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 for the Long Term." Ideally suited for entry into top performing big cap stocks on pullbacks within overall up trend.
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns
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.
1 - TTD's Breakout Stocks - Long - (Intermediate-term long plays) these 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.
2 -TTD Quick Trade Stocks - Long - (Short-term long plays 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.
3 - TTD's Bargain Buy Trades - Long - (Long Term long plays. 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.
4 - 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 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 - 20
Overall Quality of Breakouts - ABOVE AVERAGE
Stocks Screened - 8,300
Bull side - Big list of breakout stocks with several high quality plays. Stock market rises sharply to get back into its trading range. Bulls remain watchful and selective.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
(See Top Performing Breakout Stocks for 2011 - Updated March 18)
TTD's Quality Rating of Stock - IT - ABOVE AVERAGE
IT, based in Stanford, Con., is a research and advisory firm that helps clients understand technology. Annual revenues: $1.3 billion. IT's stock breaks out today from a seven-week, flat base. The move carries the stock to a 14-year high. It just needs to get over the $40.54 high made back in 1996 to make a new all-time high. So far today, IT is trading a light 382,077 shares. Its average daily volume is 686,000 shares.
TTD featured IT at our midsession video show on Monday and also recently as a stock to accumulate.
IT's 10 minute chart shows the stock spiking higher in the morning to breakout of its base. The stock peaked around noon.
In the afternoon, it drifted back a bit, but held over is breakpoint.
The tape action in IT today, was bullish in the morning fitting with its breakout action.
In the afternoon, there was some institutional profit taking.
One can see the price for the blocks climbing from $38.66 to a peak of $39.95.
The largest block trade today was 5,812 shares that crossed at $39.02. That was up from the prior block trade at $38.76.
IT's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events.
The company has a comprehensive body of global research that reports on and analyzes the technologies that drive business. IT leverages its research capabilities to deliver hands-on client support, from strategy to measurable results.
IT's 12-month performance chart shows the stock appreciating 70% versus a 15% gain in the S&P 500 index.
IT's long-term chart shows the stock at a multi-year high. It just needs to hurdle $40.54 to hit a new all-time high. If it does that the stock could draw a lot of attention from new-high investors. The stock has surged from a bear market low of 8 to 38. It is one of the hottest stocks in the market.
IT's daily chart shows the stock climbing from 29.to 38. It has been riding its 50-day moving average line higher the past several months.
The base is a flat and shows a wedge to the upside. That is bullish.
The stock's TTD momentum indicator (top of chart) is modestly bullish.
The accumulation - distribution line (bottom of line) is in a solid up trend.
This year, analysts forecast a 27% increase in IT's net to $1.40 a share from $1.10 a year ago. The stock sells with a price-earnings ratio of 27. TTD sees that as reasonable.
Looking out to 2012, IT's profits are expected to rise 26% to $1.76 a share from the anticipated $1.40 a share this year.
IT's net for the first quarter is expected to rise 22% and then in the second quarter 34%. So, there is expectations of an acceleration in quarterly earnings growth. That can often be a good bullish driver for the stock.
Net for the first quarter should climb to 29 cents a share from 24 cents a year ago. The highest estimate on the Street is at 30 cents a share. TTD sees chances for a slight upside surprise.
Strategy Opinion: TTD is targeting IT's stock for a move to 48. A protective stop can be placed near 36. TTD rates IT an above average intermediate-term play.
Sponsorship: Excellent. The largest fund holder is T Rowe Price Mid-Cap Growth Fund with a 5.2% stake. The 5-star rated fund was a recent buyer of 2.4 million shares. That is impressive! The second largest fundholder is 5-star rated fund holds a 4.8% stake. IT has 118.6 million shares outstanding.
Insider Activity: Neutral. Insiders were buyers using stock options. They turned around and sold. The latest selling was at $38.64. Six analysts follow the stock, 5 have a buy, up from 4 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Gartner Inc. - (IT)
|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 - CRR - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - NAV - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - CAT - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - NNBR - ABOVE 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 - 4.
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Only a few breakdown stocks today. Bears remain alert. Market still remains vulnerable to the downside. Today, selected communications stocks breakdown after AT&T's purchase of T-Mobile.
XNPT, based in Santa Clara, Ca., is a drug development firm. Annual revenues: $2.9 million. XNPT, a small firm, sees its stock fall sharply today after disappointing tests results for one if its drugs. So far today, XNPT is trading a heavy 6 million shares, eight times its normal daily volume of 759,000 shares. TTD sees more on the downside.
XNPT was testing a drug for heartburn and the results were disappointing. You might say the stock of XNPT reacted with "heartburn" falling sharply on the news.
The company said it would not develop arbaclofen placarbil as a treatment for heartburn because it did not significantly improve a patients health.
XNPT's stock gapped lower in the morning. It hit an intraday low of 5.79. In the afternoon the stock rallied to cut its loss.
TTD's clip of the tape shows the recent big block trades. One can see the price for the blocks declining from $7.32 to as low as $5.85 today. A key bearish trade today was a block of 100,000 shares that crossed the tape at $5.85. That was down sharply from the prior block at $6.67. The tape showed heavy institutional selling pressure.
This year, analysts have been forecasting XNPT will show a loss of $1.36 a share compared with a loss of $2.51 a year ago. Going out to 2012, the Street has been looking for a loss of $1.42 a share.
XNPT's stock chart shows the gap drop on big volume today. The stock's accumulation - distribution line had been showing weakness prior to today's plunge.
Strategy Opinion: TTD is targeting XNPT for a decline to $4.50 within the next few months or sooner. A protective stop buy can be placed at 7.20.
|TTD's Quality Rating of Stock - XNPT - 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.”
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(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.)