Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for April 11
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for April 11 |
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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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Total Buy Breakouts so far today - 6
Stocks Screened- 8,200
Bull side - Small list of breakouts today. Market vulnerable to a pull back. Bulls be cautious.
Long-Term Environment for bulls: Favorable.
Market Status (Daily) - NYSE Bearish, Nasdaq Bearish
Market Status (Weekly) - NYSE Bullish, Nasdaq Bullish
POT, based in Canada, is the world's leading producer of potash used as fertilizer. Annual revenues: $3.8 billion. POT breaks clear of an 8-week flat base today even though the stock market sells off sharply. So far today, POT is trading 1.1 million shares. Its average daily volume is 960,000 shares. The stock's move today carries it to a new high, which is bullish.
POT got off to a good start in the morning. TTD's clip of the tape shows a big block of 9,900 shares crossing in the morning on a nice up tick to $171.84 from the prior trade at $170.30.
The stock did well for the day considering the overall weak market.
POT also produces nitrogen, which is used in fertilizer and a variety of industrial and consumer products.
It also makes phosphate used for feed products, food products, and detergents.
POT's annual production capacity of 12.5 million tons of potash makes up 20% of the world's capacity. The firm also sells these minerals as phosphate feed ingredients for animal nutrition and as nitrogen products for the industrial chemicals market. The company has 20 plants in North America, Brazil, Chile, and Trinidad.
TTD's daily chart shows the basing pattern, which is a flat base with a wedge to the upside. That is generally a bullish set up. The wedge indicates that the stock was making higher lows as it was pulling back in the base.
POT did breakout a few sessions ago. However, today's move clears the base convincingly.
The stock's TTD momentum indicator is now bullish. (see top of chart)
The accumulation - distribution line lags a bit. That shows the buying in recent weeks has not been that vigorous.
TTD's long-term chart of POT shows the stock in a powerful bull market supported by strong earnings growth.
This year, POT's net should leap 42% to $8.26 a share from $5.80 a year ago. The stock sells with a price-earnings ratio of 21, which is half this earnings growth rate. That makes the stock a good valuation play near-term.
Next year, POT's net should rise 9% to $8.99 a share.
The company is benefiting from good demand and it is increasing capacity.
For the upcoming first quarter, net should surge 57% to $1.81 a share from $1.15 a year ago. The highest estimate on the Street is at $2 a share. The last two quarters, POT came in close to the consensus. It can at times surprise big on the upside with quarterly earnings.
Strategy Opinion: TTD sees POT as a good breakout trading play with a shot at 190. Profit growth will decelerate later this year. So, TTD would suggest taking profits at the target area. A protective stop can be placed near 166, which is tight. TTD rates POT a good intermediate-term play.
Sponsorship: Very Good. The largest fund holder is Amana Trust Growth Fund, 5-star rated, which holds a 6.8% stake. It was a recent buyer of 81,000 shares. Another key buyer was 3-star rated American Funds New Perspective which purchased 2.8 million shares.
Insider Activity: Not available. Nine analysts follow the stock, 4 have a buy, up from 3, three months ago. UBS put out a price target of $192 on April 5.
| TTD's Breakout Profile
Rating Potash Corp. (POT) |
| 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 | 14 | 0 | 0 |
(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 - 5
Stocks Screened - 8,200
Long-Term Environment for bears: Unfavorable.
Bear Side - Only a few breakdown plays today. Bears be conservative.
(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.)
CKFR, based in Norcross, Ga., provides electronic bill payment and other electronic commerce and payment services to consumers through banks, brokerage firms, Web sites, and personal financial management software. Annual revenues: $918 million. CKFR falls sharply today after a shareholder suit was filed against the company. It alleged unreasonable guidance of its growth prospects.
So far today CKFR is down almost 3 points. Volume is running at 9.8 million shares, almost ten times its normal daily volume.
The stock was also downgraded by JMP Securities citing concerns about a contract.
A look at TTD's daily chart shows a big block of 130,000 shares - one of the largest trades of the day - going off on a big down tick to $34 from the prior trade at $34.31. The action indicated aggressive institutional selling pressure.
CKFR had not comment on the suit.
CKFR also offers portfolio management services to broker-dealers, money managers, and investment advisors, and produces financial application software used by large financial institutions and other corporate clients.
The company is expanding its technological capabilities through acquisitions.
For the fiscal year ending June 30, CKFR's earnings should rise 11% to $1.91 a share from $1.72 a year ago.
TTD's daily chart shows the gap drop in the stock and the big volume. TTD is targeting CKFR for a decline to 28 within the next few months, or sooner.
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.)