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 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 - 15
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Large number of breakouts today as stock market rallies broadly. Bulls should be selective. Stock market rallies across a trading range.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - WAB - ABOVE AVERAGE
WAB, based in Wilmerding, Pa., makes equipment for the railroad industry. Annual revenues: $2 billion. WAB's stock breaks out today from a six-week flat base and makes a new all-time high. So far today, WAB is trading 684,254 shares, double its normal daily volume of 309,000 shares. The company is poised to show strong earnings for the first quarter.
WAB's 10-minute chart shows the stock breaking out in the morning on higher intraday volume and then trending sideways. It held comfortably above its breakpoint line.
WAB hit a new all-time high at 79.84 today.
WAB's tape action is shown by the recent big block trades.
One can see the price of the blocks climbing from $75.25 to a peak of $79.42.
The stock showed key accumulation a few days ago on April 13. That is when a block of 46,900 shares crossed the tape at $76.39. That was up from the prior block trade at 75.25.
Then today the stock showed an early morning block of 5,450 shares crossing the tape at $78.83. That was up from the prior block at $77.60.
The tape action the past few days shows bullish institutional buying.
WAB produces a variety of items for the rail industry.
Through its subsidiaries, it makes items for locomotives, freight cars and passenger transit vehicles.
The company also builds new locomotives up to 4,000 horsepower and provides aftermarket services, including locomotive and freight car fleet maintenance.
WAB's 12-month performance chart shows the stock appreciating 19% versus a 5% gain for the S&P 500 index.
WAB's long-term chart shows the stock climbing from 10 back in 2003 to a peak of 60 in 2008. The stock then fell to 23 during the bear market which ended in early 2009. The stock has since surged back making a almost a fourfold move. The push to a new high could draw in more buying on Wednesday.
WAB's daily chart shows the stock clearing its base today with expanding volume. It has been stair stepping higher the past six months. So, it has shown a tendency to move up just gradually.
The stock's TTD momentum indicator (top of chart) is solidly bullish.
The accumulation - distribution line (bottom of chart) is trending higher nicely. That shows consistent and steady buying and no unusual selling.
This year, analysts are forecasting a 30% jump in earnings to $4.82 a share from $3.70 a year ago. The stock sells with a price-earnings ratio of just 16. TTD sees that as reasonable.
Going out to 2013, the Street is currently looking for an 8% rise in net to $5.21 a share from the anticipated $4.82 this year.
Net for the upcoming first quarter should soar 41% to $1.20 a share from 85 cents a year ago. TTD sees chances for an upside earnings surprise. The past three out of four quarters, WAB topped the consensus estimate by 6% to 10%. So, any upside surprise should be modest.
Going out to the second quarter, earnings are projected to rise 22% to $1.15 a share from 94 cents the year before.
Strategy Opinion: TTD is targeting WAB for a move to 95 off this breakout. A protective stop can be placed near 74. One should also be patient since the stock has tended to move slowly. However, it could get a boost with its earnings report.
TTD rates WAB more of a trading play off the breakout.
Sponsorship: Very Good. The largest fund holder is 4-star rated Neuberger Berman Genesis Fund with a 5.6% stake. It has held its position steady. A key buyer recently was Janus Triton Fund, 5-star rated, which purchased 23,995 shares. WAB has 48.2 million shares outstanding. Institutions hold 89% of the stock.
Insider Activity: Bearish. Insiders have bee buying using stock options and selling at around $74.90. Currently, 6 analysts follow the stock, 4 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
Wabtec Corp - (WAB)
|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 - CSL - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - NVR - AVERAGE|
|TTD's Quality Rating of Stock - INTU - AVERAGE|
|TTD's Quality Rating of Stock - TISA - 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 - Very few breakdown stocks today as stock market rallies broadly. Bears be selective. TTD's short from Monday was Halozyme Therapeutics Inc. (HALO) at 8.77. Today, the stock has declined to 8.29 is working well for bears.
ZNGA, based in San Francisco, produces games for the internet by which they provide advertising. Annual revenues: $1.1 billion. ZNGA's stock falls below key technical support today setting off a TTD short play. The stock was recent IPO that came out in December of 2011 and traded at 9. It hit a peak of 15.91 earlier this year. So far today, ZNGA is trading a heavy 17.1 million shares. Its average daily volume is 11 million shares.
ZNGA's stock's decline was linked to the disclosure the company may seek to make more acquisitions. The Street took the news bearishly.
ZNGA's stock fell sharply in the morning hitting a low of $10.33. The stock then lifted a bit but then worked lower the rest of the day. It hit an intraday low of $10.23.
ZNGA's tape action shows the recent big block trades.
One can see the price for the blocks falling from $11 to as low as $10.47. A key bearish trade came in the morning when a block of 47,800 shares crossed the tape at $10.65. That was down from the prior block trade at $11.
ZNGA games include CityVille, FarmVille, FrontierVille, Words With Friends, Mafia Wars, Zynga Poker, Cafe World, and Treasure Isle. Zynga Inc.
The games are available on a number of global platforms including Facebook, MySpace, Yahoo, the iPad, the iPhone and Android devices.
All of their games are free to play, and they generate revenue through the in-game sale of virtual goods and advertising.
This year, analysts forecast an 11% increase in net to 27 cents a share from 24 cents a year ago.
ZNGA's chart shows the stock cutting below key technical support today on expanding volume. The stock's accumulation - distribution line (bottom of chart) is trending lower showing there has been steady selling in the stock.
Strategy Opinion: TTD is targeting ZNGA for a decline to 8 within the next few months or sooner. A protective stop buy can be placed near 11.50.
|TTD's Quality Rating of Stock - ZNGA - 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.)