Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Thursday, April 2 |
Go to Video Show - "How to Make Money With Breakout Stocks" |
Go to Video Show - "How to Make Money With Breakout Stocks" |
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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 leo@tickertapedigest.com.For service, email Beverly Owen owen@tickertapedigest.com. TTD’s Tel: 1-480-926-1680.
Stocks Screened - 8,200
Bull's Strategy - Breakout list expands as stock market stages strong and broad rally. Bulls be watchful of quality and earnings of breakout stocks. Major Dow averages are now all in since for a move higher. Look for confirmation with strong volume on up days.
(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 Bullish
Market (Monthly) NYSE Bullish, Nasdaq Bullish
TTD's Quality Rating of Stock - APSG - ABOVE AVERAGE |
APSG, based in Sunnyvale, Ca., designs reconnaissance equipment used to collect telecommunication signals. Annual revenues: $190 million. APSG clears a five week base today and makes a new 42-week high. TTD has been following APSG closely for the past few weeks. The stock is a low betas (low volatility) stock that tends to move slowly. However, it is in a clear up trend. TTD sees APSG as a low risk breakout today.
. So far today, APSG is trading 127,118 shares. Its average daily volume is 196,000 shares.
TTD highlighted APSG at our midsession show on the Web.
The stock gapped higher in the morning to participate in the stock market's rally. It peaked around midday and then turned down.
TTD's clip of the tape shows the block trades of the past two days. One can see the price for the blocks rising from $21.10 to a peak of 22. That shows good institutional interest in the stock.
APSG's products include equipment that monitors wireless telephone, microwave, ship-to-shore, and military radio frequency transmissions.
Computer-based systems are used to evaluate signals to identify those containing relevant information; and complete signal reconnaissance systems.
TTD's performance chart shows APSG's stock appreciating 80% the past 12 months. APSG has easily outperformed the S&P 500 index which is down 35%.
TTD's long-term chart shows APSG with a big run to 40 back in 2004. Afterwards the stock moved lower missing the market's bull market phase. However, it is now starting to turn up.
TTD's daily chart of APSG shows the breakout today. Notice that the spread today is widening a bit. That shows good buying interest which is able to push the price of the stock.
The stock's TTD momentum indicator (top of chart) is now solidly bullish.
The accumulation - distribution line (bottom of chart) is now working higher. That shows there has been good buying in the stock in recent weeks.
APSG's net for the fiscal year ending October 30 should climb 44% to 90 cents a share from 63 cents a year ago. Analysts have been boosting the firm's earnings estimates for the year.
The stock sells with a price-earnings ratio of 22 based on this year's estimates net.. TTD sees that as reasonable.
Going out to fiscal 2010, the Street looks for a 10% gain in net to 99 cents a share. TTD sees chances for those estimates to go higher.
The company posted strong net on Feb. 24 for the fiscal first quarter. Profits soared to 27 cents a share from 12 cents a year ago. Revenues rose 6%. The company cited a more efficient operating structure for the big jump in net.
Analysts expect net for the fiscal second quarter to increase 24% and then in the fiscal third quarter 41%. That would be a good acceleration in quarterly profit growth which could be a key driver to send the stock higher.
Net for the fiscal second quarter should come in at 20 cents a share, up from 16 cents a year ago. The highest estimate on the Street is at 21 cents a share. TTD sees chances for an upside surprise.
Strategy Opinion: APSG's breakout today looks good as the stock remains in a solid up trend having been able to outperform the stock market the past several months. TTD is targeting APSG for a move to 28. A protective stop can be placed near 19. TTD rates APSG a good intermediate-term play provided earnings growth meets expectations.
Sponsorship: Excellent. The largest fund holder is 5-star rated Heartland Value Plus Fund with a big 5.4% stake. It was a recent buyer of 50,000 shares. Also, 5-star rated Intrepid Small Cap Fund added 35,000 shares. APSG has just 12 million shares outstanding. Funds hold 2.9 million shares.
Insider Activity: Slightly Bullish. Some light buying by insiders late last year. Seven analysts follow the stock, 2 have a buy, the same as three months ago.
Stock Performance Chart for 9 months with Quarterly Earnings Markers.
TTD's Profile Rating Applied Signal Technology Inc. - (APSG) |
TTD Check List | Bullish | Bearish | Neutral |
Near 52-week High | YES | ||
Volume Expansion | 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.
Charts of Breakout Stocks
TTD's Quality Rating of Stock - SXCI - ABOVE AVERAGE |
TTD's Quality Rating of Stock - HANS - AVERAGE |
TTD's Quality Rating of Stock - ACS - BELOW AVERAGE |
TTD's Quality Rating of Stock - AAI - 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 - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Small list of breakdown stocks today as stock market rallies strongly. Bears be conservative and patient.
(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.)
CHTT, based in Chattanooga, Ten., makes and sells health-care products, toiletries, and dietary supplements. Annual revenues: $455 million. CHTT's stock falls sharply today going in the opposite direction of today's market rally. The stock has had a great run up the past several years. However, today's decline when seen on a long-term chart is a classic breakdown from a head-and-shoulder technical pattern. TTD sees more on the downside.
CHTT is off about 2 points so far today. Volume is running at 871,989 shares, double its average daily volume of 425,000 shares.
The stock moved lower in the morning and finally bottomed around 1 p.m. It then had just a slightly lift. CHTT acted very bearish during the day.
TTD's clip of the tape shows a big block of 10,500 shares crossing at 54. That is within a sequence started by a modest down tick from $54.01.
The company's products include Gold Bond, Icy Hot, Selsun Blue, ACT, Unisom, and Cortizone-10 CHTT sells through mass merchandisers, drug stores, and grocery stores
This fiscal year ending November 30, analysts project a 16% increase in earnings to $4.61 a share from $3.97 a year ago.
CHTT's decline today comes without any news. TTD sees that as bearish. The stock's chart shows CHTT in a clear down trend. It broke below key support at $60.38 and now at 53.90, both times on expanding volume. The stock's accumulation - distribution line is in a sharp down trend indicating heavy selling pressure.
Strategy Opinion: TTD is targeting CHTT for a decline to 45 within the next few months or sooner. A protective stop buy can be placed near 55.
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.)