Daily - Go to TTD's Tape of  Stock Charts - Wednesday, April 4

Daily - Bullish Investors  - Go To TTD Pre-Market Opening Breakout Watch  List and Performance - Wednesday, April 4

Ticker Tape Digest

Wednesday - April 4, 2012

TTD does not publish Thursday. We resume Monday. Happy Holiday.

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.

 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 - 4

Overall Quality of Breakouts - Average

Stocks Screened - 8,300

Bull side -  Very few breakouts today. Bulls be selective and watchful. Stock market consolidating within up trend. Earnings season to begin soon.

 (Put mouse on Dow chart to see Nasdaq chart)

Long Term Environment for bulls:  Favorable

Market (Daily) - NYSE Bearish, Nasdaq Bearish

Market (Weekly) - NYSE Bullish, Nasdaq Bullish

Market  (Monthly) - NYSE Bullish, Nasdaq Bullish 

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action - April 4

See Top Performing Breakout Stocks for 2011- 2012)

(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. They are ranked according to percentage change and classified as leaders or other. (Trading strategy: One should buy breakout stocks at breakpoint by using market order or stop buy)All Timely Breakout Stocks From Tape Action Today )  

Today's Featured TTD Breakout Stock

Allegiant Travel Co. (ALGT) - 60.34, up 3.32 - Breakpoint 58.64

Hits All-time High, Net to Jump 46% This Year, TTD Targets 72

  ALGT, based in Las Vegas, operates an airline geared for leisure travel. Annual revenues: $779 million. ALGT's stock rallied steadily Wednesday and late in the day broke out to a new all-time high. The stock's action was impressive given that the stock market declined sharply and broadly. ALGT is trading 335,803 shares, almost triple its normal daily volume of 122,000 shares.

  ALGT's stock pushed higher in the morning and advanced steadily to close near its high for the session (see 10-minute chart).

  The close near the high is a bullish omen that the stock should be able to follow through in coming session.

  TTD's clip of the tape shows ALGT's recent block trades

  One can see the price for the blocks climbing from $55.07 to $60.33.

  A key bullish trade came when a block of 5,684 shares (duplicated) crossed in the morning at $57.79. That was up sharply from the prior block trade at $55.07.

  Later in the session, near the close a block of 13,608 shares (duplicated) crossed the tape at $60.33. That was up from the prior trade at $59.76.

  ALGT is a leisure travel company focused on providing travel services and products to residents of small, underserved cities in the United States.

 The company operates a passenger airline marketed primarily to leisure travelers.

 It sells air transportation both on a stand-alone basis and bundled with the sale of air-related and third party services and products.

 In addition, the company provides air transportation under fixed fee flying arrangements.

 ALGT has a fleet of 56 MD-80 aircraft and one Boeing 757-200 aircraft providing service on 168 routes between 64 small cities and 11 leisure destinations. In January 2012, the Company took ownership of two MD-80 aircraft.

  ALGT's 12-month performance chart shows the stock appreciating 40% versus a 6% gain for the S&P 500 index.

  ALGT's long-term chart shows the stock coming public in January of 2007 and trading around $28. The stock fell to 16 in 2008 during the bear market. It has since been working higher. The push to a new all-time high on Wednesday is very bullish.   

  ALGT's daily chart shows the stock breaking out from a 10-week cup-and-handle base. The move comes with a big expansion in volume.

  The stock's TTD momentum indicator (top of chart) is strongly bullish.

  The accumulation - distribution line (bottom of chart) actually broke out before the price of the stock. That showed good anticipation buying. It is bullish.

  ALGT is poised to show a significant acceleration in quarterly earnings growth. Analysts expect net for the first quarter to rise 10% and then jump 68% in the second quarter.

  Accelerating earnings growth is very bullish for a stock.

   Net for the first quarter is expected to rise to 98 cents a share from 89 cents a year ago. The highest estimate on the Street is at $1.15 a share. The company tends to come in a few cents above the consensus.

