Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for April 25
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for April 25 |
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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 positionsboth as trades or for longer-term plays. These stocks will do very well during bear markets or market corrections
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Total Buy Breakouts so far today - 17
Stocks Screened- 8,200
Bull side - Oil service stocks and upside earnings surprise stocks lead the breakout list today as market drives higher.
Long-Term Environment for bulls: Favorable.
Market Status (Daily) - NYSE Bullish, Nasdaq Bullish
Market Status (Weekly) - NYSE Bullish, Nasdaq Bullish
RIG, based in Houston, in a drilling service firm. Annual revenues: $3.9 billion. Today, RIG breaks out from a 5-month, double bottom basing pattern. The move comes with expanding volume and puts RIG in position to make a new high. Oil service stocks are strong today with several breaking out. So far today, RIG is trading 6.2 million shares. Its average daily volume is 5 million shares.
One of the largest trades of the day came in the morning. It was a big block of 58,200 shares crossing on a nice up tick to $84.07 from the prior trade at $84
RIG specializes in deepwater drilling and harsh environments.
The company operates in the world's major offshore oil-producing regions, including Africa, Asia, Brazil, Canada, India, the Middle East, the Gulf of Mexico, and the North Sea.
The company has 82 mobile offshore drilling units, inland barges, and support vessels, including semisubmersibles and drillships, jackup rigs, and other rigs.
RIG's base was formed after the stock rallied from 66 late last year to 84. (seedaily chart). That move was part of a major bull market run which began when the stock was 20 in 2003 (see TTD's long-term chart).
The basing formation is very good. The "handle portion" of the base showed a good consolidation to set the stock up for a flip higher. And so it is.
RIG's TTD momentum indicator (top of the chart) is modestly bullish.
Most importantly RIG's accumulation - distribution line has pushed to a new peak. That is good confirmation that the stock has some good buying underlying its push to a new near-term peak.
RIG is going to show some very powerful earnings based on its strong business and high price for crude oil.
Profits for the first quarter should soar 196% and then the growth rate in the second quarter should accelerate to 284%. That is "triple digit" growth - a strong drive to push a stock higher.
For the first quarter net should come in at $1.45 a share, up from 49 cents a share a year ago. The highest estimate on the Street is at $1.71 a share. That is high and indicates some analysts think the quarter could be extremely strong. Net for the second quarter should skyrocket to $1.57 a share from 41 cents a share a year ago.
For the year, RIG's net should jump 150% to $7.33 a share from $2.97 a year ago. The stock sells with a modest p/e ratio of 11. Next year, RIG's net should climb 51% to $11.07 a share.
Strategy Opinion: RIG looks great. The powerful earnings should push the stock higher in coming months. TTD is targeting RIG for a move to 100. We would not be surprised to see a stock split which could push the stock even more. A protective stop can be placed near 80. TTD rates RIG an excellent intermediate-term play.
Sponsorship: Excellent. The largest fund holder is 5-star rated American Funds Growth Fund of America with a 3.9% stake. It has held its position steady. The largest buyer recently was 4-star rated Calamos Growth Fund which purchased 1.1 million shares.
Insider Activity: Neutral. Not much activity recently. Currently, 27 analysts follow the stock, 18 have a buy, 7 are neutral and 2 have a sell.
| TTD's Breakout Profile
Rating Transocean Inc. (RIG) |
| 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 |
(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)
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: Unfavorable.
Bear Side - Small number of short plays, but some interesting situations. Bears be selective. TTD's feature short from Tuesday, Lexmark Intl., falls 1.19 to 55.25 today.
(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.)
ASEI, based in Billerica, Ma., makes X-ray detection systems for inspection and security applications at airports, border control sites, shipping ports, and special events. Annual revenues: $148 million. ASEI falls today undercutting key support at 50 and setting off a TTD short play. Trading in ASEI swells to 443,348 shares, four times its normal daily volume of 100,000 shares.
The stock remained under selling pressure in the afternoon. TTD's clip of the tape shows a big block of 1,000 shares crossing on a down tick to $48.31 from the prior trade at $48.36.
Unlike ordinary X-rays, ASEI's backscatter technology detects organic materials such as illegal drugs, plastic explosives, and plastic weapons,
Its Z Backscatter Van features an X-ray system built into a delivery van. The company also makes scanning equipment for detecting contraband on persons and in luggage and packages. Customers include the US Customs Service and Department of Homeland Security. ASEI gets 75% of its sales from the US government and its contractors.
The key to ASEI's weakness is a deceleration in earnings growth. Net for the fiscal fourth quarter ended March 30 should be up up 53%. However net for the fiscal year should be down 22% to $2.57 a share from $3.28 a share a year ago. Net for the fiscal year ending March 30 should decline 3%.
Technically, ASEI is an ideal short. The stock is now in a down trend. The TTD momentum indicator (top of the chart) is very bearish. The accumulation - distribution line is trending lower. TTD is very bearish on ASEI. We see the stock as an excellent short. We are targeting ASEI for a decline to 40.
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.)