Daily - Go to TTD's Tape of Stock Charts - Thursday, April 19 |
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 - 10
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Good number of breakouts. Hotel stocks were strong today led by Marriott. Bulls be selective. Stock market in a trading range within an overall up trend. (Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Stock Market Momentum:
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 - TNGO - ABOVE AVERAGE |
TNGO, based in Orange, Ct., produces communication software. Annual revenues: $105 million. TNGO's stock came public last year and traded around 10. It has since moved higher and today breaks out strongly from a nine-week flat base. So far today, volume is running at 1.4 million shares. Its average daily volume is 957,000 shares. TTD recently featured TNGO as a potential breakout to be accumulated.
TTD highlighted TNGO as a breakout at our midsession video show on the Web Thursday.
TNGO's 10-minute chart shows the stock driving higher in the morning. It then trended sideways the rest of the day, pushing a bit higher in the last hour.
The stock's reluctance to give ground intraday is very bullish.
The company recently completed a public offering of 8 million shares at $18.50.
The tape action shows the recent block trades.
A key bullish trade came in the morning when a block of 12,000 shares crossed the tape at $20.57. That was up from the prior block trade at $19.40.
The price for the blocks hit a peak at $21.65 around noon, backed off and then came on again near the close. That is bullish tape action.
TNGO provides communication lifecycle management software and related services. The company markets software to help companies manage and control their fixed and mobile communications assets and costs.
The software helps companies track sourcing, asset procurement, services provisioning, invoice processing, expense allocation, bill payment, policy enforcement, usage management, and inventory.
TNGO's 12-month performance chart shows the stock appreciating 84% versus a 4% gain for the S&P 500 index.
TNGO's long-term chart shows the stock trading around 12 back in July of last year. The stock then gradually worked its way higher. A key move came when it broker out of base at 16 in mid-February. It climbed to 19 and now breaks out again.
The push to a new high on a breakout could draw in more buying from the new-high crowd on Friday.
TNGO's daily chart show the stock in a flat base bracketed between 16.50 and 20 roughly. The stock's breakout comes with a widening of the spread (range from high to low). That is bullish.
The strong volume reinforces the idea the recent stock offering has been absorbed by the stock market. .
The current base was set up mostly above a rising 50-day moving average line. That is bullish.
The TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) lags due to a breakdown recently. It will be important to see that recovery.
This year, analysts forecast a profit of 42 cents a share compared with a loss of 18 cents a year ago. The stock sells with a price-earnings ratio of 46. TTD sees that as reasonable given the earnings outlook.
Next year, analysts look for a 33% gain in net to 56 cents a share from the anticipated 42 cents a share this year.
Net for the upcoming first quarter should hit 8 cents a share compared with a loss of 22 cents a share a year ago. The company increased earnings guidance in February. It has also been aggressive in making acquisition to expand operations.
Looking out to the second quarter, net is expected to rise 50% to 9 cents a share from 6 cents a year ago.
Strategy Opinion: TTD is targeting the stock for a push to 26. A protective stop can be placed near 18.75
TTD rates TNGO an above average intermediate-term play provided earnings meet expectations.
Sponsorship: Good. A key fund buyer recently was 4-star rated Wells Fargo Advantage Small Co. Growth Fund which purchased 131,928 shares. The largest fund holder is MFS New Discovery Fund with a 2% stake. The 3-star rated fund kept its position steady. TNGO has 36.4 million shares outstanding. Institutions hold 26% of the stock.
Insider Activity: Bearish. Insiders have been steady sellers of the stock around $17.48. They were buyers using stock options at 25 cents to 88 cents a share.. Currently, 5 analysts follow the stock, and all 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 Tangoe Inc. - (TNGO) |
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 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - EBAY - AVERAGE |
TTD's Quality Rating of Stock - TRV - AVERAGE |
TTD's Quality Rating of Stock - UTEK - AVERAGE |
TTD's Quality Rating of Stock - EFX - 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 - 7
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Modest number of breakdown stocks today, but some interesting plays. TTD's short from Wednesday was Sina Corp. (SINA) at 59.10. So far today the stock has declined to 58.73 and is working well for bears.
GNTX, based in Zeeland, Mich., makes products for autos such as mirrors. Annual revenues: $1 billion. GNTX's stock gaps sharply lower today on heavy volume. The decline came after the company reported a modest rise in quarterly net. However, some analysts trimmed their forecasts for the year. So far today, GNTX is trading a heavy 10.4 million shares, eight times its normal daily volume of 1.2 million shares. TTD sees more on the downside.
GNTX reported net for the first quarter rose to 32 cents a share from 29 cents a year ago. The 32 cents was in line with Street estimates. However, one analyst cut his forecast for GNTX for the year to $1.25 a share from $1.33. He also lowered his price target for the stock.
GNTX's stock gapped lower in the morning. It hit an intraday low around midday at 21.30. The stock then trended sideways.
The tape action shows heavy big block trading. The price for the blocks has declined from $24.25 to as low as $21.45. A key bearish trade came in the morning when a block of 100,000 shares crossed at $23.19, down from the prior block at $24.25.
GNTX makes electro-optic products, including interior and exterior electrochromic, automatic-dimming Night Vision Safety automotive rearview mirrors that dim in proportion to the amount of headlight glare from trailing vehicle headlamps.
The company also makes
fire protection products for commercial applications.
The consensus estimate on the Street is that GNTX will show a 13% rise in net this year to $1.28 a share from $1.14 a year ago.
GNTX's chart shows the stock declining from 32 in December to 23. Today, the stock gaps lower. The move indicates big downside momentum.
Strategy Opinion: TTD is targeting GNTX for a decline to 17 within the next few months, or sooner. A protective stop buy can be placed near 23.
TTD's Quality Rating of Stock -GNTX - 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.)