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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.
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Total Buy Breakouts so far today - 16
Stocks Screened- 8,200
Bull side - Good number of breakouts today, but overall quality is below average. Bulls be patient.
Long-Term Environment for bulls: Favorable.
Market Status (Daily) - NYSE Bullish, Nasdaq Bullish
Market Status (Weekly) - NYSE Bullish, Nasdaq Bullish
SPN, based in Harvey, La., provides specialized oil field services to oil and gas companies operating in the Gulf of Mexico and on the Gulf Coast. Annual revenues: $735 million. SPN breaks out from a four month, double-bottom base today. The stock touches an all-time high. Oil stocks are acting well and TTD is spotting many up sharply today. So far today, SPN is trading 665,100 shares. The stock's normal daily volume is 1.2 million shares.
TTD's clip of the tape shows there was heavy buying in the stock late on Monday. Two big blocks crossed at $35.55. That was within a sequence started by an up tick from $35.50.
The action showed subtle institutional buying. Overall the value for SPN is not large for a breakout. So one must be watchful of the stock the next few days. SPN was on TT's "Breakout Watch List."
The company sells and rents oil and gas well drilling equipment and offers a limited range of tools and services in Canada, the Middle East, Trinidad and Tobago, the UK, Venezuela, and West Africa.
SPN provides wireline well access services to acquire data and perform remedial activities.
It also makes, rents, and sells specialized drilling and spill containment gear. In 2006 SPN acquired oil filed services provider Warrior Energy Services.
A look at TTD's daily chart shows the double bottom base and the "handle portion" around 35. The breakout today gets the stock started on the upside gain. The technical indicators are favorable. The TTD momentum indicator (top of the chart) is solidly bullish.
The accumulation - distribution line is in an up trend.
TTD's long-term chart of SPN shows the powerful run up and then the long consolidation. Technically, the pattern remains very bullish.
SPN has been aggressive in making acquisitions. Its latest deal was to buy Advanced Oilwell for $24 million.
This year, SPN's profits should climb 38% to $3.34 a share from $2.42 a year ago. The company is benefiting from strong drilling activity reflecting the high price for crude oil.
The stock sells with a price-earnings ratio of just 10. TTD sees that as attractive for value-growth investors. Next year, analysts expect SPN's profits to rise 15% to $3.84 a share.
The upcoming first quarter will be exceptionally strong. Profits should surge 89% to 75 cents a share from 40 cents a year ago. The highest estimate on the Street is at 78 cents a share.
The past four quarters, SPN has topped the consensus estimate. The last two quarters it came in 6 cents a share over the consensus. TTD sees good chances for an upside surprise.
Strategy Opinion: SPN has the numbers and the valuation to be a good breakout play here. TTD is calling for the stock to advance to 44 within the next few months. A protective stop can be placed near 33. TTD rates SPN a good intermediate-term play as long as earnings meet expectations.
Sponsorship: Good. The largest fund buyer recently was 4-star rated Fidelity Small Cap Independence Fund which purchased 294,000 shares. The fund has a 0.95% stake and is the second largest fund holder. Another key buyer was 4-star rated Fidelity Select Energy Fund, which picked up 103,000 shares.
Insider Activity: Slightly Bearish. There was one large insider sale of 19,320 shares in February around 32. TTD does not see it as significant. Six analysts follow the stock, and all have a buy - the same as three months ago.
|TTD's Breakout Profile
Superior Energy Services Inc. (SPN)
|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)
Ticker Tape Digests 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: Unfavorable.
Bear Side - Only a few breakdown stocks today. Bears be conservative. TTD's short play from monday, American Home Mortgage (AHM) falls 2.02 to 19.90 today.
(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.)
NTAP, based in Sunnyvale, Ca., sells network-attached storage (NAS) systems designed for medium-sized to large enterprises. Annual revenues: $2.1 billion. NTAP breaks below key support at 36 today to trigger a TTD short play. Volume so far today is running at 5.6 million shares. Its average daily volume is 4.9 million shares.
A key bearish trade came in the morning (see table). That is when a big block of 45,716 shares crossed the tape on a modest down tick to $35.55 from the prior trade at $35.56.
The company's NetCache Web caching appliances help enterprises and service providers deliver content more quickly by storing information physically closer to users.
NTAP also offers a line of disk-based devices designed for backup and archiving , as well as data management and content delivery software. Customers include Deutsche Telekom, Yahoo, and Boeing.
For the fiscal year ending April 30, NTAP's profits should decline 19% to 75 cents a share from 93 cents a year ago. The upcoming fourth fiscal quarter will be weak too with net declining 3% to 21 cents a share from 22 cents a year ago.
Technically, the stock has been acting very weak. It peaked around 41 and has gradually been working lower with rally failures. The TTD momentum indicator is strongly bearish (see top of the chart). TTD is targeting NTAP for a decline to 28 within the next few months.
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. Some of the charts are from Telescan, Insight Trading, First Alert and other sources.)