of 373,000 shares.
ATHN's stock advanced steadily in the morning clearing its breakpoint line easily. (see 10-minute) chart.
The stock then trended sideways the rest of the day holding comfortably over its breakpoint line.
The stock's tape action was solidly bullish in the morning and then gave some ground late in the day to light profit taking. .
One can see the price for the recent block trades climbing from $89.89 on 10,000 shares to $95.40 on 5,100 shares.
A key bullish trade came in the morning when a block of 20,000 shares crossed at 95.08. That was up from the prior block at $92.26.
ATHN provides internet-based business services for physicians.
The company's service offerings are based on proprietary web practice management and electronic medical record software, a continuously updated payer knowledge-base and integrated back-office service operations.
ATHN's 12-month performance chart shows the stock appreciating 31% versus a 10% gain for the S&P 500 index.
ATHN's long-term chart shows the stock coming public in 2007 and trading around $32.
ATHN then trended in a range for the next few years. Its key long-term breakout came in mid-2011 around 50. Since then the stock has been working higher, but not without same volatile pull backs.
ATHN's daily chart shows the stock climbing from 58 back in November to around 91. The stock put down a flat base above its rising 50-day moving average line. Today, it breaks out nicely with a good expansion in volume. That is ideal.
The TTD momentum indicator (top of chart) has been bullish for the past three months.
The accumulation - distribution line (bottom of chart) is in a solid up trend and compliments the price pattern of the stock.
ATHN should show an acceleration in annual earnings growth.
This year, analysts are forecasting a 29% increase in net and then next year a 45% gain. Accelerating earnings growth is often a bullish driver for a stock.
Net for this year should come in at 72 cents a share, up from 56 cents a year ago. The stock sells with a price-earnings ratio of 126. That is extremely high making the stock most suitable for aggressive investors.
Going out to 2014, profits should climb to $1.05 a share from the anticipated 72 cents a share for 2013.
For the upcoming first quarter, earnings should jump 56% to 13 cents a share from 8 cents a year ago. The highest estimate on the Street is at 17 cents a share. The company tends to come in slightly above the consensus estimate (see table).
Strategy Opinion: TTD is targeting ATHN for a move to 112. That is up from our prior target of 110. A protective stop can be placed near 88 after a breakout.
TTD rates ATHN a very good intermediate-term play even with its high p/e ratio.
Sponsorship: Very Good. A key buyer recently was 5-star rated Janus Triton D Fund which purchased 319,879 shares. Also, the 4-star rated Janus Venture D fund bought 195,547 shares.
ATHN has 39.3 million shares outstanding.
Insider Activity: Bearish. Insiders were recent buyers using stock options from $16.53 to $35. They were sellers most recently at $88 to $89. Currently, 20 analysts follow the stock, 8 have a buy, up from 7 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Athenahealth Inc. - (ATHN)
|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 - VRSK - AVERAGE|
|TTD's Quality Rating of Stock - DLPH - AVERAGE|
|TTD's Quality Rating of Stock - ITC - AVERAGE|
|TTD's Quality Rating of Stock - IP - 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 - 2
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Stock market rises sharply. Bears be conservative. TTD's short from Tuesday was Vivus Inc. (VVUS) at 11.03. Today, the stock has edged down to 10.89 and is working well for bears so far.
CETV, based in Hamilton, Bermuda, operates television stations. Annual revenues: $795 million. CETV's stock falls sharply after the company reported a large loss for the fourth quarter. So far today, CETV is trading 103,091 shares. Its average daily volume is 114,000 shares.
TTD spotlighted CETV as a short at our midsession video show on the Web Wednesday.
The company reported a fourth quarter loss of $5.59 a share compared with a loss of $1.12 a year before.
The market took the news bearishly.
CETV's tape action shows the big block trades.
One can see the price for the blocks declining from $5.49 a few sessions ago to as low as $4.74. A key bearish trade came in the morning when a block of 4,697 shares (duplicated) crossed the tape at $4.85 a share. That was down from the prior block at $5.28.
CETV is involved in the media and advertising Industry. The firm invests in and operates national and regional commercial television stations and networks.
This year, analysts are forecasting a loss of 38 cents a share.
CETV's daily chart shows the stock gapping lower and cutting below key technical support. The decline causes a resumption of the overall down trend in the price of the stock.
Strategy Opinion: TTD is targeting CETV for a decline to 3.60 within the next few months, or sooner. A protective stop buy can be placed near 5.50.
|TTD's Quality Rating of Stock - CETV - 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.)