Daily - Go to TTD's Tape of Stock Charts - Wednesday, April 18 |
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 - 12
Overall Quality of Breakouts - Above Average
Stocks Screened - 8,300
Bull side - Good number of breakouts with some quality plays. Bulls can be venturesome. Stock market still in a trading range within an overall up trend.
(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 - URI - ABOVE AVERAGE |
URI, based in Greenwich, Ct., is an equipment rental firm. Annual revenues: $2.6 billion. URI's stock breaks out today from a nine-week flat base and makes a 13-year high. TTD featured URI earlier this month as a potential breakout. So far today, URI is trading a heavy 8.5 million shares, four times its normal daily volume of 2 million shares.
URI's push higher today was triggered by favorable quarterly earnings.
TTD's 10-minute chart shows the stock driving higher in the morning. The just got above its breakpoint. Later in the day it pushed higher clearing the breakpoint nicely.
URI came in with net for the first quarter of 36 cents a share. The Street was expecting only 5 cents a share. So, the net was a big bullish surprise.
The company said it benefited from a shift to renting equipment rather than buying. Revenues for the quarter rose to $656 million from $523 million a year ago. Rental revenues rose to $523 million from 434 million the year before.
TTD's clip of the tape shows the recent big block trades.
One can see the price for the blocks climbing from $40.91 a few days ago to a peak of $46.08 on Wednesday.
A key bullish trade came in the morning when a block of 68,762 shares crossed the tape at $44.50. That was up from the prior block at $40.91 that came on a big 141,152 share trade.
United Rentals, Inc. is one of North America's largest equipment rental companies with over branches in the majority of states, several Canadian provinces and Mexico. The company offers for rent different types of equipment to customers that include construction and industrial companies, manufacturers, utilities, municipalities, homeowners and others.
URI's 12-month performance chart shows the stock appreciating 42% versus a 4% gain for the S&P 500 index.
URI's long-term chart shows the stock climbing from 5 back in 2003 to a peak of 37.84 in 2006. The stock then went south due to the bear market. It hit a low of $2.52 by early 2009. However, since then the stock has surged higher. It is now near its all-time high of 42 set back in 1998 just after it came public.
URI's daily chart shows the stock climbing from 15 back in August to a peak near 44 in February. The stock then formed a flat base. The stock did have a small shakeout a few sessions ago, but then firmed.
URI's breakout comes with a gap move and widening of the daily trading spread - all bullish.
The stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) has already broken out to the upside. That was a good lead indicator that the price of the stock would breakout too.
This year, analysts are forecasting a big 66% surge in earnings to $3.10 a share from $1.87 a year ago. The stock sells with a price-earnings ratio of just 14. TTD sees that as low making the stock an excellent value-growth play.
Next year, the Street is forecasting a 36% gain in net to $4.21 a share from the $3.10 anticipated this year.
For the upcoming second quarter, earnings should surge 92% to 77 cents a share compared with 40 cents a share a year ago.
The highest estimate on the Street is at 91 cents a share. That means some are looking for a significant higher quarter than others. TTD sees very good chances for an upside earnings surprise. The past three quarters, URI surpassed the consensus estimate by 31 cents a share, 21 cents a share and 16 cents a share (see table).
Strategy Opinion: TTD is targeting URI for a move to 55. A protective stop can be placed near 42.
TTD rates URI an excellent intermediate-term play provided earnings remain on course.
Sponsorship: Average. The largest fund buyer recently was 2-star rated American Century Vista Fund which purchased 525,000 shares. Also, 2-star rated Brandywine Fund purchased 348,000 shares as a new position. URI has 63.8 million shares outstanding.
Insider Activity: Bearish. Insiders have been buyers using stock options from $5.85 to $11.63. They were sellers around $42. Currently, 8 analysts follow the stock 7 have a buy, up from 6 three months ago.
Stock Performance Chart with Quarterly Earnings Markers
Insider Activity - Buying in Green - Selling in Red
TTD's Breakout Profile
Rating United Rentals Inc. - (URI) |
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 | 1 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - TDG - ABOVE AVERAGE |
TTD's Quality Rating of Stock - DWCH - ABOVE AVERAGE |
TTD's Quality Rating of Stock - NQ - ABOVE AVERAGE |
TTD's Quality Rating of Stock - CSGP - 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 - 9
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Good number of breakdown stocks today with some interesting plays. Stock market in trading range giving bears some good chances for a breakdown stock with some damaged fundamentals. TTD's short from Tuesday was Zynga (ZNGA) at 10.37. Today, the stock has declined to 10.18 and is working well for bears.
SINA, based in China, provides a variety of internet services in China. Annual revenues: $482 million. SINA's stock falls sharply today with expanding volume. The move causes the stock to undercut key technical support. With a loss expected in the first quarter, TTD sees good potential for more on the downside. So far, today, SINA is trading 5.8 million shares. Its average daily volume is 4.6 million shares.
SINA's stock declined through the morning and into the early afternoon. Late in the day the stock mounted a modest rally to trim its loss. The stock had hit an intraday low of 57.68.
SINA's tape action shows the recent big blocks. One can see the price for the blocks declining from $62.41 to $59. A key bearish trade came when a block of 17,760 shares crossed the tape today at $59. That was down from the prior block trade at $60.70.
SINA has several branded web sites targeting Greater China and overseas Chinese.
The company operates three major business lines including SINA.com, SINA Online and SINA.net, providing an array of services including online portals, premium email, wireless short messaging, virtual ISP, search, classified information, online games, e-commerce, e-learning and enterprise e-solutions.
Analysts expect SINA to post a first quarter loss of 27 cents a share compared with a profit of 21 cents a year ago. For the year, they see net tumbling 84% to 14 cents a share from 69 cents a year ago.
SINA's daily chart shows the stock cutting below support with a pick up in volume. The stock's accumulation - distribution line (bottom of chart) is in a down trend indicating clear selling pressure.
Strategy Opinion: TTD is targeting SINA for a drop to 52 within the next few months, or sooner. A protective stop buy can be placed near 61.
TTD's Quality Rating of Stock - SINA - BELOW 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.”
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.)