Daily - Go to TTD's Tape of  Stock Charts - Wednesday, March 2

Daily - Bullish Investors  - Go To TTD Pre-Market Opening Breakout Watch  List and Performance -  Wednesday, March 2

Ticker Tape Digest

“Professional Report”

Wednesday - March 2, 2011

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.

 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  leo@tickertapedigest.com.For service, email Beverly Owen owen@tickertapedigest.com. TTD’s Tel: 1-480-926-1680.   

Breakout Stocks

Total Buy Breakouts so far today - 6

Overall Quality of Breakouts - AVERAGE

Stocks Screened - 8,300

 Bull side - Breakout list shrinks, but gold and silver plays still show up.  Stock market still vulnerable to the downside.  Watch all stops. (Put mouse on Dow chart to see Nasdaq chart)

Long Term Environment for bulls:  Neutral

Market (Daily) - NYSE Bullish, Nasdaq Bullish

Market (Weekly) - NYSE Bearish, Nasdaq Bearish

Market  (Monthly) - NYSE Bullish, Nasdaq Bullish 

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action - Wednesday - March 2

(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. They are ranked according to percentage change and classified as leaders or other. (Trading strategy: One should buy breakout stocks at breakpoint by using market order or stop buy)All Timely Breakout Stocks From Tape Action Today )  

(Go to Top Performing Breakout Stocks for 2011 - Update February 28)

Today's Featured TTD Breakout Stock

Peets Coffee and Tea Inc. (PEET) - 45.65, up 2.78 - Breakpoint 43.11

Hits All-Time High, TTD Targeting  54

   PEET, based in Emeryville, Ca.,  is a specialty coffee roaster and marketer of fresh roasted whole bean coffee and tea. Annual revenues: $334 million. PEET breaks out today from a 10-week, cup-and-handle base. The move carries the stock to a new all-time high.  TTD recently highlighted PEET as a stock to accumulate with good prospects to breakout.

  So far today, PEET is trading 776,662 shares, seven times its normal daily volume of 123,000 shares.

  TTD's 10-minute chart shows PEET gaping higher in the morning. It hit a peak of  49.24 in the morning, and then it backed off during the day. However, PEET was able to hold its breakout.

  The stock's tape action is very bullish.

One can see the price for the recent block trades climbing from $42.51 to a peak of $46.73. A key bullish trade came when a block of  923,500 shares (duplicated) crossed in the morning at $44.69. That was up from the prior block trade at $42.71.

  Later a key block of 10,400 shares crossed at $46.73. That was up sharply from the prior block at $44.69. So, there was some aggressive buying by institutions.

  PEET sells its coffee through grocery stores, home delivery, office, restaurant and food service accounts and Company-owned stores in six states.

  The company operates its business through two segments: retail and specialty sales.

  PEET operates 192 retail stores in six states, through which the Company sells whole bean coffee, beverages and pastries, tea and other related items. Its stores are designed to facilitate the sale of fresh whole bean coffee and to encourage customer trial of its coffee through coffee beverages. Each store has a staff person at the bean counter to take orders and assist customers with questions on coffee origins and on home brewing.  

  PEET's long-term chart shows the stock climbing from 10 back in 2001 - the year it came public - to 42. The move to a new all-time high today is very bullish. and could bring in more buying on Thursday. 

  PEET's daily chart shows the stock climbing from 33 to 43 peaking in December. The stock then pulled back and formed its cup-and-handle base.

  The structure of the base was very bullish. The breakout today impressive coming with a gap move, widening of the spread and expanding volume.

  PEET's TTD momentum indicator (top of chart) is strongly bullish.

  The accumulation - distribution line (bottom of chart) is in an overall up trend and broke out to the upside prior to Wednesday. That was a good lead indicator that the price of the stock would breakout.   

  This year, analysts forecast PEET's earnings will climb 19% to $1.57 a share from $1.32 a year ago. The stock sells with a price-earnings ratio of  26.

  Going out to 2012 profits are expected to rise 19% again. The Street looks for  $1.87 a share from the anticipated $1.57 a share this year.   

  For the first quarter, earnings should jump 28% to 33 cents a share from 26  cents a year ago. The highest estimate on the Street is at 39 cents a share. PEET tends to come in close the estimate or slightly above it. TTD sees chances for a modest upside surprise. For the second quarter, net should rise 24%.

 Strategy Opinion: TTD had suggested a stop buy at $43.20 to enter.  TTD is targeting PEET for a move to 54 within the next few months, up from our prior target of 51.  A protective stop can be placed near 39 giving PEET some "elbow room." TTD rates PEET a good intermediate-term play.  

 Sponsorship: Excellent. The largest fund holder is 4-star rated Baron Growth Retail Fund with a 6.3% stake. It has held its position steady. A key buyer recently was 4-star rated Delaware VIP Trend Series Fund which purchased 327,186 shares.

  Insider Activity: Neutral. Insiders have been buyers using stock options, but they turned around and sold. The latest selling was at $38.87. Nine analysts follow the stock, 3 have a buy, the same as three months ago. 

Stock Performance Chart with Quarterly Earnings Markers.

Charts of Selected Breakout Stocks

Ticker Tape Digest’s

Stocks To “Sell or Short”

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 -8

Stocks Screened - 8,300

Long-Term Environment for bears: Unfavorable.

 Bear Side - Small list  of breakdown stocks but some interesting plays. Several issues showing fundamental problems. TTD's short from Tuesday was  Tower Group Inc. (TWGP) - $23.59, down $3.59. Today, the stock has declined to $23.26

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Hi-Tech Pharmacal Co. (HITK) - 19.17, down 3.70

Quarterly Profits to Decline, TTD Targets Decline to 14.50

  HITK, based in Amityville, N.Y., produces drugs and nutritional products. Annual revenues: $163 million. HITK's stock falls sharply today in heavy trading. The stock's decline began in the morning about the time it was giving a presentation to analysts at the RBC Capital Markets Healthcare conference in New York. So far today, HITK is trading 1.9 million shares, 19 times its normal daily volume of 97,000 shares.

  HITK was highlighted by TTD at our midsession video show on the Web Wednesday.

  The company is seeking approval for several products. No news came out yet to point the finger at the stock's decline. However, the stock's breakdown is very bearish.

  HITK's tape action shows the stock's big blocks. One can see the price for the blocks declining from$23.01 recently to as low as $19.50.

  A key bearish trade was a block of 250,000 shares that crossed the tape in the morning at $19.50. That was down from the prior block at $20.65. The tape action shows heavy institutional selling pressure.

 HITK produces generics, prescription brands and OTC brands. Its products are used to treat glaucoma, asthma, bronchial disorders, dermatological disorders, allergies, pain, stomach, oral care and other conditions.

  The company’s generic products are primarily prescription items and include oral solutions and suspensions, topical creams and ointments, as well as nasal sprays.

   Analysts have been forecasting a 5% decline in HITK's net for the fiscal third quarter ended January 30 to 63 cents a share from 67 cents a year ago.

   HITK's daily chart shows the big drop in the stock on heavy volume. The momentum to the downside is great. It could well lead to a further decline.

   Strategy Opinion: TTD is targeting HITK for a decline to 14.50 within the next few months, or sooner. A protective stop buy can be placed near 20.50.

TTD takes no responsibility for trading by those using this information. The stocks presented in our report are those we deem the best looking "Day Trades" for the long side. We take no responsibility for the accuracy of this data, although every effort is made to present the information correctly. Copyright Ticker Tape Digest.

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.)