Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Wednesday, April 8
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Wednesday, April 8 |
| Go to Video Show - "How to Make Money With Breakout Stocks" |
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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 - Just a few breakouts today as stock market edges higher. Bulls be patient. Earnings reports will be coming now. One needs to be alert for breakout stocks with strong earnings.
(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 - NVEC - AVERAGE |
NVEC, based in Eden Prarie, Min., is engaged in the practical commercialization
of "spintronics" magnetic devices for the acquisition, storage, and transmission
of information. Annual revenues: $25 million. NVEC breaks out from a ten-week,
cup-and-handle base today. TTD highlighted the stock in a recent report. The stock is trading 179,816 shares, double its normal daily volume of 76,000 shares.
NVEC was a recent breakout. In that report by TTD we noted the stock needed to show a pick up in volume to make the breakout more convincing.
It now appears to be doing that.
NVEC's stock rose slightly in the morning. It was in the early afternoon when moved into high gear. It acted strong into the closing bell, which is bullish. If a breakout stock can close near its high for the session there is a good chance of a follow through in the next session.
TTD's clip of the tape shows the block trades today. One can see the price for the blocks rising from $31.82 late on Tuesday to $35.97. The tape action shows good institutional interest in the stock.
NVEC's proprietary spintronic materials are called Giant Magnetoresistors. The company's product portfolio consists of three lines: magnetic sensors for precise data acquisition, IsoLoop Couplers for high-speed data transfer, and Magnetic Random Access Memory for non-volatile data storage.
TTD's performance chart shows NVED's stock appreciating 28% the past 12 months. That compares with a 40% drop in the S&P 500 index.
TTD's long-term chart of NVEC shows the stock spiking up to 69.69 in 2004.
The stock then fell back. The past two years, NVEC has traded in a range between
20 to 40. A breakout over 40 would be bullish long-term. 
NVEC's daily chart shows the stock climbing from 18 back in November to 34 by January. The stock then formed its cup-and-handle base. The formation of the base is bullish showing a contraction in volume near the lows.
The breakout today carries the stock above key resistance. It had been at that point several times before but fell back. It will be important to see if NVEC came make the breakout convincing with a follow through move to the upside.
The stock's accumulation - distribution line (bottom of chart) has turned up nicely. It is solidly bullish and shows there is good underlying buying going on in the stock.
The TTD momentum (top of the chart) is neutral.
Analysts expect NVEC's earnings for the fiscal fourth quarter ending March 30 to rise 12% to 52 cents a share from 47 cents a share a year ago.
TTD sees chances for an upside earnings surprise. The past two quarters NVEC topped the consensus Street earnings per share estimate by 30% and 17%.
The company will report net on May 7.
Net for the fiscal year ending March 31 should be up 27% to $1.92 a share from $1.51 a year ago.
The stock sells with a 17 price-earnings ratio which is reasonable.
Revenues for the reported fiscal third quarter were up 23%. The gain reflected an 8% rise in product sales and a 150% increase in contract research revenue.
Quarterly earnings growth should accelerate modestly with net for the fiscal first quarter increasing 16% to 47 cents a share from 40 cents a year ago.
Overall, analysts are currently forecasting a 10% rise in net for the fiscal year ending March 30, 2010. TTD sees chances for that to be boosted.
Strategy Opinion: NVEC's breakout today is impressive. TTD suggests a full position on this breakout. We are targeting the stock for a move to 44 within the next few months, or sooner. A protective stop can be placed near 34. TTD rates NVEC an average intermediate-term play due to moderate earnings growth outlook.
Sponsorship: Average. The largest fund buyer recently was 4-star rated Satuit Capital Micro Cap Fund which picked up 36,000 shares. NVEC has only 4 million shares outstanding. Funds hold 400,000 shares. The thin-trading in the stock means it can move up sharply if demand is strong.
Insider Activity: Neutral. Insiders doing just light selling. Two analyst follows the stock. One has a strong buy, one is neutral.
Stock Performance Chart for 12 months with Quarterly Earnings Markers.
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TTD's Profile Rating NVE Corp - (NVEC) |
| 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 - JOSB - AVERAGE |
| TTD's Quality Rating of Stock - BIIB - BELOW AVERAGE |
| TTD's Quality Rating of Stock - CHKP - 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. Bears be conservative. Earnings reports to come. Bears should be alert for earnings disappointment stocks.
(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.)
STZ, based in Victor, N.Y., producer and marketer of alcohol beverages. They include wine, spirits and imported beer. Annual revenues: $3.8 billion. STZ's stock falls in heavy trading today and under cuts key support near 12. The drop comes after the company reported a loss for the fourth quarter ended Feb. 28. So far today the stock is trading 4.8 million shares. Its average daily volume is 3.3 million shares. 
STZ was highlighted by TTD as a short at our midsession show on the Web.
The stock fell sharply at the opening. It had a bounce rally but the faded in the afternoon.
TTD's clip of the tape shows a big block of 23,900 shares crossing the tape on a down tick to $11.51 from the prior trade at $11.53. The tape showed clear institutional selling pressure.
STZ is the largest multi-category supplier of beverage alcohol in the United States.
It is also a leading producer and exporter of wine from Australia and New Zealand. The brands in STZ's portfolio include: Corona Extra, Pacifico, St. Pauli Girl, Black Velvet, and Fleischmann's.
The company reported a loss for the fourth quarter of $1.71 a share compared with a loss of $3.55 a year ago. Sales for the quarter were down from a year ago and also below analysts estimates.
TTD's daily chart shows the stock cutting below key support at 12. The stock's TTD momentum indicator (top of the chart) is bearish. The accumulation - distribution line (bottom of chart) is in a down trend indicating clear selling pressure.
Strategy Opinion: TTD is targeting STZ for a decline to 8.50 within the next few months, or sooner. A protective stop buy can be placed near 12.50.
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.)
