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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, April 30 |
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Go to Video Show - "How to Make Money With Breakout Stocks" |
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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 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. Trading Strategies Bullish 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) Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance) |
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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.
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 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 - 4
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Only a few breakouts today. Bulls can be selective. Stock market pulls back and now is imbedded in a trading range for the time being. (Put mouse on Dow chart to see Nasdaq.)
Long Term Environment for bulls: Favorable
Stock Market Momentum:
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
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TTD's Quality Rating of Stock - LNKD - ABOVE AVERAGE |
LNKD, based in Mountain View, Ca., provides a website for professionals. Annual revenues: $616 million. LNKD's stock breaks out today from a six-week flat base. The move carries the stock close to its all-time high of 122.69. The push came from the company reporting strong quarterly profits. So far today, LNKD is trading a heavy 10.6 million shares, triple its normal daily volume of 3 million shares. 
TTD highlighted LNKD as a breakout at our midsession video show on the Web Friday.
The company reported net for the first quarter jumped to 15 cents a share from 6 cents a year ago. The 15 cents topped the consensus estimate of 9 cents a share.
LNKD's 30-minute chart shows the stock spiking higher on the news. The stock cut right across its breakpoint line. It held the bulk of its gain through the day even though the stock market fell sharply.
LNKD came public a year ago. It was a hot IPO that has bounced around the past 12 months.
TTD's clip of the tape shows LNKD's recent block trades. 
One can see some key institutional buying coming in late on Thursday. A key trade came when a block of 10,810 shares crossed the tape at $120. That was up sharply from the prior block at $109.41.
The tape showed some light profit taking later on Friday.
LNKD is an online professional network which allows members to create, manage, and share their professional identity online.
Its platform also provides members with applications and tools to search, connect, and communicate with business contacts, learn about career opportunities, join industry groups, research organizations, and share information.
The company also offers services like hiring solutions, marketing solutions and other services.
LNKD's stock has appreciated 24% the past 12 months versus a 4% gain for the S&P 500 index. (See chart)
LNKD's long-term chart shows the stock coming public back in May of 2011. The stock soared to its all-time high of 122.69. The stock later fell to a low of 55.98 in November of 2011. It has since staged a strong and steady rally. The stock is now in an up trend long-term.
LNKD's daily chart shows the stock advancing from 58 in late November to 106 by late March. The stock then put down a well formed flat base.
Today's breakout comes with a gap move to the upside with a big increase in volume. That is very bullish showing strong demand for the stock.
The stock's TTD momentum indicator (top of chart) has been mostly bullish for the past 5 months. That is impressive.
The accumulation - distribution line (bottom of chart) is in a strong up trend. That shows there is consistent and steady buying in the stock. That is bullish.
This year, analysts forecast a 72% jump in net to 22 cents a share from 13 cents a year ago. The stock sells with a price-earnings ratio of 531. That is extremely high. So, one needs to be very watchful of the stock.
Going out to 2013, profits are projected to climb 142% to 54 cents a share from the anticipated 22 cents this year.
Net for the upcoming second quarter is expected to be up only 20% to 6 cents a share from 5 cents a year ago. However, the highest estimate on the Street is at 9 cents a share. So, some expect a big quarter. The company has at times kicked higher its estimate earnings. It's operations are also being aided by acquisitions. 
Strategy Opinion: LNKD is a stock most suitable for aggressive investors due to its high p/e ratio.
TTD is targeting the stock for a move to 138. A protective stop can be placed near 111. TTD rates LNKD an average intermediate-term play.
Sponsorship: Bullish. The largest fund holder is 4-star rated T. Rowe Price Growth Stock Fund with a 2% stake. It was a recent buyer of 238,700 shares. Also, 5-star rated Morgan Stanley Inst. Mid Cap Growth Fund has a 1.5% stake. It recent purchased 387,484 shares. LNKD has 103 million shares outstanding. Institutions hold 79% of the stock.
Insider Activity: Bearish. Insiders have been buyers using stock options. The price was not disclosed. They have been steady sellers with the latest selling price being 106.40.
Stock Performance Chart with Quarterly Earnings Markers
Insider Activity - Buying in Green - Selling in Red
| TTD's Breakout Profile
Rating Linkedlin Corp. - (LNKD) |
| 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 - POWI - AVERAGE |
| TTD's Quality Rating of Stock - VHC - AVERAGE |
| TTD's Quality Rating of Stock - CFN - 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 - 20
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Large number of breakdown stocks today as market falls sharply as it meets the top of its trading range. Potential for more on the downside. TTD's short from Thursday was Newport Corp. (NEWP) at $14.80. Today, NEWP has declined to $14.26 and is working well for bears.
IRF, based near Los Angeles, makes power semiconductors. Annual revenues: $1.2 billion. IRF's stock falls sharply today after the company reported a loss for the fiscal third quarter ended March 31. The loss was slightly more than Wall Street expected. So far today, IRF is trading a heavy 2.1 million shares, five times its normal daily volume of 394,000 shares. 
TTD highlighted IRF as a short at our midsession video show on the Web Friday.
IRF's stock gapped lower in the morning. It hit an intraday low of $19.05 in the morning. The stock then trended sideways the rest of the day unable to mount an effective rally.
IRF's tape action shows the recent big block trades. One can see the price for the blocks declining from $22.23 to as low as $19.20 in the morning. A key bearish block came when 18,968 shares crossed in the morning at $20. That was down from the prior block trade at $22.20.
The tape showed clear institutional selling pressure.
IRF reported a loss for the fiscal third quarter of 4 cents a share compared with a loss of 69 cents a share a year ago.
IRF makes power semiconductors that refine electricity from wall outlets or batteries into a more usable form. Power conversion reduces costs and enhances the performance and efficiency of electrically powered products.
This fiscal year ending June 30 analysts are forecasting a 99% drop in IRF's earnings to 3 cents a share compared with $2.14 a year ago. Net for the fiscal fourth quarter is expected to sink to 3 cents a share from 55 cents a year ago.
IRF's daily chart shows the stock gapping lower on big volume today. The stock undercuts key technical support at $20.28.
Strategy Opinion: TTD is targeting IRF for a decline to $15.40 within the next few months, or sooner. A protective stop buy can be placed near $20.70.
| TTD's Quality Rating of Stock - IRF - 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.)
