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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 positionsboth as trades or for longer-term plays. These stocks will do very well during bear markets or market corrections
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Total Buy Breakouts so far today - 11
Stocks Screened- 8,200
Bull side - Small list of breakouts but some very interesting plays for aggressive bulls.
Long-Term Environment for bulls: Favorable.
Market Status (Daily) - NYSE Bullish, Nasdaq Bearish
Market Status (Weekly) - NYSE Bullish, Nasdaq Bullish
XRIT, based in Grandville, Mi., produces color measurement instruments used by a variety of industries such as fabric and auto. Annual revenues: $180 million. XRIT breaks out from a well-formed, nine-week flat base today. The move comes on volume of 1.2 million shares, almost double its normal daily volume of 723,000 shares. The move was triggered by a favorable earnings report.
The tape action today was very bullish. TTD highlights one of the largest trades of the session. It is a big block of 19,650 shares crossing on a modest up tick to $13.50 from the prior trade at $13.49.
XRIT came in with net from operations for the first quarter of one cent a share compared with a loss of one cent a year ago. The results exclude discontinued operations.
Sales more than doubled to $57.7 million from 27.2 million a year ago.
The company said backlog remained strong at the end of the quarter. The company also benefitted from cost savings linked to a recent acquisition.
XRIT's color measurement instruments ensure that fabrics, paints, and plastics are just the right shades of blue, red, or violet.
The company's spectrophotometers and colorimeters test colors by measuring light, and its densitometers measure optical and photographic density to control light and color variables for processing X-rays, film, and inks. Other products include paint matching systems for retailers, sensitometers for controlling photographic film exposure, and color formulation software for recreating colors on PCs.
A look at TTD's daily chart shows the "gap breakout" today with the big volume. It is very good. The stock's technicals are too.
The TTD momentum indicator (top of the chart) is solidly bullish. The accumulation-distribution line is in a strong up trend. In fact the, AD line led the stock's price on the breakout. So, that is very bullish.
TTD's long term chart of XRIT shows there is some overhead resistance around 15. It will be important to see if XRIT can drive through that. If so, it will reinforce the bullish posture of the stock.
This year, analysts expect XRIT to show a big 480 jump in net to 29 cents a share from 5 cents a year ago. The stock sells with a price-earnings ratio of 47 based on this year's projected net. TTD sees that as okay.
Next year, XRIT's profits are projected to soar 147% to 72 cents a share from the anticipated 29 cents this year.
Strategy Opinion: Color XRIT bullish. The strong earnings outlook is the key. The stock performed well off its earnings today, despite a mixed stock market. TTD suggests a full position on this breakout.
TTD is targeting the stock for a move to 18 within the next few months. A protective stop can be placed near 12. TTD rates XRIT a very good intermediate-term play.
Sponsorship: Good. Two top fund holders, rated 4-star are Columbia Small Cap Value II Fund with a 0.95% stake and Needham Growth Fund with a 0.87% interest. Both have held their positions steady. The largest fund holder is 3-star rated Lord Abbett Small-Cap Blend Fund with a 4.2% stake.
Insider Activity: Bullish. Late last year there was good insider buying around 9. There was no selling. It would appear insiders had an inkling the company would be doing better. Three analysts follow the stock, 2 have a buy, the same as three months ago.
TTD's Breakout Profile
Rating X-Rite Inc. (XRIT) |
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 | 11 | 0 | 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)
Ticker Tape Digests 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: Unfavorable.
Bear Side - Only a few breakdowns today as market pauses. TTD is spotting a slowdown in upside momentum for the market. So, Bears should be alert for good short 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.)
WTI,, based in Houston, Tex., is an oil and gas producer that works the Gulf of Mexico. Annual revenues: $800 million. WTI gaps lower today to set off a TTD short play. The stock's drop today was triggered by a report of lower net for the first quarter. Trading so far today is running at a heavy 1.4 million shares, about triple its normal daily volume.
The company reported net income for the quarter dropped to 17 cents a share from 85 cents a year ago. It said the decline was due to lower prices, higher lease operating expenses and higher insurance premiums.
The Street was expecting net of 45 cents a share for the quarter. So, the results were a big disappointment.
The tape action was weak too. TTD's clip of the tape highlights a block of 2,300 shares crossing on a modest down tick in the morning to $27.85 from the prior trade at $27.86.
With a focus on the Gulf of Mexico, the company has proved reserves of 491.5 billion cu. ft. of natural gas equivalent. It holds some 932,000 gross acres in the Gulf of Mexico.
This year, the Street was forecasting an 8% rise in net to $2.94 a share. TTD sees that estimate being cut.
Technically, the stock's gap lower on disappointing earnings is very bearish. WTI's accumulation - distribution line (see bottom of the chart) has been in a down trend for several months. TTD sees WTI as a good trading short with potential to surprise further on the downside. We are targeting WTI for a decline to 21 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.)