|Go to Video Show - "How to Make Money With Breakout Stocks"|
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 firstname.lastname@example.org.For service, email Beverly Owen email@example.com. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 4
Stocks Screened - 8,200
Bull side - Just a few breakout stocks today with silver issues dominating the list. Market starting to act better. Bulls be alert.
Long- term Environment for bulls: Bearish
Market Status (Daily) - NYSE Bullish, Nasdaq Bullish
Market Status (Weekly) -NYSE Bearish, Nasdaq Bearish
SLW, based in Vancouver, is a firm that purchases silver for sale through long-term purchase contracts. Annual revenues: $160 million. SLW breaks out from an 11-week, cup-and-handle base today. The move carries the stock to a new high. SLW is a star performer in the metal sector. (see long-term chart). The stock has soared from 3 in 2005 to 19.
TTD highlighted SLW as a breakout at our midsession video show on the Web.
So far today, SLW is trading 4.2 million shares. The stock's average daily volume is 4.4 million shares.
TTD's clip of the tape shows the stock acting well around midday on Thursday. It ticked up from $19.05 to $19.07 on several block trades.
Silver Wheaton is a pure, unhedged paper proxy on silver prices with a unique business model. The company purchases silver for sale through long-term purchase contracts from counterparties. Currently, the company has three long-term silver purchase contracts. SLW expects its purchased silver sales to approximate 15 million ounces in 2007.
SLW is the largest public mining company with 100% of its operating revenue from silver production. It expects 2008 silver sales to be around 15 million ounces, increasing to 25 million ounces in 2010. The company is benefiting from the rising price for silver.
TTD's long-term chart of SLW shows the stock on a steady climb. The company has received min-tender offers for some of its stock from TRC Capital Management. SLW has advised its shareholders to reject the offers.
TTD's daily chart of SLW shows the stock "gapping out" from its base. That is bullish showing there is a degree of urgency in the market to buy the stock.
The stock's accumulation - distribution line (bottom of chart) is in a strong up trend indicating good demand for the stock. The breakout to a new peak by the AD line is good confirmation of strength in the price breakout.
The TTD momentum indicator (top of chart) is modestly bullish.
This year, analysts predict SLW's earnings will jump 47% to 54 cents a share from 37 cents a year ago. The stock sells with a price-earnings ratio of 35.
SLW should show an acceleration in quarterly earnings growth. Net for the first quarter is expected to rise 30% and then in the second quarter 42%. Accelerating quarterly earnings growth can often be a key driver to send a stock higher.
Net for the first quarter should come in at 13 cents a share, up from 10 cents a year ago. The highest estimate on the Street is at 15 cents a share.
Strategy Opinion: SLW is a special situation play in the silver sector. TTD is targeting the stock for a move to 24 within the next few months, or sooner. The strong earnings outlook for the next two quarters should provide the power. A protective stop can be placed near 17.50. TTD rates SLW a good intermediate-term play.
Sponsorship: Good. The company has 220 million shares outstanding. One of the largest buyers recently was Ivy Global Natural Resources Fund which purchased 500,000 shares. It is the largest fund holder now with a 3% stake. Also, 3-star rated Midas Fund picked up 550,000 shares.
Insider Activity: Not available. Currently, 11 analysts follow the stock, 8 have a buy, up from 5 three months ago.
|TTD's Breakout Profile
Silver Wheaton Corp. (SLW)
|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)
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 - 11
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Good number of breakdown stocks today even as market rallies. Auto issues breaking down. TTD's recent short Bear Stearns (BSC) falls 5.44 to 56.09 today. The short on BSC was at 64. So, it is now down almost 8 points in just a few sessions.
(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.)
. GLP, based in Waltham, Ma., is a wholesale distributor of refined petroleum products, operating mainly out of the northeast. Annual revenues: $5.7 billion. GLP's stock falls sharply today after the company reports disappointing earnings for the fourth quarter. The stock of the thinly traded issue is down over 3 points so far today. Volume is running at 103,900 shares, five times its normal daily volume.
GLP reported earnings for the fourth quarter declined to 72 cents a share from 78 cents a year ago.
The Street was expecting net of 86 cents a share. The 72 cents was below the lowest estimate on the Street of 75 cents a share.
GLP purchases refined petroleum products from domestic and foreign oil refiners and sells the products in two segments: Wholesale and Commercial.
Analysts are forecasting net for the first quarter will decline 5% to 95 cents a share from $1 a share a year ago.
The company said a number of adverse factors are impacting its business in 200. One of those is unfavorable forward pricing in the bulk refined petroleum products supply market. That is increasing costs.
TTD's chart shows GLP's stock falling off a cliff today. The stock drops sharply on heavy volume. The TTD momentum indicator (top of chart) has been bearish for several weeks. The accumulation - distribution line (bottom of chart) has rolled over. TTD sees GLP as a good trading short with a target to 18 within a few months. The stock has the potential to surprise big on the downside if earnings deteriorate further.
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.)