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Weekly - Bullish Investors Go To TTD Bargain Setups - Feature - Monday, May 17 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, May 17 |
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Go to Video Show - "How to Make Money With Breakout Stocks" Go to Video Show -TTD Performance 2008 Long and Short |
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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 Trading Strategies Overview and Performance Bullish 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" (swing trades). Ideally suited for entry into stocks on pullbacks within overall up trend. Good for trading range markets Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns Conservative Bearish Investors (swing traders). "Bargain Bearish Plays" to Sell Short. Ideally suited for trading range markets with overall market down trend. |
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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 These are for conservative bullish Investors The strategy is called swing trading. These long buys are ideally suited for entry into stocks on pull backs within overall up trend. They are good for trading range markets. These stocks can give a good return in a week or two. They can also explode into a breakout and a powerful advance.
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 Bearish bargain play stocks to sell short. These issues are usually in down trends and are poised to rollover after a minor rally. They often can provide a conservative bear with a good entry point.
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 - 0
Stocks Screened - 8,200
Bull side - No breakouts today. Stock market continues to act bearish. Bulls be patient and selective on breakouts, perhaps scaling-in. TTD looks for a consolidation to eventually evolve. Next few sessions may tell the story.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bearish, Nasdaq Bearish
(No breakouts today. So, TTD features a recent breakout play)
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TTD's Quality Rating of Stock - SUMR - AVERAGE |
SUMR, based in Woonsocket R.I., produces children's products such as bed rails
and monitors. Annual revenues: $153 million. SUMR's stock rise sharply today with expanding volume to carry it to a new high. The stock had reemerged from a base 5 sessions ago from a breakpoint at 7. It is acting strong despite a volatile stock market. So far today, SUMR is trading 98,368 shares. Its average daily volume is 63,000 shares. 
The stock has been acting well. A look at TTD's 60 minute chart covering the past few sessions shows SUMR pushing back over its breakpoint line near 7.
It retested the support area and is now working higher.
SUMR is a small cap play but one that is working well and has a strong earnings outlook. TTD featured the stock in a prior report.
The stock is thinly traded. It has 15.4 million shares outstanding.
TTD's clip of the tape shows the recent block trades, which are small.
The price for the blocks rose from $7.11 to a peak of $7.80
today.
A key trade came around noon when a block of 4,500 shares traded at $7.80. That was up sharply from the prior block trade at $7.69.
SUMR makes juvenile health, safety and wellness products. They are sold to North American and the United Kingdom retailers.
The company has some 80 products. They include nursery audio/video monitors, safety gates, durable bath products, bed rails, related health and safety products, booster and potty seats, bouncers and a product line of soft goods/bedding.
SUMR's 12- month performance chart shows the stock appreciating a sensational 290% versus a 12% gain for the S&P 500 index.
SUMR's long-term chart shows the stock coming public in 2005 and trading around 5. The stock was dragged lower to $1.05 in 2009 due to the bear market. It has since rebounded strongly and is now near a al-time high.
SUMR's daily chart shows the stock breaking out from a base near 7 a few weeks ago. It then faded back into the base, but did hold above its rising 50-day moving average line.
The stock has since reemerged from the base. Today, it follows through to the upside.
SUMR's TTD momentum indicator (top of chart) is slightly bullish
The accumulation - distribution line ( bottom of chart) is solidly bullish and very supportive of the price. The AD line shows there has been good buying taking place even while the stock has been bouncing around the past few sessions.
This year, analysts forecast a 34% jump in SUMR's net to 50 cents a share from 37 cents a year ago. The stock sells with a price-earnings ratio of just 13.
Going out to 2011, the Street looks for a 33% gain in net with profits hitting 66 cents a share, up from the anticipated 50 cents for this year.
Analysts look for a 16% rise in net for the second quarter to 13 cents a share from 11 cents a year ago. The highest estimate on the Street is at 14 cents a share. TTD sees chances for a positive upside surprise. SUMR tends to top the consensus by one to two cents a share.
Strategy Opinion: TTD is targeting SUMR for a move to 10 within the next few months, or sooner. A protective stop can be placed near 6.70 after a breakout. TTD rates SUMR a good intermediate-term play due to its strong earnings outlook.
Sponsorship: Average. The largest fund holder is four-star rated Perkins Discovery Fund with a modest 0.26% stake. It was a recent buyer of 40,000 shares. SUMR has 15.4 million shares outstanding.
Insider Activity: Slightly Bearish. Wynnefield Partners was a seller in January of 375,000 shares. The latest selling came at $6.41. Four analysts follow the stock and all have a strong buy, up from 2 three months ago.
Stock Performance Chart for 12 months with Quarterly Earnings Markers.
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TTD's Profile Rating Summer Infant Inc. - (SUMR) |
| 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 | 1 | 0 |
(The “breakout List” gives all stocks breaking out of a base of five weeks or more. These stocks have a good chance to trend higher. However, a stop should be used to avoid those that do not work. They are ranked according to percentage change and classified as leaders or other. (Trading strategy: One should buy breakout stocks at breakpoint by using market order or stop buy)
None
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - None - BELOW AVERAGE |
None
Ticker Tape Digest’s Daily List of “Stocks To 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 - 7
Stocks Screened - 8,2007
Long-Term Environment for bears: Neutral.
Bear Side - Modest number of breakdowns today. Bears be selective. There is potential for more on the downside.
(Trading strategy: These stocks can be sold short, or if held should be sold. If a stock is sold short, a protective stop buy should be placed. Short plays work best when the stock market is in a down trend.)
. SNDA, based in .China, produces interactive entertainment products. Annual revenues: $767 million. SNDA's stock cuts below near-term support today to set off a TTD short play. the stock has been trending lower most of this year. Also, profits are expected to decline 12% for the year. So far today, SNDA is trading 400,919 shares. Its average daily volume is 540,000 shares. 
SNDA's stock headed lower in the morning. It touched a low of 41.73 around noon. In the afternoon it trended sideways unable to generate any lift.
TTD's clip of the tape shows the big block trades recently. The key selling day came late last week when several blocks crossed and the price for the block declined from $45.16 to $44.49.
SNDA operates a service platform on which users enjoy a array of online entertainment content, including massively multi-player online role-playing game, casual games, light casual games, and online literature.
This platform offers certain services to Internet content providers such as Shanda Games and Shanda Literature, as well as third-party independent content providers, as a turnkey solution to distribute their content to its large and diverse user base. The Company supports the operation of Shanda Games which operated 13 MMORPGs and nine advanced casual games.
This year analysts forecast a 12% decline in net to $2.97 a share from $3.36 a year ago. Net for the upcoming first quarter should be down 11% and then in the second quarter down 22%.
SNDA's chart shows the stock falling from 58 to 38. It rallied modestly and then moved sideway. It is now breaking to the downside.
Strategy Opinion: TTD is targeting SNDA for a decline to 26 within the next few months, or sooner. We see the stock as a trading short. A protective stop buy can be placed near 44.50.
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. Some of the charts are from Telescan, Insight Trading, First Alert and other sources.)
