Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Thursday, May 7
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists for Thursday, May 7 |
| 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" Go to Video Show -TTD Performance 2008 Long and Sh
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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 - 6
Stocks Screened - 8,200
Bull side - Small list of breakouts today with overall quality below average. Bulls be patient and selective. Market may need a rest after its good run up.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Market (Daily) - NYSE Bullish, Nasdaq Bearish
Market (Weekly) -NYSE Bullish, Nasdaq Bullish
Market (Monthly) NYSE Bullish, Nasdaq Bullish
| TTD's Quality Rating of Stock - IDCC - ABOVE AVERAGE |
IDCC, based near Philadelphia, develops technology content and system solutions
for advanced digital wireless communications applications. Annual revenues: $228
million. IDCC, a stock TTD recently featured by TTD as one to accumulate, breaks out today from a six-week flat base. The move comes even though the company reported a loss for the first quarter. The key: earnings for the rest of the year should climb sharply. 
TTD highlighted IDCC as a breakout at our midsession show on the Web today.
So far today, IDCC is up about 2 points. Volume is running at 983,262 shares, about double its normal daily volume.
IDCC's stock shot higher in the morning, peaked near noon and then trended sideways in the afternoon. It was able to hold its ground during the day despite a decline in the stock market.
TTD's clip of the tape shows the recent big block trades in IDCC. One can see the price for the blocks climbing from $26.93 to $28.73. The tape shows good institutional interest in the stock.
IDCC's clients primarily consist of companies that produce telecommunications equipment such as mobile phones, personal digital assistants, mobile computing devices, base stations, and other infrastructure equipment.
Today, the company reported a first quarter loss of 20 cents a share compared with a profit of 15 cents a year ago. The 20 cent loss was less than the 22 cent loss predicted by the Street. However, analysts predict strong net for the next several quarters.
TTD's performance chart shows IDCC's stock appreciating 30% the past 12 months. It has outperformed the S&P 500 index which is down 32% the past 12 months.
TTD's long-term chart shows IDCC in a trading range the past three years bracketed between 16 to 36 roughly. It is now working toward the top of the range. A breakout through the top of the long-term resistance at 36 would be extremely bullish.
IDCC's daily chart shows the breakout from the flat base today. It comes with a nice pick up in volume despite a weak stock market today. The base is tight which is good. That means the daily trading range is small with volume contracting.
The TTD momentum indicator (top of the chart) is bullish.
The accumulation - distribution line (bottom of chart) is in an up trend. That shows that there has been good buying in the stock and no unusual distribution.
The only negative is that there is overhead resistance at 28 to 34. That means people who bought in that range and rode the stock down may be anxious to sell. That could hinder the stock's advance. The key will be to see if IDCC can drive strongly into the resistance area at this time. If so, that would be very bullish.
Looking past the first quarter loss, IDCC's net for the second quarter should be very strong. The Street looks for 336% surge to 57 cent share from 13 cents a year ago. In recent months, IDCC has been cutting costs and realigning operations. The current second quarter estimates a boost from the recent 47 cents a share expected by analysts.
For the year, analysts predict a big 245% jump in net to $1.62 a share from 47 cents a share a year ago. The Street has been raising the annual estimate. The stock sells with a price-earnings ratio of 18. TTD sees that as attractive for value investors. Going out to 2010, profits should soar 92% to $3.11 a share.
Strategy Opinion: IDCC's strong earnings outlook for the rest of this year gives the stock a very bullish look. TTD is targeting IDCC for a move to 36. A protective stop can be placed near 27. TTD rates IDCC an excellent intermediate-term play provided earnings meet expectations.
Sponsorship: Average. The largest fund holder is 3-star rated Heartland Value Fund with a 4.1% stake. It was a recent seller of 1.4 million shares. 4-star rated Highbridge Statistical Mkt. Neutral Select Fund, 4-star rated, was a recent buyer of 29,000 shares. IDCC has 43 million shares outstanding. Funds hold 6 million shares.
Insider Activity: Neutral. Not much action lately by insiders. Four analysts follow the stock and all have a buy. That is up from just 2 buys three months ago.
Stock Performance Chart for 12 months with Quarterly Earnings Markers.
| TTD's Breakout Profile
Rating Interdigital Inc. (IDCC) |
| 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 | 10 | 1 | 3 |
(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
| TTD's Quality Rating of Stock - CPA - BELOW AVERAGE |
| TTD's Quality Rating of Stock - AGP - BELOW AVERAGE |
| TTD's Quality Rating of Stock - OCN - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - IAG - BELOW 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 - 5
Stocks Screened - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Small list of breakdown stocks. However, the breakdowns are sharp often coming on weak earnings. Bears be selective. Market has potential for a move lower supporting bear plays.
(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.)
NICE, based in Israel., makes digital recording and retrieval systems, which are known as voice-logging systems. Annual revenues: $624 million. NICE reported earnings slightly down from the year ago today. However, it said second quarter results would be about the same as the first quarter. The market took the news in a bearish way and the stock fell sharply. TTD sees more on the downside. 
NICE is off about 3 points so far today. Volume is running at a heavy 1.6 million shares, five times its normal daily volume of 220,000 shares.
The stock fell sharply at the opening. It staged a modest rally late in the morning, but then faded again in the afternoon.
TTD's clip of the tape highlights a block of 20,000 shares that crossed in the morning on a modest down tick to $22.30 from the prior trade at $22.31. The tape action indicated clear institutional selling.
NICE's voice-logging systems can simultaneously record and monitor communications from multiple channels and provide data-archiving and -retrieval features.
The company has two main product lines: its Security line and its Customer Experience Management line, which includes the company's principal product, NiceLog.
Analysts expect net for the upcoming second quarter to decline 18% to 32 cents a share from 39 cents a year ago. Net for the year is expected to be up 11% as analysts anticipated a better second half. The company said it is being slowed by uncertainty regarding budget releases and the economic environment.
TTD's daily chart shows NICE gapping lower today on big volume. There is some technical support near 18. However, the stock does have strong downside momentum now.
Strategy Opinion: TTD is targeting NICE for a decline to 18 within the next few months, or sooner. A protective stop buy can be placed near 23.50.
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.)
