|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 - 10
Stocks Screened - 8,200
Bull side - Small List of breakouts today as market rallies strongly. Bulls be aggressive as market indicators show strength.
Long- term Environment for bulls: Bearish
Market Status (Daily) - NYSE Bearish, Nasdaq Bearish
Market Status (Weekly) -NYSE Bullish, Nasdaq Bullish
Market Status (Monthly) NYSE Bullish, Nasdaq Bullish
CEDC, based in Sarasota, Fla., imports and distributes alcoholic beverages in Poland. Annual revenues: $1.2 billion. CEDC breaks clear of its four-month, double-bottom base today and hits a new high. The stock, a leader, was highlighted by TTD earlier this week as a stock to accumulate. CEDC push higher was triggered by favorable earnings. So far today, the stock is trading 1.3 million shares, triple its normal daily volume of 436,000 shares.
TTD's clip of the tape shows a big block of 14,700 CEDC shares crossing on a modest up tick to $65.08 from the prior trade at $65.06. However, TTD pick up some blocks going off at down ticks earlier in the session. So, we would say the tape was mixed.
However, CEDC's price has remained firm most of the day.
TTD's performance chart for CEDC shows it appreciating 65% the past 12 months against a 5% drop in the S&P 500 index. So the stock is a star performer.
CEDC distributes around 800 beer, spirit, and wine brands through nearly 30,000 retail outlets.
It also imports and distributes cigars into Poland and is the exclusive Polish importer for Dunhill cigars. The company distributes its products to small businesses, multi-store retail outlets, bars, nightclubs, hotels, and restaurants.
TTD's daily chart shows the double-bottom base. The handle portion of the base is a bit extended, but that is okay. The stock did attempt a breakout nine sessions ago, but it did not work. This move, though, looks strong as the spread (range from high to low) widens significantly. That says the price has movement.
The stock's accumulation - distribution line (bottom of chart) is in a solid up trend and affirms the price breakout. The TTD momentum indicator (top of chart) is now neutral.
You might say CEDC has been "on a high." TTD's long-term chart shows the current bull market run for the stock.
CEDC posted first quarter earnings of 31 cents a share, up from 20 cents a year ago. The 31 cents topped the consensus estimate on the Street of 28 cents a share, which was also the highest estimate out there.
The strong earnings growth should continue. For the upcoming second quarter, analysts forecast a 47% improvement in net to 50 cents a share from 34 cents a year ago.
The company is benefiting from the strength in the Polish Zloty and declining raw material costs which has enable margins to improve,
Net for the year should surge 38% to $2.34 a share from $1.69 a year ago. The stock sells with a reasonable price-earnings ratio of 27. Next year, the Street looks for a 22% gain in net to $2.85 a share.
Strategy Opinion: CEDC has broken into the clear and has made a new high. The stock could well draw in more buying on Friday. TTD is targeting the stock for a move to 75 within in the next few months - it could come sooner. A protective stop can be placed near 61. TTD rates CEDC a good intermediate-term play provided earnings remain on course.
Sponsorship: Very Good. The largest fund holder is Columbia Acorn International Fund, 4-star rated, with a 1.1% stake. It has held its position steady. A large buyer recently was 4-star rated Turner Midcap Growth Fund which added 159,000 share.
Insider Activity: Neutral. Insiders were light buyers of the stock, but turned around and sold. Three analysts follow the stock, 2 have a buy, up from one three months ago.
Stock Performance Chart for One Year versus the S&P 500 index.
|TTD's Breakout Profile
Central European Distribution Corp. (CEDC)
|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 - Modest list of breakdown stocks today as stock market rallies sharply. Bears be selective seeking very weak stocks that will not attract much institutional buying.
(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.)
PMTI, based in Burlington, Ma., makes lasers used for dermatology and cosmetic procedures. Annual revenues: $125 million. PMTI falls sharply today after reporting a loss for the first quarter. The stock gapped lower at the opening. So far today, PMTI is trading 833,020 shares, four times its normal daily volume of 202,000 shares. TTD sees more on the downside.
TTD's table shows the big block trades in PMTI so far today. One can see the price of the stock gradually working lower. The action indicated clear institutional selling pressure.
PMTI reported a loss for the first quarter of five cents a share compared with a profit of 32 cents a year ago. The Street was looking for a profit of 11 cents a share. So, the loss was a big surprise. The company said it was disappointed by the revenue generated from North America.
PMTI's lasers are used in hair removal; tattoo removal; non-invasive procedures for the treatment of acne, lesions, and vascular conditions; and the removal of age and sun spots.
The company signed an agreement with Gillette to develop a home-use, light-based hair removal device for women.
This year, the Street was forecasting a 25% drop in earnings to 82 cents a share from $1.10 a year ago. That forecast may be lowered.
TTD's daily chart shows the stock falling from 21 to 13. It tried to form a bottom but has failed. The stock's accumulation - distribution line (bottom of chart) is very bearish. TTD is calling for PMTI to decline to 9 within the next few months. It is a good trading short.
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.)