Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Tuesday, March 11 |
Go to Video Show - "How to Make Money With Breakout Stocks" |
Go to Video Show - "How to Make Money With Breakout Stocks" |
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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 positions both 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 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.
TTD often suggests using stop buy orders to enter. It is very important to buy a breakout stock as close as possible to the break point. 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.
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.
Total Buy Breakouts so far today - 4
Stocks Screened - 8,200
Bull side - Only a few breakout stocks today. Market rallies on fed action. Bulls remain cautious and patient.
Long- term Environment for bulls: Bearish
Market Status (Daily) - NYSE Bearish, Nasdaq Bearish
Market Status (Weekly) -NYSE Bearish, Nasdaq Bearish
AREX, based in Fort Worth, Tex., is engaged in the development and acquisition of unconventional natural gas and oil properties onshore in the United States and Western Canada. Annual revenues: $40 million. AREX, a recent IPO, breaks out from a seven-week flat base today. The stock is close to making a new high. So far today, AREX is trading 36,829 shares. Its average daily volume is 51,200 shares.
AREX is a thinly traded stock.
Nevertheless, the tape action today shows a big block of 25,000 shares crossing the tape a modest up tick to $15.915.
The action showed good institutional interest in a small oil play.
TTD's map shows the areas that AREX explores.
The company focuses on finding and developing tight sands gas and shale gas reserves. It currently operates in Texas, New Mexico and Kentucky and has non-operated interests in British Columbia.
TTD's daily chart shows AREX trading around 13 when it came public. The stock took a drop to 9 earlier this year. However, it then rebounded climbing quickly to the 15 area. It then put down its base and is now moving out from the consolidation.
The stock is showing good technicals.
The TTD momentum indicator (top of the chart) has been bullish for several weeks. That is impressive given the overall weakness in the stock market. The action shows AREX has been a strong acting stock.
The accumulation - distribution line (bottom of chart) is trending higher. That shows that buying is outpacing selling. That is another good bullish omen.
AREX was founded in 2002 and came public in November 2007. At year-end 2006, proved reserves were 148.8 billion cubic feet of gas equivalent, of which 95% were gas reserves.
This year, analysts predict earnings will increase 22% to 80 cents a share from an anticipated 66 cents a share in 2007. The stock sells with a price-earnings ratio of 19 which is reasonable.
Net for the upcoming first quarter should come in at 19 cents a share. Comparable results for a year ago were not available.
Strategy Opinion: AREX is a small cap energy play. The stock's big advantage is that it has no "overhead resistance." That means there are no buyers of the stock at a higher price. That could give the stock clear sailing. TTD is targeting AREX for a move to 19 within the next few months, or sooner. a protective stop can be placed near 14 keeping it tight. TTD rates AREX a good intermediate-term play.
Sponsorship: Not available. The company has 20 million shares outstanding.
Insider Activity: Not available. Three analysts follow the stock and all have a buy.
TTD's Breakout Profile
Rating Approach Resources Inc. (AREX) |
TTD Check List | Bullish | Bearish | Neutral |
Near 52-week High | YES | ||
Volume Expansion | YES | ||
Tick Volume | YES | ||
Price Trend - Daily | YES | ||
Price Trend - Long Term | YES | ||
Price Daily Spread | YES | ||
Base Structure | YES | ||
Base - A-D | YES | ||
Earnings-Quarterly | YES | ||
Earnings-Long Term | YES | ||
Earnings Outlook | YES | ||
Industry Group | YES | ||
Prior Breakout Success | YES | ||
Fund Sponsorship | YES | ||
Total Score | 11 | 0 | 3 |
(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)
Charts of Breakout Stocks
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 - 16
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Large number of breakdown stocks. Key sector getting hit today are the HMO stocks. Bears continue to be venturesome. TTD's feature short from Monday, Bear Stearns (BSC) falls 3.76 to 58.67.
(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.)
BBW, based in St. Louis, operates a chain of stores where customers can design, assemble, and create their own personalized stuffed bear. Annual revenues: $470 million. BBW falls sharply today to set off a TTD short play. The company did a review of operations and decided to go with a stock buy back plan. The news was taken in a bearish way by the market. TTD sees more on the downside for the stock.
So far today, BBW is trading 1.1 million shares, double its normal daily volume of 508,000 shares.
The stock acted bearish in the morning. TTD's clip of the tape shows a big block of 49,600 shares crossing at $9.96. The trade came within a sequence started by a down tick. TTD sees the action as big institutional selling pressure.
BBW operates retail stores were customers can build bears with customized sizes, shapes, cloth, apparel, and other accessories.
The company has some 240 "workshops" in the United States and Canada and 12 other affiliated retail stores worldwide.
This year, analysts forecast BBW's earnings will decline 12% to $1.07 a share from $1.21 a share in 2007.
TTD's daily chart shows BBW's stock in a steady down trend. It tried to hold support near 10 recently. However, that has fallen and today the stock falls on big volume. TTD is targeting BBW for a decline to 6.50 within a few months, or sooner. TTD sees the stock as a good trading short.
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.)