Daily - Go to TTD's Tape of Stock Charts - Wednesday, April 27 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, April 25 |
Go to Video Show - "How to Make Money With Breakout Stocks" Go to Video Show -TTD Performance 2008 Long and Short |
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By Leo Fasciocco -- TTD
Ticker Tape Digest presents its daily stock market report containing stocks to go long as breakout trades, quick trades, or bargain trades. We also feature stocks under Significant Accumulation that are poised to breakout.
Ticker Tape Digest's Trading Strategies Overview and Performance Bullish Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." Conservative Investors "Bargain Buy Trades for the Long Term." Ideally suited for entry into top performing big cap stocks on pullbacks within overall up trend. Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns |
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The TTD report also contains stocks to short as breakdown plays and as bargain (swing trade) shorts.
Investors should tend to try to go with a strategy that fits with the stock market's trend, unless there is a special situation play.
1 - TTD's Breakout Stocks - Long - (Intermediate-term long plays) these are most suitable for aggressive investors seeking ideal entry points into leading stocks, especially during bull markets. They can do extremely well in bull markets with gains of as much as several hundred percent.
These stocks can also do extremely well during strong market rallies, or if they are in a industry group that is performing very well. They tend to have strong earnings outlooks and are near new-52 week, or all-time highs.
2 -TTD Quick Trade Stocks - Long - (Short-term long plays 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 74% win rate. During market rally sequences the win rate is even higher. The return is small 3% to 8% in just a few days.
3 - TTD's Bargain Buy Trades - Long - (Long Term long plays. These are for conservative bullish Investors These long-term buys are ideally suited for entry into stocks on pull backs within overall up trend. These stocks can give a good return long-term especially during a bull market.
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 pull backs.
4 - TTD's Bearish breakdown stocks to sell short. These issues have potential to fall sharply. They often show a technical breakdown and also some fundamental business problem such as weak earnings.
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. A good idea is to study the list and be ready to move into a stock quickly as it hits its breakpoint.
TTD often suggests using stop buy orders to enter. It is very important to buy a breakout stock as close as possible to the breakpoint. 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.
It is also essential to have a stop loss strategy for all stocks in which positions are taken. Not every stock will work as expected. It is important for investors to "police" their portfolios and avoid getting trapped in any bad positions.
Quality rating of breakout Two key factors: 1 - Stock near all-time in price or near a 52-week high. 2 - earnings growth current year is strong. The ideal play is a stock with an Above Average Quality Rating. The stock is near a new high and will have strong earnings. TTD's other ratings are Average and Below Average.
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 - 13
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Good number of breakouts today. Stock market rallies after Fed Chairman talk. Bulls be selective. Stock market works higher with blue chips leading.
(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
Ticker Tape Digest's
(See Top Performing Breakout Stocks for 2011)
TTD's Quality Rating of Stock - BHI - ABOVE AVERAGE |
BHI, based in Houston, provides oilfield services and products. Annual revenues: $14.4 billion. Today, BHI's stock breaks out from a 5-week, cup-and-handle base and hits a 52-week high. The stock has been strong. It has doubled the past nine months. So far today, BHI is trading 11.6 million shares, double its normal daily volume of 4.7 million shares.
The drive for the breakout was a report of strong first quarter net.
BHI reported net for the first quarter rose 112% to 87 cents a share from 41 cents a year ago.
The 87 cents topped the consensus estimate on the Street of 78 cents a share. The highest estimate was at 88 cents a share.
The stock responded bullishly to the news gapping higher in the morning. (See 10-minute chart). The stock's move triggered the breakout. BHI then drifted back a bit but held its breakout.
TTD's clip shows the recent big block trades.
One can see the price for the blocks working higher from $74 to a peak of $77.97 in the morning. Then in the afternoon there was some institutional profit taking.
The key bullish trade came late on Tuesday when a big block of 335,626 shares crossed the tape at $74.06. That was up from the prior block trade at $73.30.
BHI makes provides for the oilfield industry. It operates in 80 countries. The company conducts certain of its operations through joint ventures, partnerships or alliances
BHI's 12-month performance chart shows the stock appreciating 45% versus a 17% gain for the S&P 500 index.
