Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Wednesday, April 23
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Wednesday, April 23 |
| Go to Video Show - "How to Make Money With Breakout Stocks" |
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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 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 positions both as trades or for longer-term plays. These stocks
will do very well during bear markets or market corrections
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.
TTD often suggests using stop buy orders to enter. It is very important to buy a breakout stock as close as possible to the break point. 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.
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 - 5
Stocks Screened - 8,200
Bull side - Very few breakouts today as stock markt declines broadly led by airline issues. Bulls be patient and selective.
Long- term Environment for bulls: Bearish
Market Status (Daily) - NYSE Bullish, Nasdaq Bullish
Market Status (Weekly) -NYSE Bullish, Nasdaq Bullish
Market Status (Monthly) NYSE Bullish, Nasdaq Bullish
ZOLL, baed in Chelmsford, Ma., maks medical equipment used to resuscitate victims of trauma or cardiac arrest. Annual revenues: #$40 million. ZOLL breaks out from a six-week flat base today after reporting a big upside earnings suprise. (see TTD's earnings surprise table below). The stock gapped higher at the opening and held its ground throughout the day. Volume so far today has swelled to 1.3 million shares, triple the stock's average daily volume of 440,000 shares. 
TTD's clip of the tape shows strong buying early in the day. A big block of 13,170 shares crossed the tape on a nice up tick to $28.69 from the prior trade at $28.50.
The tape action indicated aggressive early buying off the earnings report.
TTD highlighted ZOLL as a breakout at our midsession show on the Web.
ZOLL's products include pacemakers, defibrillators, and battery support systems.
The company also makes electrodes that are used to monitor the status of patients, as well as software capable of automating the documentation and management of clinical information.
ZOLL came in with earnings for he fiscal second quarter ended March 31 27 cents a share, up 80% from the 15 cents a share. The 27 cents a share also topped the highest estimate on the Street of 20 cents a share. TTD has mentioned before that when a company can top the highest estimate the stock could well have a chance to move sharply higher on the day of the announcement and for the next few weeks. TTD sees that possibility here with ZOLL.
The key to the stock's technical patter is in the monthly TTD chart (see below). It shows the stock starting to emerge from a base going back a year. That is very significant. Notice to on the long-term chart that volume is starting to expand.
A look at TTD's daily chart shows a gap move higher on the earnings news. Most important is that ZOLL held a good chunk of the gain by the close. There was no weakness into the close.
The fact the stock was working lower prior to the news may well indicate the earnings news came as a surprise.
Technically, the stock's TTD momentum indicator (top of the chart) is very bullish. The accumulation - distribution line is weak trending lower. That divergence at firs appearance would appear bullish. But, again it may well have been due to uninformed selling that got clocked on the good earnings.
ZOLL's strong earnings reflect a 40% increase in second quarter revenues to $99.2 million. The firm did well in its North American hospital market..
For the upcoming fiscal third quarter, analysts predict a 21% gain in net to 25 cents a share from 21 cents a year ago. For the fiscal year ending Sept. 30, TTD sees profits increasing 30% to $1.05 a share from 81 cents a year ago. The stock sells with a 29 price-earnings ratio. Going out to fiscal 2009, analysts see net hitting $1.37 a share, a 30% gain.
Strategy Opinion: ZOLL is obviously extended in price today. TTD suggests scaling into this breakout play. The stock could continue to move up quickly. In that case one would be in. There is a chance of a pause and a pull back. In that case one could add to the position on a turn back up. TTD is targeting ZOLL for a move to 38 within the next few months, or sooner. A protective stop can be placed near 28. TTD rates ZOLL a good intermediate-term play.
Sponsorship: Excellent. The largest fund buyer recently was 4-star rated Fidelity Small Cap Stock Fund which purchased 432,000 shares. It is the second largest fund holder with a 3.9% stake. The largest fund holder is 3-star rated Fidelity OTC Fund with a 4.1% interest. Another key buyer was 5-star rated Lord Abbett Small Cap Fund which picked up 165,000 shares.
Insider Activity: Neutral. Insiders were recent buyers using stock options. They turned around and sold. Four analysts follow the stock, one has a buy, the same as three months ago.
Stock Performance Chart for One Year versus the S&P 500 index.
| TTD's Breakout Profile
Rating Zoll Medical Corp. (ZOLL) |
| TTD Check List | Bullish | Bearish | Neutral |
| Near 52-week High | YES | ||
| Volume Expansion | 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 | 12 | 1 | 1 |
(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)
Charts of Breakout Stocks
Guide: Symbol=Ticker, Name=Corporate name, Entry is the buy price to enter on the breakout, Last=prior close, Change=change from last close to prior, Date=date of price of close etc, Gain in blue is price above breakpoint (entry), Gain in red is price below breakpoint (entry)., % Gain in blue is % over breakpoint (entry), Gain in red is % below breakpoint (entry)
TTD's Midday List of Big Upside Earnings Surprises for April 23 - Wednesday
(Estimated earnings are the highest on the Street. These stocks beat that.)
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 - 5
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Small list of breakdown stocks. However, some interesting plays that have disappointing earnings. Bears be selective.
(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.)
MNC, based in Coburg, O, makes recreational vehicles and motor coaches ranging from around $30,000 to $1 million. Annual revenues $1.3 billion. MNC falls sharply today after reporting a loss for the first quarter. TTD sees more on the downside with this low-priced stock. So far today, volume is running at 773,337 shares, triple its normal daily volume of 216,000 shares.
TTD's clip of the tape shows the stock coming under heavy selling pressure late on Tuesday and early today.
A block of 11,800 shares crossed late Tuesday on a down tick to $8.45 from the prior trade. Then, today a big block o 18,000 shares crossed on a big down tick to $7.50 from the prior trade at $8.45. That signalled heavy institutional selling pressure.
MNC sells its products to recreational vehicle dealers throughout the country. The company markets its products under a handful of names including Monaco, Holiday, Royale, Roadmaster, and Safari.
It operates two manufacturing facilities in Oregon and Indiana.
For the first quarter, MNC said it had a loss of 28 cents a share compared with a profit of 5 cents a year ago. The results were a big disappointment. The Street was looking for a profit of 2 cents a share. For the year, analyss have been looking for a 4% rise in net to 43 cents a share. That will most likely be cut.
TTD's daily chart shows the gap drop undercutting key support at 8.27. The stock's technicals are very bearish. The TTD momentum indicator (top of the chart) has dropped into the bearish zone. The accumulation - distribution line is in a down trend indicating heavy selling pressure. TTD sees MNC suitable for aggressive bears. We are targeting the stock for a drop to 5 within a few months.
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.)
