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
Daily schedule guide for TTD subscribers
1. Pre-market - check Breakout Watch List and Quick Trades.
2. Morning - (11:30 - 12 A.M.) - check breakout stocks tape and breakout chart slide show.
3. Midday (1 P.M.) check TTD Midsession Report and see market video show.
4. After close (4 P.M.) check final TTD Report for day.
Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. (See Performance)
Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." (See Performance)
Conservative Investors "Bargain Buy Trades for the Long Term." Ideally suited for entry into top performing big cap stocks on pullbacks within overall up trend.(See Performance)
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance)
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 - Long Term. These are for conservative bullish Investors These long-term buys are ideally suited for entry into stocks on pull backs within overall up trend. These stocks can give a good return long-term especially during a bull market.
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 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.
Total Buy Breakouts so far today - 4
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Small number of breakouts today. Bulls must be very selective. Stock market holds in up trend with momentum still bullish. However, bulls must be watchful.
(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 Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - GMAN - AVERAGE
GMAN, based in Omaha, Neb., operates 68 department stores in the midwest. Annual revenues: $541 million. GMAN's stock breaks out today from a 10-week flat base. The key driver for the move was a report of stronger than expected earnings. So far today, GMAN is trading 520,760 shares, almost 10 times its normal daily volume of 58,000 shares.
TTD highlighted GMAN as a breakout at our midsession video show on the Web Tuesday.
GMAN' stock drove sharply higher in the morning. It continued to push higher even in the afternoon after the news of earnings hit the tape.
The close near its high is very bullish.
GMAN reported net for the fiscal fourth quarter ended January 31 rose to 53 cents. That topped the consensus estimate on the Street of 50 cents a share.
The company also projected a favorable earnings forecast for the fiscal first quarter ending in April and for all fiscal 2013 ending in January.
For the fiscal year, analysts were forecasting net at $1.48 a share. GMAN said net would be $1.46 to $1.51 a share. Revenues were projected by analysts at $623 million. The company said it expects $629 to $634 million for revenues. The news was bullish and the stock reacted very bullishly.
TTD's clip of the tape shows the recent big block trades.
One can see the price for the blocks climbing from$15.44 on Monday to a peak of $19.44.
A key bullish trade came in the morning when a block of 12,986 shares (duplicated) crossed the tape at $17.15. That was up from the prior block at $54.44.
GMAN is a low-price department store retailer featuring a selection of the brands, fashions and styles at up to 60% of department and specialty store prices.
The company sells apparel for all ages, accessories, footwear and home fashions.
It has 68 stores under the trade name Gordmans in 16 primarily Midwestern states situated in a variety of shopping center developments, including regional enclosed shopping malls.
GMAN's 12-month performance chart shows the stock appreciating 18% versus a 10% gain for the S&P 500 index. Notice on the chart the strong insider buying back in August.
GMAN's long-term chart shows the stock coming public in 2010 and trading around 11. The stock climbed to a high of 23.24 in May of last year. Afterwards, it backtracked to 11. However, it has now resumed an up trend.
GMAN's daily chart shows the stock in a base with upside resistance near 16. Today, the stock gaps sharply higher on big volume on the strong earnings.
The stock was acting well in the base prior to the breakout.
The stock's technicals are bullish. The TTD momentum indicator (top of chart) is strongly bullish and so is the Accumulation - Distribution line at the bottom of chart.
Analysts are forecasting a 7% rise in GMAN's net for the upcoming fiscal first quarter ending April 30. They look for 41 cents a share versus 38 cents a year ago.
However, the fiscal second quarter is expected to be strong with net jumping 24% to 19 cents a share from 15 cents a year ago.
This year, the consensus now is that GMAN's earnings for fiscal 2013 ending in January should climb 16% to $1.50 a share from the $1.30 a year ago. The stock sells with a price-earnings ratio of 13. TTD sees that as low. So, the stock may have appeal to value investors.
Looking out to fiscal 2014 ending January, profits are projected to rise 16% to $1.75 a share from the anticipated $1.50 in fiscal 2013.
Strategy Opinion: TTD is targeting GMAN for a move to 23.50 within the next few months, or sooner. A protective stop can be placed near 17.
The stock is extended off the earnings news. So, one can scale into the issue.
TTD rates GMAN an average intermediate-term play with low downside risk as long as earnings remain on course.
Sponsorship: Excellent. The largest fund holder is 4-star rated Janus Venture Fund with a 3.5% stake. It was a recent buyer of 193,210 shares. A key buyer recently was 5-star rated TFS Market Neutral Fund which purchased 14,506 shares. GMAN has 19.3 million shares outstanding. Institutions hold 28% of the stock.
Insider Activity: Neutral. Insiders were granted options last year. There has not been much activity the past few months by the insiders. The price of the options was not disclosed. Five analysts follow the stock, 4 have a buy, the same as three months ago.
Stock Performance Chart with Quarterly Earnings Markers
Insider Activity - Buying in Green - Selling in Red
|TTD's Breakout Profile
Gordmans Stores Inc. - (GMAN)
|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|
Charts of Selected Breakout Stocks
|TTD's Quality Rating of Stock - AGU - AVERAGE|
|TTD's Quality Rating of Stock - LGF - AVERAGE|
|TTD's Quality Rating of Stock - CBOE - 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 - 1
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Only one short play today. Bears remain conservative and patient. TTD's short play from Monday was China Unicom Hong Kong at $17.13. Today, the stock has declined to 16.64 and is working well for bears.
TRGT, based in Winston-Salem, N.C., is working on drugs to treat nervous system disorders. Annual revenues: $98 million. TRGT's stock takes a dive today on a disappoint study on its drug to treat major depressive disorders. The products are called Renaissance 4 and Renaissance 5. So far today, TRGT is trading a heavy 9.6 million shares, 24 times its normal daily volume of 378,000 shares. TTD sees more on the downside.
TTD highlighted TRGT as a short at our midsession video show on the Web Tuesday.
The stock gapped lower in the morning and continued South hitting an intraday low of 5.29. It then trended sideways in the afternoon.
TRGT's tape action shows heavy and consistent institutional selling pressure.
The price for the recent block trades has worked lower from $7.50 to $5.40. A key bearish trade came in the morning when a block of 150,000 shares crossed the tape at $6. That was down from the prior big block trade at $7.50.
TRGT is working on a new class of drugs to treat central nervous system diseases and disorders.
The company's product candidates selectively modulate neuronal nicotinic receptors that serve as key regulators of the nervous system to promote therapeutic effects and limit adverse side effects.
TRGT has a cognition-focused collaboration with AstraZeneca and a strategic alliance with GlaxoSmithKline.
This year, analysts are forecasting a loss of 74 cents a share compared with a loss of 27 cents a share a year ago. The disappointing drug report sends the stock down sharply and could continue to pressure the stock.
TRGT's stock chart shows the stock with a big breakdown in November. It then trended sideways. The gap drop today opens the door for another leg down. The stock's accumulation - distribution line (bottom of chart) is trending lower indicating clear heavy selling pressure.
Strategy Opinion: TTD is targeting TRGT for a decline to 4 within the next few months, or sooner. A protective stop buy can be placed near 6/
|TTD's Quality Rating of Stock -TRGT - BELOW AVERAGE|
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.)