stocks

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.

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

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.

Breakout Stocks

Bull side - Only one breakout stock today. TTD's daily indicators turn down. Expect a stock market pause. Bulls still be watchful for quality breakout plays and potential new industry leadership.

Today's Featured Stock

Lincoln Educational Services Corp. (LINC) - 19.21, up 0.55 - Breakpoint 18.55

Profits to Soar 66% this Year, TTD Targets 24

TTD's Quality Rating of Stock - LINC - ABOVE AVERAGE

LINC, based in West Orange, N.J., is a for-profit, postsecondary education firm focused on five areas: automotive technology, health sciences, skilled trades, business and information technology, and spa and culinary. Annual revenues: $377 million. Today, educational stocks stage a rebound rally. LINC, an educational stock which has held up well, breaks out from an 8-week flat base. It makes a new 52-week high.

So far today, LINC is trading 344,372 shares. Its average daily volume is 363,000 shares. The stock is acting well considering the market is moving sharply lower today.

LINC's stock started to move up around mid-morning. It continued to work higher nicely in the afternoon.

TTD's clip of the tape shows a big block of 30,000 shares crossing on a nice up tick to $18.81 from the prior trade at $18.79. The tape action showed aggressive institutional accumulation.

LINC serves more than 20,000 students through 36 campuses in 17 states. All of Lincoln's campuses are either nationally or regionally accredited and offer high school graduates and working adults degree and diploma programs.

TTD's performance chart shows LINC's stock appreciating 65% the past 12 months. The stock has easily outperformed the S&P 500 index which is down 30% the past 12 months. Some of the education stocks moving up today include Apollo Group (APOL), up 3.15 to 60.22 and ITT Educational Services (ESI) up 6.24 to 98.02.

LINC's long-term chart shows the stock in a long-term, cup-and-handle base. A key would be for LINC to make a new all-time high by getting over 21. .

LINC's daily chart shows the stock in a flat base. It has rallied strongly the past four sessions to clear its base. It broke out intraday on Friday, but closed below its breakpoint. Today, It moves up nicely to clear the base.

The stock's TTD momentum indicator (top of chart) has been bullish for the past few weeks. That is impressive given that the stock and the group were drifting lower.

Most impressive is that the accumulation - distribution line (bottom of chart) is hitting a new high. It has broken out from its trading range. That says there is strong buying going on in LINC.

This year, analysts predict a 66% jump in LINC's profits to $1.29 a share from 78 cents a share a year ago. The stock sells with a price-earnings ratio of just 14. TTD sees that as reasonable.

Next year, the Street looks for a 13% gain in net to $1.45 a share.

Last week, LINC reported first quarter net increased to 23 cents a share from just 2 cents a share a year ago. Revenues soared 41% to $118 million from 84 million a year ago. Student starts for the first quarter rose 31%.

For the upcoming second quarter, LINC's net is expected to leap 300% to 20 cents a share from 5 cents a year ago. TTD sees that strong quarter as the potential drive to send the stock higher.

Strategy Opinion: LINC is a good looking breakout with strong earnings. TTD is targeting the stock for a move to 25 within the next few months. A protective stop can be placed near 18. TTD rates LINC a very good intermediate-term play because of its low valuation and strong profit outlook.

Sponsorship: Very Good. The largest fund holder is 5-star rated Royce Micro-Cap Fund with a 1.8% stake. One of the largest fund buyer lately was 4-star rated JP Morgan Growth Advantage Fund, which purchased 163,000 shares. LINC has 26 million shares outstanding. Funds hold 3.4 million shares.

Insider Activity: Slightly Bearish. Some light insider selling the past two months. Six analysts follow the stock, 2 have a buy, down from 4 three months ago.

Stock Performance Chart for 12 months with Quarterly Earnings Markers.

All Timely Breakout Stocks From Tape Action Today

(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)

None

Ticker Tape Digest’s

Stocks To “Sell or Short”

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.

Bear Side - Small list of breakdown stocks today as stock market turns mixed. Bears be conservative.

List of Stocks To Sell or Short

(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.)

Commentary on TTD’s Feature Bear Play

VF Corp. (VFC) - 56.77, down 1.30

Earnings To Fall 15% This Year, TTD Sees Slide to 50

VFC, based in Greensboro, N.C., makes clothing, specializing in jeans, sportswear, outdoor apparel, and footwear. Annual revenues: $7.6 billion. VFC's stock falls sharply today completing a breakdown from a head and shoulder pattern. With lower earnings coming for the second quarter, TTD sees good potential for a further move lower. So far today, VFC is trading 876,25 shares. Its average daily volume is 1.6 million shares.

The stock gapped lower in the morning. It hit an intraday bottom at mid-morning and then trended sideways. It staged a modest lift in the afternoon.

TTD's clip of the tape shows a big block of 13,600 shares crossing in the morning on a significant down tick to $57.42 from the prior trade at $57.54. The tape action indicated aggressive institutional selling pressure.

VFC's brands include Lee, Wrangler, The North Face, Nautica, Seven For All Mankind, lucy, Majestic Athletic, and John Varvatos.

Its other brands include JanSport, Eastpak, and Eagle Creek backpacks and Vans and Reef footwear. International sales account for 25% of sales.

This year, analysts predict a 15% decline in VFC's net to $4.79 a share from $5.62 a year ago. The company reported a 7% decline in revenues in the first quarter. The Street is forecasting a 30% drop in net for the second quarter to 64 cents a share from 91 cents a year ago.

TTD's daily chart shows the stock with a run up to 70. It had a gap breakdown, paused for a few days, and is now rolling over. The prior gap breakdown came on big volume. The stock's TTD momentum indicator (top of chart) is strongly bearish now. The accumulation - distribution line (bottom of chart) has broken to the downside indicating clear selling pressure.

Strategy Opinion: TTD is targeting VFC for a decline to 50 within the next few months, or sooner. The stock has good downside momentum. Although we see VFC as a trading short, there is a chance for a more serious breakdown.

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.)

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

Ticker Tape Digest

Monday - May 11, 2009

Breakout Stocks

Today's Featured Stock