Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Tuesday, March 18
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Tuesday, March 18 |
| Go to Video Show - "How to Make Money With Breakout Stocks" |
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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 - 5
Stocks Screened - 8,200
Bull side - Small number of breakouts. Overall quality below average. Fed cuts rates and market rallies. Bulls be patient and watchful.
Long- term Environment for bulls: Bearish
Market Status (Daily) - NYSE Bullish, Nasdaq Bullish
Market Status (Weekly) -NYSE Bearish, Nasdaq Bearish
Market Status (Monthly) NYSE Bearish, Nasdaq Bearish
CWEI, based in Midland, Tex., produces oil and natural gas. Annual revenues: $330 million. CWEI breaks out from a six-week, flat base today and hits a 52-week high. The thinly-traded stock is trading 47,135 shares so far today. Its average daily volume is 50,000 shares. CWEI recently posted strong earnings for the fourth quarter. 
The stock showed bullish action in the morning. TTD's clip shows CWEI with a run up sparked by a block trade of 1,900 shares that went off on a modest up tick to $41.60 from the prior trade at $41.59.
TTD's performance chart for CWEI (see below) shows the stock with an appreciation of around 42%. That compares with a decline of about 5% for the S&P 500.
So, CWEI's stock is a leader. It also part of the strong acting energy sector which is benefiting from high crude oil prices.
CWEI explores and develops new reserves rather than simply purchasing low-risk reserves that have higher probabilities of production value.
This method leads to spending money on nonproductive assets, but overall, the company believes that it will achieve a higher rate of return on both its productive and nonproductive assets than it otherwise would by only investing in low risk prospects. The company operates in Texas, Louisiana, New Mexico, and Mississippi.
TTD's daily chart of CWEI shows the stock trending higher from 28 late last year to the 40 area, where it put down a base.
The six week base was bracketed between 36 and 41. CWEI's breakout came early in the day. The stock has responded well to the Fed's rate cut today by working even higher.
The stock's TTD momentum indicator (top of chart) has moved back into the bullish zone. The accumulation - distribution line (bottom of chart) has weakened a bit in the past few sessions. It will be important to see that it improves.
CWEI recently reported earnings for the fourth quarter of 75 cents a share compared with a loss of 81 cents a share a year ago. Revenues for the quarter surged 93% to $127 million from $66 million.
For 2008, the company increased its forecast for planned expenditures by $36 million to $256 million, due primarily to the addition of two drilling rigs to be utilized in the Permian Basin.
For 2007, CWEI posted a profit of 53 cents a share. TTD sees chances for a significant increase in earnings this year.
Strategy Opinion: CWEI is a strong acting energy stock. TTD is calling for the stock to advance to 50 within a few months, or sooner. The key will be to see if the company will continue to show strong profits. The action of the stock would indicate it will. A protective stop can be placed near 40. TTD rates CWEI a good intermediate-term play.
Sponsorship: Good. The largest fund holder is Heartland Value Fund with a big 5% stake. The fund has kept its position steady. CWEI has just 11 million shares outstanding. Funds hold 1.1 million shares.
Insider Activity: Bullish. Insiders have been steady but light buyers of the stock. They have done no selling. Two analysts follow the stock, one has a buy, the same as three months ago.
CWEI's Stock Performance Chart for One Year versus the S&P 500 index.
| TTD's Breakout Profile
Rating Clayton Williams Energy Inc. (CWEI) |
| 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 - 11
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side -
(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.)
SHFL, based in Las Vegas, sells and leases card shufflers and proprietary table games to casino operators. Annual revenues: $180 million. SHFL falls sharply today on massive volume after reporting a loss for the fiscal first quarter ended Jan. 30. The breakdown triggers a TTD short play. So far today, SHFL is trading 3.2 million shares, five times its normal daily average of 614,000 shares.
TTD's clip of the tape shows heavy selling pressure in the morning. A big block of 66,400 shares crossed on a modest down tick to $5.36 from the prior trade at $5.37. The action showed heavy institutional selling pressure.
SHFL reported a loss for the fiscal first quarter of 5 cents a share compared with a profit of 6 cents a year ago.
The news triggered selling. Revenues rose 1%. The company blamed higher expenses for the loss. The Street was expecting a profit of 7 cents a share before items.
SHFL developed the first automatic card shuffler in 1991. It holds 90% of the worldwide market for the product. Shufflers help improve a casino's productivity, profitability, and security. SHFL also sells proprietary table game products that account for 40% of sales.
The company said it expects fiscal year net (October) to top the 33 cents a share in fiscal 2007. However, the Street was expecting a 29% rise in net for the year to 43 cents a share. Those estimates will be cut.
TTD's daily chart shows the breakdown today on heavy volume. The stock's TTD momentum indicator (top of chart) is bearish. The accumulation - distribution line (bottom of chart) is moving lower showing there is heavy selling pressure. TTD is targeting SHFL for a decline to 3.50 within the next few months, or sooner.
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.)
