Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Tuesday, May 20
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Go To TTD's Pre-Market Opening Breakout Watch Stock Lists Tuesday, May 20 |
| Go to Video Show - "How to Make Money With Breakout Stocks" |
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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 breakout and Short Selling report.
It contains Breakout Stocks and Stocks under 
Significant Accumulation.
Data is from tape action for the day. These stocks are most suitable for aggressive investors seeking ideal entry points for leading stocks.
These stocks will do very well during bull markets and strong market rallies.
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 corrections
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.
TTD often suggests using stop buy orders to enter. It is very important to buy a breakout stock as close as possible to the break point. 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.
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.
Total Buy Breakouts so far today - 6
Stocks Screened - 8,200
Bull side - Small list of breakouts today dominated again by the energy sector as crude oil hits $129 a barrel. Bulls be selective.
Long- term Environment for bulls: Neutral
Market Status (Daily) - NYSE Bearish, Nasdaq Bearish
Market Status (Weekly) -NYSE Bearish, Nasdaq Bearish
Market Status (Monthly) NYSE Bullish, Nasdaq Bullish
RRC, based in Fort Worth, Tex., explores and produces natural gas. Annual revenues: $915 million. RRC breaks out today from a five-week flat base and hits a new high. The stock has been a top performer the past six months. So far today, RRC is trading 2.5 million shares which is its average daily volume. TTD highlighted RRC recently as a stock to accumulate in anticipation of a breakout. 
The stock got off to a strong start in the morning. TTD's clip of the tape shows a big block of 15,400 shares crossing the tape on a big up tick to $72.60 from the prior trade at $72.17.
Tuesday, the company had its annual meeting. The board named president and CEO John Pinkerton, chairman and CEO.
RRC's stock has appreciated 105% the past 12 months easily outperforming the S&P 500 which is down about 5%. (See TTD's performance chart)
Range Resources focuses on unconventional natural gas. At the end of 2007, it had 2.8 trillion cubic feet of natural-gas equivalent in reserves, while production averaged about 320 million cubic feet equivalent per day.
The firm's properties are primarily located in Texas and Appalachia.
TTD's long-term chart of RRC shows the stock having a sensational run up from 5 back in 2003 to 75. It is one of the best performers in the energy sector.
TTD's daily chart shows RRC breaking out of its base which is bracketed between roughly 74 and 65. The base is short given the strong prior run up. The technical action would indicate the stock is acting extremely strong.
RRC's accumulation - distribution line (bottom of chart) is trending higher and is technically supportive of the stock's price rise. The TTD momentum indicator (top of chart) is bullish.
RRC is benefiting from the rise in energy prices. This year, analysts predict net will increase 31% to $2.21 a share from $1.69 a share a year ago. The stock sells with a price-earnings ratio of 33.
Going out to next year, Wall Street is anticipating a 6% rise in net to $2.34 a share. TTD thinks it could be higher. However, a lot will depend on the price of energy.
The next two quarters look good for RRC. For the upcoming second quarter, RRC's earnings should increase 21% to 49 cents a share from 41 cents a year ago.
The highest estimate on the Street is at 59 cents a share. That is quite an expectation and hints at chances for an outstanding quarter. The prior quarter, RRC topped the consensus Street estimate by 6 cents a share.
Strategy Opinion: Energy stocks remain hot! TTD is looking for RRC to advance to 87 within the next few months or sooner. A protective stop can be placed near 71 and should be honored. TTD rates RRC more of a trading play. The intermediate-term is clouded because of the expected slowdown in earnings growth.
Sponsorship: Good. Some top funds hold the stock, but they have been shuffling their positions. The largest fund holder is 4-star rated Goldman Sachs Mid Cap Value Fund with a 2.8% stake. It was a recent seller of 1 million shares. However, the 5-star rated Goldman Sachs Large Cap Value Fund was a recent purchaser of 715,000 shares. The company has 150 million shares outstanding. Funds hold 58.5 million shares.
Insider Activity: Neutral. Insiders have been buyers using stock options. They have turned around and sold. The latest buying was around $70. Currently, 17 analysts follow the stock, 11 have a buy, the same as three months ago.
Stock Performance Chart for One Year versus the S&P 500 index.
| TTD's Breakout Profile
Rating Range Resources Corp. (RRC) |
| TTD Check List | Bullish | Bearish | Neutral |
| Near 52-week High | YES | ||
| Volume Expansion | 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 | 13 | 0 | 1 |
(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. (Trading strategy: One should buy breakout stocks at breakpoint by using market order or stop buy)
Charts of Breakout Stocks
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 - 8,200
Long-Term Environment for bears: Neutral
Bear Side - Only a few breakdown stocks today even though the stock market falls sharply. Bears be selective. TTD's feature short from Monday, Converted Organics (COIN) falls 0.76 to 7.29 today, a drop of 9.4%.
(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.)
SMOD, based in Fremont, Ca., makes memory modules and thin-film transistor liquid crystal display products for original-equipment manufacturers worldwide. Annual revenues: $687 million. SMOD falls sharply today in heavy trading after forecasting a weak fiscal third quarter ending May 30. The stock gapped lower at the opening. TTD sees more on the downside. So far today, SMOD is trading 1.1 million shares, four times its normal daily volume of 314,000 shares. 
The stock came under selling pressure late on Monday. TTD's clip of the tape captures a big block of 39,333 shares crossing on a modest down tick to $6.43 from $6.44. The action showed heavy selling pressure before the stock's big drop today.
The company said it expected a loss of 4 to 2 cents a share in the fiscal third quarter. The forecast was a big disappointment and sent the stock down sharply. It said non-GAAP earnings would be 5 to 7 cents a share compared with 17 cents a share a year ago.
The company blamed a difficult pricing situation and the slower than expected ramp of high density memory modules.
The company's customers include: Cisco, Hewlett-Packard, and Motorola. SMOD has plants in Asia, Europe, and the U.S. It went public in 2006 and is controlled by three private-equity funds: Texas Pacific Group, Francisco Partners, and Shah Capital Partners.
For the fiscal year ending August 30, TTD is forecasting a 27% drop in profits to 61 cents a share from 84 cents a year ago.
TTD's daily chart shows SMOD in a decline from 11 to 6 recently. Today's gap breakdown is very bearish and snuffs out any rally try. TTD is looking for SMOD to decline to 4 within the next few months, or sooner. The stock is a good trading play for an aggressive bear.
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.)
