|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 - 7
Stocks Screened - 8,200
Bull side - Only a few breakouts today with energy stocks dominating. Market moves lower, bulls be conservative.
Long- term Environment for bulls: Bearish
Market Status (Daily) - NYSE Bearish, Nasdaq Bearish
Market Status (Weekly) -NYSE Bullish, Nasdaq Bullish
Market Status (Monthly) NYSE Bullish, Nasdaq Bullish
SD, based in Oklahoma City, is an oil and gas exploration firm. Annual revenues: Annual revenues: $680 million. SD breaks loose in the afternoon and emerges from a five-week base to hit a new high. The stock came public late last year. TTD has been suggesting accumulation in recent days. So far today, SD is trading a heavy 3.3 million shares, five times its normal daily volume of 678,000 shares.
TTD's table shows the big block trades during the day. The key is to notice how the price for the blocks rises during the session. That shows strong institutional buying interest.
The first block for the day went off at $40.56. The last on our list was at $41.95. The stock showed great vigor when it broke out and did not give much ground intraday after the breakout.
SD focuses on exploration and production, primarily in West Texas but also in East Texas and the Gulf Coast.
SD operates drilling rigs, provides oil field services, and has gas gathering, marketing, and processing facilities.
As of Sept. 20, 2007, SD had 1.3 trillion cubic feet of natural-gas equivalent in reserves. In the third quarter of 2007, SD produced 175 million cubic feet of natural-gas equivalent per day.
TTD's performance chart for SD shows the stock appreciating 35% the past six months. That compares with a 12% drop by the S&P 500. So, SD, a recent new issue, is a leader.
TTD's daily chart shows the five-week base, which took the shape of a cup-and-handle base. It showed a good contraction in volume near the lows.
Today's breakout shows a widening of the spread (range from high to low). That is bullish showing ease of price movement.
The stock's TTD momentum indicator (top of the char) has turned bullish.
The accumulation - distribution line (bottom of chart) is trending higher nicely showing overall good buying.
Notice on the daily chart that the big volume days (in blue) are on days when the stock closed higher. That is bullish too.
This year, analysts predict SD will post a profit of 41 cents a share compared with a loss of 6 cents a share a year ago. The stock has price-earnings ratio of 100 based on this year's expected net. That is high and means one does need to be cautious.
Going out to next year, the Street is looking for a 42% gain in net to 57 cents a share. The company is benefiting from the high price for crude oil and gas.
In early March, SD's chairman Tom Ward said he planned to make purchases of up to $100 million of the stock for his personal account.
Strategy Opinion: SD's breakout technically is very impressive. The stock has good upside momentum. TTD is targeting SD for a run to 52. A protective stop can be placed near 39 and should be honored. TTD rates the stock just a trading play. We are concerned about the high valuation.
Sponsorship: Not available. The company has 142 million shares outstanding.
Insider Activity: Not available. Five analysts follow the stock, 3 have a buy, up from one three months ago.
Stock Performance Chart for One Year versus the S&P 500 index.
|TTD's Breakout Profile
SandRidge Energy Inc. (SD)
|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 - 6
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Some list of breakdown stocks today even though stock market moves sharply lower. Bears be alert and aggressive. TTD's short from Tuesday, Garmin (GRMN) falls 2.88 to 45.57 Tuesday.
(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.)
MGM, based in Las Vegas, owns and operates casinos in Nevada, Mississippi, and Michigan. Annual revenues: $8.4 billion. MGM's stock falls sharply today in heavy trading. The gaming issues have been weak. Today American Airlines cancelled some 1,000 flights. That could hurt Las Vegas. So far today, MGM is trading 3.5 million shares, almost double its normal daily volume of 2 million shares. TTD sees more on the downside, especially with the weakening economy.
TTD's table shows the big block trades in MGM today. One can see that the price was declining most of the day. The first block in the morning went off at $57.20. Later in the day, a big block went off at $54.89. The action shows clear institutional selling pressure.
MGM acquired Mandalay Resort Group in 2005, adding casinos such as Mandalay Bay, Luxor, and Excalibur to its portfolio, which already included the Bellagio, MGM Grand, New York-New York, Mirage, and Treasure Island.
The company also owns a 50% interest in the Borgata in Atlantic City and a joint venture in Macau. MGM is also constructing the $7 billion Project City Center on the Strip.
The company should have a weak first half. Analysts forecast net for the first quarter should decline 12% to 49 cents a share from 55 cents a share a year ago. Going out to the second quarter, profits are expected to dip 15%.
TTD's daily chart of MGM shows the stock in a down trend. It tried to form a bottom around 60. However, the crumbled as the stock moved lower in recent sessions. Today it clearly undercuts support near 58. The stock's accumulation - distribution line (bottom of chart) is in a steep downtrend indicating heavy selling pressure.
TTD is targeting MGM for a decline to 45. The stock is a 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.)