By Leo Fasciocco -- TTD
Ticker Tape Digest presents its daily stock market report containing stocks to go long as breakout trades, quick trades, or bargain trades. We also feature stocks under Significant Accumulation that are poised to breakout.
Ticker Tape Digest's
Daily schedule guide for TTD subscribers
1. Pre-market - check Breakout Watch List and Quick Trades.
2. Morning - (11:30 - 12 A.M.) - check breakout stocks tape and breakout chart slide show.
3. Midday (1 P.M.) check TTD Midsession Report and see market video show.
4. After close (4 P.M.) check final TTD Report for day.
Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. (See Performance)
Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." (See Performance)
Conservative Investors "Bargain Buy Trades for the Long Term." Ideally suited for entry into top performing big cap stocks on pullbacks within overall up trend.(See Performance)
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance)
The TTD report also contains stocks to short as breakdown plays and as bargain (swing trade) shorts.
Investors should tend to try to go with a strategy that fits with the stock market's trend, unless there is a special situation play.
TTD's Breakout Stocks - Long are most suitable for aggressive investors seeking ideal entry points into leading stocks, especially during bull markets. They can do extremely well in bull markets with gains of as much as several hundred percent.
These stocks can also do extremely well during strong market rallies, or if they are in a industry group that is performing very well. They tend to have strong earnings outlooks and are near new-52 week, or all-time highs.
TTD Quick Trade Stocks - Long These are leading issues that have pulled back in recent days, but could move higher soon. They are most suitable for Aggressive Investors willing to trade short term. These stocks will do extremely well during market advances. They have about 74% win rate. During market rally sequences the win rate is even higher. The return is small 3% to 8% in just a few days.
TTD's Bargain Buy Trades - Long - Long Term. These are for conservative bullish Investors These long-term buys are ideally suited for entry into stocks on pull backs within overall up trend. These stocks can give a good return long-term especially during a bull market.
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 pull backs.
TTD's Bearish breakdown stocks to sell short. These issues have potential to fall sharply. They often show a technical breakdown and also some fundamental business problem such as weak earnings.
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. A good idea is to study the list and be ready to move into a stock quickly as it hits its breakpoint.
TTD often suggests using stop buy orders to enter. It is very important to buy a breakout stock as close as possible to the breakpoint. 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.
It is also essential to have a stop loss strategy for all stocks in which positions are taken. Not every stock will work as expected. It is important for investors to "police" their portfolios and avoid getting trapped in any bad positions.
Quality rating of breakout Two key factors: 1 - Stock near all-time in price or near a 52-week high. 2 - earnings growth current year is strong. The ideal play is a stock with an Above Average Quality Rating. The stock is near a new high and will have strong earnings. TTD's other ratings are Average and Below Average.
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 - 26
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Large number of breakouts today. Bulls be selective. Stock market remains in an up trend. Earnings reports to come will be important and should be watched.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
(See Top Performing Breakout Stocks for 2011- 2012)
TTD's Quality Rating of Stock - MHK - ABOVE AVERAGE
MHK, based in Calhoun, Ga., produces carpets and rugs. Annual revenues:$5.8 billion. MHK's stock breaks out today from a six-week flat base and hits a new all-time high. So far today, MHK is trading 653,297 shares. Its average daily volume is 700,000 shares.
MHK's stock was highlighted as a breakout at TTD's midsession video show on the Web.
The stock rose steadily in the morning and hit an intraday high of 117.22. The stock then trended sideways the rest of the day holding the bulk of its gain. (see 10-minute chart).
MHK's tape action is shown by its recent big block trades.
One can see the price for the blocks climbing from $113.50 a few days ago to a peak of $116.65.
The key bullish trade came late on Wednesday when a block of 26,960 shares crossed the tape at $114.23. That was up from the prior block at $113.60.
Also, late on Thursday, another key bullish block crossed when 26,158 shares traded at $116.63.
MHK produces woven and tufted broadloom carpet and rugs for mostly houses.
The company makes carpet and rugs in a broad range of colors, textures and patterns.
MHK's brand names are Mohawk, Aladdin, American Rug Craftsmen, American Weavers, Bigelow, and Custom Weave.