  Going out to the second quarter, profits are projected to climb to $1.04 a share from 62 cents a year ago.

  Overall, net for this year should jump 46% to $3.74 a share from $2.57 a year ago. The stock sells with a price-earnings ratio of  16. TTD sees that as low making the stock a good value-growth play. Going out to 2013 net should rise 25% to $4.68 a share from the anticipated $3.74 for this year.

  The company is continuing to expand its service.

  Strategy Opinion: ALGT's breakout is impressive. TTD is targeting the stock for a move to 72 within the next few months, or sooner. A protective stop can be placed near 57.

  TTD rates ALGT an above average intermediate-term play provided earnings remain on course.

  Sponsorship: Excellent. The top two fund holders both have a 5-star rating. T. Rowe Price New Horizons Fund, the largest holder, has a 5.5% stake. It was a recent buyer of 90,845 shares. The second largest holder is T. Rowe Price Small Cap Stock Fund with a 2.8% stake. It has held its position steady. ALGT has 19.1 million shares outstanding. Institutions hold 92% of the stock.

  Insider Activity: Neutral. Insiders have been getting options. No price available. They have not done hardly any selling, or buying. Currently, 12 analysts follow the stock, 6 have a buy, down from 8 three months ago.

 Stock Performance Chart with Quarterly Earnings Markers

  Insider Activity - Buying in Green - Selling in Red

Charts of Selected Breakout Stocks

Ticker Tape Digest’s

Stocks To “Sell or Short”

  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 - 19

Stocks Screened - 8,300

Long-Term Environment for bears: Unfavorable.

Bear Side -  Large number of breakdown stocks today as stock market falls sharply in the morning. Bears be selective. Stock market still in overall up trend. Selected gold and telecom stocks weak. TTD's short from Tuesday was Ivanhoe Mines Ltd. (IVN) at 14.25. It is trading at 14.12 so far today and working well for bears.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Webmed Health Corp. (WBMD) - 23.26, down 2.45

Gaps Lower, Profits to Tumble, TTD Sees Slide to 19

WBMD, based in New York, provides health education services via the internet. Annual revenues: $588 million. WBMD's stock gaps lower today falling below key technical support. The company said it completed a Dutch Tender Offer to buy back $150 million of its stock. So far today, WBMD is trading 3.3 million shares, six times its normal daily volume of 532,000 shares. TTD sees more on the downside for WBMD.

 TTD highlighted WBMD as a short at our midsession video show on the Web Wednesday.

  WBMD's stock has been trending lower for several months. It had a big gap drop back in January. Today, the stock gaps lower again resuming its descent.

  The stock fell in the morning, had a small lift and then continued lower into the afternoon.

  The stock's tape action shows the recent big block trades.

  One can see the price for the blocks declining from $25.71 to as low as $23.50. A key bearish trade came in the morning when a block of 20,000 shares crossed the tape at $24.05. That was down from the prior block at $25.71.

 WBMD's health network includes www.webMD.com  That is its public portal for consumers. It has other websites for doctors and healthcare professionals.

  This year, analysts forecast an 88% drop in WBMD's net to 11 cents a share from 90 cents a year ago. For the upcoming fiscal first quarter, analysts expect a loss of 15 cents a share compared with a profit of 19 cents a year ago.

  WBMD's daily chart shows the gap drop in January. The stock trended sideways but could not muster a rally. Now, it gaps lower opening up the strong possibility of another leg down.

   Strategy Opinion:  TTD is targeting WBMD for a decline to 19 within the next few months. A protective stop buy can be placed near 24.90.

TTD takes no responsibility for trading by those using this information. The stocks presented in our report are those we deem the best looking "Day Trades" for the long side. We take no responsibility for the accuracy of this data, although every effort is made to present the information correctly. Copyright Ticker Tape Digest.

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.”

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(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.)