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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 positionsboth as trades or for longer-term plays. These stocks will do very well during bear markets or market corrections
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To email Leo leo@tickertapedigest.com.For service, email Beverly Owen owen@tickertapedigest.com. TTD’s Tel: 1-480-926-1680.
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Total Buy Breakouts so far today - 8
Stocks Screened- 8,200
Bull side - Only a few breakout stocks today and overall quality is below average.
Long-Term Environment for bulls: Favorable.
Market Status (Daily) - NYSE Bearish, Nasdaq Bearish
Market Status (Weekly) - NYSE Bullish, Nasdaq Bullish
STST, based in Fairfax, Va., makes electronic intelligence, communications, and imaging systems used by the government. Annual revenues: $258 million. STST breaks out today from a six-week flat base with upside resistance around 26. The stock's volume is running at 120,754 shares, almost double its normal daily volume of 86,000 shares. The stock is thinly traded.
STST is a turnaround play in that the stock was around 36 at its peak last year and then trended lower. It has since made a bottom and turned up.
TTD's clip of the tape today shows good price movement in the afternoon on light volume.
STST sells electronic intelligence systems that intercept, interpret, and track microwave signals from hostile radar and weapons.
It also makes systems that intercept and locate the source of microwave communications; secure communications systems; and imaging systems used to survey geographic areas of interest.
The US Navy accounts for 60% of sales.
STST had a gap breakout in the morning. It was highlighted by TTD at our midsession show on the Web. Wednesday, the company said it received important contracts for intelligence equipment from the government. The value for the contracts were $39 million.
On TTD's daily chart STST's TTD momentum indicator is very bullish. (see top of chart). The accumulation - distribution line is in a strong up trend. (see bottom of the chart). That says the stock is under good buying pressure.
TTD's long-term chart of STST shows that the recent intermediate-term correction appears to have completed itself with a bottom around 20. The long-term chart is very bullish.
This fiscal year ending Sept. 30, STST's net should rise 21% to $1.05 a share from 87 cents a year ago. The stock sells with a price-earnings ratio of 24, which is reasonable. Next year, STST's net should increase 16% to $1.22 a share, although that will depend on the flow of contracts.
The company said it is seeing good contract flow this year compared with last year.
For the upcoming fiscal second quarter ending March 31, STST should show a modest 7% increase in net. However, in the fiscal third quarter profit growth should accelerate with net climbing 30%.
Strategy Opinion: STST looks like a low risk play on this breakout as the company has completed its intermediate-term pull back. TTD is targeting STST for a move to 32 within the next few months. A protective stop can be placed near 24 giving it some room. TTD rates STST an average intermediate-term play due to its modest earnings growth.
Sponsorship: Good. The top two fund holders have a 4-star rating. The largest fund holder is Fidelity Advisor Mid Cap Fund with a big 7.5% stake. It has held its position steady. The second largest holder is T. Rowe Price New Horizons Fund with a 2.86% stake. It has held its position unchanged.
Insider Activity: Neutral. Not much activity lately. Eight analysts follow the stock, 7 have a buy, up from 6 three months ago. Some like the stock because of the firm's growing backlog.
| TTD's Breakout Profile
Rating Argon St Inc. (STST) |
| 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 | 10 | 0 | 4 |
(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)
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 - 8
Stocks Screened - 8,200
Long-Term Environment for bears: Unfavorable.
Bear Side - Modest list of breakdown stocks as market turns mixed. Bears be very selective.
(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.)
TRLG, based in Los Angeles, makes, and markets high-end denimwear through its wholly owned subsidiary, Guru Denim. Annual revenues: $102 million. TRLG has been a big winner the past few years. However, the stock is now trending lower and today breaks below key support triggering a TTD short play. Today, TRLG breaks below key support near 15.50. The move come on modest volume.
So far today, TRLG is trading 216,699 shares. Its average daily volume is 306,000 shares. One of the largest trades of the session was a big block of 24,000 shares that traded within a sequence started by a down tick to $15.20 from a prior trade at $15.21.
The 15 area is also a point long-term support. So, the stock is very vulnerable to a serious techncial collapse.
TRLG makes jeans, skirts, denim jackets, and tops. They are sold under the True Religion Brand Jeans label in 50 countries. They are in stgores such as Bergdorf Goodman, Neiman Marcus, Nordstroms, Saks Fifth Avenue, and about 600 high-end boutiques. The firm has hired Goldman Sachs to advise it on ways to boost shareholder value.
This year, TRLG's earnings should rise 18% to $1.26 a share from $1.07 a year ago. The key near-term is that net for the first quarter should be just flat at 28 cents a share.
Technically, TRLG's TTD momentum indicator is very bearish (see top of chart). The accumulation - distribution line is bearish heading lower. TTD sees TRLG as a very good trading short with a target of 11 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.)