BHI's long-term chart shows the stock climbing from 28 back in 2003 to a peak of 92 in 2007. The stock then took a nosedive during the bear market falling to 25 in 2008. It has since made a strong comeback.
BHI's daily chart shows the stock staging a great advance from 40 to 75. The stock trended nicely above its 50-day moving average line.
The stock then set up a flat base and broke out in late March. It did not work! The stock backed off and reformed a cup-and-handle base.
Today, it breaks out with an expansion in volume.
The stock's TTD momentum indicator (top of chart) is neutral.
The accumulation - distribution line (bottom of chart) is in a strong up trend and has broken out too.
This year, analysts forecast BHI will show a 66% jump in net to $3.81 a share from $2.29 a year ago. The stock sells with a price-earnings ratio of 20. TTD sees that as low making the stock attractive to value investors.
Looking out to 2012, analysts expect a 28% jump in net to $4.88 a share from the anticipated $3.81 a share.
The company is benefiting from the strength in the oil drilling sector and the high price for crude oil.
Net for the upcoming second quarter should surge 110% to 86 cents a share from 41 cents a year ago. The highest estimate on the Street is at $1 a share. TTD sees chances for an upside surprise.
Strategy Opinion: BHI is now running into long-term upside resistance between 60 and 100. The push to 77 shows the stock driving hard into the resistance zone. That is bullish. TTD is targeting BHI for a move to 92 within the next few months, or sooner. A protective stop can be placed near 71. TTD rates BHI a good intermediate-term play.
Sponsorship: Good. The largest fundholder is American Funds Growth Fund of America with a 3.7% stake. The 3-star rated fund has kept its position steady. The largest buyer recently was 3-star rated Dodge & Cox Balanced Fund which purchased 3 million shares. BHI has 434.3 million shares outstanding.
Insider Activity: Neutral. Just some light selling by insiders. The latest selling was at $68.93. Right now, 29 analysts follow the stock, 22 have a buy, up from 21 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
TTD's Breakout Profile
Rating Baker Hughes Inc. - (BHI) |
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 | 12 | 0 | 2 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - JDAS - AVERAGE |
TTD's Quality Rating of Stock - VTNC - AVERAGE |
TTD's Quality Rating of Stock - ICON - AVERAGE |
TTD's Quality Rating of Stock - LAD - BELOW 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 - 6
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of breakdown stocks today even as stock market pushes higher. TTD's short feature from Tuesday was Unisys (UIS) at 28.97. Today, UIS has declined to 28.12 and is working well for bears.
BRCM, based in Irvine, Ca., makes semiconductors for wired and wireless communications. Annual revenues: $6.8 billion. BRCM's stock falls sharply today after the company reported a disappointing earnings forecast. So far today, BRCM is trading a heavy 40.7 million shares, five times its normal daily volume of 8.1 million shares. TTD sees more on the downside.
BRCM reported first quarter net income of 40 cents a share, the same as a year ago. However, some on the Street were expecting net of 59 cents a share. So results were a disappointment.
The company also said revenues for the second quarter would be $1.75 to $1.85 billion. That was below consensus estimates on the Street of $1.90 billion.
The news was bearish and the stock fell.
BRCM's stock declined in the morning. It hit an intraday low of 35.30. The stock tried to rally, but faded back in the afternoon.
BRCM makes highly integrated silicon solutions that enable broadband digital data transmission to the home and businesses.
The company's products enable the high-speed transmission of data over existing communications infrastructures, most of which were not originally intended for digital data transmission.
This year, analysts have been forecasting a 10% decline in BRCM's net to $1.89 a share from the $2.09 a year ago.
The stock's daily chart shows a gap drop through key support near 38. The stock's accumulation - distribution line has been in a down trend the past few months. That shows that the stock has been under selling pressure.
Strategy Opinion: TTD is targeting BRCM for a decline to 30 within the next few months. A protective stop buy can be placed near 37.70.
TTD's Quality Rating of Stock - BRCM - BELOW AVERAGE |
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.)