Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Tuesday, May 6
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Tuesday, May 6 |
| 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.
Stocks Screened - 8,200
Bull side - Small list of breakouts today as market rallies nicely in the afternoon. Bulls continue to be alert.
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
FDG, based in Calgary, Canada, owns assets of coal producing businesses. Annual revenues: $1.29 billion. FDG, a leading stock, breaks out today from a five week base and makes a new high. TTD featured FDG on Monday as a stock to accumulate. Today's breakout looks good as the stock hits a new high. So far today, FDG is trading 2 million shares. Its average daily volume is 1.9 million shares. The stock could well have picked up interest from the new-high crowd.
FDG started the day strong. TTD's clip of the tape shows a big block of 14,700 shares crossing on a nice up tick to $65.94 from the prior trade at $65.86.
FDG is part of the strong acting coal sector, which is benefiting from strong demand, especially from the street industry. The stock is acting very strong. TTD's performance chart shows that FDG has appreciated 160% the past 12 months versus a 5% decline for the S&P 500 index. .
FDG primary asset is a 60% interest in the Elk Valley Coal Partnership, which produces and exports high-quality hard coking coal for use in steel production.
Elk Valley has a reserve life of about 25 years and a production capacity of around 27 million tons per year. Its primary markets are Asia and Europe.
TTD's long-term chart of FDG shows the stock in a powerful bull market and making new highs. That should grab the attention of high-growth fund managers.
The stock's daily chart shows a five-week base that is well formed showing a modest contraction in volume in recent sessions. The base is short. Normally, one would 7 or 8 weeks at least. So, the stock needs to be watched carefully.
The accumulation - distribution line (bottom of chart) is in a strong up trend showing that powerful buying continues to propel the stock higher. The TTD momentum indicator (top of chart) is bullish and getting stronger.
FDG is poised to show a "massive acceleration in quarterly earnings growth. That could be the drive to send it much higher. Analysts predict net for the second quarter should jump 82% and then in the third quarter 650%.
Net for the second quarter should come in at $1.44 a share, up from 79 cents a year ago. The highest estimate on the Street is at $1.44 a share. TTD sees chances for a modest upside surprise.
Net for the third quarter should leap to $4.05 a share from 54 cents a year ago.
Profits for the year should jump $316% to $9.40 a share from $2.26 a share a year ago. The stock sells with a price-earnings ratio of just 7. Give the stock a p/e of 10 and it could sell for $94 a share this year. Going out to 2009, the Street sees net rising 25% to $11.76 a share.
Strategy Opinion: As TTD said Monday, "Coal is hot and so is FDG." TTD is targeting FDG for a move to 80 within the next few months. A protective stop can be placed near 64. TTD rates FDG an excellent intermediate-term play that could attract both momentum and value investors.
Sponsorship: Excellent. The top four fund holders all have a 5-star rating and have been heavy buyers lately. The largest fund holder is 5-star rated American Funds Capital World Fund with a 3.8% stake. It was a recent buyer of 5.6 million shares. 5-star rated Fidelity Contrafund has a 0.54% interest. It was recently a purchaser of 804,000 shares.
Insider Activity: Not available. Just three analysts follow the stock, 2 are neutral, one has a sell. That is the same sentiment from 3 months ago. So, not many analysts favor the issue, yet it continues to move higher.
Stock Performance Chart for One Year versus the S&P 500 index.
| TTD's Breakout Profile
Rating Fording Canadian Coal Trust 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 | 13 | 0 | 1 |
(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 breakouts today, but some interesting plays. TTD's feature short from Monday, RRsat Global (RRST) slips another 0.18 to 11.63 today.
(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.)
IBI, based Jacksonville, Fla., sells maintenance products for buildings. Annual revenues: $1.2 billion. IBI's stock falls sharply today after the company reported disappointing first quarter earnings. TTD sees more on the downside. IBI is trading 1.1 million shares so far today, about ten times its normal daily volume of 119,000 shares. 
The stock came under heavy selling pressure after the disappointing results. TTD's clip of the tape shows a big block of 93,400 shares crossing in the morning on a modest down tick to $16.30 from $16.31. The action showed big institutional selling pressure.
IBI sells plumbing, electrical, hardware, security, heating, ventilation, air conditioning, janitorial, and sanitary products.
The company distributes its products mainly to non-industrial customers through direct sales and via specialty distributors.
IBI reported first quarter earnings of 27 cents a share, down from 29 cents a share a year ago. The consensus estimate was at 30 cents a share, which was also the lowest estimate. Sales for the quarter declined 2%. For the year, analysts have been forecasting a 6% increase to $1.65 a share from $1.56 a year ago. Those estimates may be trimmed.
IBI is a technical short all the way. The gap drop on big volume is bearish. The TTD momentum indicator (top of the chart) becomes even more bearish. The accumulation - distribution line (bottom of chart) shows the stock under consistent selling pressure for months.
TTD is targeting IBI for a decline to 13 within the next few months.
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.)
