|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 - 6
Stocks Screened - 8,200
Bull side - Small List of breakouts today as market weakens during the day after good move higher early in the session, Bulls be aggressive as averages move up out of trading range.
Long- term Environment for bulls: Neutral
Market Status (Daily) - NYSE Bearish, Nasdaq Bearish
Market Status (Weekly) -NYSE Bullish, Nasdaq Bullish
Market Status (Monthly) NYSE Bullish, Nasdaq Bullish
RIMM, based in Canada, sells wireless cell phone handsets, software, and provides related services. One of its key products is the BlackBerry line of phones. Annual revenues: $3 billion. RIMM, a leader in the prior bull market, breaks out today from a six-month, cup-and-handle base. Volume so far today is running at 17.5 million shares. The stock's average daily volume is 18 million shares.
The tape action in RIMM was strong early in the day. TTD's clip of the tape shows a big block of 113,428 shares crossing on a nice up tick to $130.47 from the prior trade at $130.41.
The trade was one of the largest of the day. It showed aggressive institutional buying.
TTD highlighted the stock as a breakout at our midsession show on the Web today.
RIMM has a beta of 2.44, which means it has double the volatility of the stock market, which is at 1.00 as measured by the S&P 500 index.
TTD's performance chart shows that in the past 12 months, RIMM's stock has appreciated 190% versus a 5% decline in the S&P 500 index.
RIMM's primary revenue driver is the sale of handsets to carriers worldwide that promote the company's BlackBerry line of devices.
In addition, RIMM generates access service fees from carriers for each BlackBerry subscriber. Software licensing revenues are also generated from corporate clients using the BlackBerry Enterprise Server software in their wireless data management.
TTD's long-term chart shows RIMM in a powerful bull market.
The cup-and-handle base is better seen on a weekly chart. TTD's daily chart shows the pattern too with some gyrations. The gap move higher today is good. However, the stock does lack big volume. That could come in if the stock were to hit a new high, which is quite possible.
RIMM's TTD momentum indicator (top of the chart) is modestly bullish.
The accumulation - distribution line (bottom of chart) has been trending higher. That indicates there is good underlying buying.
This fiscal year ending February of 2009, analysts predict RIMM's profits will jump 67% to $3.77 a share from $2.26 a year ago. The stock sells with a price-earnings ratio of 35. TTD sees that as reasonable given the earnings growth rate outlook.
Next fiscal year 2010, analysts predict a 33% gain in net to $5.01 a share.
Net for the upcoming fiscal first quarter ending May 30 should surge 118% to 85 cents a share from 39 cents a year ago. The highest estimate on the Street is at 88 cents a share. The company tends to come in slightly above the consensus. Net for the past four quarters topped the consensus by one to 4 cents a share.
Strategy Opinion: RIMM remains a hot stock. If the stock can make a new high, it could draw in some big buying. TTD is targeting RIMM for a move to $1.60 a share within the next few months. A protective stop can be placed near 125, which is tight. TTD rates RIMM a good intermediate-term play provided earnings remain on target.
Sponsorship: Excellent. The top four fund holders all have a 5-star rating, highest possible. The largest holder is Fidelity Contrafund with a 1.8% stake. It was a recent buyer of 109,000 shares. 3-star rated Janus Fund added 119,000 shares.
Insider Activity: Not available. Right now, 26 analysts follow the stock, 21 have a buy, up from 18 three months ago.
Stock Performance Chart for One Year versus the S&P 500 index.
|TTD's Breakout Profile
Research in Motion Ltd. (RIMM)
|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 - Small list of breakdown stocks today. However, some interesting plays for aggressive bears.
(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.)
N, based in San Mateo, Ca., provides a suite of subscription-based software to small and medium-size businesses. Annual revenues: $110 million. N is a small cap play traded on the NYSE. Today, the stock falls sharply after the firm reported a loss for the quarter. The stock has broken below key support at 20. TTD sees more on the downside.
So far today, N is trading 1.5 million shares, five times its normal daily average of 313,000 shares.
The stock came under selling pressure early in the day. TTD's clip of the tape shows a big block of 22,700 shares crossing the tape on a down tick to $18.35 from the prior trade at $18.40. The action indicated aggressive selling pressure off the news.
The company hosts the applications and "rents" the software to enterprises on a per-user basis via contracts. The company has 5,400 paying subscribers.
The company reported a loss of 3 cents a share for the first quarter compared with a loss of $1.24 a year ago. The stock was also impacted by a disappointing profit forecast which some analysts sees is a result of weak economy.
For the year, analysts have been forecasting a loss of 9 cents a share compared with a loss of 10 cents a share a year ago.
TTD's daily chart shows the stock surging when it came public. Since then it has been working lower. Today, it undercuts key support near 19 on heavy volume. The stock's accumulation - distribution line has been working lower confirming that the stock is under clear selling pressure. TTD is targeting N for a drop to 15 within the next few months, or sooner.
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.)