Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Thursday, April 10
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Thursday, April 10 |
| 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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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 leo@tickertapedigest.com.For service, email Beverly Owen owen@tickertapedigest.com. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 3
Stocks Screened - 8,200
Bull side - Just a few breakouts. Market remains very choppy. Bulls be selective.
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
MTL, based in Moscow, Russia, is a mining and steel company. Annual
revenues: $4.4 billion. MTL breaks out powerfully today from a six-week, cup-and-handle base and hits a new high. The stock was TTD's feature play to accumulate from Wednesday's report. So far today, MTL is trading 2.7 million shares, double its normal daily volume of 1.1 million shares. 
TTD highlighted MTL as a breakout at our midsession show on the Web on Thursday.
MTL is part of the strong acting steel group. The stock has worked higher the past year from 50 to around 140 - almost a triple. Today, the stock ran up strongly early in the session following through on good action late on Thursday.
MTL produces carbon and specialty steel in various stages of finish and has downstream hardware businesses.
The company internally sources 80% of its coking coal needs, 40% of its iron ore needs, and 67% of its nickel needs. Russia accounts for approximately 50% of the firm's revenue, and the European Union accounts 31%.
TTD's long-term chart shows MTL in a powerful up tend. The past 12 months MTL has soared 320%, easily outperforming the S&P 500 index which is down 3%.
The stock's daily chart shows a good run from about 700 to 141. The structure of the base is good with just a minor shakeout to the
downside.
MTL's technicals are very bullish. The accumulation - distribution line (bottom of chart) has already broken out to the upside. That was - as we said on Thursday - a potential advance indicator that the stock's price would do the same. It did.
The TTD momentum indicator (top of the chart) is strongly bullish.
This year, analysts are forecasting a big 74% surge in profits. That comes on top of a 61% gain in 2007.
This year, they look for net to climb to $12.32 a share from $7.10 a year ago. The stock sells with a price-earnings ratio of just 11. That would be normal for a steel stock.
However, with the strong earnings coming, TTD sees it as low. The company is benefiting from strong demand for steel and higher prices.
Strategy Opinion. Steel is in and so is Moscow! TTD is targeting MTL for a move to 175. The stock is showing good tape action despite a very choppy overall stock market. Intraday the stock held its ground very well. A protective stop can be placed near 140 giving it some room. TTD rates MTL a very good intermediate-term play because of the strong profit outlook and strength in its sector - steel and coal.
Sponsorship: Very Good. 5-star rated CGM Focus Fund is a large holder. It was a recent buyer of 320,000 shares. Also, ING JP Morgan Emerging Markets Equity Fund, 3-star rated, recently added 202,000 shares.
Insider Activity: Not available. Three analysts follow the stock and all have a buy, the same as three months ago.
Stock Performance Chart for One Year versus the S&P 500 index.
| TTD's Breakout Profile
Rating Mechel OAO (MTL) |
| 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 | 13 | 0 | 1 |
(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 - 8
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Good number of breakouts consider the stock market rises sharply today. Two shorts from Wednesday working well for bears. Pantry Inc. (PTRY) falls 4.35 to 11.86 - a great 27% win in one day for bears. Also, MGM is down 0.78 to 53.70.
(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.)
VMED, based in New York, is the major cable firm in the U.K. Annual revenues: $8.1 billion. VMED falls sharply today after the company announced plans for a $1 billion note offering and being downgraded by a brokerage firm. So far today, the stock is down about 8%. The stock gapped lower in the morning. Volume is running at 21.1 million shares, eight times its normal daily volume of 2.6 million shares. 
TTD sees more on the downside.
TTD's clip from the tape shows heavy selling in the morning. A big block of 300,000 shares crossed in the morning at $12.80, down from the prior trade at $12.85. The action showed heavy institutional selling pressure.
VMED is the only cable firm in the United Kingdom. VMED has 3.5 million cable customers, 3.4 million high-speed Internet access customers, and 4 million telephone customers via cable.
The company provides service to 4.4 million wireless subscribers. It also provides transport services to communications firms in the United Kingdom and owns several cable channels. The analysts downgrading the stock sees more shorting due to the arbitrage play versus the bonds.
The company should show a loss of $2.11 a share this year compared with a loss of $2.83 a share in 2007. The first quarter will be weak. Analysts predict a loss of 68 cents a share compared with a loss of 72 cents a share year ago.
TTD's daily chart shows the gap drop and big volume. The breakdown point is at 13.27. TTD sees VMED as a trading short with a target at $10.
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.)
