|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 email@example.com.For service, email Beverly Owen firstname.lastname@example.org. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 3
Stocks Screened - 8,200
Bull side - Very few breakouts today as market falls sharply on weak GM earnings. 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
DAR, based in Irving, Tex., processes animal by-products into a variety of animal and consumer products. Annual revenues: $645 million. DAR breaks out from a six-week base today. The stock is one of the better acting low-priced issues on the NYSE. So far today, DAR is trading 1.5 million shares. Its average daily volume is 1.2 million shares.
TTD highlighted DAR as a breakout at our midsession show on the Web.
The stock showed good action in the morning. It bucked the stock market's big downdraft.
TTD's clip of the tape shows a big block of 10,900 shares crossing on a modest up tick to $13.89. The action showed light institutional buying. DAR has a low beta of 0.22 versus 1.00 for the S&P 500. That means the stock probably will be a slow mover.
However, DAR is performing well overall. TTD's performance chart shows the stock up 95% the past 12 months. That compares with a 5% decline in the S&P 500 index. (see chart below)
DAR collects animal by-products and grease from restaurants, butcher shops, grocery stores, and independent meat and poultry processors in the United States.
The company then processes these materials into oil, meat, and bone meal that are used to produce animal feed, meat products, paint, cosmetics, soaps, rubber, paper, concrete, plastics, and pet food. The company markets its products in the United States and abroad.
TTD's long-term chart shows DAR in a powerful bull market having soared from 2 in 2002 to 13. The stock remains in an up trend long-term.
TTD's daily chart of DAR shows the stock rallying from 9 in November to 14. That came while the stock market was trending lower. So, the stock has demonstrated an ability to "move against the market's downside tide."
The breakout today clears the key resistance area in the base. It has not topped the prior peak. If it should do that, DAR could attract more buying from the new-high crowd.
The stock's technicals are excellent. The TTD momentum indicator (top of the chart) is strongly bullish. The accumulation - distribution line (bottom of chart) is in a strong up trend indicating very powerful buying is continuing in the stock.
This year, DAR's profits should leap 39% to 80 cents a share from 58 cents a share a year ago. The stock sells with a modest 17 price-earnings ratio.
The key to the stock's movement could well be an expectation of an acceleration in quarterly profit growth. Net for the upcoming first quarter should climb 50% and then in the second quarter 61%. Accelerating quarterly profits is often a driver to send a stock higher. The company's sales growth is running at 37%. It is benefiting from higher finished product prices.
Net for the first quarter should climb to 18 cents a share from 12 cents a year ago. The highest estimate on the Street is at 22 cents a share. The past two quarters the company topped the consensus Street estimate by 2 cents a share and 3 cents. TTD sees chances for an upside surprise.
Strategy Opinion: DAR is a solid breakout play. The ability of the stock to move up against the market is impressive. TTD is calling for the stock to advance to 17.50 within the next few months. A protective stop can be place near 12. TTD rates DAR a good intermediate-term play. However, one must be patient. with it.
Sponsorship: Very Good. Some top rated funds were recent buyers. 4-star rated Van Kampen Small Cap Growth Fund was a recent purchaser of 335,000 shares and 4-star American Century New Opportunity II Fund added 136,000 shares.
Insider Activity: Neutral. Insiders were buyers recently using stock options. They turned around and sold. Five analysts follow the stock, 3 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
Darling International Inc. (DAR)
|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 - 11
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Good number of breakdown stocks today as stock market falls sharply on GE earnings disappointment. TTD's recent bear play MGM drops 1.30 to 51.63, a great play for bears so far.
(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.)
INFA, based in Redwood City, Ca., sells enterprise data integration software. Annual revenues: $390 million. INFA, which made a new 52-week high earlier this year, breaks down hard today in heavy trading. The company will report first quarter earnings on April 17 - next week. TTD sees the stock's action as very bearish. We see more on the downside.
So far today, INFA is trading 3.3 million shares, double its normal daily volume of 1.4 million shares.
The stock showed steady selling pressure through the day. TTD's clip shows a big block of 75,000 shares crossing on a significant down tick to $15.73 from the prior trade at $15.89. TTD sees the tape action indicating heavy institutional selling pressure.
INFA's products help companies gather, analyze, and order data located in disparate systems, such as databases.
The company also provides support and training services. INFA has around 2,700 customers in industries such as financial services and manufacturing.
For the upcoming first quarter, analysts are forecasting a 16% increase in net to 13 cents a share from 11 cents a year ago. The lowest estimate on the Street is at 11 cents a share. The tape action would indicate a potential disappointment.
TTD's daily chart shows the stock's breakdown today on big volume. The stock's TTD momentum indicator (top of the chart) has been bearish for several weeks. That is a bearish omen. The accumulation - distribution line (bottom of chart) is starting to rollover. TTD sees INFA as a good short play for aggressive bears. TTD senses potential fundamental problems. We are targeting the stock for a drop to 12 with a 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.”
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.)