Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Friday, April 24
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Friday, April 24 |
| 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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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.
Stocks Screened - 8,200
Bull's Strategy - Breakout list expands, but overall quality is below average. Stock market stages strong rally to turn indicators back to bullish. Bulls be more venturesome.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) -NYSE Bullish, Nasdaq Bullish
Market (Monthly) NYSE Bullish, Nasdaq Bullish
| TTD's Quality Rating of Stock - STEC - AVERAGE |
STEC, based near Los Angeles, provides standard and custom
computer-memory products. Annual revenues: $227 million. STEC, a stock TTD recently featured, breaks out today from a six-week flat base. The stock is nearing a 52-week high. With strong profits projected for the next two years, STEC has potential to do very well.
TTD highlighted STEC as a breakout at our midsession show on the Web Friday.
The stock is trading 1.4 million shares, double its normal daily volume of 658,000 shares. The strong volume with the breakout is very bullish.
STEC drover higher in the morning, peaked around noon, sagged a bit in the afternoon and then come on again in the late afternoon.
TTD's clip of the tape shows a big block of 25,000 shares crossing on a modest up tick to $9.52 from the prior trade at $9.51. The action showed good institutional buying interest. That is good. Most institutions do not dip into low priced stocks. So, the fact there is institutional interest is good.
STEC makes tools that connect memory cards and hard-drive upgrade kits to personal computers.
The applications for the products include desktop and notebook computers, servers, routers, switches, digital cameras, digital video recorders, digital audio players, personal digital assistants, and medical instruments.
These systems are based on dynamic random access memory (DRAM), static random access memory (SRAM), and Flash memory technologies. STEC's customers include Unisys and Cisco.
TTD's six-month performance chart shows STEC's stock appreciating 60%. It easily outperformed the S&P 500 index which was flat during that period of time.
STEC's long-term chart shows the stock as being a volatile issue. The stock has a tendency to stage some big rallies and then fall back. The look at the current monthly chart appears to point to STEC moving higher.
TTD's daily chart shows STEC charging higher from 4 earlier this year to 8. The stock set up a six-week flat bas, with a bias to the upside.
The structure of the base showed a wedge to the upside with the stock spending time near the top of the base. The contraction volume during the basing period gives indications that the profit taking from the prior run up was over.
The breakout today shows a widening of the spread, which is bullish indicating ease of price movement.
The stock's TTD momentum indicator (top of the chart) is slightly bullish.
The accumulation - distribution line (bottom of chart) is in a steady up trend. It indicates there has been no unusual distribution in the stock. That is bullish.
This year, analysts predict a 49% jump in STEC's earnings to 46 cents a share from 31 cents a year ago. The stock has price-earnings ratio of 18. That is half of the projected earnings growth rate. So, the stock is attractive to aggressive value investors.
Going out to 2010, the Street is forecasting a 61% improvement in profits to 74 cents a share from the anticipated 46 cents this year. So, STEC will be showing an acceleration in annual earnings growth.
For the upcoming first quarter, analysts predict a big 57% improvement in profits to 11 cents a share from 7 cents a year ago. The highest estimate on the Street is at 12 cents a share. Going out to the second quarter earnings are expected to increase 49% to 46 cents a share from 31 cents a year ago. Revenue growth in the latest quarter was 7%. Gross margins improved slightly.
Strategy Opinion: STEC' stock is acting strong now. TTD is targeting STEC for a move to 12 within the next few months, or sooner. A protective stop can be placed at 8. TTD rates STEC a very good intermediate-term play most suitable for aggressive investors.
Sponsorship: Excellent. One of the largest fund buyers recently was Royce Micro-Cap Fund, 5-star rated, which purchased 407,000 shares. The largest fund holder is 3-star rated Fidelity Small Cap Fund with a 1.6% stake. STEC has 48 million shares outstanding. Funds hold 5.8 million shares.
Insider Activity: Bearish. Insiders have been steady sellers this year. They have done no buying. Ten analysts follow the stock, 5 have a buy, the same as three months ago.
Stock Performance Chart for 6 months with Quarterly Earnings Markers.
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TTD's Profile Rating STEC Inc. - (STEC) |
| 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 | 13 | 0 | 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
| TTD's Quality Rating of Stock - CFL - BELOW AVERAGE |
| TTD's Quality Rating of Stock - JJSF - AVERAGE |
| TTD's Quality Rating of Stock - STAR - BELOW AVERAGE |
| TTD's Quality Rating of Stock - BMC - 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 - 2
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Just a few breakdown stock today as stock market rallies strongly. Bears be conservative and very careful now. Market is showing unusual strength.
(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.)
IBKR, based in Greenwich, Ct. was formerly known as the Interactive Brokers Group. It is an automated global
market maker and electronic broker. Annual revenues: $1.9 billion. IBKR's stock falls sharply today after the company reported weak earnings for the first quarter. The technical breakdown in the stock is sharp. TTD sees more on the downside. 
So far today, IBKR's stock is off $2.79. The stock is trading a heavy 5.5 million shares, eight times its normal daily volume of 737,000 shares.
The stock dropped late on Thursday in the after market. It was unable to mount a rally on Friday.
TTD's clip of the tape highlights a big block of 100,000 shares that crossed at $13.73. The trade came on a sequence started by a down tick from $13.74. The tape action indicates heavy institutional selling pressure.
This financial systems firm specializes in routing orders and processing trades in securities, futures, and foreign exchange instruments.
IBKR reported net for the first quarter declined to 30 cents a share from 66 cents a year ago. The 30 cts was below the 47 cents a share consensus estimate on the Street and the lowest estimate which was at 43 cents.
For the year, analysts have been forecasting a 14% decline in net to $1.93 a share from $2.24 a year before.. TTD sees the decline probably being more.
TTD's daily chart shows IBKR's stock falling from 24 to the low teens. It staged a modest rally, However, today it gaps lower on big volume and violates its trend line. The stock' AD line has taken a nose dive, which is bearish.
Strategy Opinion: TTD is targeting IBKR for a drop to 11 within the next few months, or sooner. The technical breakdown is very bearish. A protective stop buy can be placed near 14.80.
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.)
