Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Wednesday, March 18
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Wednesday, 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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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 today - 3
Stocks Screened - 8,200
Bull's Strategy - Small number of breakouts as stock market stages rally on surprise Fed move. Bulls remain selective seeking quality stocks with strong earnings outlook. Do not chase stocks overly extended in price.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Unfavorable
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) -NYSE Bullish, Nasdaq Bullish
Market (Monthly) NYSE Bearish, Nasdaq Bearish
| TTD's Quality Rating of Stock - NVEC - AVERAGE |
NVEC, based in Eden Prarie, Min., is engaged in the practical commercialization of "spintronics" magnetic devices for the acquisition, storage, and transmission of information. Annual revenues: $25 million. NVEC breaks out from a seven-week, cup-and-handle base today. TTD highlighted the stock in our report from the day before. 
So far today, NVEC, a thinly traded issue, has shown volume of just 61,909 shares. Its average daily volume is 64,000 shares.
The stock needs to show a pick up in volume to make the breakout more convincing. NVEC's stock pushed higher in the morning and peaked near mid-session. It surprisingly gave ground in the afternoon, when the stock market rallied.
TTD's clip of the tape shows the block trades today. One can see the price for the blocks rising from $33.88 in the morning to $34.53 by midday. The tape action shows good institutional interest in the stock.
NVEC's proprietary spintronic materials are called Giant Magnetoresistors. The company's product portfolio consists of three lines: magnetic sensors for precise data acquisition, IsoLoop Couplers for high-speed data transfer, and Magnetic Random Access Memory for non-volatile data storage.
TTD's long-term chart of NVEC shows the stock spiking up to 69.69 in 2004. The stock then fell back. The past two years, NVEC has traded in a range between 20 to 40. A breakout over 40 would be bullish long-term.
NVEC's daily chart shows the stock climbing from 18 back in November to 34 by January. The stock then formed its cup-and-handle base. The formation of the base is bullish showing a contraction in volume near the lows. 
The breakout carries the stock above key resistance. It had been at that point twice before but fell back. So, it will be important to see if NVEC came make the third time a charm.
The stock's accumulation - distribution line (bottom of chart) is in resting after a strong run up. It shows there was strong buying in the stock on the move up. The subsequent profit taking has been well contained because the AD Line has not given ground. That is all bullish.
Analysts expect NVEC's earnings for the fiscal fourth quarter ending March 30 to rise 13% to 53 cents a share from 47 cents a share a year ago.
TTD sees chances for an upside earnings surprise. The past two quarters NVEC topped the consensus Street earnings per share estimate by 30% and 17%.
Net for the fiscal year ending March 31 should be up 27% to $1.92 a share from $1.51 a year ago.
The stock sells with a 17 price-earnings ratio which is reasonable.
Revenues for the reported fiscal third quarter were up 23%. The gain reflected an 8% rise in product sales and a 150% increase in contract research revenue.
Quarterly earnings growth should accelerate with net for the fiscal first quarter increasing 20% to 48 cents a share from 40 cents a year ago. Overall, analysts are currently forecasting a 10% rise in net for the fiscal year ending March 30, 2010. TTD sees chances for that to be boosted.
Strategy Opinion: TTD had set a breakpoint at 34.10. NVEC punched through that point. TTD suggests a partial stake in NVEC with a view to averaging up in price. partial stake only on a breakout over 34.10. Further buying can be done on a follow through after that breakout is completed. TTD is targeting NVEC for a move to 42.. A protective stop can be placed near 31 which is tight. TTD rates NVEC an average intermediate-term play due to its modest earnings growth outlook.
Sponsorship: Average. The largest fund buyer recently was 4-star rated Satuit Capital Micro Cap Fund which picked up 36,000 shares. NVEC has only 4 million shares outstanding. Funds hold 400,000 shares. The thin-trading in the stock means it can move up sharply if demand is strong.
Insider Activity: Neutral. Insiders doing just light selling. Only one analyst follows the stock and has a strong buy.
Stock Performance Chart for 12 months with Quarterly Earnings Markers.
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TTD's Profile Rating NVE Corp. - (NVEC) |
| 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 | 9 | 0 | 5 |
(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
| TTD's Quality Rating of Stock - CPSI - AVERAGE |
| TTD's Quality Rating of Stock - DNBK - BELOW AVERAGE |
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 - 2
Stocks Screened - 8,200
Long-Term Environment for bears: Favorable.
Bear Side - Only a few breakdown stocks today as market stages rally. Bears be patient.
(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.)
MRX, based in Scottsdale, Az., is a drug firm focusing exclusively on the treatment of dermatological conditions. Annual revenues: $520 million. MRX's stock falls sharply today after getting a disappointing report from the FDA. The stock gapped lower in the morning in heavy trading. Earnings are expected to fall sharply in the next two quarters. TTD sees more on the downside.
So far today, MRX is trading 6.8 million shares, six times its normal daily volume of 1.2 million shares.
The stock came under heavy institutional selling pressure around midday. TTD's clip of the tape shows a big block of 164,500 shares crossing at $9.18. The trade came within a sequence started by a down tick from $9.19. The trade was one of the largest of the day.
A federal agency denied MRX's petition to block approval of a new drug applications for 30 months for a generic versions of acne drug Solodyn by Mylan Inc.
MRX offers prescription, over-the-counter and physician-dispensed dermatology products, emphasizing the clinical effectiveness, quality, affordability and cosmetic elegance of its products.
The company is in a leading position in branded products for the treatment of acne, acne-related conditions, psoriatic conditions and pruritic conditions.
This year, analysts forecast a 4% decline in MRX's earnings to $1.42 a share from $1.49 a year ago.
The next two quarters will be very bearish. Profits are expected to plunge 46% in the first quarter and then 38% in the second quarter.
TTD's daily chart shows MRX in a down trend from 22 a few months ago to 10. The stock tried to form a bottom. However, today's gap down on big volume is very bearish.
TTD is targeting MRX for a decline to 6.50 within the next few months. A protective stop buy can be placed near 10.20.
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.)
