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Weekly - Bullish Investors Go To TTD Bargain Setups - Feature - Monday, May 3 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, May 3 |
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Go to Video Show - "How to Make Money With Breakout Stocks" Go to Video Show -TTD Performance 2008 Long and Short |
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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 Trading Strategies Overview and Performance Bullish Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." Conservative Investors "Bargain Buy Trades" (swing trades). Ideally suited for entry into stocks on pullbacks within overall up trend. Good for trading range markets Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns Conservative Bearish Investors (swing traders). "Bargain Bearish Plays" to Sell Short. Ideally suited for trading range markets with overall market down trend. |
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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 These are for conservative bullish Investors The strategy is called swing trading. These long buys are ideally suited for entry into stocks on pull backs within overall up trend. They are good for trading range markets. These stocks can give a good return in a week or two. They can also explode into a breakout and a powerful advance.
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 Bearish bargain play stocks to sell short. These issues are usually in down trends and are poised to rollover after a minor rally. They often can provide a conservative bear with a good entry point.
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.
Stocks Screened - 8,200
Bull side - No breakouts today. Stock market falls sharply as near-term bear trend continues. Bulls be patient and watchful. Market will need time to bottom and turn. Notice the Dow monthly has turned bearish now.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bearish, Nasdaq Bullish
(No breakouts today. So, TTD features a stock near its breakpoint.)
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TTD's Quality Rating of Stock - KRA - AVERAGE |
KRA, based in Houston, formerly Polymer Holdings LLC, produces styrenic block copolymers. Annual revenues: $968 million. KRA' stock broke out early in Thursday's session on strong earnings. However, the big market selloff dragged the stock back. TTD still sees potential for KRA to breakout. The key breakpoint is $19.36. The stock was as high as $20.36 during Thursday's session. 
TTD highlighted KRA at our midsession show on the Web Thursday.
KRA's 10-minute chart shows the stock gapping higher at the opening and driving over its breakpoint line. The stock held above the breakpoint until the afternoon.
Heavy selling in the stock market pulled the stock below its breakpoint.
KRA's strong profits were the driver sending the stock higher in the morning. The company reported net for the first quarter of 64 cents a share compared with a loss of 5 cents a year ago. The 64 cents a share was well above consensus Street estimates. The company also said sales growth in the second quarter would be strong.
KRA's tape action shows the recent big block trades. One can see the stock driving higher in the morning as a big block of 14,700 shares crossed the tape at $19.25. That was up sharply from the prior block trade at $17.90. 
The tape action indicated good institutional buying
KRA markets its products under KRATON brand. Its SBC products are found in a range of everyday applications, including disposable baby diapers, the rubberized grips of toothbrushes, razor blades, power tools and in asphalt formulations used to pave roads.
The company also makes non-SBC products, such as isoprene rubber latex. IRL is a synthetic substitute for natural rubber latex. Its IRL products are used in surgical gloves.
KRA has some 800 products that it sells to around 700 customers in 60 countries.
KRA's performance chart shows the stock appreciating 40% versus a 29% gain in the S&P 500 index.
KRA's long-term chart shows the stock starting trading in late 2009 around $13. It caught the bottom in the bear market. Since then it has moved up sharply.
KRA's daily chart shows the stock climbing from 13 in February to 19. It then put down a five-week flat base. The stock appeared to be weakening in the base. However, today, it gapped higher off the good earrings news.
The stock broke out but then fell below the breakpoint.
The basing work was good in that it was done above the 50-day moving average line.
The drag back today probably was caused by the panic selling in the stock market.
This year, analysts expect KRA to show a profit of $1.80 a share compared with a loss of 81 cents a year ago. The stock sells with a price-earnings ratio of 10.
TTD sees that as a little on the inexpensive side given the earnings outlook.
Next year, the Street projects a 13% rise in net to $2.03 a share.
For the first quarter, KRO said revenues increase 48%. Sales volume was up 55% Going out to the second quarter analysts look for a profit of 54 cents a share. Year ago results were not available.
Strategy Opinion: You might say KRO is an thwarted breakout play today. However, TTD sees chances for the upside. A stop buy can be placed near 19.50 to catch it on a breakout again. TTD is targeting KRO for a move to 25 after a breakout. A protective stop can be placed near 17.50 after a breakout. TTD rates KRO an average intermediate-term play.
Sponsorship: Very Good. A key fund buyer recently was Pacific Select Small-Cap Equity Fund, 5-star rated, which purchased 189,800 shares. KRO has 30.7 million shares outstanding.
Insider Activity: Neutral. Not much activity. Five analysts follow the stock and all 5 have a buy.
Stock Performance Chart for 12 months with Quarterly Earnings Markers.
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TTD's Profile Rating KRA Holdings Inc. - (SVR) |
| 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 | 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. They are ranked according to percentage change and classified as leaders or other. (Trading strategy: One should buy breakout stocks at breakpoint by using market order or stop buy)
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Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - 0 - AVERAGE |
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Ticker Tape Digest’s Daily List of “Stocks To 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 - 10
Stocks Screened - 8,2007
Long-Term Environment for bears: Unfavorable.
Bear Side - Good number of breakouts today as stock market falls sharply. Bears be selective as market is extended to the downside. TTD's short play from Wednesday was Onyx Pharmaceuticals Inc. (ONXX) - 26.06, down 2.31. Today, the stock is at 25.12 and working well for 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.)
JDSU, based in Milpitas, Ca., provides communications test and measurement solutions and optical products for telecom firms. Annual revenues: $1.2 billion. JDSU's stock falls sharply today in heavy trading. The company reported a loss for the fiscal third quarter ended April 3. So far today, volume is running at a heavy 44 million shares, six times its normal daily volume of 7.2 million shares. 
JDSU reported a loss for the fiscal third quarter of 5 cents a share compared with a loss of 47 cents a share a year ago. The Street took the news very bearishly even before the big market drop in the afternoon.
TTD highlighted JDSU at our midsession show on the Web Thursday.
The stock moved lower in the morning. In the afternoon, the market selling panic sent the stock to as low as $9.28. It lifted a bit afterwards.
TTD's clip of the tape shows the heavy selling coming in early in the day when a big block of 249,854 shares crossed the tape at $12.23. That was down sharply from the prior block trade that went off at $13.63. The tape action indicated heavy institutional selling pressure.
The Company is also a provider of optical solutions for biomedical and semiconductor firms.
Analysts were forecasting a profit of 19 cents a share for the fiscal year ending June 30 versus a profit of 4 cents a share a year ago. The earnings forecast may get trimmed.
JDSU's daily chart shows the stock in an overall up trend. However, today's gap drop comes on big volume. It would appear to have surprised investors.
Strategy Opinion: TTD is targeting JDSU for a decline to 8.40 within the next few months, or sooner. A protective stop can be placed near 11.80.
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.)
