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 email@example.com.For service, email Beverly Owen firstname.lastname@example.org. TTD’s Tel: 1-480-926-1680.
TTD Quick Trade Stocks. 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 an 80% win rate.
Ticker Tape Digest's Midsession Stock Market Video Show
(Posted 12:30 to 1 p.m. NYSE Time)
Go to Shows for Latest Week: Monday
Total Buy Breakouts so far today - 7
Stocks Screened - 8,200
Bull side - Small list of breakouts. Bulls be selective, but on the lookout for good plays as market rallies.
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
MATK, based in Columbia, Md., makes nutritional oils from vegetarian sources as supplements to infant formula, foods and beverages, and other products. Annual revenues: $320 million. MATK clears a 15-week, cup-and-handle base today and makes a 52-week high. So far today, MATK is trading 503,004 shares, slightly more than its average daily volume of 461,000 shares.
The stock showed good accumulation on the tape late on Wednesday.
TTD's clip of the tape captures a big block of 13,650 shares crossing on a modest up tick to $34.99 from the prior trade at $34.97. The action showed subtle institutional accumulation.
MATK is the leading provider of two fatty acids, DHA (docosahexaenoic acid) and ARA (arachidonic acid), which it derives from microalgae.
The products are used in about 70% of all worldwide infant formulas. These acids occur naturally in breast milk and are believed to contribute to infant development.
MATK recently said that Canada Bread Company launched Canada's first bread product featuring life'sDHA, a patented, vegetarian form of DHA omega-3 for brain, eye and heart health. The first and only Canadian bread with vegetarian DHA, new Dempster's Smart(TM) 100% Whole Grain Wheat is a 100% percent whole grain product that is a source of 13 essential nutrients.
MATK's stock is a leader. The past 12 months it has appreciated 60% versus a 5% decline for the S&P 500 index. (see TTD's performance chart)
TTD's daily chart shows MATK rising in 6 out of the past 7 sessions.
The stock broke out of the base four sessions ago. However, it slipped back. Today's move higher causes MATK to clear the base on a modest volume expansion.
The key for the stock will be to see if it can generate some volume on an up day.
The stock's TTD momentum indicator (top of the chart) is very bullish.
The accumulation - distribution line lags. (see bottom of chart)
MATK should show big earnings for the fiscal second quarter ending April 30. Analysts predict a 67% jump in profits to 25 cents a share from 15 cents a year ago.
The highest estimate on the Street is at 26 cents a share. The past two quarters MATK topped the consensus estimate by 3 and 4 cents a share. TTD sees good chances for an upside earnings surprise. The strength of the stock prior to the earnings report may be hinting to that.
For the fiscal year ending October 30, MATK's net should jump 54% to $1.03 a share from 67 cents a year ago. The stock sells with a high p/e ratio of 34. That is justified by the good growth this fiscal year. Next fiscal year 2009, net is projected by the Street to rise 17% to $1.21 a share. TTD sees good chances for those estimates to be bumped up.
Strategy Opinion: MATK's push to a new 52-week high just may bring in more buying. TTD is targeting the stock for a move to 44 within the next few months. A protective stop can be placed near 33. TTD rates MATK a very good intermediate-term play with potential to surprise on the upside.
Sponsorship: Excellent. The top two fund holders have a 5-star rating. American Funds Growth Fund of America has a 4.7% stake and Lord Abbett Small-Cap Value Fund has a 4.2% interest. Both have held their positions steady. The largest fund buyer lately was BlackRock Small Cap Growth Fund, 4-star rated, which purchased 195,000 shares.
Insider Activity: Neutral. Just light insider buying lately. Five analysts follow the stock, two have a buy, the same as three months ago.
Stock Performance Chart for One Year versus the S&P 500 index.
|TTD's Breakout Profile
Martek Biosciences Corp. (MATK)
|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|
(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)
Set a Stop Buy at 32.50 to Catch the Breakout
Net to Jump 109% This Fiscal Year, To Report Soon, TTD Targets 40
WDC, based in lake Forest, Ca., makes computer disk drives used in personal computers, corporate servers, consumer electronics products. Annual revenues: $6.7 billion. WDC is moving into position to breakout from a double-bottom, or "W" base of nine weeks. The stock has been acting well despite the stock market's decline of the past several months. WDC will be showing strong profits for the next two quarters. TTD sees that as the driver to push it out of its base and north.