MHK's 12-month performance chart shows the stock appreciating 86% versus an 18% gain for the S&P 500 index.
MHK's long-term chart shows the stock climbing from 20 back in 2000 to a bull market peak of 108 in 2007. The stock then suffered through the bear market tumbling back to 19 by early 2009.
However, since then the stock has roared back and is making new highs. It could attract more buying on Friday.
MHK's daily chart shows the stock advancing from 80 back in October to a peak near 114 by March.
The flat base is set up above a rising 50-day moving average line which is bullish. That shows the stock was consolidating within an up trend.
MHK's TTD momentum indicator (top of chart) has been mostly bullish the past six months.
The accumulation - distribution line (bottom of chart) broke out to the upside before the price of the stock.
That shows good underlying buying while the stock was basing.
This year, analysts are forecasting a 38% jump in MHK's earnings to $5.23 a share from $3.78 a year ago. The company is benefiting from the recovery in the housing market. The stock sells with a price-earnings ratio of 22. That is reasonable.
Looking ahead to 2014, the Street projects a 22% gain in net to $6.38 a share from the anticipated $5.23 this year.
Net for the upcoming first quarter should increase 46% to 85 cents a share from 58 cents a year ago. The highest estimate on the Street is at 88 cents a share. TTD sees chances for a modest upside earnings surprise. MHK topped the consensus estimate the past four quarters by one to seven cents a share.
For the second quarter, profits should rise 31% to $1.49 a share from $1.14 the year before.
Strategy Opinion: TTD is targeting MHK for a move to 140 off this breakout. A protective stop can be placed near 109.
Interestingly, the stock has a beta of 2.17 versus 1.00 for the stock market. So, MHK has been twice as volatile as the S&P 500 index.
TTD rates the stock a good intermediate-term play with a potential for a stock split that could boost the issue.
Sponsorship: Excellent. The largest fund buyer recently was 5-star rated American Century U.S. Mid Cap Value Fund which purchased 1.3 million shares. It was a new position.
The largest fund holder is 5-star rated Sequoia Fund with a 3.8% stake. It was a recent seller of 61,233 shares.
Insider Activity: Bearish. Insiders were recent buyers at $73 to $79 using stock options. They were sellers recently around $112. Right now, 9 analysts follow the stock, 5 have a buy, up from 3 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Mohawk Industries Inc. - (MHK)
|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|
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - PCLN - ABOVE AVERAGE
|TTD's Quality Rating of Stock - LTD - AVERAGE|
|TTD's Quality Rating of Stock - AMT - AVERAGE|
|TTD's Quality Rating of Stock - SBH - AVERAGE|
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 - 1
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Only one short play today. Stock market continues to trend higher. So, bears need to be conservative. TTD's short from Wednesday was Titan Machey Inc. (TITN) at 22.05. Today, Titan is trading at 21.85 and is working well for bears.
IART, based in Plainsboro, N.J., makes medical implants and biomaterials. Annual revenues: $830 million. IART's stock falls sharply today after cutting its forecast of first quarter earnings. So far today, IART is trading a heavy 998,908 shares, seven times its normal daily volume of 136,000 shares.
TTD highlighted IART as a short at TTD's midsession video show on the Web.
IART said it expects earnings for the first quarter to be 30 to 40 cents a share. That is well below the consensus estimate of 69 cents a share.
The stock responded bearishly to the news.
IART's tape action shows the recent block trades.
One can see the price for the blocks declining from $38.38 to as low as $33.75.
The key bearish block came when 8,109 shares crossed the tape in the morning at $33.75, down from the prior block at $38.38.
IART produces medical devices, implants and biomaterials primarily used in the treatment of burns and skin defects, spinal and cranial disorders, orthopedics and other surgical applications.
This year, analysts are forecasting a 2% rise in net to $3.13 a share from $3.06 a year ago.
IART's daily chart shows the stock gapping lower with big volume. The stock's TTD momentum indicator (top of chart) turned bearish about four weeks ago.
Strategy Opinion: TTD is targeting IART for a decline to 29 within the next few months, or sooner. A protective stop can be placed near 36.50.
|TTD's Quality Rating of Stock - IART - AVERAGE|
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.)