Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, April 16 |
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 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. Trading Strategies Bullish 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) Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance) |
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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 leo@tickertapedigest.com.For service, email Beverly Owen owen@tickertapedigest.com. TTD’s Tel: 1-480-926-1680.
Breakout Stocks
Total Buy Breakouts so far today - 4
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Just a few breakouts today. Stock market mixed with blue chips up and small caps down. Nasdaq leaders get knocked back. Bulls can be cautious. Market in trading range.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - BNHN - AVERAGE |
BNHN, based in Miami, Fla., operates teppanyaki-style restaurants. Annual revenues: $342 million. BNHN's stock breaks out today from a 5-week flat base. TTD has been following BNHN closely the past few months. As we recently said, BNHN is a "double play." The company is showing strong profits and is a potential buyout.
The stock is up just slightly today but enough to clear its base.
The stock acted well considering the Nasdaq market was down sharply all day.
So far today, BNHN is trading a light 38,421 shares. Its average daily volume is 64,000 shares. So, the breakout has to be watched closely for a follow through.
The stock's 10-minute chart shows BNHN's push higher in the morning. The stock then trended sideways holding above its breakpoint.
The company did announce a few months ago that it would consider a buyout. It then earlier this year repeated the same news. So, a takeover always looms. That of course could results in a jump in the price of the stock very quickly.
TTD's clip of the tape shows the stock's recent big block trades.
A key bullish trade today came in the morning when a block of 2,200 shares crossed the tape at $14.06. That was up from the prior block trade at $13.85.
So, the action shows continued subtle institutional buying.
BNHN, runs the Benihana restaurants. It also operates two other Asian restaurant concepts: RA Sushi and Haru.
The Benihana teppanyaki restaurant, offers teppanyaki-style Japanese cuisine in which fresh steak, chicken and seafood are prepared by a chef on a steel teppan grill at the center of the guests’ table.
The company's RA Sushi concept offers sushi and a full menu of Pacific-Rim dishes featuring upbeat design elements and contemporary music.
Its Haru restaurant offers an extensive menu of traditional Japanese and Japanese fusion dishes in a modern, urban atmosphere, as well as take-out and delivery services.
The company has 63 Benihana restaurants, including one restaurant under the name Samurai; franchise 20 additional Benihanas; owned and operated 25 RA Sushi restaurants, and owned and operated eight Haru restaurants.
BNHN's 12-month performance chart shows the stock appreciating 53% versus a 4% gain for the S&P500 index.
BNHN's long-term chart shows the stock going back to 2000. It soared from 7 to a peak of $24.72 by 2007. It then fell sharply in the bear market to $1.50. It has since staged a strong rally the pat three years.
BNHN's daily chart shows the stock advancing from 7 back in August to 12 by January. The stock then went into a flat basing pattern and in March broke out to the upside.
The stock then set up a 5-week flat base. Today, it breaks out again to the upside. The most recent base was set up above a rising 50-day moving average line. That shows the stock is in a strong up trend.
The stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) is in an up trend. That shows continued good buying and compliments the price of the stock.
TTD sees the key to BNHN being its strong earrings outlook.
Analysts forecast net for the fiscal year ending March 30, 2012 will climb to 34 cents a share from 2 cents a year ago. The stock sells with a price-earnings ratio of 37. TTD sees that as reasonable.
Going out to fiscal 2013 ending in March profits are projected to climb 35% to 46 cents a share from the anticipated 34 cents this fiscal year.
Near-term, BNHN is poised to show strong quarterly results.
Earnings for the fiscal fourth quarter ending March 30 should leap to 15 cents a share from 2 cents a year ago. The highest estimate on the Street is at 21 cents a share. That shows some expect a big quarter.
Going out to the fiscal first quarter ending June 30, net should rise 32% to 19 cents a share from 14 cents the year before.
The company recent initiated a quarterly dividend.
Strategy Opinion: TTD is targeting BNHN for a move to 17.50 within the next few months, or sooner. A protective stop can be placed near 12.50. TTD rates BNHN a good intermediate-term play most suitable for aggressive investors.
Sponsorship: Very Good. A key buyer recently was 4-star rated Royce Pennsylvania Mutual Invest. Fund which purchased 179,700 shares. It has a 1% stake. Also, 4-star rated RBC Small Cap Trust Fund was a recent buyer of 86,219 shares. Institutions hold 52% of BNHN's stock. BNHN has 17.9 million shares outstanding.
Insider Activity: Bullish. Insiders did some light buying using stock options at $7.55. Very little selling the past six months. Three analysts follow the stock 2 have a buy, the same as three months ago.
Stock Performance Chart with Quarterly Earnings Markers
Insider Activity - Buying in Green - Selling in Red
TTD's Breakout Profile
Rating Benihana Inc. - (BNHN) |
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 | 10 | 0 | 4 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - DDD - AVERAGE |
TTD's Quality Rating of Stock - AVB - AVERAGE |
TTD's Quality Rating of Stock - STX - 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 - 8
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of breakdown stocks and very selective. Bears be conservative as stock market is in a trading range. TTD's short from Friday was Edwards Lifesciences Corp. (EW) at 68.65. It is now at 68.54.
HALO, based in San Diego, is a biotech research firm working on products for infertility. Annual revenues: $56 million. HALO's stock falls sharply today in heavy trading after the FDA sought more studies concerning HALO's HyQ Biologics license application. The stock market took the news bearishly. Also, Baxter International's stock was down. So far today, HALO is trading a heavy 8 million shares, seven times its normal daily volume of 1.1 million shares.
HALO's stock gapped lower in the morning. It hit an intraday low of $7.51 in the morning. It then rallied modestly to trim some of its loss and then moved sideways in the afternoon.
HALO's tape shows the recent big block trades. A key bearish trade came in the morning when a block of 48,299 shares (duplicated) crossed the tape at $8.60. That was down sharply from the prior block at $11.36.
HALO is working on commercializing recombinant human enzymes for the infertility, ophthalmology, and oncology communities.
The company's broad product development portfolio, including expected near- and long-term product offerings, is based on intellectual property covering the family of human enzymes known as hyaluronidases.
HALO's initial products are being developed to offer safer and purer alternatives to existing slaughterhouse derived extracts that carry risks of pathogen contamination, immunogenicity, and toxicity.
This year, analysts forecast HALO will show a loss of 50 cents a share compared with a loss of 19 cents a share a year ago.
The negative news from the FDA has put the stock in motion to the downside with strong volume. The recent action would indicate some selling took place prior to the news.
Strategy Opinion: TTD is targeting HALO for a decline to 7 within the next few months, or sooner. A protective stop buy can be set near 9.50.
TTD's Quality Rating of Stock -HALO - 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.”
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(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.)