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 - 19
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Breakout list large with several good looking plays. Bulls be aggressive. Stock market remains in solid up trend.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Market (Daily) - NYSE Bullish, 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- 2012)
TTD's Quality Rating of Stock - VRX - ABOVE AVERAGE
VRX, based in Montreal, develops drugs for neurology and dermatology. Annual revenues: $3.8 billion. VRX's stock breaks out today from an 8-week. The move carries the stock to a new all-time high. So far today, VRX is trading 1.4 million shares. Its average daily volume is 1.35 million shares.
TTD featured VRX as a potential breakout lost week. The stock was also highlighted at our midsession video show on the Web Tuesday.
VRX's 10-minute chart shows the stock pushing higher on Tuesday and clearing its breakpoint. The stock then had a slight pullback.
However, it lifted again and then trended sideways the rest of the day.
VRX's tape action shows the recent block trades.
One can see the price for the blocks working higher from $75.58 to as high as $77.36 in the morning.
A key bullish trade came in the morning when a block of 25,000 shares crossed the tape at $76.63. That was up from the prior block at $75.58.
VRX makes drugs for neurology, dermatology and branded generics.
VRX 's pipeline strategy comprises both new compounds as well as product life cycle management.
Its early and late-stage drug candidates have unique formulations and mechanisms of action including retigabine for the treatment of epilepsy and pain, taribavirin of the treatment of chronic hepatitis C, and several dermatology candidates for the treatment of rosacea, acne, and dermatological fungus.
VRX's 12-month performance chart shows the stock appreciating 52% versus a 22% gain for the S&P 500 index.
VRX's long-term chart shows the stock climbing from 15 back in 2000 to a peak of 57 in 2001. The stock then went into a prolonged bear market for the next seven years that pulled the stock down to 9 by 2008.
However, since then, VRX has rocketed ahead. The stock's push to a new high is bullish. It could draw in more buying on Wednesday.
VRX's daily chart shows the stock advancing from 55 back in October to as high as 76 by April.
The stock then put down a flat base above its rising 50-day moving average line. The base was well formed.
The stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) is bullish and compliments the price.
This year, analysts are forecasting a 29% jump in profits to $5.67 a share from $4.40 a year ago. The stock sells with a price-earnings ratio of just 12. TTD sees that as low making the stock attractive for value-growth investors.
Going out to 2014, the Street looks for a 15% gain in net to $6.50 a share from the anticipated $5.67 this year.
For the upcoming second quarter net should rise 26% and then 33% in the third quarter. That is a modest acceleration in quarterly profit growth, which is bullish.
Net for the second quarter should climb to $1.28 a share from $1.02 a year ago. The highest estimate on the Street is at $1.35 a share.
VRX has a chance to show an upside earnings surprise. It topped the consensus four out of the past five quarters. On one quarter it topped the consensus by 17 cents a share, or by 18%.
Looking ahead to the third quarter, profits should climb to $1.47 a share from the $1.11 the year before.
Strategy Opinion: TTD is targeting VRX for a move to 90. A protective stop can be placed near 72 giving it some room.
TTD rates VRX an above average intermediate-term play provided earnings remain on course.
Sponsorship: Excellent. The largest fund buyer recently was 5-star rated Fidelity Contrafund which purchased 265,000 shares. The largest fund holder is Sequoia Fund with a 3.7% stake. The 5-star rated fund has kept its position steady.
VRX has 303 million shares outstanding. Institutions hold 82% of the stock.
Insider Activity: Bullish. Insider have been buyers of the stock the past few months. Selling has been light. Currently, 15 analysts follow the stock, 10 have a buy, down from 12 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Valeant Pharmaceuticals Inc. - (VRX)
|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 - BBSI - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - MHK -ABOVE AVERAGE|
|TTD's Quality Rating of Stock - VRTU - AVERAGE|
|TTD's Quality Rating of Stock - THRM - 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 - 1
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Only one short play as stock market drives sharply higher. Bears be conservative and selective.
RIO, based in London, is a mining firm with interests in coal, aluminum and gold. Annual revenues: $51 billion. RIO's stock falls today with heavy volume. The move causes the stock to cut below key technical support. TTD sees more on the downside.
So far today, RIO is trading a heavy 6.7 million shares, double its normal daily volume of 2.9 million shares.
The stock gapped lower in the morning. The move sent the stock down to an intraday low of 44.90.
RIO bounced up later in the morning to shave some of its loss. It then trended sideways in the afternoon.
The tape action shows the big block trades.
A key bearish block came in the morning when 50,000 shares crossed the tape at $44.97. That was down sharply from the prior block at $46.21.
Then in the afternoon, a massive block of 4.1 million shares crossed at $45.22. That was down from the prior block at $45.24. The tape indicates heavy institutional selling pressure.
RIO has interests in mining for aluminum, borax, coal, copper, gold, iron ore, lead, silver, tin, uranium, zinc, titanium, dioxide feedstock, diamonds, talc and zircon.
Its mining operations are in New Zealand, Australia, South Africa, Europe and Canada.
This year, analysts are forecasting a 15% increase in net to $5.79 a share from $5.03 a year ago. Going out to 2014, the Street looks for a 2% rise in net.
RIO's chart shows the stock in a down trend. Today it moves lower and most significantly cuts below a minor up trend line. However, the heavy volume is very bearish.
Strategy Opinion: TTD is targeting RIO for a decline to 39 within the next few months, or sooner. A protective stop can be placed near 46.20.
|TTD's Quality Rating of Stock - RIO - 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.)