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Weekly - Bullish Investors Go To TTD Bargain Setups - Feature - Monday, May 10 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, May 10 |
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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 - Small list of breakouts today, but some very good looking plays. Stock market starting to stabilize after violent moves. Bulls be patient and selective on breakouts. TTD looks for a consolidation to take place in the stock market.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bearish, Nasdaq Bearish
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TTD's Quality Rating of Stock - SNHY - ABOVE AVERAGE |
SNHY, based in Sarasota, Fla., makes screw-in hydraulic cartridge valves, manifolds and integrated packages for international markets. Annual revenues: $97 million. SNHY, a small cap stock, breaks out strongly from a 10-week flat base today. The power for the move came when the company reported stronger than expected earnings for the first quarter and boosted its profit outlook. So far today, SNHY is trading 353,510 shares, seven times its normal daily volume of 48,000 shares. 
TTD highlighted SNHY at our midsession show on the Web Tuesday right before the stock brokeout.
SNHY was also a "TTD Breakout Watch Stock."
SNHY's 10-minute chart shows the stock getting above its breakpoint in pre-market trading. It then sagged back. However, it pushed decisively over the breakpoint around midday right after it came in with its strong earnings.
The stock is a thinly traded issue. It also has a beta of 2.0 versus 1.0 for the stock market. So, SNHY is twice as volatile as the stock market.
TTD's clip of the tape shows the block trades in SNHY for the past few days.
One can see the price for the blocks climbing from $26.07 to a peak of $29.13 this morning. The late blocks dribbled back in price.
SNHY products are integral parts of hydraulic systems and are used by a variety of capital goods equipment manufacturers to control force, speed and motion.
The company has operations in the United States, England, Germany, France, Korea, China and India.
SNHY checked in with first quarter earnings of 20 cents a share, up sharply from 3 cents a year ago. The 20 cents topped the consensus estimate of 18 cents a share and the highest estimate of 19 cents a share.
Adding spice to the report was that SNHY said earnings for the second quarter should be 34 to 36 cents a share. The Street consensus was at 35 cents a share versus a loss of 3 cents a year ago.
SNHY's 12 month performance chart shows the stock appreciating 80% versus 25% for the stock market.
SNHY's long-term chart shows the stock soaring from 4 in 2004 to a peak of 42 in 2008. The stock then was pulled lower during the bear market to around 10. It has since bounced back to 31. 
SNHY's daily chart shows the stock rallying from 21 to 29 and then forming a well defined base. The breakout today is strong with a big widening of the spread. That is bullish in that is shows ease of price movement.
The stock's TTD momentum indicator (top of chart) is neutral.
The accumulation - distribution line (bottom of chart) has tuned up nicely. That is good confirmation that there is good accumulation in the stock.
This year, analysts are forecasting a 609% surge in SNHY's earnings to 78 cents a share from 11 cents a year ago. The highest estimate on the Street is at 87 cents a share. So, there is potential for good numbers in coming quarters.
The stock sells with a price-earnings ratio of 40.
Going out to 2011, the Street looks for a 40% jump in net to $1.09 a share from the anticipated 78 cents a share for this year.
Strategy Opinion: TTD is targeting SNHY for a move to 38 within the next few months. A protective stop can be placed near 28 giving it room. TTD rates SNHY a good intermediate-term play provided earnings meet expectations.
Sponsorship: Very Good. The largest fund buyer recently was 5-star rated Brown Capital Management Small Cap Fund which purchased 60,298 shares. The largest fund holder is 3-star rated Keeley Small Cap Value Fund with a 5.7% stake. SNHY has just 16.9 million shares outstanding.
Insider Activity: Slightly Bearish. Insiders have been steady but light sellers of the stock. The latest selling was at $27.41. Four analysts follow the stock, none had a buy.
Stock Performance Chart for 12 months with Quarterly Earnings Markers.
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TTD's Profile Rating Sun Hydraulics Corp. - (SNHY) |
| 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)
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - IPXL - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - NAV - BELOW AVERAGE |
| TTD's Quality Rating of Stock - NEM - AVERAGE |
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TTD's Quality Rating of Stock - DPS - AVERAGE |
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 - 4
Stocks Screened - 8,2007
Long-Term Environment for bears: Neutral.
Bear Side - Only a few breakdown stocks today. Bears be selective. TTD's short play from Monday was Imperial Sugar Co. (IPSU) - 13.24, down 1.51. Today, the stock has dropped further. IPSU is trading at 12.46.
(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.)
MR, based in China, makes diagnostic and imaging medical products. Annual revenues: $634 million. MR's stock gaps lower today in heavy trading. Analysts cited concern about the company's revenue outlook. MR did report net in line with Street estimates. So far today, MR is trading 3.7 million shares, four times its normal daily volume of 860,000 shares. 
MR came in with net for the first quarter of 31 cents a share, up from 23 cents a year ago. The consensus estimate on the Street was at 31 cents a share.
Revenues for the quarter were $146 million, down from $159 million a year ago.
MR's stock gapped lower at the opening. It hit a bottom at $29.28. the bounced up and trended sideways around 32.
MR makes: patient monitoring and life support products, in-vitro diagnostic products and medical imaging systems.
It sells its products primarily to distributors, and the balance directly to hospitals, clinics, government agencies, original design manufacturer customers and original equipment manufacturers. Outside China the company sells through distributors and its direct sales personnel.
This year, analysts are forecasting a 20% increase in net to $1.45 a share from $1.21 a year ago.
MR's chart shows the gap dropped today and heavy volume. The decline came as a surprise.
Strategy Opinion: TTD is targeting MR for decline to 27.50 within the next few weeks or sooner. TTD sees the stock as a trading short. A protective stop buy can be placed near 34.
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.)
