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 firstname.lastname@example.org.For service, email Beverly Owen email@example.com. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 14
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list large with some good looking plays in the heavy industry sector. Stock market holds in up trend. Bulls be selective.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Stock Market Momentum
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - CBI - ABOVE AVERAGE
CBI, based at the Hague, builds steel tanks and plate structures. Annual revenues: $11.1 billion. CBI's stock breaks out today from a nine-week, cup-and-handle base. The move carries the stock to a new all-time high. So far today, CBI is trading 1.2 million shares. That is also its average daily volume.
CBI's stock rose in the morning and then cut across its breakpoint line with good intraday volume. (See 10-minute chart)
The stock then trended sideways holding above its breakpoint.
The stock's tape action shows the recent block trades.
One can see the price of the blocks climbing from $82.40 in the prior session to as high as $84.19.
A key bullish trade today came in the morning when a block of 47,700 shares crossed the tape at $83.10.
That was up from the prior block at $82.59.
The tape showed strong institutional buying into the afternoon. Near the close a big block of 57,815 shares crossed at 84.19.
That was very bullish and the volume showed aggressive institutional buying.
CBI designs, builds, repairs and modifies steel tanks and other steel plate structures and associated systems.
The company designs and builds petroleum terminals, refinery pressure vessels, low temperature and cryogenic storage facilities and elevated water storage tanks for clients internationally.
CBI's 12-month performance chart shows the stock appreciating 50 versus a 22% gain for the S&P 500 index. Also, one can see heavy insider buying (green bar) in February. That is very bullish.
CBI's long-term chart shows the stock climbing from $5 back in 2001 to a peak at $63 in late 2007, the peak in the prior bull market.
The stock then took a big dive during the bear market falling back to $5. The stock has since made a strong comeback and is now at a new all-time high. It could draw in more buying on Monday.
CBI's daily chart shows the stock advancing from 60 back in January to a peak near 83 by December.
The stock then formed a classic cup-and-handle base. The stock did attempt a breakout three sessions ago, but faded back.
Today, the stock once again clears the breakpoint line.
The TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) compliments the price of the stock. It is bullish.
This year, analysts are forecasting a 24% jump in earnings to $5.21 a share from $4.19 a year ago.
The stock has a price-earnings ratio of 16. TTD sees that as low making the stock an excellent value-growth play.
Looking out to 2014, the Street projects a 14% gain in net to $5.91 a share from the anticipated $5.21 for this year.
For the upcoming first quarter, analysts look for a hefty 40% surge in profits to $1.15 a share from 82 cents a year ago.
The highest estimate on the Street is at $1.33 a share. TTD sees good chances for an upside earnings surprise. The company topped the consensus estimate the past five out of seven quarters.
Looking out to the second quarter, earnings should climb 23% to $1.28 a share from $1.04 a year ago.
Strategy Opinion: TTD is targeting CBI for a move to 105 within the next few months, or sooner. A protective stop can be placed near 78 giving it some room.
TTD rates CBI a good intermediate-term play.
Sponsorship: Excellent. A key fund buyer recently was 4-star rated SouthernSun Small Cap Investor Fund which purchased 55,700 shares. It has a 0.54% stake.
The largest fund holder is Columbia Acorn Z Fund, 3-star rated, with a 2.2% stake.
CBI has 107 million shares outstanding. Institutions hold 84% of the stock.
Insider Activity: Neutral. Insiders have just been light sellers recently. Currently, 12 analysts follow the stock, 8 have a buy, down from 10 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Chicago Bridge & Iron Co. - (CBI)
|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 - HAL - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - WUBA - AVERAGE|
|TTD's Quality Rating of Stock - FNHC - AVERAGE|
|TTD's Quality Rating of Stock - KRNY - 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 - 3
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of shorts today. Stock market mixed but holds near-term up trend. Bears remain conservative. TTD's short from Thursday was Haemonetics Corp. (HAE) at 37.10. Today, the stock has declined to 36.43 and is working well for bears.
KBR, based in Houston, Tex., is a provider of construction services. Annual revenues: $7.5 billion. KBR's stock falls sharply today after the company slashed its earnings outlook for 2014. So far today, KBR is trading a heavy 12.2 million shares, nine times its average daily volume of 1.3 million shares. TTD sees more on the downside.
TTD highlighted KBR as a short at our midsession video show on the Web Friday.
The company said it expects 2014 earnings of $1.75 to $2.10 a share.
That is well below the current consensus earnings estimate of $2.73.
The stock reacted extremely bearish to the news. It fell sharply in the morning and hit an intraday low of 26.85. The stock then trended sideways the rest of the day unable to mount a rally.
The stock's tape action shows the recent block trades.
One can see the price for the blocks falling from $31.94 late on Thursday to as low as $27.20 in the morning.
A key bearish trade came in the morning when a block of 132,534 shares crossed the tape at $28.01. That was down sharply from the prior block at $31.94. The tape showed aggressive institutional selling pressure.
KBR is a global engineering, construction and services company. It supports the energy, hydrocarbon, government services, minerals, civil infrastructure, power and industrial markets.
The company is a leader in many of the growing end-markets it serves, particularly gas monetization. It has designed and constructed, alone or with joint venture partners, more than half of the world's operating liquefied natural gas production capacity.
The Street has been forecasting an 8% rise in earnings for the first quarter of 64 cents a share compared with 59 cents a year before. That forecast may come down.
KBR's daily chart shows a big gap move to the downside with heavy volume. The stock's TTD momentum indicator has turned sharply bearish.
Strategy Opinion: TTD is targeting KBR for a decline to 23. A protective stop buy can be placed near 29.
|TTD's Quality Rating of Stock - KBR - 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.)