Daily - Go to TTD's Tape of Stock Charts - Thursday, March 24 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, March 21 |
Go to Video Show - "How to Make Money With Breakout Stocks" Go to Video Show -TTD Performance 2008 Long and Short |
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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 Bullish 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. Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns |
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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 leo@tickertapedigest.com.For service, email Beverly Owen owen@tickertapedigest.com. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 15
Overall Quality of Breakouts - ABOVE AVERAGE
Stocks Screened - 8,300
Bull side - Good number of high quality breakout stocks today as stock market rallies and is back in its trading range. Bulls be very selective and consider averaging in to a position.
(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 - IPGP - ABOVE AVERAGE |
IPGP, based in Oxford, Mas., makes fiber lasers and fiber amplifiers for materials processing, communications and medical needs. Annual revenues: $299 million. IPGP breaks out today from a five-week flat base. The move carries the stock to a new all-time high. So far today, IPGP is trading 607.023 shares, almost double its normal daily volume of 383,000 shares.
IPGP is a leader in the technology area.
IPGP's 10-minute chart shows the stock clearing its base in the morning with strong volume. The stock peaked in the late morning. It then trended sideways.
The company is poised to report strong profits for the next two quarters.
The stock's tape action shows the big block trades. One can see the price for the blocks climbing from $51.29 to a peak of $61.15.
A key trade came late on Wednesday when a big block of 11,310 shares crossed the tape at $57.77. That was up sharply from the prior block trade at $55.
Today there was a key bullish trade in the morning of 5,000 shares that crossed the tape at $61.15.
The tape action shows aggressive institutional buying interest.
IPGP sells its laser products worldwide to original equipment manufacturers, system integrators and end users.
It markets its products internationally primarily through its direct sales force, and also through agreements with independent sales representatives and distributors.
IPGP makes components used in its finished products, including semiconductor diodes, optical fiber preforms and cables, finished fiber lasers and amplifiers. It also makes packaged diodes, direct diode laser systems and communications systems that utilize its optical fiber-based products.
IPGP's 12-month performance chart shows the stock appreciating 290% versus a 15% gain for the S&P 500 index. IPGP is a leader.
IPGP's long-term chart shows the stock coming public in late 2006 and trading around 25. The stock fell back and then trended sideways It was pulled lower in 2008 due to the bear market. It bottomed in early 2009 at $7.14. It has since advanced strongly and is now making new highs. That is bullish. The breakout Thursday could draw in more buying on Friday.
IPGP's daily chart shows the stock advancing from 20 to 60. The stock then formed a base well above its 50-day moving average line. That showed the stock was in a strong up trend.
The stock was up sharply in the prior session with a good expansion in volume.
The TTD momentum indicator (top of chart) is solidly bullish.
The accumulation - distribution line (bottom of chart) is in a strong up trend and breaks out to the upside today. It confirms that strong buying has taken place during the basing work.
Net for 2011 is expected to climb 68% to $1.90 a share from $1.13 a year ago. The highest estimate on the Street is at $2.20 a share. The stock sells with a price-earnings ratio of 31. TTD sees that as reasonable.
Going out to 2012, Wall Street is forecasting a 24% gain in net to $2.35 a share from the anticipated $1.90 a share for 2011.
TTD sees the near-term key to the stock's upside potential coming from expectations of two big quarters.
Net for the first quarter is expected to surge 499% to 42 cents a share from 7 cents a year ago. The highest estimate on the Street is at 45 cents a share. TTD sees good chances for an upside surprise. The past three quarters, IPGP has topped the consensus estimate by 2 cents a share to 9 cents.
Looking out to the second quarter of 2011, net should advance 105 to 45 cents a share from 22 cents a year ago.
Strategy Opinion: TTD is targeting IPGP for a move to 76 off this breakout. A protective stop can be placed near 57. TTD rates IPGP an excellent intermediate-term play provided earnings meet expectations.
Sponsorship: Excellent. The largest fund buyer recently was 5-star rated Fidelity Contract which purchased 343,437 shares. The largest fund holder is 4-star rated Columbia Acorn Z Fund with a 5.9% stake. It was a recent buyer of 33,2000 shares. IPGP has 46.8 million shares outstanding.
Insider Activity: Slightly Bearish. some selling by insiders recently. It took place in March. The latest selling price was at $59.88. Right now, 11 analysts follow the stock, 7 have a buy, down from 8 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
TTD's Breakout Profile
Rating |
TTD Check List | Bullish | Bearish | Neutral |
Near 52-week High | YES | ||
Volume | 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 | 14 | 0 | 0 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - OPEN - ABOVE AVERAGE |
TTD's Quality Rating of Stock - JOBS - ABOVE AVERAGE |
TTD's Quality Rating of Stock - ROK - ABOVE AVERAGE |
TTD's Quality Rating of Stock -EZPW - 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 - 3.
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of breakdown stocks today as stock market continues to rally. Bears be patient and watchful.
SCHL, based in New York, sells educational materials for school. Annual revenues: $1.9 billion. SCHL's stock falls sharply today after the company reports a large loss for the fiscal third quarter ended February 28. So far today, SCHL is trading a heavy 918,775 shares, seven times its normal daily volume of 139,000 shares. TTD sees more on the downside.
SCHL reported a loss for the fiscal third quarter of 81 cents a share compared with a loss of 15 cents a share a year ago.
The company did raise its quarterly dividend to 10 cents a share from 7 1/2 cents. However, the stock ignored the news and headed sharply lower.
The company also cut its outlook for fiscal 2011 results.
The stock gapped sharply lower in the morning. It then had a slight bounce, but then trended sideways the rest of the day.
TTD's clip of the tape shows the recent big block trades. One can see a very bearish block of 13,730 shares crossing the tape in the mooring at $27.42. That was down sharply form the prior block of $31.24. The tape action showed aggressive institutional selling pressure.
SCHL produces children's books, textbooks, magazines and teacher materials.
SCHL's daily chart shows the stock gapping lower with big volume. The stock's accumulation - distribution line (bottom of chart) has been weak for several months even while the stock was trending sideways. The action would indicate distribution prior to today's bearish news.
Strategy Opinion: TTD is targeting SCHL for a decline to 23 within the next few months or sooner. A protective stop buy can be placed near 28.90.
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.”
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.)