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Virgin Mobile USA (VM): A wireless breakout?

"Virgin Mobile USA (NYSE: VM) is one of the strongest issues this year among the low-priced stocks; it has climbed from 76 cents to nearly $5," says technical expert Leo Fasciocco.

Fasciocco is a technician and editor of Ticker Tape Digest, an advisory service that focuses on finding stocks that are breaking out from technical basing patterns.

He suggests, "Based in New Jersey, Virgin Mobile offers wireless subscribers a choice in wireless service and innovative products without annual contracts; annual revenues are $1.3 billion.

"The stock's long-term chart shows VM trading as high as 15. It was dragged lower during the bear market. However, the stock has made the turn and is now in an up trend supported by good earnings prospects.

Continue reading Virgin Mobile USA (VM): A wireless breakout?

Charged up over Visa

In his The Ticker Tape Digest, technician Leo Fasciocco looks for stocks that have broken out of basing patterns; his latest breakout stock is credit card processing firm Visa (NYSE: V).

"Visa manages a group of global payment card brands. It licenses them to financial institutions that issue cards to their customers. The company maintains the largest card service in the world with annual revenue of $6.5 billion.

"The stock soared after it came public. It peaked at 90 and then was swept lower with the bear market. The stock has put in what seems to be a good bottom. The key is for it to kick in an up trend. That is quite possible now, but not a given.

Continue reading Charged up over Visa

Auto parts buck downtrend: Autozone (AZO) & O'Reilly (ORLY)

Leo Fasciocco is a technician focused on "breakout" stocks; in his Ticker Tape Digest, two recent such breakout ideas were both from the out-of-favor auto parts sector: O'Reilly Automotive (NASDAQ: ORLY) and Autozone (NYSE: AZO).

Noting the recent strength in these auto parts stocks -- both have recently rose to new 52-week highs despite the market's sharp declines -- the advisor explains, "Auto parts stocks may see strong product demand as more people keep their car and not buy a new one."

"O'Reilly Automotive is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in the U.S, with annual revenues of $3.1 billion.

Continue reading Auto parts buck downtrend: Autozone (AZO) & O'Reilly (ORLY)

Apollo (APOL) and Devry (DV): Top of the class in adult education

Few stocks are poised to benefit from economic woes and rising unemployment. One group, however, that appears to be an exception is for-profit adult education stocks.

These companies, which operate school campuses and online education programs, are viewed by some as beneficiaries of a growing need for worker retraining and the rising demand for education by those changing careers or re-entering the work force as adults.

Leo Fasciocco is a technical expert, specializing in finding stocks that are "breaking out" -- those moving above previous technical resistance levels or poised to do so.

His two of the latest breakout stocks featured in his The Ticker Tape Digest are both in the for-profit education field: Apollo Group (NASDAQ: APOL) and Devry Inc. (NYSE: DV). Here's his assessment.

"Apollo, based in Phoenix, is the largest for-profit education company, with more than 300,000 students. APOL focuses on working adults and operates 259 campuses and learning centers in 40 states, as well as various international locations.

"Programs range from associate to doctorate degrees in areas such as business, education, health care, technology. The company said it is showing solid enrollment growth. Annual revenues are $3 billion.

"The company recently reported that net for the fiscal fourth quarter excluding special items increased 20% to 75 cents a share from 62 cents a year ago. Revenues for the quarter rose 17%. Analysts had expected net of just 64 cents a share. So, results were a positive surprise.

"For fiscal 2009 ending August 31, analysts predict a 17% increase in net to $3.31 a share from $2.84 a year ago. The stock sells with a price-earnings ratio of 20, which is reasonable.

"Institutional sponsorship is very good. Five-star rated Janus Mid Cap Value Fund was a recent buyer of 550,000 shares. Also, 4-star rated GMO US Quality Equity III Fund recently picked up 779,000 shares.

"Devry, based in Oakbrook Terrace, Il., is one of the largest for-profit education companies, with annual revenues of $1.1 billion. DeVry University offers undergraduate and graduate programs in business and technology fields. They account for 77% of revenue.

"Under its health-care segment, Ross University offers medical and veterinarian programs, and Chamberlain College offers nursing degrees.

"Recently acquired schools add allied health programs. Its professional segment offers review courses through its Becker CPA review and Stalla CFA review programs.

