Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Wednesday, April 16 |
Go to Video Show - "How to Make Money With Breakout Stocks" |
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 - 18
Stocks Screened - 8,200
Bull side - Breakout list expands sharply as market rallies sharply. Bulls be more aggressive now.
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
PETD, based in Bridgeport, West Virginia, is an oil and gas company that operates drilling facilities in the Appalachian Basin, Michigan, and the Rocky Mountains. Annual revenues: $305 million. PETD breaks clear of an 8-week, cup-and-handle base today and hits a new high. The stock is a top performer in the strong energy sector. TTD featured PETD as a stock to accumulate recently.
The company's top executive are making presentations at the Sun Trust Robinson Humphrey conference in Atlanta this week.
So far today, PETD is trading a light 142,711 shares. The stock's average daily volume is 228,000 shares. One needs to watch the stock closely to see if it can pick up more volume in coming sessions.
PETD showed good accumulation late on Tuesday. TTD's clip of the tape shows a block of 14,700 shares crossing at $74.95. That came within a sequence started by an up tick from$74.94.
The company markets natural gas for itself and other producers, and distributes natural gas to residential, commercial, and industrial customers.
Its Riley Natural Gas subsidiary purchases gas from producers and markets it to utility companies.
TTD's long-term chart shows PETD in a powerful bull market. The stock has soared from 5 in 2003 to 76 - a sensational run up.
TTD's performance chart for the past 12 months shows that PETD has appreciated 42% versus an 8% decline in the S&P 500 index.
TTD's daily chart shows PETD's base which was set up after the stock ran up from 42 last year. The issue did edge out of the base about two weeks ago. However, it just stalled. Today's move is very impressive as far as price movement goes.
The stock's TTD momentum indicator (top of the chart) is solidly bullish.
The accumulation - distribution line (bottom of chart) lags. So, the stock's price is moving higher, but the buying is lacking a bit. It will be important to see if PETD can generate more volume.
That could come when the firm reports first quarter earnings. The Street is forecasting a 150% surge in net to 97 cents a share from 39 cents a year ago.
The highest estimate on the Street is at $1.28 a share. That indicates some analysts are looking for a very big quarter. The company is benefiting from the high price for energy.
TTD sees the key to the stock's action on a fundamental basis as being the expected acceleration in quarterly profits. Net for the second quarter is expected to surge 726% to 74 cents a share from 9 cents a year ago. Accelerating quarterly earnings is a powerful driver for a stock.
For the year, analysts predict a 62% improvement in earnings to $3.63 a share from $2.24 a year ago. The stock sells with a 21 price-earnings ratio. TTD sees that as low given the earnings growth outlook. Next year, profits should increase 30% to $4.72 a share.
Strategy Opinion: PETD has all the numbers to be a winning stock. TTD is targeting PETD for a move to 90 within the next few months. The stock has the potential for a stock split, which should push higher too. A protective stop can be placed near 72. TTD rates PETD a very good intermediate-term play due to the stock earnings outlook.
Sponsorship: Excellent. The largest fund holder is 4-star rated Fidelity Low-Priced Stock Fund with a big 9.1% stake. It has held its position steady. The largest buyer lately was 5-star rated Turner Emerging Growth Fund which picked up 53,000 shares. The company has just 14 million shares outstanding.
Insider Activity: Slightly Bullish. Insiders have been light buyers in recent months. Seven analysts follow the stock, 5 have a buy, up from 4 three months ago.
Stock Performance Chart for One Year versus the S&P 500 index.
TTD's Breakout Profile
Rating Petroleum Development Corp. (PETD) |
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 - 6
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Small list of breakdown stocks today as stock market rallies broadly. Some selected shorts in a variety of groups. TTD's short play from Tuesday, Northrop (NOC) falls 0.89 to 70.69.
(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.)
STX, based in the Cayman Island, makes hard disk drives used for storing electronic information. Annual revenues: $12.3 billion. STX falls sharply today after what analysts said was a weak forecast. Several downgraded the stock. So far today, STX is trading 24.6 million shares, triple its normal daily volume of 7.7 million shares. TTD sees more on the downside.
STX's tape action shows a big block of 975,300 shares crossing in the morning at $18.79. The trade came with a sequence started by a modest down tick from $18.78. It indicated heavy institutional selling pressure.
STX came in with net for the fiscal third quarter of 70 cents a share from operations compared with 37 cents a share a year ago. The consensus estimate on the Street was for 73 cents a share.
The company forecast net for the fiscal fourth quarter ending June 30 will be 37 to 41 cents a share. That is well below the consensus Street forecast of 57 cents a share. The news caused several analysts to lower their rating on the stock.
STX designs hard drives used in servers, PCs, laptops, and personal entertainment players. About 60% of revenue comes from original-equipment manufacturers like HP, Dell, EMC, and IBM. The rest comes from distributors that resell to smaller firms. Revenue is fairly evenly distributed across the United States, Europe, and Asia.
TTD's daily chart shows STX in a down trend from 29 a few months ago to around 20, where it tried to set up a bottom. That has failed. The stock gaps lower today in heavy trading. The stock's TTD momentum indicator (top of chart) is very bearish. The accumulation - distribution line (bottom of chart) has turned down and is bearish.
TTD is targeting STX for a drop to 15 within the next few months, or sooner. TTD sees STX as a good trading short.
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.)