|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 firstname.lastname@example.org.For service, email Beverly Owen email@example.com. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 13
Stocks Screened - 8,200
Bull side - Good number of breakouts with some interest high-growth plays. Bulls can be venturesome.
Long- term Environment for bulls: Bearish
Market Status (Daily) - NYSE Bullish, Nasdaq Bullish
Market Status (Weekly) -NYSE Bullish, Nasdaq Bullish
Market Status (Monthly) NYSE Bullish, Nasdaq Bullish
CLF, based in Cleveland, is one of the largest producers of iron ore in North America. Annual revenues: $2.3 billion. CLF breaks out today from a well-defined, seven-week base. The move carries the stock to a new high, which is bullish. So far today, CLF is trading 1.8 million shares. Its average daily volume is 1.6 million shares.
The stock got off to a strong start. TTD's clip of the tape shows a big block of 15,200 shares crossing early in the day on a nice up tick to $128.17 from the prior trade at $127.82.
The action showed good institutional buying.
CLF is a leader. TTD's performance chart (see below) shows that CLF's stock has appreciated 95% the past 12 months. That easily out did the S&P 500 index which is down 3%.
There is strong demand for steel, iron ore and coal. It is coming from overseas. That big demand is pushing the earnings of the "smoke stack" stocks higher and their stocks are continuing to act strong.
CLF's mines supply nearly 50% of North American blast furnace demand. Recent expansion efforts have seen the firm acquire iron ore assets in Brazil and Australia, from which it supplies customers in the Mideast and East Asia.
CLF also owns and operates metallurgical coal mines in North America and Australia, selling output to steelmakers in North America and East Asia.
TTD's long-term chart of CLF shows the powerful bull market phase. It has soared from 4 in 2003 to 132 - a sensational move.
CLF's daily chart shows today's breakout through resistance at 128.11.
The stock's base was well formed between roughly 108 and 128. CLF had a strong move higher on Tuesday on strong volume. That put the stock in position to breakout.
The stock's technicals are bullish. The accumulation - distribution line (bottom of chart) has hit a new peak. That is excellent confirmation of the breakout. The TTD momentum indicator (top of the chart) is strongly bullish.
This year, CLF's profits should soar 120% to $11.31 a share from $5.14 a year ago. The stock sells with a price-earnings ratio of just 11. TTD sees that as low based on the earnings growth outlook.
Next year, analysts predict a 31% increase in net to $14.77.
CLF is poised to show a big first quarter. Earnings are expected to leap 167% to $1.66 a share from 62 cents a year ago. The highest estimate on the Street is at $2.34 a share.
Strategy Opinion: CLF's breakout looks very good supported by strong earnings and strength in its industry group. TTD is calling for CLF to climb to 165 within the next few months. CLF could get a boost from a stock split. A protective stop can be placed near 127, which is tight. TTD rates CLF a very good intermediate-term play provided earnings meet expectations.
Sponsorship: Average. The top fund holder is Legg Mason Opportunity Fund with a 3.4% stake. It was a recent big seller of 2.1 million shares. However, 4-star rated Rainier Small/Mid Cap Equity Fund was a buyer of 140,000 shares and 4-star rated Oppenheimer Gold and Special Minerals Fund added 130,000 shares.
Insider Activity: Very Bullish. Several insiders were heavy buyers around 110 in March. Their buying easily outdid the light selling. TTD sees that as very bullish. Six analysts follow the stock, 3 have a buy, up from 2 three months ago.
Stock Performance Chart for One Year versus the S&P 500 index.
|TTD's Breakout Profile
Cleveland-Cliffs Inc. (CLF)
|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 - 5
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Small list of breakdown stocks, but some interesting plays. Bears be selective favoring stocks with fundamental problems.
(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.)
CHRD, based in Cupertino, Ca., develops customer relationship management software. Annual revenues: $131 million. CHRD falls sharply today after forecasting a loss for the fiscal second quarter ended March 31. The news came as a surprise. So far today, CHRD is trading 2.7 million shares, five times its normal daily volume of 456,000 shares. TTD sees more on the downside even though the stock seems low already.
TTD's clip of the tape shows heavy selling coming in early in the session. A big block of 50,000 shares crossed the tape at $4.90 (see table). That was with a sequence started by a modest down tick from $4.91.
CHRD's software links call centers, computer networks, databases, and the Internet, allowing departments and employees to share data and collaborate on projects.
Its software also allows customers to offer personalized marketing, sales programs, and customer support across multiple channels. CHRD's clients include Cable & Wireless Communications, Canadian Tire Acceptance, Lloyds TSB, and British Airways.
Today, CHRD said it expects to swing to a fiscal second-quarter (March 30) loss of 11 to 16 cents a share from a profit of 17 cents a share a year ago. It blamed a delay in customer orders. The Street was looking for a profit of 9 cents a share. So, the forecast was a big disappointment.
For the fiscal year ending Sept. 30, analysts were predicting a 16% decline in net to 35 cents a share from 41 cents a year ago. The fiscal 2008 projection probably will be cut.
TTD's daily chart shows CHRD's breakdown below key support at $5.51. The fall comes on heavy volume. The stock has been in a down trend. TTD sees CHRD falling to 3.50 within the next few months, or sooner. The stock has the potential to go even lower. TTD sees CHRD most suitable for aggressive bears.
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.)