|Go to Video Show - "How to Make Money With Breakout Stocks"|
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.
Stocks Screened - 8,200
Bull's Strategy - Small number of breakouts today as stock market bounces back. Stocks now to play off the first quarter earnings reports. Bulls be selective. With the weekly and monthly indicators bullish, the next daily turn up in the averages could present some good opportunities.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) -NYSE Bullish, Nasdaq Bullish
Market (Monthly) NYSE Bullish, Nasdaq Bullish
|TTD's Quality Rating of Stock - SYNA - AVERAGE|
SYNA, based in San Jose, Ca., makes interface solutions for mobile computing and communications devices. Annual revenues: $430 million. SYNA breaks out from an 8-week, cup and handle base today on expanding volume. The company is poised to show a big improvement in earnings for the fiscal third quarter ending March 31. So far today, SYNA is trading 2.4 million shares, almost double its normal daily volume of 1.3 million shares.
SYNA's stock rose sharply in the morning. It trended sideways most of the rest of the day giving some ground in the final hour.
TTD highlighted the stock as a breakout at our midsession show on the web.
TTD's clip of the tape shows the big block trades today. One can see the price for the blocks rising from $25.11 to $27.35. That is impressive institutional buying interest.
SYNA is a supplier of TouchPads to the notebook computer market. Products include the TouchPad input device, TouchStyk pointing stick, Dual Pointing combination input solution, ClearPad touch screen. It also makes Spiral pen input solution, and QuickStroke Chinese handwriting software.
TTD's performance chart shows SYNA appreciating 70% the past 12 months. The stock has easily outperformed the S&P 500 index which is down about 40% during the same time.
Looking at SYNA's long-term chart, it has an up and down pattern the past few years. It hit a high around 40 in late 2007 and then came down. It then bounced up to 36 last year and then came down. So, it is a volatile issue.
TTD's daily chart shows SYNA rallying from 14 in December to almost 28 - a double. The stock then slipped back into a base. Today, it gaps higher on strong volume.
The accumulation - distribution line (bottom of chart) is in a strong up trend. That indicates that there is strong buying in the stock and little selling pressure.
The TTD momentum indicator (top of the chart) is neutral.
This coming fiscal first quarter (March 30) analysts forecast a 39% increase in net to 19 cents a share from 14 cents a year ago. The highest estimate on the Street is at 21 cents a share.
TTD sees good chances for an upside surprise. The past two quarters SYNA topped the consensus estimate by a wide margin.
Net for the fiscal year ending June 30 should climb 52% to $1.54 a share from $1.01 a share a year ago. The company is benefiting from the development of new products.
Going out to fiscal 2010, the Street looks for a 10% decline in net to $1.38 a share.
Strategy Opinion: TTD sees SYNA as a trading play type breakout. It has good earnings coming, but further out a slowdown in net is on the horizon. TTD is targeting SYNA for a move to 34. We would look to take profits unless the earnings projections are boosted. A protective stop can be placed near 25 which is tight. TTD rates SYNA a below average intermediate-term play at this point.
Sponsorship: Very Good. The largest fund holder is 5-star rated T. Rowe Price Small Cap Value Fund with a 2.5% stake. It has held its position steady. A key buyer recently was 4-star rated Lord Abbett Developing Growth Fund which purchased 208,000 shares. SYNA has 34 million shares outstanding. Funds hold 14.3 million shares.
Insider Activity: Slightly Bullish. Insiders did slightly more buying than selling recently. Six analysts follow the stock, 4 have a buy, the same as three months ago.
Stock Performance Chart for 12 months with Quarterly Earnings Markers.
TTD's Profile Rating
Synaptics Inc. - (SYNA)
|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
|TTD's Quality Rating of Stock - DMND - AVERAGE|
|TTD's Quality Rating of Stock - WPI - BELOW AVERAGE|
|TTD's Quality Rating of Stock - EPIQ - BELOW AVERAGE|
|TTD's Quality Rating of Stock - ANV - 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 - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Just a few breakdown stocks today as market rallies. Bears be selective and alert. Earnings season begins and profits could be weak helping to produce some good profits on the short side.
(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.)
POWI, based in San Jose, Ca., makes high-voltage, analog integrated circuits for use primarily in alternating current to direct current power conversion. Annual revenues: $212 million. POWI moves lower today not participating in the stock market's rally. The stock has been trending lower and today cuts below key support. With profits to fall sharply, TTD sees good chances for more on the downside for bears.
POWI is trading a light 270,077 shares. The stock's average daily volume is 411,000 shares.
The stock moved lower in the morning and then bottomed around noon. It lifted in the afternoon as the stock market rallied.
TTD's clip of the tape for the past two days shows the price for recent block trades declining from $17.79 to $16.80. The key trade was a big block of 52,082 shares that crossed at $17.72. That was bearish in relation to the prior block.
POWI sells to the high-volume power supply markets. They include the cellular telephone market, the personal computer market, the cable and direct broadcast satellite decoder box market, and various other consumer and industrial electronics markets.
This year, analysts predict POWI's earnings will fall 75% to 22 cents a share from 85 cents a year ago.
Net for the upcoming first quarter should be at breakeven compared with a profit of 22 cents a share a year ago.
TTD's daily chart shows POWI breaking below key support. The stock's TTD Momentum indicator (top of chart) is strongly bearish.
Strategy Opinion: TTD is targeting POWI for a drop to 14 within the next few months. TTD sees the stock as a trading with potential for a downside surprise. A protective stop buy can be placed near 18.40.
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.)