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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, April 25 |
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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.
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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 - 17
Overall Quality of Breakouts - ABOVE AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list remains numerous with several top notch plays breaking out. Bulls be aggressive. Stock market is in an up trend led by the blue chips.
(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)
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TTD's Quality Rating of Stock -QSII - ABOVE AVERAGE |
QSII, based in Irvine, Ca., produces computer-based management systems for the medical and dental area. Annual revenues: $334 million. QSII's stock breaks out today from a four-week flat base and hits a new high. The stock is one of the star performers of the past 10-years soaring from $2.29 to 89.72. The stock's breakout come on volume of 389,772 shares, double its normal daily volume of 181,000 shares. 
TTD highlighted QSII as a breakout at our midsession show on the Web Friday.
QSII's 10-minute chart shows the stock climbing in the morning and then driving over its breakpoint. The stock held above its breakpoint through the rest of the day.
TTD's clip of the tape shows the recent big block trades.
One can see the price for the blocks climbing from $86.51 to $89.97.
The key bullish trade came in the morning when a block of 25,000 shares crossed at $87.45. That was up from the prior block trade at $86.79. The tape action indicates strong institutional buying interest.
QSII providers computer-based practice management systems for medical and dental group practices.
Its two wholly-owned subsidiaries are Clinitec International, Inc., and MicroMed Healthcare Information Systems, Inc.
Clinitec is a developer of electronic medical records systems, MicroMed provides enterprise practice management systems and services.
QSII's 12-month performance chart shows the stock appreciating 35% compared with a 14% gain for the S&P 500 index.
QSII's long-term chart shows the stock soaring from 2 to 89 - a sensational move. The stock remains in a strong up trend. The push to a new high is very bullish and could bring in more buying on Monday.
QSII's daily chart shows the stock climbing steadily above its rising 50-day moving average line. The stock's base is small but the upside movement is excellent.
The TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) is in a strong up trend and has broken out to the upside. That shows there is strong buying behind the basing work and the breakout.
Net for the fiscal year ending March 31 is expected to rise 22% to $2.09 a share from $1.72 a year ago. The stock sells with a price-earnings ratio of 40.
Looking out to fiscal 2012 ending March 30, the Street projects a 31% gain in net to $2.75 a share from the anticipated $2.09 expected for fiscal 2011.
TTD sees a key near-term driver being an acceleration in quarterly earnings growth. Net for the fiscal fourth quarter ending March 30 is expected to rise 30% and then in the fiscal first quarter 45%.
Net for the fourth quarter should come in at 61 cents a share, up from 47 cents a year ago. TTD sees chances for an upside surprise. In the prior quarter, QSII topped the consensus estimate by 6 cents a share, or 11%.
Strategy Opinion: TTD is targeting QSII for a move to 105 within the next six months. A protective stop can be placed near 84. TTD rates QSII a good intermediate-term play.
Sponsorship: Excellent. The largest fund holder is 5-star rated Fidelity Contrafund with a 6.7% stake. It was a recent buyer of 16,500 shares. Also, 4-star rated Brown Capital Management Small Co. Fund was the largest recent buyer picking up 66,441 shares. QSII has 29 million shares outstanding.
Insider Activity: Neutral. Insiders were light buyers of the stock and sellers. The latest selling was at $80.13. Currently, 21 analysts follow the stock, 5 have a buy, down from 6 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
| TTD's Breakout Profile
Rating Quality Systems Inc. - (QSII) |
| 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 |
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - OXY - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - PRAA - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - NTGR - AVERAGE |
| TTD's Quality Rating of Stock - CALX - 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 - 8
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - List of breakdown stocks expands with some very good looking bear plays. Stock market continues to work higher. However, bears can be venture some shorting some fundamentally damaged stocks.
AUO, based in China, produces liquid display panels. Annual revenues: $16.7 billion. AUO is a large firm. Today, the stock gaps lower cutting below key support and initiating a down trend. So far today, AUO's volume is running 4.4 million shares, almost double its normal daily volume of 2.4 million shares. With a loss expected this year, TTD sees good potential for more on the downside for bears. 
AUO's stock gapped lower in the morning. It hit an intraday low of $7.86. The stock then lift slightly and then trended sideways the rest of the day.
TTD's clip of the tape shows some key selling taking place late on Thursday. A big block of 132,100 shares crossed the tape at $8.40. That was down from the prior big block at $8.41. Late the block trade prices dropped to $7.91 before lifting late in the day.
This year, analysts forecast AUO will show a loss of 17 cents a share compared with a profit of 26 cents a share a year ago.
For the upcoming second quarter the company is expected to show a loss of 7 cents a share compared with a profit of 38 cents a share a year ago. The losses recently have been more than the Street has expected.
AUO makes large-size thin film transistor liquid crystal display panels. They are the most widely used flat panel display technology.
They are used in notebook computers, desktop monitors, televisions, digital cameras, DVD players, PDAs, mobile phones, portable games, and car navigation systems, among other applications.
AUO's daily chart shows the stock gaping blow key technical support at $8.34. The stock's accumulation - distribution line (bottom of chart) is in a sharp down trend. That shows the stock has been under heavy selling pressure.
Strategy Opinion: TTD is targeting AUO for a drop to 6 within the next few months, or sooner. A protective stop buy can be set around 9.
| TTD's Quality Rating of Stock - AUO - 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.)
