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
Daily schedule guide for TTD subscribers
1. Pre-market - check Breakout Watch List and Quick Trades.
2. Morning - (11:30 - 12 A.M.) - check breakout stocks tape and breakout chart slide show.
3. Midday (1 P.M.) check TTD Midsession Report and see market video show.
4. After close (4 P.M.) check final TTD Report for day.
Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. (See Performance)
Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." (See Performance)
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.(See Performance)
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance)
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.
TTD's Breakout Stocks - Long 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.
TTD Quick Trade Stocks - Long 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.
TTD's Bargain Buy Trades - Long - Long Term. 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.
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 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 - 12
Overall Quality of Breakouts - ABOVE AVERAGE
Stocks Screened - 8,300
Bull side - Good number of quality breakouts today. Bulls be venturesome even though market is down for the session. Market still holds overall up trend.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
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- 2012)
TTD's Quality Rating of Stock - SAVE - ABOVE AVERAGE
SAVE, based in Miramar, Fla., provides air service in the U.S. and parts of South America. Annual revenues: $1.3 billion. SAVE's stock breaks out today from a seven-week flat base. The move carries the stock to a new all-time high. So far today, SAVE is trading 2 million shares, triple its normal daily volume of 604,000 shares.
SAVE was highlighted by TTD as a breakout at our midsession video show on the Web Wednesday.
Airline stocks have been strong this year.
SAVE's stock spiked higher in the morning after the company reported a 30% jump in first quarter earnings. (see 10-minute chart).
The stock then backed off but held on its breakpoint line. Later in the day, the stock lifted again and trended sideways just above its breakpoint.
TTD's clip of the tape shows the recent block trades in SAVE.
One can see the price for the blocks climbing from $26.64 in the morning to as high as $28.22.
A key bullish trade came in the morning when 25,000 shares crossed the tape at $27.24. That was up from the prior block trade at $26.64.
There was some institutional selling near the close.
SAVE operates an all-Airbus fleet.
It has 200 daily flights to some 50 destinations in the United States, Caribbean and Latin America.
Ft. Lauderdale/Hollywood International Airport remained its key airport with over 20% of its capacity operating to or from FLL.
During 2012, it operated international service to Aruba, the Bahamas, Colombia, Costa Rica, Dominican Republic, El Salvador, Guatemala, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Peru and St. Maarten, as well as Puerto Rico and the United States Virgin Islands.
The Company also sells mileage credits to companies participating in the FREE SPIRIT program.
SAVE's performance chart which covers just this year shows the stock appreciating 55% versus a 10% gain for the S&P 500 index. One can see the green bar on the chart which shows heavy insider buying in April.
SAVE's long-term chart shows the stock coming public in 2011 and trading around 10. It climbed to a peak of $24.75 in 2012. However, it then backed off to around 16. This year it has soared to a new high of 28.32. The push to a new high could draw in more buying on Thursday.
SAVE's daily chart shows the stock advancing from 17 in December to 27 by March. The stock then put down a flat base above its rising 50-day moving average line.
The breakout today is ideal and comes with expanding volume.
The stock's TTD momentum indicator has been bullish for the past four months.
The accumulation - distribution line (bottom of chart) lags slightly, but is okay.
This year, analysts are forecasting a 43% surge in profits to $2.04 a share from the $1.43 a year ago. The stock sells with a price earnings ratio of 13. TTD sees that as low.
Going out to 2014, profits are projected to climb 21% to $2.47 a share from the anticipated $2.04 this year.
For the upcoming second quarter, net should rise 25% and then in the third quarter 46% - an acceleration in quarterly earnings growth. That is very bullish.
Net for the second quarter should come in at 61 cents a share, up from 49 cents a year ago. The highest estimate on the Street is at 69 cents a share.
Looking out to the third quarter, profits should hit 51 cents a share, up from 35 cents the year before.
Strategy Opinion: TTD is targeting SAVE for a trip to 34 off this breakout. A protective stop can be placed near 25.
TTD rates SAVE an excellent intermediate-term play provided earnings remain on course.
Sponsorship: Good. The largest fund holder is 3-star rated Federated Kaufman Fund with a 1.8% stake. The 3-star rated fund was a recent seller of 55,607 shares. It holds 1.3 million shares. A key buyer recently was 4-star rated Fidelity Blue Chip Growth Fund which purchased 344,500 shares.
Insider Activity: Slightly Bearish. Insiders have been getting a lot of stock options. Price not disclosed. They did some light selling recently around $25.95. Currently, 8 analysts follow the stock, all 8 have a buy, the same as three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Spirit Airlines Inc. - (SAVE)
|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|
Charts of Selected Breakout Stocks
|TTD's Quality Rating of Stock - ULTI - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - PRAA - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - DORM - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - NYX - ABOVE 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 - 11
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Large number of breakdown stocks today as stock market falls sharply. Bears be selective.
KFRC, based in Tampa, Fla., provides technical staffing services. Annual revenues: $1.1 billion. KFRC's stock falls sharply today after the company reported lower earnings. So far today, KFRC is trading a heavy 1.1 million shares, 11 times its normal daily volume of 106,000 shares. TTD sees more on the downside.
TTD highlighted KFRC as a short at our midsession video show on the Web Wednesday.
KFRC reported net for the first quarter of just 9 cents a share, down from 24 cents a year ago. The Street was looking for 11 cents a share. So, results disappointed.
For the second quarter, the company said it expects 19 to 21 cents a share. That would be down from the 24 cents a year ago.
The stock gapped lower on the news in the morning. KFRC then trended sideways through most of the day. However, late in the session the stock began to break even further to the downside.
KFRC's tape action shows the recent block trades.
One can see the price for the blocks falling from $15.12 on Tuesday to as low as $12.66. A key bearish block came in the morning when 50,000 shares crossed at $12.78, down from the prior block at $15.12.
KFRC operates in five segments: Technology , Finance and Accounting, Clinical Research , Health Information Management and Government Solutions.
KFRC operates 62 offices in the U.S. and in Manila, Philippines.
This year, analysts have been forecasting an 18% rise in net to $1 a share from 85 cents a year ago. That estimate may come down.
KRFC's daily chart shows the stock gapping lower with big volume today. The stock's TTD momentum indicator (top of chart) had turned bearish three weeks ago.
Strategy Opinion: TTD is targeting KRFC for a decline to 9.90 within the next few months, or sooner. A protective stop buy can be placed near 13.60.
|TTD's Quality Rating of Stock - KRFC - 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.”
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(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.)