|Go to Video Show - "How to Make Money With Breakout Stocks"|
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.
Total Buy Breakouts so far today - 4
Stocks Screened - 8,200
Bull side - Very few breakouts today. Bulls be patient.
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
RBA, based in Canada, is the world's largest auctioneer of industrial and agricultural equipment. Annual revenues: $320 million. RBA clears a 12-week, cup-and-handle base today with a significant expansion in volume. The stock broke out late on Thursday. Today's strong action despite a mixed market is impressive. So far today, RBA is trading 311,000 shares, double its normal daily volume 129,000 shares.
TTD's clip of the tape shows good action early Friday. A block of 2,700 shares crossed the tape on a big up tick to $86.80 from the prior trade at $86.16,
The action showed good follow through action from the advance on Thursday.
TTD highlighted RBA as a breakout at our midsession show on the Web Friday.
RBA focuses on unreserved auctions, or auctions that do not require minimum prices for products sold. In 2007, the company generated gross auction proceeds of $3.18 billion.
The company earns about 60% of revenue in the United States, 20% in Canada, and the rest from Europe and Asia.
TTD's performance chart shows RBC appreciating 48% the past 12 months. The stock, although a low beta issue at 0.44, easily outperformed the S&P 500 index which was off 8%. The beta of the S&P is 1.00. Beta is a measure of volatility.
TTD;s daily chart shows the classic cup-hand-handle base. It was formed after the stock rallied from 60 last August to 85. The base showed a good contraction of volume near the lows, which is bullish.
The stock's TTD momentum indicator (top of the chart) is nicely bullish.
The accumulation - distribution line (bottom of chart) has hit a new peak. That is good confirmation that the underlying buying in the stock is good. There is no subtle distribution.
TTD's long-term chart shows RBA as a big winner. Since the stock of the bull market in 2003 it has skyrocketed from 18 to 88. It is now breaking out on its long-term chart.
The stock will split 3-for-1 soon. It has already been approved.
This year, analysts predict an 18% increase in net to $2.56 a share from $2.17 a year ago. The stock sells with a price-earnings ratio of 34. That is a bit rich.
For the upcoming first quarter, analysts look for a 22% gain in net to 61 cents a share from 50 cents a year ago. The highest estimate on the Street is at 62 cents a share. The company has tended to surprise big on the upside with earnings once in a while. TTD sees chances for a positive surprise this time around.
Strategy Opinion: RBA's breakout looks solid. The stock is a bit pricey with its p/e ratio. So, one has to be watchful. TTD is calling for the stock to advance to 105 within the next few months. That is before the effect of the stock split. A protective stop can be placed near 84. TTD rates RBA an average intermediate-term play.
Sponsorship: Excellent. The top two fund holders both have a 5-star rating. They are Neuberger Berman Genesis Fund with a 5.5% stake and Royce Premier Fund with a 5.2% interest. They have held their positions steady. A recent key buyer was 4-star rated Baron Growth Fund which purchased 509,000 shares.
Insider Activity: Not available. Ten analysts follow the stock, 3 have a buy, up from 2 three months ago.
Stock Performance Chart for One Year versus the S&P 500 index.
|TTD's Breakout Profile
Ritchie Bros. Auctioneers Inc. (RBA)
|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
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 number of breakdowns today. However, there is a good sprinkling of damaged stocks falling. 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.)
AVID, based in Tewksury. Ma., sells hardware and software products that help make, manage, and distribute video, film, audio, and 3-D animation content. Annual revenues: $930 million AVID's stock plunges today after the company reports a loss for the first quarter. The stock fell sharply at the opening and continued to slide through most of the session. TTD sees more on the downside.
So far today, AVID is trading a heavy 2 million shares, four times its normal daily volume of 445,000 shares.
TTD's table shows the big blocks for today. The price for the blocks trended mostly downward. The latest big block went off at $20.87 around midday. AVID's stock fell further indicating heavy selling pressure even after the news went out.
AVID's technology is used primarily by film studios, television networks, recording studios, advertising agencies, and government and educational organizations.
Projects using the company's tools have received high-profile awards such as Oscars, Emmys, and a Grammy. AVID sells its hardware and software primarily through resellers and distributors.
The company said today that for the first quarter it had a loss of 54 cents a share compared with a breakeven a year ago. The Street was expecting a loss of 11 cents a share. So the results were a big disappointment. For the year, TTD looks for a breakeven instead of analysts expectations of a profit of 41 cents a share.
TTD's daily chart shows the gap drop in AVID. The stock's TTD momentum indicator turned bearish several weeks ago. The accumulation - distribution line (bottom of chart) has rolled over. TTD is targeting AVID for a decline to 16 within the next 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.)