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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, May 14 |
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Go to Video Show - "How to Make Money With Breakout Stocks" |
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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 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. Trading Strategies Bullish 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) Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance) |
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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 - 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 leo@tickertapedigest.com.For service, email Beverly Owen owen@tickertapedigest.com. TTD’s Tel: 1-480-926-1680.
Breakout Stocks
Total Buy Breakouts so far today - 4
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Only a few breakouts Monday as stock moves broadly lower. Bulls be patient and selective. Stock market still move to lower part of trading range. (Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Stock Market Momentum:
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bearish, Nasdaq Bearish
Ticker Tape Digest's
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TTD's Quality Rating of Stock - AKRX - ABOVE AVERAGE |
AKRX, based in Buffalo Grove, Il., makes special drugs
for diagnostic
and therapeutic use. Annual revenues: $163 million. AKRX's stock breaks
out today from a 14-week flat base and matches its all-time at $13.09. The prior high was set on February 27, 2012 at $13.09. AKRX ia a top performing low-priced stock. So far today, AKRX is trading 1.3 million shares. Its average daily volume is 1 million shares. 
AKRX's 10-minute chart shows the stock cutting across its breakpoint line in the morning.
It then backed off a bit, but came on again in the afternoon.
AKRX was highlighted several times last year as the stock started to move higher with strong profits.
The strong earnings theme remains.
TTD's clip of the tape shows the recent block trades.
One can see the price for the blocks climbing from $12.42 to $12.95.
A key bullish trade came in the morning when a massive block of 114,200 shares crossed the tape at $12.88. That was up from the prior block at $12.85.
The action showed big institutional buying interest.
AKRX's drugs are used in specialty areas such as ophthalmology, rheumatology, anesthesia and antidotes.
They also market ophthalmic surgical instruments and related products. Customers include physicians, optometrists, wholesalers, group purchasing organizations and other pharmaceutical companies. They also provide contract manufacturing services.
AKRX's 12-month performance chart shows the stock appreciating 95% versus a 3% gain for the S&P 500 index.
AKRX's long-term chart shows the stock coming public in late 2004
and trading around 4. The stock climbed to a peak of 8.19 in early 2008.
However, it then fell sharply during the bear market sinking to as low
as 73 cents a share. It has since surged back and now makes a new high.
The stock could attract buying on Tuesday. 
AKRX's daily chart shows the stock trending higher from 8 to a peak near 13 in February. It then formed a flat base featuring two shake outs to the downside.
Today the stock breaks out ignoring the weakness in the general stock market.
The stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) is in a good overall up trend.
This year, analysts forecast AKRX's earnings will jump 73% to 49 cents a share from 28 cents a year ago.
The stock sells with a price-earnings ratio of 26 based on current estimates. TTD sees that as reasonable.
Going out to 2013, profits are projected to rise 27% to 62 cents a share from the anticipated 49 cents a share this year. The company is doing well due to strong growth in its ophthalmic and specialty injectable products
Net for the upcoming second quarter is expect to soar 150% to 10
cents a share from 4 cents a year ago.
Looking ahead to the third quarter, net should rise 73% to 11 cents a share from 8 cents a year ago.
Strategy Opinion: TTD is targeting AKRX for a move to 173. A protective stop can be placed near 11.50.
TTD rates AKRX a very good intermediate-term play provided earnings meet expectations.
Sponsorship: Excellent. The largest fund holder is 4-star rated Columbia Acorn Z Fund with a 4.2% stake. It has held its position steady. A key buyer recently was 4-star rated EQ/AllianceBern Small Cap Growth Fund which added 108,190 shares. AKRX has 95.1 million shares outstanding. Institutions hold 68% of the stock.
Insider Activity: Slightly Bearish. There was light insider selling at $10.47. Five analysts follow the stock and all 5 have a buy, up from 4 three months ago.
Stock Performance Chart with Quarterly Earnings Markers
Insider Activity - Buying in Green - Selling in Red
| TTD's Breakout Profile
Rating Akorn Inc. - (AKRX) |
| 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 | 14 | 0 | 0 |
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - BMC - AVERAGE |
| TTD's Quality Rating of Stock - BONA - AVERAGE |
| TTD's Quality Rating of Stock - GHDX - 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 - 20 - Max
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Big list of short plays today as stock market works lower. Bears be selective. Stock market still in a trading range pattern. TTD's short from Friday was Amtech Systems Inc. (ASYS) at 5.50. The stock has declined to 5.15 and is working well for bears.
CEL, based in Israel, provides cell services in Israel. Annual revenues: $1.7 billion. CEL's stock falls sharply today on heavy volume. The stock has been in a down trend and the company is poised to show a loss for this year. So far today, CEL is trading 725,304 shares, triple its normal daily volume of 240,000 shares. TTD sees more on the downside. 
TTD highlighted CEL as a short at our midsession video show on the Web Monday
CEL's stock gapped lower at the opening. It hit an intraday low of $10.28. Later in the day the stock lifted slightly. However, it was not able to mount a significant rally.
TTD's clip of the tape shows the recent big block trades.
One can see the price for the blocks falling from $11.81 a few days ago to $10.35 on Monday morning. A key bearish trade came when a big block of 27,731 shares - the largest in several days - crossed at $10.94. That was down sharply from the $11.39 on the prior trade.
The tape action showed aggressive institutional selling pressure in the morning.
CEL has 3.1 million subscribers. It provides cellular and landline telephony, roaming services for tourists in Israel and for its subscribers abroad and additional services in the areas of music, video, mobile office etc.
The company operates a Generat network enabling the fastest high speed content transmission available in the world.
This year, analysts are forecasting a 32% drop in CEL's earnings to $1.48 a share from $2.17 a year ago. Net for the upcoming first quarter should drop 68% to 28 cents a share from 89 cents the year before.
CEL's daily chart shows the stock trending lower. It tried to form a bottom, but today gaps lower. The stock's TTD momentum indicator (top of chart) is bearish. The accumulation - distribution line (bottom of chart) is trending lower indicating consistent selling pressure.
Strategy Opinion: TTD is targeting CEL for a drop to 8.30 within the next few months, or sooner. A protective stop buy can be placed near 11.20.
| TTD's Quality Rating of Stock - CEL - 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.)