WDC is trading 5.4 million shares so far today. Its average daily volume is 6.4 million shares. The stock, which is up about 1 point today, showed good tape action in the morning.
TTD's clip of the tape shows a big block of 15,000 shares crossing on a modest up tick to $31.01. During the rest of the day, the tape action was a bit choppy.
WDC gets about 50% of its sales from original-equipment makers, 30% from distributors, and the rest from retailers. WDC's largest customer is Dell Computer, which accounts for 10% of sales. WDC gets about 60% of its revenues from desktop products.
WDC's stock has participated well in the bull market which began in 2003 and the subsequent market pull back. Since 2003, it has climbed from 9 to 30. (see TTD's long-term chart)
TTD's daily chart shows WDC's setup. The stock rallied from 23 earlier this year to a peak near 34. It then pulled back to form its base. At first it appeared to be a flat base. However, there have been two recent shakeouts to the downside changing its shape.
TTD put the breakpoint at $32.44. The stock's technicals are setting up nicely for a breakout.
The TTD momentum indicator (top of the chart) is now bullish.
The accumulation - distribution line is trending higher once again. It has tended to trace the pattern of WDC's price.
WDC will report earnings for the fiscal third quarter ended March 30 today.
The Street is looking for a 107% jump in net to $1.09 a share from 53 cents a year ago. The highest estimate on the Street is at $1.16 a share. WDC tends to match or top the consensus and at times beat it by a large amount. TTD sees an outside chance of an upside earnings surprise.
WDC is continuing to come out with new products - larger disk drives obsoleting older ones.
Analysts see a modest acceleration in quarterly earnings growth. Net for the fiscal fourth quarter ending June 30 is projected to leap 115% to 82 cents a share from 38 cents a year ago. All told, profits for the fiscal year 2008 should soar 109% to $4.05 a share from $1.94 a year ago. The stock sells with a price-earnings ratio of just 7.
Strategy Opinion: TTD sees WDC as a good trading play based on the strong earnings outlook near-term TTD suggests accumulation of a partial stake with further buying to be done when the stock gets over 32.50. TTD is targeting WDC for a move to 40 within the next few months. A protective stop can be placed near 28. TTD rates WDC more of a trading play.
Sponsorship: Very Good. The largest fund holder is 3-star rated Fidelity Magellan Fund with a 4.3% stake. It was a recent buyer of 2 million shares. 5-star rated Fidelity Contrafund was a recent purchaser of 720,000 share and 5-star rated Fidelity Balanced Fund added 256,000 shares.
Insider Activity: Neutral. Insiders have been buyers using stock options. They have turned around and sold. Currently, 17 analysts follow the stock, 9 have a buy, down from 12 three months ago.
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 - 8
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Small list of breakdown stocks today, but some very interesting plays. Leading sector fertilizer stocks have topped out. Bears be selective since general stock market is in an up trend.
(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.)
MCRI, based in Reno, operates the Atlantis Casino Resort in Reno, Nevada. Annual revenues: $160 million. MCRI is the latest of the gaming stock to feel the recession pinch as the stock falls sharply today on a big drop in earnings. So far today, the stock is trading 551,885 shares, five times its normal daily volume of 94,800 shares. TTD sees more on the downside.
TTD's clip of the tape shows MCRI coming under selling pressure early in the session. A block of 12,447 shares crossed the tape on a significant down tick to $14.55 from the prior trade at $14.68. The action showed institutional selling
MCRI reported net for the first quarter dropped to 12 cents a share from 28 cents a year ago. The Street was looking for 20 cents a share. So, the net was a big disappointment and the stock "got tapped out."
The company did respond by increasing its stock repurchase program.
For the year, analysts were looking for a 12% drop in net to $1.11 a share from $1.27 a year ago. TTD sees the decline being even greater.
The Atlantis Casino offers a 51,000-square-foot casino, a hotel and motor lodge, restaurants, casino bars, a nightclub, a swimming pool, a banquet and meeting space and a health club.
TTD's daily chart shows MCRI gapping lower and undercutting key support near 16. The stock is extended to the downside. However, TTD sees more with MCRI falling to 13. The heavy volume indicates a rush to the exits. TTD rates MCRI a short 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.)