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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for April 9 |
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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 positionsboth as trades or for longer-term plays. These stocks will do very well during bear markets or market corrections
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To email Leo leo@tickertapedigest.com.For service, email Beverly Owen owen@tickertapedigest.com. TTD’s Tel: 1-480-926-1680.
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Total Buy Breakouts so far today - 22
Stocks Screened- 8,200
Bull side - Large list of breakouts today with some heavy industry stocks moving out like railroads and steel. Bulls be very selective.
Long-Term Environment for bulls: Favorable.
Market Status (Daily) - NYSE Bullish, Nasdaq Bullish
Market Status (Weekly) - NYSE Bullish, Nasdaq Bullish
PCU, based in Lima, Peru, is a major copper mining firm with mines in the Andes Mountains. Annual revenues: $5.4 billion. PCU pushes out from an eight-week, cup-and-handle base today and hits a new high. The stock is a leader in the metal sector, which continues to act well. So far today, PCU is trading 2 million shares. Its average daily volume is 2.5 million shares.
The breakout on light volume could be due to the mixed stock market today. It will be important to see if PCU can generate a good follow through on this breakout.
What draws, TTD to PCU is the bullish tape action we saw in the early afternoon. TTD's clip of the tape shows a big block of 100,000 shares crossing on a significant up tick to $76.50 from the prior trade at $76.44. That shows excellent institutional accumulation.
PCU is one of the largest copper miners in the world. The firm mines, smelts, and refines copper at its Toquepala and Cuajone mines. It produces blister copper and copper cathodes at its smelter and refinery in Peru. SCC produces around 1.5 billion pounds of copper annually. That copper is sold in Asia, Europe, and the Americas, where it's used mainly for building, construction, and electronics.
The company also recovers silver and molybdenum from copper ore. Americas Mining Corporation, a subsidiary of Grupo México, owns 75% of SCC.
PCU set up its base after an excellent run up from 50 to 75 (see chart). That is a 50% surge. The stock's basing work is ideal showing a couple of shakeouts to the downside. That clears the weak holders and those wanting to take profits.
The stock now appears to be moving into another up trend. Its accumulation - distribution line (see bottom of the chart) remains in an overall up trend. The TTD momentum indicator (bottom of the chart is bearish. That is not good and should cause one to be alert if PCU should "misbehave."
TTD's long-term chart shows the powerful bull market of PCU.
This year, PCU's profits should climb to $7.50 a share. Comparable results for a year ago were not available. The stock sells with about a 10 price-earnings ratio. TTD sees that as reasonable.
What we do like about PCU's fundamentals is that earnings for the first quarter should be up 37% and in the second quarter 33%. That should be the driver to send the stock higher in coming months.
For the first quarter, PCU's net should increase to $1.96 a share from $1.43 a year ago. The highest estimate on the Street is at $2.24 a share. The company has a tendency to come in around the consensus estimate.
Strategy Opinion: PCU's breakout looks like a "creeper breakout." TTD suggests scaling into the stock with a view to averaging up in price. TTD is targeting the stock for a move to 88 within a few months. A protective stop can be placed near 72. TTD rates PCU more of a trading play.
Sponsorship: Excellent. The largest fund holder is 5-star rated Excelsior Value and Restructuring fund with a 0.61% stake. It has held its position steady. One of the largest buyers recently was 5-star rated Thornburg Investment Income Builder Fund, which purchased 374,000 shares.
Insider Activity: Neutral. Not much action lately. Five analysts follow the stock, 2 have a buy, 2 are neutral, one has a sell.
| TTD's Breakout Profile
Rating Southern Copper Corp. (PCU) |
| TTD Check List | Bullish | Bearish | Neutral |
| Near 52-week High | YES | ||
| Volume | 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 | 11 | 0 | 3 |
(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)
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: Unfavorable.
Bear Side - Only a few special situation breakdown stock today. Market is mixed. Bears be conservative and selective.
(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.)
AVCT, based in Huntsville, Ala., makes analog and digital KVM (keyboard, video, mouse) switching systems used to manage multiple servers. Annual revenues: $370 million. AVCT falls gaps lower today to set off a TTD short play. The stock's tumble on big volume comes after it discloses a forecast of lower than expected revenues for the quarter.
So far today, AVCT is down about 2 points. Volume is running at 2.6 million shares, almost four times its normal daily volume of 774,000 shares. TTD's clip of the tape shows some heavy selling around midday. A big block of 40,000 shares crossed the tape on a big down tick to $24.69 from the prior trade at $25. That was a sign of big institutional dumping of the stock.
AVCT said revenues for the first quarter will be $132 to $135 million. That is well below the Street's forecast of revenues of $152 million. The bad news was taken in a very bearish way by the stock.
AVCT's LongView extension products let computer users locate their mouse, monitor, keyboard, and other peripherals up to 500 feet away from their CPU. The company primarily sells its products to manufacturers such as Hewlett Packard, Dell and IBM.
The company said revenues were below expectations due to softness in overall information technology spending.
A look at TTD's daily chart of AVCT shows the gap drop extending the stock's down trend. It is a little extended to the downside. However, the momentum to the downside is very good for bears. The stock's TTD momentum indicator top of the chart has been bearish for several weeks. The accumulation - distribution line is now trending lower.
TTD is targeting AVCT for a decline to 20 within the next few months, or sooner, TTD sees AVCT as a good trading short.
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.)