|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 firstname.lastname@example.org.For service, email Beverly Owen email@example.com. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 7
Stocks Screened - 8,200
Bull side - Just a few breakouts today, but some interesting plays. Bulls be patient and alert.
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
OME, based in Houston, Tex., is the nation's largest producer of heart-healthy fish oils containing Omega-3 fatty acids for human consumption. Annual revenues: $160 million. OME breaks out from a six-week flat base today. The stock's move looks very strong as volume expands to 989,123 shares, four times its normal daily volume of 224,000 shares. OME is a leading issues (see TTD's performance chart below). It has doubled in the past 12 months, easily outperforming the S&P 500 index.
TTD's clip of the tape shows one of the larger trades in the stock today. It is a block of 7,967 shares that crossed at $14.44 early in the day. Trade came within a sequence started by an up tick.
TTD sees that as good aggressive buying early in the day when the general stock market was a bit weak. OME headed higher later in the day.
OME produces also specialty fish meals and fish oil used as value-added ingredients in aquaculture, swine and other livestock feeds.
OME makes its products from menhaden, an Omega-3 rich fish that is not utilized as seafood, but is abundantly available along the U.S. Gulf of Mexico and Atlantic Coasts.
The Company uses a fleet of 40 fishing vessels supported by spotter aircraft to supply menhaden to its four processing facilities in Louisiana, Mississippi and Virginia.
TTD's daily chart shows OME acting extremely strong this year. Since February it has climbed from 8 to 15. Today, the stock emerges from a well-formed, six week base.
The shape of the base is good. A key factor is that the stock showed a good contraction in volume in the late stages of the base. Now the stock moves out with an expansion in volume. That is a perfect breakout setup.
TTD's long-term chart shows OME hitting a nine-year high. That could well bring in more buying on Tuesday from the new-high crowd.
This year, OME's earnings should skyrocket 266% to $1.50 a share from 41 cents a year ago. The stock sells with a price-earnings ratio of just 10. TTD sees that has very cheap and attractive for value-growth investors.
Going out to 2009, analysts forecast a 27% increase in OME's profits to $1.90 a share. So, the current p/e ratio is less than half of the projected earnings growth. That is a great valuation for bargain hunters.
OME's net for the upcoming first quarter should surge to 15 cents a share from a loss 4 cents a share a year ago. The company is showing strong revenue growth. It has at times disappointed with quarterly earnings. So, one must be on the alert. However, the tape action is indicating a good quarter.
Strategy Opinion: OME is a strong acting stock breaking out today. TTD is targeting OME for a run to 20 within the next few months. A protective stop can be placed near 14 and should honored. TTD rates OME a very good looking intermediate-term play provided earnings meet expectations.
Sponsorship: Excellent. Four of the top five fund holders have a 5-star rating, highest possible. One of the largest buyers recently was Bruce Fund, 5-star rated, which purchased 97,000 shares. It has a 2% stake in OME. OME has 17 million shares outstanding. Funds hold 4.3 million shares.
Insider Activity: Neutral. Insiders have been steady buyers of the stock using options with prices from $8 to $14. They have turned around and sold. Just one analysts follows the stock and has a strong buy. TTD sees potential for more of a following.
Stock Performance Chart for One Year versus the S&P 500 index.
|TTD's Breakout Profile
Omega Protein Inc. (OME)
|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 - 6
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Small list of breakdown stocks but some interesting plays. 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.)
RDWR, based in Tel Aviv, Israel, provides hardware and software that help manage growing network traffic, application complexity, and security concerns. Annual revenues: $80 million. RDWR is a small cap tech play that falls sharply today after reporting a wider loss. So far today, volume is running at 966,992 shares, six times its normal daily volume of 159,000 shares. TTD sees more on the downside.
TTD's clip of the tape shows some very important selling. A big block of 132,000 shares crossed the tape on a big down tick to $9 from $9.14 on the prior trade. TTD sees the action indication of heavy selling pressure.
RDWR reported a first quarter loss of 32 cents a share compared with a loss of 6 cents a share a year ago. Revenues declined slightly due to a change in revenues recognition for the quarter. The company said the decline in the value of the dollar hurt profits.
RDWR focuses on the service provider community, which accounts for 35% of sales and enterprise customers, 65% of sales. The company has had far greater success in Europe and Asia than in the U.S. International revenues represent 70% of sales, while U.S. revenues represent 30%.
For the year, analysts have been forecasting a loss of 27 cents a share compared with a loss of 45 cents a share a year ago. The loss projection for this year probably will be increased.
TTD's daily chart of RDWR shows the stock declining from 17 to 10 in recent months. It tried to form a bottom, but today breaks to the downside on big volume. The stock's accumulation - distribution line "has fallen off a cliff." That is very bearish. TTD sees the stock as a trading short with a target to 7. However, there is potential for a big breakdown.
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.)