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.
Ticker Tape Digest's Trading Strategies Overview and Performance
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
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.
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 email@example.com.For service, email Beverly Owen firstname.lastname@example.org. TTD’s Tel: 1-480-926-1680.
Stocks Screened - 8,200
Bull side - Breakout small. Stock market looks in need of a pause. Bulls be very selective now and watchful of all long positions. Also, be alert to any industry rotation which would show up as breakouts of several stocks in one group.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bearish, Nasdaq Bullish
TTD's Quality Rating of Stock - ZBRA - AVERAGE
ZBRA, based in Vernon Hills, Il., makes specialty printing devices. Annual revenues: $813 million. ZBRA breaks out from a five-week flat base today. The move carries the stock to a new 52-week high. TTD highlighted ZBRA as a breakout a few weeks ago. The action today represents a breakout from a base on top of a base - a unique set up. So far today, ZBRA is trading 549,447 shares, double its normal daily volume of 231,000 shares.
TTD featured ZBRA at our midsession show on the Web Monday.
ZBRA's five minute chart shows a clears breakout in the morning with good follow through action. The stock faded a bit in the afternoon. However, it still held comfortably above its breakpoint.
The stock's tape action shows the big block trades of the past few days. .
One can see the price for the blocks climbing from $28.97 to $30.57.
That shows good institutional buying interest. A key trade today was a big block of 50,000 shares that crossed the tape at $30.55.
ZBRA sells specialty printing devices that print variable information on demand at the point of issuance.
These devices are used worldwide by manufacturers, service organizations and governments for automatic identification, data collection and personal identification in applications.
The company's product range consists of direct thermal and thermal transfer label and receipt printers, passive radio frequency identification printer/encoders, dye sublimation card printers and digital photo printers.
It also sells a range of specialty supplies consisting of self-adhesive labels, thermal transfer ribbons, thermal printheads, batteries and other accessories, including software for label design and printer network management.
ZBRA's 12-month performance chart shows the stock appreciating 65% compared with a 45% gain for the S&P 500 index. So, although the stock is well off from its all time high of 62.40 made in 2004, it has been outperforming in recent months.
ZBRA's long-term chart shows the stock climbing from a bear market low of 16 early in 2009 to 30. The stock now appears to be riding its 50-day moving average line higher. .
ZBRA's daily chart shows the stock breaking out from a base in early February. The breakout stalled and ZBRA for a new and smaller base. Notice on the chart that the pull back in the price in late February came on low volume. That is bullish.
The breakout today comes with expanding volume.
Technically, the breakout is being supported by good buying. The TTD momentum indicator (top of the chart) is slightly bullish.
The accumulation - distribution line (bottom of chart) has broken out to the upside again. That indicates good buying in the stock supportive of the technical breakout today.
This year, analysts forecast a 46% jump in ZBRA's earnings to $1.36 a share from 93 cents a year ago. The stock sells with a price-earnings ratio of 22 based on 2010 net. TTD sees that as a bit low given the strong profit outlook.
Going out to 2011, the Street forecast a 22 gain in net to $1.65 a share from the anticipated $1.36 a share.
TTD sees the near-term key to the stock being upcoming first quarter earnings. The Street expects a robust 80% leap in net to 31 cents a share from 17 cents a year ago. The highest estimate on the Street is at 34 cents a share. TTD sees good chances for an upside surprise. In the prior quarter, ZBRA topped the consensus estimate by 8 cents a share, or 32%.
Strategy Opinion: TTD is targeting ZBRA for a run to 38 within the next few months, or sooner. A protective stop can be placed near 27. TTD rates ZBRA a good intermediate-term play as long as earnings remain on target.
Sponsorship: Excellent. The largest fund holder is 5-star rate Neuberger Berman Genesis Fund with a big 6.4% stake. The second largest fund holder is 5-star rated Royce Premier Investment Fund with a 2.9% stake. ZBRA has 58.8 million shares outstanding.
Insider Activity: Neutral. Not much trading by insiders. Nine analysts follow the stock, 2 have a buy, down from 3, three months ago.
Stock Performance Chart for 12 months with Quarterly Earnings Markers.
TTD's Breakout Profile Rating
Zebra Technologies Corp - (ZBRA)
|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. 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 - PEGA - AVERAGE|
|TTD's Quality Rating of Stock - WMT - AVERAGE|
|TTD's Quality Rating of Stock - GES - AVERAGE|
|TTD's Quality Rating of Stock -GNRC - AVERAGE|
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 - 6
Stocks Screened - 8,2007
Long-Term Environment for bears: Neutral.
Bear Side - Number of breakdown stocks picks up slightly as stock market backs off. Bears be alert and now aggressive. TTD's short play from Friday was American Dairy Inc. (ADY) - 20.24, down 0.66. Today, ADY is down to 19.94 and working well for bears.
(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.)
BSX, based in Natick, Ma., products medical devices for cardio problems. Annual revenues: $8.2 billion. BSX's stock falls sharply today in heavy trading after the company suspended sales of its implantable cardioverter defibrillator due to problems with an FDA filing. So far today BSX is trading an enormous 214.5 million shares, 10 times its normal daily volume of 21.8 million shares. TTD sees more on the downside.
BSX's stock gapped lower at the opening. It hit a bottom at 6.14 in the morning and the staged a modest lift.
TTD's clip of the tape shows the recent block trades when BSX took a diver in the morning. One can see the price for the blocks tumbling from $7.90 to $6.58.
A key trade was a big block of 1.15 million shares that crossed several days before the news today. The block wen off at $7.85. That was down from the prior big block that went off at $7.90. The tape action would indicate heavy selling was coming into BSX well before today's bearish news.
BSX suspended sales of its medical devices that restore normal heart rhythm and manage heart failure. It said it did not submit for U.S. regulatory approval certain changes in the way it makes the products.
BSX makes devices that are used for interventional medical needs. That includes cardiac rhythm management, electrophysiology, interventional cardiology, peripheral interventions, neurovascular and endoscopy.
This year, analysts have been forecasting a 45% drop in BSX's earnings to 43 cents a share from 78 cents a year ago. The suspended sales could well cause analysts to lower their earnings.
TTD's chart of BSX shows the stock in a down trend. Today's gap drop and heavy volume indicates an institutional flight from the stock.
Strategy Opinion: TTD is targeting BSX's stock for a drop to 5 within the next few months, or sooner. A protective stop buy can be placed near 7.70
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.)