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
Daily schedule guide for TTD subscribers
1. Pre-market - check Breakout Watch List and Quick Trades.
2. Morning - (11:30 - 12 A.M.) - check breakout stocks tape and breakout chart slide show.
3. Midday (1 P.M.) check TTD Midsession Report and see market video show.
4. After close (4 P.M.) check final TTD Report for day.
Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. (See Performance)
Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." (See Performance)
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.(See Performance)
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance)
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 - Long Term. 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.
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 email@example.com.For service, email Beverly Owen firstname.lastname@example.org. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 12
Overall Quality of Breakouts - ABOVE AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list large shows some good looking plays. Dow breaks out from its trading range. Nasdaq is up but still lags badly.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Stock Market Momentum
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bearish
Ticker Tape Digest's
TTD's Quality Rating of Stock - URI - ABOVE AVERAGE
URI, based in Stamford, Con., operates 529 equipment rental locations in the U.S., Canada, and Mexico. Annual revenues: $5 billion. URI's stock breaks out today from a nine-week flat base. The move carries the stock to a new all-time high. So far today volume is 1.8 million shares. URI's average daily volume is 1.9 million shares.
URI's stock worked higher through the session with good volume. The stock pierced its breakpoint line early in the afternoon. (see 10-minute chart) The stock then held over its breakpoint into the close.
There was some strong buying late in the session.
There was a "freak sale" just after the NYSE close when 1,000 shares traded at $96.59.
That was down from the prior trade at $97.67 on 21,812 shares. (See table.
Later in the after-market the price moved back to as high 97.70.
URI's tape action box shows the price of the block during the day rising from $92.71 to as high as $97.67.
URI is an equipment rental company and its network consists of 529 rental locations.
The company has 3,000 classes of equipment for rent to customers.
They are used by construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities.
It serves four main end-markets in the North American equipment rental industry: commercial construction, infrastructure, industrial and residential.
It has two reportable segments - general rentals and trench safety, power and HVAC.
The general rentals includes the rental of construction, aerial, industrial and homeowner equipment and related services and activities.
The general rentals segment comprises seven areas the Southwest, Gulf, Northwest, Southeast, Midwest, East, and the Northeast Canada–and operates throughout the United States and Canada.
The trench safety, power and HVAC segment includes the rental of specialty construction products and related services.
URI's 12-month performance chart shows the stock appreciating 70% versus a 20% gain for the S&P 500 index. The chart shows several "green bars" indicating insider buying. The red is insider selling.
URI's long-term chart shows the stock hitting a peak of $37 in 2006. The stock then eventually fell back to $2.52 a share in early 2009 - Ouch!
Since then the stock has been working higher having hit $97 - a 33-fold increase. That is sensational.
URI's daily chart shows the stock advancing from 76 in February to a peak near 96 by March.
The stock then trended sideways forming a flat base.
Today's breakout comes with a widening of the daily spread (range from high to low).
That is bullish showing "ease of price movement."
The stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) lags.
This year, analysts are forecasting a 30% jump in profits to $6.41 a share from $4.91 a year ago.
The stock sells with a price-earnings ratio of 15. TTD sees that as low making the stock a good value-growth play.
Going out to 2015, the Street looks for a 24% gain in net to $7.94 a share from the anticipated $6.41 for 2014.
Net for the upcoming second quarter should lift 27% to $1.42 a share from $1.12 the year before.
The highest estimate on the Street is at $1.74 a share.
TTD sees very good chances of an upside surprise. URI topped the consensus estimate the past 11 quarters - and in some cases by a big margin.
Looking out to the third quarter, profits are projected to climb 24% to $2.03 a share from the $1.63 the year before.
Strategy Opinion: TTD is targeting URI for a move to 115 off this breakout. A protective stop can be placed near 92.
TTD rates URI a very good intermediate-term play provided earnings remain on course.
Sponsorship: Excellent. The largest fund holder is the 4-star rated Fidelity Mid-Cap Stock Fund with a 1.5% stake. It has held its position steady.
The 5-star rated Vanguard Mid Cap Index Fund was a recent purchaser of 760,532 shares.
URI has 97.3 million shares outstanding.
Insider Activity: Bullish. Insiders have been getting stock options at $93. They have not done hardly any selling the past month. Right now, 12 analysts follow the stock, 10 have a buy, up from 9 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
United Rentals Inc. - (URI)
|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 - POL - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - LUV - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - ISIL - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - ALK - 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 - 8,300
Long-Term Environment for bears: Neutral.
Bear Side - Small list of shorts today as stock market rallies strongly. Bears be conservative.
CLB, based in Amsterdam, Netherlands, provides services and products to the energy exploration industry. Annual revenues: $1.1 billion CLB's stock fall sharply today cutting below key technical support. The company forecast lower than expected earnings. So far today, CLB is trading 5.2 million shares, 13 times its average daily volume of 377,000 shares.
TTD highlighted CLB as a short at our midsession video show on the Web Monday.
The company came in with first quarter earnings of $1.45 a shares. It was one cent below Street estimates. The firm also lower its earnings forecast.
CLB reacted very bearishly to the news.
The stock fell steadily in the morning touching an intraday low of $150.50.
CLB trended sideways through the rest of the session until the late afternoon when it turned up to trim some of its deficit.
CLB provides proprietary and patented reservoir description, production enhancement and reservoir management services to the oil and gas industry.
CORE's earnings this year should climb 18% to $6.20 a share from $5.25 a year ago.
The stock's daily chart shows CLB gapping lower with big volume on the disappointing earnings forecast.
Strategy Opinion: TTD is targeting CLB for a decline to 138 within the next few months, or sooner. A protective stop buy can be placed near 164.
|TTD's Quality Rating of Stock - CORE - 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.”
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.)