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
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Total Buy Breakouts so far today - 9
Stocks Screened- 8,200
Bull side - Small list of breakouts today. However, there are some interesting plays. Bulls be very selective and cautious.
Long-Term Environment for bulls: Unfavorable.
Market Status (Daily) - NYSE Bullish, Nasdaq Bullish
Market Status (Weekly) - NYSE Bearish, Nasdaq Bearish
NOV, based in Houston, makes oil drilling equipment such as land rigs and drilling motors Annual revenues: $7 billion. NOV breaks out from a near-term, 13-week cup-and-handle base today. Oil stocks are starting to act well as the price of crude edges higher. So far today, NOV is trading 3.3 million shares. Its average daily volume is 3.1 million shares.
NOV broke out in the afternoon - at the same time TTD was spotting good action in some of the drillers such as Dresser (DRC), which also broke out today.
TTD's clip of the tape for NOV highlights a key trade in the morning. It is a big block of 80,000 shares crossing on a big up tick to $71.53 from the prior trade at $71.45.
NOV provides equipment, integrated systems, downhole tools, and supply chain solutions. The company operates in 200 countries. However, its primary operations are in the U.S. The company has been expanding aggressively with acquisitions with the last major one being the purchase of Varco International.
A look at TTD's long-term chart shows the stock overcoming long-term overhead resistance around 42. So, the breakout today has long-term bullish implications.
Near-term, NOV's breakout comes with the TTD momentum indicator solidly bullish (see top of chart). Also, the stock's accumulation - distribution is trending higher now showing there is solid buying behind the stock's recent advance.
NOV is racking up strong earnings and revenues thanks to the high price of crude which is triggering strong demand for the company's oil drilling products.
This year, analysts are forecasting a 41% jump in profits to $5.54 a share from $3.92 a share last year. The stock sells with a 13 price-earnings ratio. TTD sees that as very attractive to value-growth investors.
Next year, NOV's net is expected to rise 16% to $6.41 a share.
Revenue growth is running at a robust 42%, which includes the operations of Varco. The backlog as of year end stood at $6 billion. That was up from $5.4 billion at the end of September.
TTD sees strong earnings for the next two quarters. That should be the driver to send the stock higher. For the upcoming first quarter, net should leap 80% to $1.33 a share from 74 cents a share a year ago. The highest estimate on the Street is at $1.40 a share.
The second quarter net should be up 60% to $1.35 a share from 84 cents a year ago.
Strategy Opinion: TTD is very bullish on NOV. The key to this breakout will be the follow through. TTD is targeting NOV for a move to 84 within the next few months. A protective stop can be placed near 68. TTD rates NOV a very good intermediate-term play because of its strong earnings outlook and low valuation.
Sponsorship: Excellent. The largest fund holder is 5-star rated Fidelity Balanced Fund with a 3.5% stake. It was a recent buyer of 851,000 shares. Also, 4-star rated Fidelity Advisor Mid Cap Fund was a recent purchaser of 618,000 shares.
Insider Action: Neutral. Not much action lately, although stock options have been given out. Currently, 14 analysts follow the stock, 11 have a buy, up from 10 three months ago. Citigroup has an $86 price target.
|TTD's Breakout Profile
National Oilwell Varco Inc. (NOV)
|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 - 6
Stocks Screened - 8,200
Long-Term Environment for bears: Favorable.
Bear Side - Only a few breakdown stocks today as the market turns mixed. TTD sees potential for another leg down. Bears remain alert.
(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.)
ISCA, based in Daytona Beach, Fla., promotes motorsports activities. It currently holds some 100 racing events annually. The Company owns and/or operates 13 of the nation's major motorsports facilities, including Daytona International Speedway in Florida (home of the Daytona 500). Annual revenues: $782 million. ISCA falls sharply today on heavy volume to trigger a TTD short play.
So far today, ISCA is trading 463,143 shares, almost five times its normal daily volume of 100,000 shares. Technically, the stock has broken below key support at 51.
TTD's table of big block trades today shows the action. The red blocks are ones that are bearish, the blue are bullish. The bearish blocks are trades going off below the bid. The stock got off to a bearish start in the morning. And then around midday more selling came in and the stock's price weakened.
ISC is a limited partner with Group Motorise International in the organization and promotion of certain events at Circuit Gilles Villeneuve in Montreal, Canada.
The Company also owns and operates MRN Radio, a sports radio network and subsidiaries which provide catering services, food and beverage concessions, and produce and market motorsports-related merchandise under the trade name "Americrown."
In addition, ISC has an indirect 50 percent interest in a business called Motorsports Authentics, which markets and distributes motorsports-related merchandise licensed by certain competitors in NASCAR racing. For more information, visit the Company's Web site at www.iscmotorsports.com.
This fiscal year ending Nov. 30, 2007, ISCA's earnings are projected by analysts to decline 3% to $3.16 a share from $3.24 a year ago. Profits for the upcoming quarter ending Feb. 28 should drop 10%.
Technically, the stock is acting very weak now. The TTD momentum indicator (top of the chart) has fallen into the bearish zone. The accumulation - distribution line which was acting bullish is now rolling over. TTD sees ISCA backtracing to 44 within the next few months. TTD sees the downside momentum as significant.
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. Some of the charts are from Telescan, Insight Trading, First Alert and other sources.)