"DV's technicals set up surprisingly well. The momentum indicator is strongly bullish. Recent price action shows good institutional buying interest. However, investors should be patient with this stock; we are looking for a key breakout over 58.50 before entering.

"The company tends to show consistently good earnings growth. This fiscal year ending June 30, analysts predict a 22% increase in net to $2.18 a share from $1.78 a year ago.

"The stock sells with a price-earnings ratio of 23, which is reasonable given the earnings growth rate. Looking out to fiscal 2010, the Street projects a 24% gain in net to $2.69 a share.

"The largest fund holder is 5-star rated Baron Growth Fund with a big 5.2% stake. It has held its position steady. A recent large buyer was 5-star rated Hartford Midcap Fund, which purchased 385,000 shares.

"Over the past 2 years shows, DV's stock has appreciated 120%. That easily outperformed the S&P 500 index which declined 25% over the same time. Recent price action shows good institutional buying interest.

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

Breakout gains 'foreseen' for Oracle (ORCL)

This post is part of a report entitled "Six-pack of technology favorites." You can read about the other top tech stock picks here.

"Technically, Oracle (NASDAQ: ORCL) is now set up nicely in a base for a breakout," says Leo Fasciocco, a technical analyst who specializes in stocks breaking out above previous resistance levels.

In his Ticker Tape Digest, the newsletter advisor explains, "ORCL is in a good spot to be accumulated for a breakout, supported by favorable earnings prospects. And as a big cap play, it is most suitable for conservative investors."

"Oracle, based in Redwood City, California, sells a wide range of enterprise software solutions, including databases, middleware, and applications. With annual revenues of $22.4 billion, ORCL is one of the largest software companies. Its updates and product support are the most profitable segment of its operations. It accounts for 46% of revenues.

"The company has an active acquisition program that is a fundamental component of its strategy. ORCL has spent more than $28 billion in acquisitions the last four fiscal years.

"The stock's long-term chart shows a powerful run up to 40 during the 2000 bull market. It then went south with the stock market. It has since been working its way back. Short-term, the stock rallied from 18 to 23 and has formed a cup-and-handle base. That type of pattern is sometimes found with big caps. The stock is now set up nicely in a base for a potential breakout.

Continue reading Breakout gains 'foreseen' for Oracle (ORCL)

Flir Systems (FLIR): Technician zooms in on thermal imaging

"Flir Systems Inc. (NASDAQ: FLIR) provides thermal-imaging and infrared camera equipment for military, law enforcement, and commercial applications," notes Leo Fasciocco.

In his Ticker Tape Digest, which focuses on stocks showing technical breakouts, he explains, "FLIR has convincingly broken out from a five-week base; the move was boosted by the win of a $359 million contract from the Army."

"FLIR, with annual revenues of $855 million, has been a sensational winner since 2001. It is a beneficiary of the war on terror and the need for equipment to combat it via military and security needs.

"Short-term, the daily chart shows the stock crossing its resistance line at 35.54. The move sends the stock over not only near-term resistance but also over the peak made back in early November. The action indicated very astute institutional buying.

Continue reading Flir Systems (FLIR): Technician zooms in on thermal imaging

Hansen: A 'natural' breakout?

A specialist in "breakout" candidates, Leo Fasciocco sees upside potential in Hansen Natural (NASDAQ: HANS), a maker of sodas, juices and teas.

In his Ticker Tape Digest, the technical advisor says, "The company is showing tremendous profit growth. And at current prices, he says, the shares are attractive for value and growth investors.

The company, he notes, has expanded its drink line to include a wide variety of energy drinks, such as the popular Monster brand. Its other products are fruit juice, smoothies, lemonade, iced tea, and spring water -- most of which are sold under the Hansen's brand name.

He points out that the company is also branching out with soy drinks and juices aimed at toddlers.

Technically, he explains, the stock's daily chart of HANS shows a breakout; its momentum indicator is very bullish and getting stronger. The analys adds, "The accumulation - distribution line is making new peaks. That shows the price advance is being supported by good buying."

Continue reading Hansen: A 'natural' breakout?

Symbol Lookup
IndexesChangePrice
DJIA+203.5210,226.94
NASDAQ+41.622,154.06
S&P 500+23.781,093.08

Last updated: November 10, 2009: 08:10 AM

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