Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Monday, May 5
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Monday, May 5 |
| Go to Video Show - "How to Make Money With Breakout Stocks" |
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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 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 leo@tickertapedigest.com.For service, email Beverly Owen owen@tickertapedigest.com. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 3
Stocks Screened - 8,200
Bull side - Very few breakouts today. Bulls remain patient and watchful.
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
WLT, based in Tampa, Fla., is a diversified firm that makes products for the homebuilding, natural resources and industrial firms. Annual revenues: $1.2 billion. WLT, TTD's feature accumulation stock from Friday, breaks out today powerful and hits a new high. The stock was one of the few to breakout as the stock market declined today. 
TTD highlighted WLT as a breakout at our midsession show on the Web today.
So far today, WLT is trading 5.7 million shares, triple its normal daily volume of 1.7 million shares. A brokerage firm, Bean Murray, did raise its price target to $150 from $1.07.
The tape action was very bullish in the morning. TTD's clip shows a big block of 35,100 shares crossing on big up tick to $76.75 from the prior trade at $76.50. That was strong institutional buying.
TTD's performance chart shows WLT has appreciated 170% the past 12 months compared with a 5% loss for the S&P 500 index.
WLT provides various products and services for homebuilding, natural resources, financing and industrial products. The company constructs, sells, and finances standardized partially finished homes on customers' sites, primarily in the Southeast.
The financing segment provides financing on homes. Its industrial products segment sells pressure pipes, fittings, and hydrants. Walter's natural resource segment is involved in coal mining and methane gas operations.
WLT rose sharply Friday despite reporting lower earnings for the first quarter. The results were expected by the Street. Strong gains are expected in coming quarters. The company's net was impacted by problems in the housing market. The company plans to separate its financing and homebuilding businesses from its core natural resources and sloss businesses.
TTD's long-term chart shows WLT in a powerful bull market phase.
The daily chart shows the recent advance from 30 to 70 this year. The stock is one of the best performers on the NYSE. WLT's five-week base is a bit short given the recent run up.
Nevertheless the powerful volume on the breakout and on Friday is extremely bullish.
WLT's accumulation - distribution line (bottom of chart) has moved to a new peak confirming the breakout.
The TTD momentum indicator (top of chart) has rallied to the bullish side after being bearish during the early stages of the basing work.
This year, analysts forecast a 157% surge in net to $4.93 a share from $1.92 a year ago. The stock sells with a price-earnings ratio of just 14. TTD sees that as extremely low.
Next year, the Street forecasts a big 72% jump in net to $8.49 a share. Give a 14 p/e, the stock has a potential valuation of $115 based on 2009 net.
WLT's strong earnings should kick in during the second quarter. The Street sees second quarter net spurting 91% to 63 cents a share from 33 cents a year ago. The highest estimate on the Street is at 85 cents a share. That says some analysts see potential for a big quarter.
Strategy Opinion: WLT's breakout today is impressive, especially since it bucked a market decline. TTD is targeting the stock for a move to 95 within the next few months. A protective stop can be placed near 75 and should be honored. TTD rates WLT a good intermediate-term play. A stock split could push the stock higher faster.
Sponsorship: Excellent. The largest fund holder is 5-star rated Keeley Small Cap Value Fund with a 3.5% stake. It has held its position steady. The largest buyer lately was 4-star rated Brandywine Fund which purchased 493,000 shares. Also, 4-star rated Fidelity Mid-Cap Stock fund picked up 302,000 shares.
Insider Activity: Neutral. Just some light buying and selling by insiders lately. Six analysts follow the stock, 4 have a buy, the same as three months ago.
Stock Performance Chart for One Year versus the S&P 500 index.
| TTD's Breakout Profile
Rating Walter Indutries Inc. (WLT) |
| TTD Check List | Bullish | Bearish | Neutral |
| Near 52-week High | YES | ||
| Volume Expansion | 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 |
(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 - 3
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Very few breakdowns today even though market falls sharply. Bulls be selective. TTD's short from Friday, Dynamic Materials (BOOM) falls 1.87 to 34.51.
(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.)
RRST, based in Omer, Israel, provides content management and distribution services to the television and radio broadcasting industries. Annual revenues: $60 million. RRST, a small cap telecom play, falls sharply today after reporting disappointing earnings for the first quarter. Volume swelled to 11 times normal to 507,113 shares from average daily volume of 48,200 shares.
The stock came under institutional selling pressure. TTD's clip of the tape shows a big block of 16,300 shares - the largest trade of the day - going off on a modest down tick to $12.05 from the prior trade at $12.06.
RRST came in with flat earnings for the quarter at 15 cents a share. The Street was looking for 20 cents a share. The lowest estimate was at 18 cents a share. So, the 15 cents was a big disappointment. Revenues increased 34%.
The company owns RRsat Global Network, composed of satellite and terrestrial fiber optic transmission capacity and the public Internet
RRST is able to offer high-quality and flexible global distribution services for content providers. The firm's content management services include producing and playing out TV content as well as providing satellite news gathering services.
RRST concurrently provides these services to 425 television and radio channels, covering more than 150 countries.
RRST's stock came public late last year and ran up from 11 to 26. The stock has since been trending lower. Today, it breaks below key support at 13.39. TTD is targeting RRST for a drop to 9 within the next few months, or sooner. The stock's technicals have turned bearish. The big volume selloff today is very bearish.
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.)
