|Go to Video Show - "How to Make Money With Breakout Stocks"|
By Leo Fasciocco -- TTD
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 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 - 10
Stocks Screened - 8,200
Bull side -
Long- term Environment for bulls: Bearish
Market Status (Daily) - NYSE Bullish, Nasdaq Bullish
Market Status (Weekly) -NYSE Bullish, Nasdaq Bullish
Market Status (Monthly) NYSE Bearish, Nasdaq Bearish
RBN, based in Dayton, O., makes fluid-management products. Annual revenues: $714 million. RBN breaks out from a 12-week, cup-and-handle base today. The stock was TTD's feature accumulation play Monday. The breakout today fits well with TTD's call for the stock. So far today, RBN is trading 553,600 shares. Its average daily volume is 514,000 shares.
RBN broke out around midday. TTD's clip of the tape shows the stock with good accumulation in the late morning. A block of 3,800 shares crossed on a nice up tick to $39.73 from the prior trade at $39.70.
RBN has been a top performing issue the past 12 months climbing from 17 to 38.
RBN will report earnings Wednesday, March 26.
Analysts expect net for the upcoming fiscal second quarter ended February 28, to jump 91% to 44 cents a share from 23 cents a year ago.
TTD sees good chances for an upside surprise. The highest estimate on the Street for the quarter is at 45 cents a share. The past three quarters, RBN topped the consensus estimate by 7 to 10 cents a share. If it were to repeat that performance, the earnings could be the driver to push the stock out of the base.
The good tape action prior to the earnings announcement is very bullish.
TTD spotted a huge up tick block back on March 20. It was 283,600 shares going off on big up tick to 38 from the prior trade at $35.72.
The institutional buyer paid up big. TTD's performance chart for RBN (see below) shows the stock appreciating 1113% the past 12 months. That easily outdid the S&P 500 index which is off 5%. So, RBN is a leader.
RBN sells pumps, mixers, and valves, under brand names such as Kenics, Moyno, R&M, Prochem, and RKL.
The products are sold to the petroleum-production, wastewater-treatment, papermaking, and chemical industries. The company also produces high-performance pumps that handle abrasive and corrosive materials.
TTD's weekly chart shows the stock's sensational run the past two years from 10 to a peak near 40. The stock remains in a bull market phase.
TTD's daily chart shows the breakout from the base on modest volume.
The technicals are bullish.
The TTD momentum indicator (top of the chart) is bullish. The accumulation - distribution line (bottom of chart) is in a strong up trend. It broke out to a new peak. That was a good advance signal that the price of the stock would do the same. So far, so good.
For the fiscal year ending August 30, analysts forecast a 42% jump in profits to $1.94 a share from $1.36 a year ago. The stock sells with a price-earnings ratio of 19, which is well below the current earnings growth rate. Sales are currently growing at 12%. It is benefiting from new products, and good demand from certain sectors of operations.
Strategy Opinion: RBN's breakout before the earnings report is very bullish - but not a guarantee. Nevertheless, TTD is very bullish. We are targeting the stock for a move to 50 within a few months. A protective stop can be placed near 38, which is tight. TTD rates RBN a very good intermediate-term play.
Sponsorship: Average. The largest fund buyer lately was 4-star rated Brandywine Fund which purchased 161,000 shares. The largest fund holder is 2-star rated Hennessy Cornerstone Growth Fund with a 1.2% stake. It was a recent seller of 47,000 shares.
Insider Activity: Neutral. Insider have been light buyers using stock options. They turned around and sold. Five analysts follow the stock, one has a buy, 4 are neutral.
Stock Performance Chart for One Year versus the S&P 500 index.
|TTD's Breakout Profile
Robbins & Myers Inc. (RBN)
|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|
(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
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: Neutral
Bear Side - Very few breakdown stocks today. Bears be patient and watchful.
(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.)
VTIV, based in Somerset, N.J., provides marketing and sales services for the life-sciences industry. Annual revenues: $977 million. VTIV breaks below key support near 28 today to resume a down trend. The decline come on heavy volume of 874,692 shares, double its normal daily volume of 384,000 shares. TTD sees the stock as a good trading short play for bears.
TTD's clip of the tape shows a big block of 10,000 shares that crossed early in the day on a modest down tick to $29.75 from the prior trade at $29.76. The action set the stage for the stock's further decline during the day. TTD did not some bargain buying after the fall.
VTIV's services include educational programs that target physicians, as well as strategic marketing plans and product sales programs.
The company also develops training CD-ROM products. VTIV's clients include pharmaceutical, biotechnology, medical-device, and diagnostics companies. Bristol-Myers Squibb, AstraZeneca Group, Abbott Laboratories, Endo Pharmaceuticals, Glaxo Wellcome, Johnson & Johnson, Monsanto, and Forest Laboratories are customers.
For the upcoming first quarter, analysts forecast VTIV's earnings will decline 25% to 23 cents a share from 31 cents a year ago.
TTD's daily chart shows the stock's decline last year from 46 to 30. VTIV then tried to form a bottom. However, the breakdown today spoils the pattern for bulls. The stock's TTD momentum indicator (top of the chart) is very bearish. The accumulation - distribution line has rolled over indicating clear selling pressure.
TTD is targeting VTIV for a drop to 22 within the next few months or sooner.
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.)