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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, March 28 |
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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.
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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 - 11
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Good number of breakouts as stock market closes slightly lower. The market is back in its trading range. Bulls be selective and consider averaging into a position. Earnings and annual meetings coming up. So, there will be a lot of news that will move stocks. (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 Bearish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
(See Top Performing Breakout Stocks for 2011 - Updated March 25)
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TTD's Quality Rating of Stock - NTES - ABOVE AVERAGE |
NTES, based in China, operates a Chinese website. Annual revenues: $834 million. NTES' stock breaks out today from a six-week flat base. The move carries the stock to a new all-time high. So far today, NTES is trading 1.6 million shares, almost double its normal daily volume of 927,000 shares. The stock is a leader. Today, several Chinese stocks were acting strong. 
NTES's 10-minute chart shows the stock moving higher in the morning and breaking out. It continued to advance in the afternoon.
NTES is a leader and a top performer among the strong Chinese stocks.
TTD's clip of the tape shows NTES's block trades the past few sessions.
One can see the price for the blocks edging higher late on Friday.
Then today, the key bullish trade came late in the morning when a block of 7,000 shares crossed the tape at $48.60. That was up from the prior block trade at $47.50.
NTES's web site provides a community setting for millions of registered Chinese users.
Members of its web site enjoy access to free web-based E-mail, Online auctions, Online chat rooms, Personalized web sites, Instant messaging, Web hosting, as well as E-commerce services.
Also, the site provides news and online media.
NTES's 12-months performance chart shows the stock appreciating 34% versus a 12% gain for the S&P 500 index. NTES has a beta of 0.95 versus 1.00 for the S&P.
NTES's long-term chart shows the stock soaring from $1 back in 2002 to a 49. It turned out to be a star .com performer. The push to a new high is bullish and could draw in more buying on Tuesday from the new-high crowd.
NTES' daily chart shows the stock breaking out from a six-week flat base. The move comes with a good widening of the spread. That indicates strong buying.
The basing work was done above a rising 50-day moving average line. That shows the stock has resumed its strong up trend.
NTES' TTD momentum indicator (top of chart) is solidly bullish.
The accumulation - distribution line (bottom of chart) however shows some selling recently. The stock has recovered but not with a lot of strong buying as measure by the AD line. So, NTES needs to be watched closely.
This year, NTES should show a 24% increase in net to $3.22 a share from $2.60 a year ago. The stock sells with a price-earnings ratio 15. TTD sees that as reasonable.
Going out to 2012, analysts currently look for net to climb 13% to $3.65 a share from the anticipated $3.22 this year.
Net for the upcoming first quarter should jump 38% and for the second quarter 38%. That strong near-term growth should be the key driver to send the stock higher near-term/
Net for the first quarter should come in at 70 cents a share, up from 51 cents a year ago. The highest estimate on the Street is at 78 cents a share. TTD sees chances for an upside surprise. Net for the prior two quarters topped the consensus estimate by 13 cents a share and 4 cents.
Strategy Opinion: TTD suggest a scale-in strategy. TTD is targeting NTES for a move to 60 off this breakout. A protective stop can be placed near 42. TTD rates NTES an average intermediate-term play.
Sponsorship: Excellent. The largest fund holder is 4-star rated Lazard Emerging Markets Equity Fund with a 3.9% stake. A key buyer recently was 5-star rated VA CollegeAmerica New World 529 Fund which purchased 258,864 shares. NTES has 130 million shares outstanding.
Insider Activity: Not available. Right now, 17 analysts follow the stock, 15 have a buy, up from 13 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
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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 - HP - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - WAB - AVERAGE |
| TTD's Quality Rating of Stock - IRBT - AVERAGE |
| TTD's Quality Rating of Stock -ALEX - 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 - Only a few breakdown stocks today as stock market is mixed. TTD's short play from Friday, Research in Motion Ltd. (RIMM) - 56.92, down 7.16, is working well for bears. So far today, the stock has declined to 56.29.
MR, based in China, makes medical devices such as ultrasound and diagnostic equipment. Annual revenues: $704 million. MR's stock breaks below key technical support that held for four months. The move is bearish and comes with expanding volume of 1.3 million shares. The stock's average daily volume is 899,000 shares. TTD sees more on the downside. 
TTD highighted MR as a short at our mdisession video show on the Web Monday.
MR's stock broke sharply to the downside in the morning. It hit an intraday low of 25.04. The stock then trended sideways.
TTD's clip of the tape shows MR's recent block trades.
One can see the price for the blocks declining from $26.92 to $25.65. A key bearish trade today came with a block of 36,835 shares crossed the tape at $26. That was down from the prior block trade at $26.17.
There was a bullish block trade at $25.83 around noon.
MR develops medical devices in China. It is in three areas patient monitoring devices, diagnostic laboratory instruments, and ultrasound imaging systems.
It has overseas offices in Boston, Istanbul, London and Vancouver.
This year, analysts forecast a 13% increase in net to $1.57 a share from $1.39 a year ago. Net for the first quarter is expected to be up 8%.
MR's daily chart shows the stock breaking down with volume. The stock's accumulation - distribution line (bottom of chart) is in an overall downtrend.
Strategy Opinion: TTD is targeting MR for a decline to 21 within the next few months, or sooner. A protective stop buy can be placed near 26.80.
| TTD's Quality Rating of Stock - MR - 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.)
