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 positionsboth 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. It is available with use of the Real Player One that can be downloaded for free from real.com. The latest versions of Microsoft's explorer and Netscape have the player already installed and works well with TTD's slide shows.
TTD's more advanced video show comes as Microsoft video file and is best used with cable or high-speed service.
TTD also has a special feature section on Tips - Questions and Answers at the Forum section.Go To Forum click here
To email Leo email@example.com.For service, email Beverly Owen firstname.lastname@example.org. TTDs Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 9
Stocks Screened- 8,200
Bull side - Small number of breakouts. Tire stocks movig out. Bulls be conservative and very selective. Market has yet to stabilize.
Long-Term Environment for bulls: Unfavorable.
Market Status (Daily) - NYSE Bearish, Nasdaq Bearish
Market Status (Weekly) - NYSE Bearish, Nasdaq Bearish
GT, based in Akron, Ohio, is the third largest tire maker in the world, behind Bridgestone and Michelin. GT's annual revenues: $20 billion. GT breaks out from an eight-week flat base today and makes a 52-week high. There are not many stocks doing that these days. GT has been acting strong the past few days. The company did say on March 1 it was cutting benefits to certain employees in order to trim costs. Merrill Lynch also put out a buy on GT.
Another tire stock, Cooper Tire and Rubber Co. (CTB) is up 1.23 to 18.27 today, despite reporting a loss. So, the group is acting strong.
So far today, GT is trading 10.1 million shares, about double its normal daily volume of 5.7 million shares. The stock continued to act well into the afternoon. TTD's clip of the tape shows a big block of 14,200 shares crossing on an up tick to $27.76 from the prior trade at $27.74.
GT acted strong on Thursday when it traded a hefty 15.2 million shares, triple its normal daily volume.
Besides tires, GT makes automotive hoses and belts and industrial chemicals. It operates about 95 plants worldwide, and has nearly 1,800 retail tire and auto centers.
GT sells tires for the replacement market as well as to the world's automakers. In addition to its own brand of tires, GT makes Dunlop tires for sale in North America and Europe through its alliance with Japan's Sumitomo.
GT's daily chart shows the solid up trend the stock has been in the past several months. It has climbed from 14 to 27. Technically, everything looks ideal. The volume has been strong to support the recent two day rise.
TTD's daily chart shows the TTD momentum indicator (top of the chart) remaining strongly bullish. The accumulation - distribution line (bottom of the chart) is hitting new peaks. So, the underlying buying is very good.
TTD's long-term chart shows that GT was a $60 stock back in 1999. Long-term, the stock has made a bottom and is now turning higher.
This year, analysts predict GT will post a 23% increase in net to $1.63 a share from $1.33 a year ago. The stock sells with a 17 price-earnings ratio. TTD sees that as attractive. That is because next year, GT's profits are projected to climb 53% to $2.50 a share.
For the first quarter this year, GT's net should decline 11% to 23 cents a share from 26 cents a share. With that one would think the stock should be acting weak. However, it is acting strong. So. that tells us either the first quarter news has been discounted, or results will be better than expected.
Strategy Opinion: GT is the typical "special situation" in a pull back phase on the market. TTD is calling for the stock to drive ahead to 33 within the next few months. A protective stop can be placed near 26. TTD rates GT a good intermediate-term play provided earnings remain on course.
Sponsorship: Good. The largest fund holder is 3-star rated Oppenheimer Global Opportunities Fund with a 2.3% stake. It was a recent buyer of 400,000 shares. A key buyer recently was 4-star rated Fidelity Puritan Fund, which purchased 639,000 shares.
Insider Activity: Neutral. Not much activity even though some stock options were awarded late last year. Seven analysts follow the stock, 2 have a buy, 4 are neutral, while one has a sell. Merrill Lynch put out a buy today.
|TTD's Breakout Profile
Goodyaer Tire & Rubber Co. (GT)
|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)
Ticker Tape Digests 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 - 9
Stocks Screened - 8,200
Long-Term Environment for bears: Favorable.
Bear Side - Modest number of short plays as stock market moves lower. Bears be aggressive looking for stocks breaking down with bad fundamentals. TTD's short play from Thursday, Williams Clayton Energy (CWEI) falls 1.10 to 28.59.
(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.)
CPSI, based in Mobile, Ala., develops, installs, and supports financial and clinical information management software and information technology systems for small and midsized hospitals in the US. Annual revenues: $114 million. CPSI breaks below key support at 28 to trigger a TTD short play. The stock has been in a steady down trend after peaking at 50 about a year ago.
So far today, CPSI is trading 88,395 shares. its average daily volume is 137,000 shares.
The stock got off to a bearish start in the morning. That is when it traded 1,355 shares on a big down tick to $28.22 from the prior trade of $28.31.
The company, which targets community hospitals and small specialty hospitals, has a client base of more than 500 hospitals.
Operating on UNIX and Windows platforms, CPSI's software enables health care providers to manage their patients, staff, finances, and facilities. The company also offers systems implementation, as well as billing, statement processing, and business office outsourcing services.
This year, CPSI's earnings are projected by analysts to decline 2% to $1.45 a share from $1.48 a share in 2006.
The next two quarters will be exceptionally weak. Net for the first quarter this year should tumble 32% to 26 cents a share from 38 cents a share a year ago. Net for the following second quarter is expected to drop 7%.
The stock's TTD momentum indicator has pushed further into the bearish zone. (see top of the chart). Technically, the stock's price pattern is in a clear down trend. The stock's accumulation - distribution line has risen showing some subtle nibbling. However, TTD sees the weakness in the stock market dragging CPSI lower.
TTD is targeting CPSI for a decline to 21 within the next few months.
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.)