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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, March 26 |
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Go to Video Show - "How to Make Money With Breakout Stocks" |
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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 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. Trading Strategies Bullish 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) Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance) |
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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.
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 leo@tickertapedigest.com.For service, email Beverly Owen owen@tickertapedigest.com. TTD’s Tel: 1-480-926-1680.
Breakout Stocks
Total Buy Breakouts so far today - 7
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Small number of breakouts. Stock market finishes mixed. Bulls can be venturesome. Stock market consolidating within up trend.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Market (Daily) - NYSE Bearish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
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TTD's Quality Rating of Stock - IPXL - ABOVE AVERAGE |
IPXL, based in Hayward, Ca., produces special drugs. Annual revenues: $513 million. IPXL's stock breaks out today from a 7-week flat base. The move carries the stock to 24.58. It just needs to hurdle 28.75 to top its high made about a year ago. So far today, IPXL is trading 811,985 shares. Its average daily volume is 550,000 shares. 
TTD highlighted IPXL as a breakout at our midsession video show on the web Friday.
IPXL's 10-minute chart shows the stock rallying late on Thursday. The upswing continued into Friday with the stock cutting across its breakpoint line in the morning.
The stock then held comfortably over its breakpoint line.
IPXL's tape action is shown by its recent block trades.
One can see the price for the blocks climbing from $23.58 to a peak of $24.90. The tape showed solid institutional buying.
A key bullish trade came in the morning when a block of 11,789 shares (duplicated) crossed the tape at $24.18. That was up from the prior block trade at $24.02.
IPXL makes specialty prescription drugs using its own formulation expertise and drug delivery technologies.
The company focuses on two areas: Generic drugs and Branded drugs.
In the generic drug market, it focuses on controlled-release generic versions of selected brand-name drugs covering a range of therapeutic areas.
In the brand-name drug market, IPXL is developing products to treat central nervous system disorders. The company sells its products to large pharmaceutical wholesalers, warehousing chain drug stores, mass merchandisers, and mail-order pharmacies through strategic alliances.
IPXL's 12-month performance chart shows the stock appreciating 5%, while the stock market dropped 5% during the same period.
IPXL's long-term chart shows the stock coming public back in early 2009 and trading around 4. The stock climbed to a peak of 28.75 by mid-2011. It then pulled back into an intermediate-term decline. It has since consolidated and is now trending higher again.
IPXL's daily chart shows the stock advancing from 17 in November to a peak of 24 in early February. The stock then put down a well-formed flat base that has shown the ideal contraction of volume in the late stages.
The base was set up above a rising 50-day moving average line. That is bullish.
Today's breakout comes with a good expansion in volume.
The stock's TTD momentum indicator (top of chart) has been bullish for the past two months.
The accumulation - distribution line (bottom of chart) is trending higher strongly.
This year, analysts forecast an 83% surge in net to $1.78 a share from 97 cents a year ago. The stock sells with a price-earnings ratio of 13. TTD sees that as low given the current earnings pace.
Net for the upcoming two quarters will show an acceleration in growth. Net for the first quarter should jump 129% and then in the second quarter 137%.
Profits for the first quarter should come in at 48 cents a share, up from 21 cents a year ago. The highest estimate on the Street is at 62 cents a share. TTD sees good chances for an upside earnings surprise. The prior two quarters, IPXL topped the consensus estimate by 16 cents a share and 7 cents.
Going out to the second quarter net should jump to 45 cents a share from 19 cents a year ago. 
The company has been active in making various deals with other drug firms.
Strategy Opinion: TTD is targeting IPXL for a move to 30 off this breakout. A protective stop can be placed at 23. TTD rates IPXL a good intermediate-term play provided earnings remain on course.
Sponsorship: Very Good. There were four 5-star rated funds who were recent buyers of the stock recently. The largest of them was Wells Fargo Advantage Discovery Fund, which purchased 62,000 shares. IPXL has 66.8 million shares outstanding. Institutions hold 79% of the stock.
Insider Activity: Neutral. Insiders were recent buyers using stock options around $7. They have not done any selling recently. Currently, 11 analysts follow the stock, 4 have a buy, the same as three months ago.
Stock Performance Chart with Quarterly Earnings Markers
Insider Activity - Buying in Green - Selling in Red
| TTD's Breakout Profile
Rating Impax Laboratories Inc. (IPXL) |
| 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 | 13 | 0 | 1 |
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - WCG - AVERAGE |
| TTD's Quality Rating of Stock - TRIP - AVERAGE |
| TTD's Quality Rating of Stock - UDR - AVERAGE |
| TTD's Quality Rating of Stock - MHP - BELOW 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 - 2
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Just two breakdown stocks today as stock market edges higher. Bears be conservative and selective. Stock market now in a consolidation pattern within an up trend.
IOC, based in Australia, produces oil and natural gas. Annual revenues: $1.1 billion. IOC's stock falls sharply today on heavy volume. There were some negative analysts comments about the company's prospects. With IOC's earnings to decline sharply this year, TTD sees potential for more on the downside. So far today, IOC is trading 2 million shares, almost triple its normal daily volume of 711,000 shares. 
TTD highlighted IOC as a short at our midsession video show on the Web Friday.
IOC's stock headed lower in the morning. It hit an intraday low of 47.02 around 11 a.m. It then rallied modest to around 50 and trended sideways.
The stock's tape action showed some aggressive institutional selling pressure. One can see the price for the big block trades recently declining from $54.12 to $48.10.
A key bearish trade came in the morning when a block of 5,500 shares crossed the tape at $48.61. That was down from the prior block trade at $53.
IOC explores mostly in Papua New Guinea. The company is also engaged in the distribution of refined products under its branded name InterOil Products Limited; and in the refining and liquefaction of jet fuel, diesel, and gasoline, naphtha and low sulfur waxy residue.
This year, analysts expect IOC's earnings to fall 44% to 15 cents a share from 26 cents a year ago. Going out to 2013, they see chances for a loss of 10 cents a share.
IOC's daily chart shows the stock breaking down from a head-and-shoulder technical pattern. The stock's TTD momentum indicator (top of chart) is bearish.
Strategy Opinion: TTD is targeting IOC for a decline to 42 within the next few months, or sooner. A protective stop buy can be placed near 52.
| TTD's Quality Rating of Stock -IOC - 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.)
