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.
Ticker Tape Digest's Trading Strategies Overview and Performance
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 for the Long Term." Ideally suited for entry into top performing big cap stocks on pullbacks within overall up trend.
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns
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.
1 - TTD's Breakout Stocks - Long - (Intermediate-term long plays) these 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.
2 -TTD Quick Trade Stocks - Long - (Short-term long plays 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.
3 - TTD's Bargain Buy Trades - Long - (Long Term long plays. These are for conservative bullish Investors These long-term buys are ideally suited for entry into stocks on pull backs within overall up trend. These stocks can give a good return long-term especially during a bull market.
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.
4 - 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 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 firstname.lastname@example.org.For service, email Beverly Owen email@example.com. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 3
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Just a few breakouts today as stock market sells off. The selling was due to a drop in oil and other commodity items. Bulls remain alert for quality breakouts.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Market (Daily) - NYSE Bearish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
(See Top Performing Breakout Stocks for 2011)
TTD's Quality Rating of Stock - TYPE - ABOVE AVERAGE
TYPE, based in Woburn, Ma., provides text imaging solutions for makers of consumer electronics devices. Annual revenues: $107 million. TYPE's stock gaps higher and breaks out today from a seven week flat base. The move was aided by the stock being listed among S&P to its S&P 600 index. That often causes buying by index funds. Nevertheless, TYPE has good earnings prospects and is a legitimate breakout play.
So far today, TYPE is trading a heavy 885,547 shares, six times its normal daily volume of 150,000 shares.
TTD highlighted TYPE as a breakout at our midsession video show on the Web Wednesday.
TYPE's 10-minute chart shows the stock gapping higher and clearing its breakpoint in the morning. It peaked at $15.49. The stock then trended sideways the rest of the day.
TTD's clip of the tape shows the recent big block trades.
One can see a key bullish block trade coming in the morning.
That is when 30,584 shares crossed the tape at $15.37 (duplicated). That was up sharply from the prior block trade at $13.70. The tape showed aggressive buying probably by the index funds.
TYPE provides text imaging solutions for consumer electronics devices such as laser printers, copiers, mobile phones, digital televisions, set-top boxes, digital cameras and software applications and operating systems.
The company also provides printer drivers and color imaging technologies to OEMs.
The firm's technologies are combined with access to more than nine thousand typefaces from the Monotype, Linotype and ITC typeface libraries. Fonts are licensed to creative and business professionals through custom font designs, direct sales or e-commerce portals. The company offers fonts and industry-standard solutions that support all of the world's major languages.
TYPE's 12-month performance chart shows the stock appreciating 50% versus an 18% gain for the S&P 500 index.
TYPE's long-term chart shows the stock coming public in 2007 and trading at 12. The stock climbed to a peak of 17 in 2007. It was then dragged lower during the bear market falling to as low as $1.90. It has since made a big come back. It is within striking distance of its all-time higher.
TYPE's daily chart shows the stock advancing strongly from 9 to 14. The stock then put down a flat base. Today, it gaps out of the base with strong volume.
The question is whether it is a one-day event. TTD does not thing so, We see the stock working higher supported by strong fundamentals.
The TTD momentum indicator (top of chart) is neutral.
The accumulation - distribution line (bottom of chart) is in a strong up trend that compliments the price pattern of the stock.
This year, analysts forecast a 47% surge in net to 75 cents a share from 51 cents a year ago. The stock sells with a price-earnings ratio of 20. TTD sees that as reasonable.
Next year, the Street projects a 21% gain in net to 91 cents a share from the anticipated 75 cents this year.
TTD sees the near-term key to the stock being expectations of a 143% leap in net for the second quarter to 19 cents a share from 8 cents a year ago. The highest estimate on the Street is at 22 cents a share. TTD sees good chances for an upside surprise. The prior three quarters, TYPE topped the consensus estimate by 2 to 5 cents a share.
Looking out to the third quarter, earnings are projected to rise 18% to 19 cents a share from 16 cents a year ago.
Strategy Opinion: TTD is targeting TYPE for a move to 19 off this breakout. A protective stop can be placed near 13.90. TTD rates TYPE a very good intermediate-term play provided earnings remain on course.
Sponsorship: Excellent. The largest fund holder is 3-star rated Fidelity Advisor Small Cap Value Fund with a 7.3% stake. It was a recent buyer of 1.1 million shares. Also, 5-star rated Fidelity Small Cap Discovery Fund has a 7% stake. It was a recent buyer of 10,300 shares. Finally, 5-star rated JP Morgan Small Cap Equity Fund was a recent purchaser of 52,500 shares. TYPE has 35.8 million shares outstanding.
Insider Activity: Neutral. Light buying by insiders using stock options. They turned around and sold. The latest selling was at $13.32. Six analysts follow the stock and all 6 have a buy, the same sentiment as three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Monotype Imaging Holdings Inc. - (TYPE)
|TTD Check List||Bullish||Bearish||Neutral|
|Near 52-week High||YES|
|Price Trend - Daily||YES|
|Price Trend - Long Term||YES|
|Price Daily Spread||YES|
|Base - A-D||YES|
|Prior Breakout Success||YES|
Charts of Selected Breakout Stocks
|TTD's Quality Rating of Stock - PETM - AVERAGE|
|TTD's Quality Rating of Stock - ESIO - 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 - 10
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Good number of breakdown stocks today. Stock market falls sharply with oil and commodity stocks taking the biggest hit. TTD's short from Tuesday was Universal Display Corp. (PANL) at 47.25. Today the stock has declined to 43.40 is working great for bears.
STEC, based in Santa Ana, Ca., produces for memory storage devices. Annual revenues: $280 million. STEC's stock falls sharply today after the company made a disappointing forecast of earnings. So far today, STEC is trading a heavy 9 million shares, seven times its normal daily volume of 1.3 million shares. TTD sees more on the downside.
STEC reported net for the first quarter of 27 cents a share compared with a loss of 11 cents a year ago. Results were in line with Street expectations. However, the company said it expected only a mediocre second quarter. It blamed supply disruptions faced by its customers.
The company said it expects second quarter net of 21 to 30 cents a share and revenues of $80 to $90 million. The Street estimate is currently 31 cents a share on revenues of 93.7 million. So the forecast was a disappointment.
The stock gapped lower in pre-market trading. It hit an intraday low of $15.92. It worked lower the rest of the day.
The tape shows heavy selling in the morning. A key bearish trade was a block of 52,964 shares (duplicated) that crossed at $17.50. That was down sharply from the prior block trade at $20.07.
STEC produces products based on dynamic random access memory, or DRAM, static random access memory, or SRAM, and Flash memory technologies.
The company also makes connectivity products that connect memory cards and hard drive upgrade kits to PCs. These products are used in high performance computing, networking and communications, consumer electronics and industrial applications.
This year, the Street was forecasting a 127% jump in net to $1.22 a share compared with 54 cents a year ago. Those estimates should come down.
STEC's daily chart shows the gap move lower with big volume. The selling appears to have come as a surprise.
Strategy Opinion: TTD is targeting STEC for a decline to 12.50 within the next few months, or sooner. TTD sees STEC as a trading short. A protective stop buy can be placed 17.70.
|TTD's Quality Rating of Stock - STEC - BELOW AVERAGE|
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.”
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(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.)