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 - 5
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Breakout list small as stock market turns down, as expected. Stock market out of gas and needs to consolidate. Bulls be selective.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
(See Top Performing Breakout Stocks for 2011- 2012)
TTD's Quality Rating of Stock - KMR - ABOVE AVERAGE
KMR, based in Houston, is a manager of pipelines that carry gasoline and fuels. Annual revenues: Nil. KMR's stock breaks out today from a nine-week flat base. The move carries the stock to a new all-time high. So far today, KMR is trading 579,572 shares. Its average daily volume is 519,000 shares.
KMR's stock rose steadily in the morning. It hit an intraday high of 85 in the afternoon. In the final hour, it backed off a bit as the stock moved lower into the close.
The stock has a low beta of 0.46 versus 1.00 for the S&P 500 index. That would show that KMR tends not to be very volatile.
KMR's tape action shows the recent block trades.
One can see the price for the blocks climbing from $82 in the prior session to a peak of $84.82 on Thursday.
A key bullish trade came in the morning when a block of 3,853 shares crossed at $82.87, up from the prior block trade at $82.13.
Then later in the session a massive block of 50,000 shares crossed at $84.82. That was up sharply from the prior block at $84.65.
KMR is the largest independent owner-operator of product pipelines in the country.
The lines transport more than two million barrels a day of gasoline, jet fuel, diesel fuel and natural gas liquids through some 10,000 miles of pipelines.
The firm's systems also include storage terminals and transmix processing facilities. It is America's largest pipeline master limited partnership.
KMR's 12-month performance chart shows the stock appreciating 18% versus a 10% gain for the stock market. The chart also shows a green bar indicating heavy insider buying late in the year.
KMR's long-term chart shows the stock climbing from 34 back in 2004 to a peak of 57 in early 2008. The stock was then dragged back to 34 during the bear market which ended for KMR in late 2008. Since then the stock has surged higher and today hits a new high. That could draw in more buying on Friday.
KMR's daily chart shows the stock forming a base from January through March above its rising 50-day moving average line.
So, the set up was ideal and the breakout come with a widening of the daily spread (range from high to low).
KMR's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) has broken out to almost a new high. So, KMR has all the technicals in a bullish setup.
Analysts expect KMR to show a big jump in net for 2012 to $2.04 a share from 13 cents a year ago. The stock sells with a price earnings ratio of 41 based on 2012 net.
Looking ahead to 2013, the Street projects a 13% gain in net to $2.30 a share from the anticipated $2.04 for 2012. That gives the stock a p/e ratio of 36. That would seem high based on earnings growth. However, KMR has been making a lot of deals.
Net for the upcoming first quarter should surged to 64 cents a share compared with a loss of 23 cents a year ago.
Strategy Opinion: TTD is targeting KMR for a move to 100 within the next few months, or sooner. A protective stop can be placed near 79 and should be honored. TTD rates KMR an average intermediate-term play due to its high p/e ratio.
Sponsorship: Average. A big fund buyer recently was Kayne Anderson Energy TR Common Fund which purchased 2.3 million shares. It now has a 2% stake in KMR. The largest fund holder is Kayne Anderson MLP Common Fund with a 3.9% stake. The 3-star rated fund sold 89 shares recently.
KMR has 115.1 million shares outstanding. Institutions hold 62% of the stock.
Insider Activity: Neutral. Not much activity. Currently, 7 analysts follow the stock, 4 have a buy, the same as three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Kinder Morgan Management LLC - (KMR)
|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 - ACAD - AVERAGE|
|TTD's Quality Rating of Stock - PAA - AVERAGE|
|TTD's Quality Rating of Stock - MPEL - 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 - 5
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of breakdown stocks today. Bears remain selective as stock market remains in an up trend. TTD's short from Wednesday was Coffee Holdings Inc. (JVA) at 6.72. Today, the stock has declined to 6.65 and is working well for bears.
SCHL, based in New York, produces educational materials. Annual revenues: $2.1 billion. SCHL's stock falls sharply today after the company reported a wider than expected loss for the fiscal third quarter ending in February. So far today, SCHL is trading a heavy 1.6 million shares, eight times its normal daily volume of 182,000 shares. TTD sees more on the downside.
TTD highlighted SCHL as a short at our midsession video show on the Web Thursday.
SCHL posted a fiscal third quarter loss of 63 cents a share. The Street was expecting a loss of 39 cents a share. The results were taken very bearishly by the stock.
The company also said it expects fiscal 2013 (May) earnings to be $1.10 to $1.30 a share on revenue of $1.75 billion to $1.80 billion.
The Street was expecting $1.52 a share on revenues of 1.84 billion.
The stock gapped lower in the morning. It hit an intraday low of 26.35 during the session. In the afternoon it trended sideways unable to rebound.
SCHL, makes educational materials for use in school such as children's books, textbooks, magazines, technology and teacher materials.
It also makes products for use at home - magazines, software, television programming, videos and toys.
SCHL's chart shows the stock gapping lower on big volume. The downside momentum is strong. The stock's accumulation - distribution line (bottom of chart) is extremely bearish showing heavy selling pressure.
Strategy Opinion: TTD is targeting SCHL for a decline to 21 within the next few months, or sooner. A protective stop buy can be placed near 28.
|TTD's Quality Rating of Stock - SCHL - 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.”
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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.)