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Go to Video Show - "How to Make Money With Breakout Stocks" Go to Video Show -TTD Performance 2008 Long and Short |
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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.
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Ticker Tape Digest's Trading Strategies Overview and Performance Bullish Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." Conservative Investors "Bargain Buy Trades" (swing trades). Ideally suited for entry into stocks on pullbacks within overall up trend. Good for trading range markets Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns Conservative Bearish Investors (swing traders). "Bargain Bearish Plays" to Sell Short. Ideally suited for trading range markets with overall market down trend. |
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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 These are for conservative bullish Investors The strategy is called swing trading. These long buys are ideally suited for entry into stocks on pull backs within overall up trend. They are good for trading range markets. These stocks can give a good return in a week or two. They can also explode into a breakout and a powerful advance.
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 Bearish bargain play stocks to sell short. These issues are usually in down trends and are poised to rollover after a minor rally. They often can provide a conservative bear with a good entry point.
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
Stocks Screened - 8,200
Bull side - Breakout list modest with some interesting good earnings plays. Bulls can be venturesome. The stock market action suggest allocation money is moving into stocks. That can be seen when leaders continue to act well.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bearish, Nasdaq Bullish
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TTD's Quality Rating of Stock - VECO - AVERAGE |
VECO, based in Woodbury, N.Y., is a diversified electronics
firm. Annual revenues: 380 million. VECO's stock breaks out today from a ten-week flat base with expanding volume. TTD highlighted VECO as a potential breakout that should be accumulated on Wednesday. Today, VECO "delivers." So far today, VECO is trading 3.9 million shares, more that double the 1.5 million average daily volume. 
VECO's 10-minute chart shows the stock edging out of its base late on Wednesday. Today, the stock drove sharply higher in the morning to clear the base.
It held comfortably above the breakpoint throughout the session.
TTD highlighted the stock at our midsession show on the Web today.
TTD's clip of the tape shows the big block trades. One can see the price for the blocks climbing from $38 late on Wednesday to $39.55 by midday Thursday.
A key trade came at 9:30 a.m. when a block of 26,787 shares (duplicated) crossed at $39.15. That was up sharply from the prior block trade at $38.00. That indicated good institutional buying interest.
VECO's stock has been trending higher and recently made a 7-year high.
The company introduced a new microscope systems for the nanoscience community earlier in the week.
VECO makes solutions for customers in the high brightness light emitting diode, solar, data storage, scientific research, semiconductor and industrial markets.
The company makes metal organic chemical vapor deposition systems used to make HB LEDs or solar cells made of III-V compound semiconductors.
In its Data Storage segment, VECO makes equipment used to produce thin film magnetic heads that read and write data on hard disk drives. It also makes other high-technology products.
VECO's 6-month performance chart shows the stock appreciating 85% versus 10% for the S&P 500 index.
VECO's long-term chart shows the stock making a multi-year high
recently at $38.39. That is very bullish. 
The new high could well bring in more buying on Friday.
VECO's daily chart shows a 10-week flat base. The breakout today is a gap move which is bullish. It shows urgency by buyers to get in.
The structure of the base is bullish with three shakeouts to the downside. The latest one was at a low above the prior low. That is bullish.
VECO's TTD momentum indicator (top of chart) is solidly bullish.
The accumulation - distribution line (bottom of chart) is strongly bullish. It has already broken out to the upside. As TTD said on Wednesday, "that could well be a lead indicator that the price of the stock will breakout soon."
Right on!
This year, analysts forecast VECO's earnings will rebound to $1.99 a share from a loss of 28 cents a year ago. The stock sells with a price-earnings ratio of 19,. TTD sees that as low and attractive for value-growth investors.
Going out to 2011, the Street projects a 34% jump in net to $2.67 a share from the anticipated $1.99 this year.
The company has been raising its earnings projections.
VECO's net for the upcoming first quarter should come in at 40 cents a share compared with a loss of 42 cents a year ago. The highest estimate on the Street is at 44 cents a share. TTD sees chances for an upside earnings surprise. The past two quarters VECO topped the consensus Street estimate by 10 cents a and 9 cents a share.
Strategy Opinion: TTD is now lifting its target for VECO to 48 from 45 set on Wednesday. A protective stop can be placed near 36. TTD rates VECO a very good intermediate-term play provided earnings meet expectations.
Sponsorship: Very Good. The largest fund holder is T. Rowe Price Small-Cap Value Fund, 4-star rated, with a 2.2% stake. The largest buyer recently was 4-star rated Lord Abbett Developing Growth Fund, 4-star rated, which purchased 428,245 shares. VECO has 39.9 million shares outstanding.
Insider Activity: Neutral. Insiders were buyers using stock options. They turned around and sold. The latest selling was at $36.05. Currently, 10 analysts follow the stock, 9 have a buy, up from 8 three months ago.
Stock Performance Chart for 6 months with Quarterly Earnings Markers.
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TTD's Breakout Profile Rating Veco Instruments Inc. (VECO) |
| TTD Check List | Bullish | Bearish | Neutral |
| Near 52-week High | YES | ||
| Volume | 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 | 13 | 0 | 1 |
(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)
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - CLNE - AVERAGE |
| TTD's Quality Rating of Stock - SFSF- BELOW AVERAGE |
| TTD's Quality Rating of Stock - HELE - AVERAGE |
| TTD's Quality Rating of Stock - IHS - AVERAGE |
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Conservative Investors Bearish (swing traders) - Go To TTD Bargain Short Trade Setups - Monday, March 8 - Weekly - Feature short play Chart Industries (GTLS) 20.26 |
Ticker Tape Digest’s Daily List of “Stocks To 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 - 4
Stocks Screened - 8,2007
Long-Term Environment for bears: Neutral.
Bear Side - Bear side still lean. Bears remain patient and selective.
(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.)
WG, based in Houston, is a contractor serving the oil, gas and power industries and the government. Annual revenues: $1.5 billion. WG's stock gaps sharply lower today after the company reported a fourth quarter loss and announced an acquisition. Trading so far is running at 2.3 million shares, six times its normal daily volume of 367,000 shares. TTD sees more on the downside. 
WG's stock gapped lower at the opening. It hit a bottom at 13.04 around midday. It then drifted sideways unable to mount a significant rally.
WG reported a fourth quarter loss of 21 cents a share versus a loss of 41 cents a year ago. The 21 cent loss was more than the consensus loss projected of 15 cents a share.
TTD's clip of the tape shows the recent big block trades up to this morning. One can see the price for the blocks declining from $15.43 to $13.50. A key trade took place at the opening today. That was when a big block of 100,000 shares crossed the tape at $15. That was down sharply from the prior block trade at $15.43.
The tape action indicated aggressive institutional selling.
The company provides engineering; construction; engineering, procurement and construction and specialty services.
It specializes in pipelines and associated facilities for onshore and coastal locations.
For the downstream oil and gas markets, primarily refineries, WG provides turnaround services, tank services, heater services, construction services and safety services. It also makes specialty items for refinery and petrochemical process units.
Analysts expect WG to show a breakeven in the first quarter compared with a profit of 39 cents a year ago. Overall, they expect net for 2010 to rebound 44% to 81 cents a share from 56 cents a year ago.
WG's chart shows the gap drop today on heavy volume. The stock's accumulation - distribution line (bottom of chart) is rolling over.
Strategy Opinion: TTD is targeting WG for a decline to 10.50 within the next few months. A protective stop buy can be placed at 14.10. TTD sees WG as a 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.)
