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 Trading Strategies Overview and Performance
Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns.
Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit."
Conservative Investors "Bargain Buy Trades" (swing trades). Ideally suited for entry into stocks on pullbacks within overall up trend. Good for trading range markets
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns
Conservative Bearish Investors (swing traders). "Bargain Bearish Plays" to Sell Short. Ideally suited for trading range markets with overall market down trend.
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 These are for conservative bullish Investors The strategy is called swing trading. These long buys are ideally suited for entry into stocks on pull backs within overall up trend. They are good for trading range markets. These stocks can give a good return in a week or two. They can also explode into a breakout and a powerful advance.
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 Bearish bargain play stocks to sell short. These issues are usually in down trends and are poised to rollover after a minor rally. They often can provide a conservative bear with a good entry point.
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.
Breakout StocksTotal Buy Breakouts so far today - 4
Stocks Screened - 8,200
Bull side - Breakout list shrinks as stock market fall sharply on Goldman Sachs investigation by SEC. TTD's warning on market vulnerability looks right on. Bulls be careful.
The action indicates money is not fleeing stocks.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
TTD's Quality Rating of Stock - IART - ABOVE AVERAGE
IART, based in Plainsboro, N.J., makes medical devices such as fusion devices (see picture). Annual revenues: $682 million. IART's stock breaks out today from a 5-week flat base. The stock's move is impressive given that the general stock market is falling sharply due to the Goldman Sachs fraud investigation. So far today, IART is trading a robust 301,409 shares, double its normal daily volume of 140,000 shares.
TTD highlighted IART as a breakout at our midsession show on the Web Friday.
IART's 10 minute chart shows the stock breaking out in the morning with strong volume.
The stock continued to move higher and then held its own in the afternoon.
TTD's clip of the tape shows IART's big block trades recently.
One can see the price for the blocks working higher from $43.13 to $45.
A key trade was a block of 10,000 shares that crossed in the morning at $45. That was up sharply from the prior block trade that went off at $44.50 (duplicated.
The strong institutional buying could well be a sign the stock could follow through on its breakout next week.
IART's products include implants, instruments and equipment for neurosurgery, orthopedic surgery and general surgery.
The company is very aggressive in making acquisitions to expand its product line and business.
IART is a leader. The stock has appreciated 90% the past 12 months compared with a 40% rise in the S&P 500 index.
IART's long-term chart shows the stock climbing from 5 in 2000 to a peak of 52 in 2007. The stock was then pulled lower in the bear market touching 18.in early 2009. It has since rallied strongly to 45 and is moving into position to possibly make a new all-time high. That would be very bullish.
IART's daily chart shows the stock climbing from 30 to 44. The stock afterwards formed a 5-week flat base. Today, it breaks out with expanding volume. The action is very bullish considering the stock is moving up against a weakening stock market.
The base is short. So, one does need to be watchful.
IART's TTD momentum indictor (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) has broken out to the upside. So, that is good confirmation that the breakout is coming with good buying demand.
This year, analysts forecast a 21% increase in IART's earnings to $2.60 a share from $2.16 a year ago. The stock sells with a 17 price-earnings ratio. That is very low given this year's earnings growth
Next year, the Street is currently looking for a 10% rise in net. However, that could be boosted if IART can engineer some favorable acquisitions.
IART will report first quarter net on Monday, May 3.
Earnings are expected to climb 21% to 56 cents a share from 46 cents a year ago. The highest estimate on the Street is at 60 cents a share. IART tends to top the consensus estimate by one to two cents a share. TTD sees good chances for a modest upside earnings surprise.
Strategy Opinion: IART's breakout looks impressive given the market's decline. TTD is targeting IART for a move to 54. A protective stop can be placed 42 giving it some room. TTD rates IART a good intermediate-term play.
Sponsorship: Good. The largest fund buyer recently was Lord Abbett Small-Cap Value Fund, 5-star rated, which purchased 250,856 shares. The largest fund holder is 2-star rated Fidelity Magellan Fund with a big 5.3% stake. It has held its position steady. IART has 28.7 million shares outstanding.
Insider Activity: Neutral. Insiders were buyers using stock options. They turned around and sold. The latest selling was at $43. Right now, 12 analysts follow the stock, 6 have a buy, the same as three months ago.
Stock Performance Chart for 12 months with Quarterly Earnings Markers.
TTD's Breakout Profile Rating
Integra Lifesciences (IART)
|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. They are ranked according to percentage change and classified as leaders or other. (Trading strategy: One should buy breakout stocks at breakpoint by using market order or stop buy)
Charts of Selected Breakout Stocks
|TTD's Quality Rating of Stock - LANC - AVERAGE|
|TTD's Quality Rating of Stock - PRX - BELOW AVERAGE|
|TTD's Quality Rating of Stock - MAT - BELOW AVERAGE|
Ticker Tape Digest’s Daily List of “Stocks To 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 - 8,2007
Long-Term Environment for bears: Unfavorable.
Bear Side - Breakdown list expands as stock market moves sharply and broadly lower on Goldman news. Bears be selective and more venturesome.
(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.)
SOHU, based in China, is an internet firm providing Chinese with news, entertainment and communication. Annual revenues: $515 million. SOHU's stock breaks below key support today. The stock has been working lower from a peak at 71 late last year. Today's decline comes with volume of 994,279 shares. Its average daily volume is 742,000 shares. TTD sees more on the downside.
SOHU's stock headed lower in the morning. It touched a low of 58.05 around noon. In the afternoon, it attempted a rally, but the stock faltered.
TTD's clip of the tape shows the recent big block trades. One can see the price for the blocks declining from $53.15 to as low as $50.20. Some of the trades on the list are duplicated. The block at $50.20 today came on 6,200 shares.
The tape action showed clear institutional selling pressure.
SOHU provides advertising, online games and wireless services.
The Company’s advertising business, including brand advertising services and sponsored search services, offers various products and services to its users such as free-of-charge content, interactive community, integration search and other services.
The firm's web properties include www.sohu.com, a mass portal and online media destination; www.17173.com, a games information portal; www.focus.cn, a real estate Website; www.chinaren.com, an online alumni club, and www.sogou.com, an interactive search engine.
The Company operates two massively multi-player online role-playing games (MMORPG games), Tian Long Ba Bu (TLBB) and Blade Online (BO).
This year, analysts forecast SOHU will show a modest 5% increase in net to $3.73 a share from $3.57 a year ago. Net for the upcoming first quarter is expected to fall 40%.
SOHU's chart shows the stock's breakdown. The TTD momentum indicator (top of chart) is slightly bearish. The accumulation - distribution line (bottom of chart) has rolled over indicating clear selling pressure.
Strategy Opinion: TTD is targeting SOHU for a decline to 42 within the next few months, or sooner. A protective stop buy can be placed near 53.
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.)