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 - 6
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Just a few breakouts today. Breakout list has contracted sharply as stock market pulls back. Bulls be patient and selective now watching all positions.
(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 -DAR - AVERAGE
DAR, based in Irving, Tex., provides recycling and disposal of food waste. Annual revenues: $725 million. DAR's stock gaps higher today breaking out from a six-week base and making a 2-year high. The push higher was triggered by strong profits for the first quarter which topped all Street estimates. So far today, DAR is trading a heavy 4.6 million shares, six times its normal daily volume of 827,000 shares.
TTD highlighted DAR as a breakout at our midsession video show on the Web Friday.
DAR's 10-minute chart shows the stock spiking higher in premarket trading.
The stock held its breakout nicely through the day even though the stock marked declined sharply.
DAR reported first quarter net jumped to 43 cents a share from 29 cents a year ago. The 43 cents topped the consensus estimate of 30 cents a share by a wide margin. So, it was a big upside surprise.
That was a departure from the prior earnings pattern. DAR had a tendency to come in about one to two cents below Street estimates.
DAR's clip of the tape shows the recent big block trades.
One can easily see the key bullish trade today came in the morning. That is when a block of 324,886 shares crossed the tape at $55. That was up sharply from the prior block trade at $50.33.
Later in the day two blocks crossed at a lower price. That would indicate some institutional profit taking.
DAR provides recycling and rendering services in which animal and food waste products are turned into useful commercial goods, including tallow, protein meals, and yellow grease.
DAR services the restaurant industry by removing used cooking oil and pumping grease traps.
DAR's 12-month performance chart shows the stock appreciating 80% versus a 14% gain for the S&P 500 index.
DAR's long-term chart shows the stock trading around $1 a share. It soared to 17 by 2008. The stock then took a dive during the bear market falling back to 3 in 2009. It has since rebounded strongly and is now in position to make a new all-time high. The long-term pattern is now very bullish.
DAR's daily chart shows the stock climbing from 10 back in October to a peak of 16 by early April. The stock then put down a flat base. Today's breakout is impressive coming with a gap move and expanding volume.
The stock's accumulation - distribution line (bottom of chart) is in a strong up trend. It broke out before the price of the stock. The action would indicate strong buying while the stock was basing.
Analysts forecast DAR's earnings for the second quarter should jump 107% to 29 cents a share from 15 cents a year ago. So, strong profits should continue. That gives the stock potential to continue to work higher.
Net for the year is projected to soar 86% to $1.14 a share from 61 cents a year ago. TTD sees potential for that estimate to be boosted.
The company is benefiting from higher prices and the benefits from its recent acquisition Griffin Industries. Revenues for the quarter soared to $440 million from $162 million a year ago.
Strategy Opinion: TTD is targeting DAR for a move to 21. With strong profits expected to continue the rest of the year, the stock has potential to surprise further on the upside. A protective stop can be placed near 15. TTD rates DAR a very goo intermediate-term play.
Sponsorship: Very Good. Many funds were buyers of the stock as the company recently made an offering. A key fund buyer recently was 5-star rated Neuberger Berman Genesis Fund which purchased 1.4 million shares. Also, 5-star rated Artisan Small Cap Value Fund picked up 1.1 million shares. DAR has 117 million shares outstanding.
Insider Activity: Neutral. One insider sell trade. That was done at $14.53 in March. Seven analysts follow the stock, 5 have a buy, the same as three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Darling International Inc. - (DAR)
|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 - VRTU - AVERAGE|
|TTD's Quality Rating of Stock - AAP - AVERAGE|
|TTD's Quality Rating of Stock - DMRC - AVERAGE|
|TTD's Quality Rating of Stock - SCLN - 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 - 4
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Only a few short plays today as stock market declines broadly. Bears be selective. TTD's short play from Thursday was Cameco Corp. (CCJ) - 26.33, down 1.40. Today, the stock has declined to 26.17 and is working well for bears.
EJ, based in China, is a Chinese real estate services firm. Annual revenues: $356 million. EJ's stock falls sharply today under cutting key technical support with expanding volume. Analysts are forecasting a big drop in earnings for the first half. So far today EJ is trading 337,913 shares. Its average daily volume is 288,000 shares. TTD sees more on the downside.
EJ's stock came public in late 2007. It traded as high as 36. It was then dragged lower by the bear market falling to 4. It rallied back to 23, but has since been trending lower.
Today the stock breaks below key support as it moved lower in the morning and then trended sideways in the afternoon. TTD's clip of the tape shows the recent block trades. One can see the price falling from $11.03 to $10.49.
A key bearish trade came during the morning when 2000 shares crossed the tape at $10.63. That was down from the prior block trade at $11.03.
The company provides real estate agency services, secondary real estate brokerage services and real estate consulting and information services.
Their clients include leading domestic and international real estate developers.
Net for the first quarter is expected to drop 68% and then in the second fall 50%. Net for the first quarter is expected to come in at 6 cents a share, down from 19 cents a year ago. For the second quarter, net is projected to fall 14% to 5 cents a share from 11 cents the year before.
EJ's daily chart shows the stock falling from 19 to 11. It was trying to hold support around 11, but today cuts below that level. The stock's TTD momentum indicator (top of chart) has been bearish for the past three weeks.
Strategy Opinion: TTD is targeting EJ for a decline to 8 within the next few months, or sooner. A protective stop buy can be placed near 11.50.
|TTD's Quality Rating of Stock - EJ - 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.)