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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for April 18 |
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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 positionsboth as trades or for longer-term plays. These stocks will do very well during bear markets or market corrections
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Total Buy Breakouts so far today - 15
Stocks Screened- 8,200
Bull side - Good number of breakouts today as market is mixed. Some tech plays moving out. Bulls be selective.
Long-Term Environment for bulls: Favorable.
Market Status (Daily) - NYSE Bullish, Nasdaq Bullish
Market Status (Weekly) - NYSE Bullish, Nasdaq Bullish
BA, based in Chicago, is the world's second largest maker of commercial jets. The largest is Airbus. BA is also a major defense and space provider to the government. Annual revenues: $61.5 billion. BA breaks out from a 20-week, flat base today and hits a new high. Volume so far today is running at 9.4 million shares, almost triple its normal daily volume.
TTD featured BA as a stock that was under accumulation and poised to breakout.
We also covered the stock as a breakout on our midsession video show on the Web Wednesday.
The heavy volume is a big plus for the success of the breakout. TTD's clip of BA's tape today highlights the largest trade. It was a big block of 60,000 shares crossing on a modest up tick to $91.95 in the morning from the prior trade at $91.94.
BA is the second largest defense contractor behind Lockheed Martin.
BA's commercial aircraft include the 787 Dreamliner (due in 2008), 767, 747, and the next generation 737. Its military aircraft include the F/A-18 Hornet, the F-15 Eagle, the C-17 Globemaster III transport, and the AH-64D Apache helicopter. Boeing's space operations include communications satellites, missiles, the International Space Station, and the Space Shuttle (with Lockheed).
BA's base was set up after the stock rallied from 72 last year to 90. The structure of the base is ideal, especially for a big cap issue. The widening of the spread (range from high to low) today is a positive for the stock too.
The stock's TTD momentum indicator is bullish (see top of the chart). The accumulation - distribution line (bottom of the chart) is trending higher. That says there is good underlying buying supporting the stock's price advance.
BA is a cyclical stock and it is now in a powerful upswing.
This year, BA's profits should surge 79% to $4.81 a share from $2.69 a year ago. The stock sells with a 19 price-earnings ratio, which TTD sees as attractive to value investors.
BA is part of the Dow 30 industrials index.
BA has been getting a steady flow of business. For the upcoming first quarter earnings should rise 21% to $1.03 a share from 85 cents a year ago. The highest estimate on the Street is at $1.10 a share.
The second quarter will show a big turnaround with profits expected to be $1.15 a share compared with a loss of 21 cents a year ago.
Strategy Opinion: BA looks very good on this breakout. TTD is calling for the stock to climb to 115 within the next few months. A protective stop can be placed near 88. TTD rates BA a very good intermediate-term play because the earnings growth should continue into next year.
Sponsorship: Excellent. The largest fund holder is 5-star rated American Funds Growth Fund of America with a 1.6% stake. It has held its position steady. The largest fund buyer recently was Fidelity Select Defense and Aerospace Fund. The 5-star rated fund picked up 1.5 million shares.
Insider Activity: Neutral. Not much activity lately, although stock options have been awarded. Currently, 15 analysts follow the stock, 7 have a buy, down from 10 three months ago. Credit Suisse has a $104 price target.
| TTD's Breakout Profile
Rating Boeing Co. (BA) |
| 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 | 14 | 0 | 0 |
(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)
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 - 7
Stocks Screened - 8,200
Long-Term Environment for bears: Unfavorable.
Bear Side - Several breakdown stocks today linked to weak earnings. Bears be conservative.
(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.)
CGNX, based in Natick, Ma., makes computerized quality-control mahine-vision systems. Annual revenues: $238 million. CGNX falls sharply today in heavy volume after coming in with a big drop in earnings for the fiscal first quarter ended April 1. TTD sees the stock as a good short play as it continues to trend lower.
CGNX reported first quarter net declined to 10 cents a share from 18 cents a year ago. Revenues for the quarter dropped 14% due to lower sales in three of its key product lines.
So far today, CGNX is trading 940,796 shares, four times its normal daily volume of 214,000 shares.
TTD's clip of the tape showed how CGNX fell in early trading today. A big block of 10,000 shares crossed the tape on a big down tick to $20.21 from the prior trade at $20.37.
Semiconductor, consumer goods, health care, and auto firms use CGNX's machine vision systems to position and identify products, gauge sizes, and locate defects.
CGNX also provides consulting and educational services, as well as technical support for its products.
This year, analysts expect CGNX to report a 15% drop in earnings. The stock has been trending lower after a big breakdown in October. (see TTD's daily chart) TTD is targeting CGNX for a decline to 16 within the next few months. We see the stock as a good play for aggressive bears.
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.)