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Breakout for BTU: Technician buys Peabody Energy

"Coal miner Peabody Energy Corp. (NYSE: BTU) looks hot," says Leo Fasciocco, who focuses on stocks that have broken out from technical basing patterns.

In his The Ticker Tape Digest, he explains, "The stock rose above its break points of $81.20, hitting a new high." He adds, "With net set to surge 70% this year, we see an upside target of $105 per share."

"Peabody, based in St. Louis, is a major producer of coal with annual revenues of $4.7 billion. BTU's coal fuels more than 10% of U.S. electricity generation and 2% worldwide.

"The company has mining operations in Appalachia, the Powder River Basin, and the U.S. Southwest and Midwest, as well as Australia and Venezuela. It also markets, brokers, and trades coal, and develops electricity-generation projects.

"Technically, BTU has broken out from a six-week flat base today with expanding volume. It is part of the strong coal group, which has been one of the strongest acting sectors of the market.

Continue reading Breakout for BTU: Technician buys Peabody Energy

Potash (POT): Fertilzer 'breakout'

"Potash (NYSE: POT) scored a technical breakout by rising above $210," says technical expert Leo Fasciocco. In his Ticker Tape Digest, he says, "With earnings set to soar the stock now targets a move to $265."

"Postash, based in Canada, produces fertilizer. It produces phosphate and nitrogen from 12 facilities in the United States and South America. Fertilizer stocks have been strong due to rising profits reflecting strong demand for their products and rising prices.

"A long term chart shows an extraordinary bull market advance with the rising 170% the past 12 months versus an 8% decline in the S&P 500 index. Now, the stock has broken out from a seven-week flat base. The move carries POT to a new high on expanding volume.

Continue reading Potash (POT): Fertilzer 'breakout'

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

Breakout bet on Deere (DE)

Leo Fasciocco is a technical expert who focuses exclusively on finding breakout candidates. In his Ticker Tape Digest, he looks to agriculture equipment manufacturer Deere & Co. (NYSE: DE).

"Deere, with annual revenues of $24.8 billion, makes agricultural, industrial, forestry, and lawn-care equipment. DE is benefiting from the strong demand for its products in the farm sector. The company is also expanding aggressively in Russia.

"DE has broken out from a 13-week flat base. Its long-term chart shows DE soaring from 20 in 2003 - the start of the prior bull market - to 92. It has been a big winner in the big cap sector. The stock has gained 65% in the past 12 months versus a 5% drop in the S&P 500 index.

"The stock is in a base bracketed between roughly 78 on the downside and 91 on the upside. The breakpoint was set at the key upside resistance of the base. Deere has plowed through that resistance on increasing volume.

Continue reading Breakout bet on Deere (DE)

Gilead (GILD): Bet on biotech breakout

Technical expert Leo Fasciocco seeks stocks that have broken out from technical basing patterns or those he feels are poised to make such a breakout, such as Gilead Sciences (NASDAQ: GILD), which has a "breakout level at $50."

The editor of Ticker Tape Digest explains, "Gilead Sciences, with annual revenues of $4.2 billion, makes therapies to treat life-threatening infectious diseases. It focuses on pulmonary and cardiovascular diseases.

"The company has four products -- Viread, Emtriva, combination pill Truvada, and triple combination Atripla -- in its HIV franchise, as well as Hepsera for hepatitis B. GILD recently received approval for pulmonary arterial hypertension drug Letairis, acquired from Myogen.

"The stock has climbed from $10 to $47 the past five years. It is one of the few stocks now that is knocking on the door of making a new high. With earnings growth to be solid this year and next, we see GILD in a good spot to be accumulated in anticipation of a breakout.

Continue reading Gilead (GILD): Bet on biotech breakout

Best energy ideas: Under the sea and up in the sky

Leo Fasciocco is a technical specialist who focuses on finding breakout buys -- stocks that have broken out from their trading bases and are poised, in his view, to move higher.

In his Ticker Tape Digest he has isolated two intriguing energy plays: Diamond Offshore Drilling Inc. (NYSE: DO) searches for energy below the sea, while solar firm Suntech Power Holdings Co. (NYSE: STP) looks skyward.

The advisor explains, "Diamond Offshore has 30 semisubmersibles, 13 jack-up rigs (mobile drilling platforms), and one drillship. They operate around the world. The company contracts with major oil and gas companies.

"DO's profit outlook is excellent and should be the driver to send the stock higher. Technically, the stock's long-term chart shows a powerful bull market. It has soared from 20 to 113 the past three years, riding the rising price of crude oil.

Continue reading Best energy ideas: Under the sea and up in the sky

Apple (AAPL): A breakout buy

"Apple (NASDAQ: AAPL) is hot," says breakout specialist Leo Fasciocco. The editor of The Ticker Tape Digest notes, "With a breakout above $147, we are now targeting a move to $170.

Fasciocco explains, "We have seen extremely strong accumulation in Apple since late on Friday and a nice gap move higher on Monday on the breakout. Our momentum indicator on the stock is also bullish and the accumulation - distribution line is in a solid up trend."

The advisor notes, "This fiscal year -- ending Sept. 30 -- AAPL should post a big 61% jump in net to $3.71 a share from $2.31 a share a year ago. Next fiscal year 2008, AAPL's net should rise 17% to $4.35 a share from $3.71 a year ago."

The past three quarters AAPL has surprised big on the upside, he observes. It topped the consensus by 21 cents, 24 cents and 36 cents a share the past three quarters. Says Fasciocco, "We see chances for an upside surprise."

He adds, "The stock's valuation is high, with the shares selling at a 40 price-earnings ratio. The key will be to see if AAPL can come up with another big winning product. Thus, a lot will depend on the firm's forecast of earnings and product development news." For now, the advisor has set an intermediate term target of 170 and recommends a rotective stop near 140.

Each day, Steven Halpern's TheStockAdvisors.com features the latest stock picks and investment ideas from the nation's leading financial newsletter advisors.

Zumiez: Sports clothes retailer set to zoom?

"Zumiez (NASDAQ: ZUMZ) a mall-based sporting clothes retailer which markets to 12- to 24 year old, is poised for a breakout," says technician Leo Fasciocco.

The editor of Ticker Tape Digest notes, "With profits forecast to grow 30% for the next two fiscal years, we see good chances for Zumiez to move higher."

The advisor points out that the company has 235 stores and focuses on clothing for action sports as snowboarding, BMX, skateboarding, and surfing. ZUMZ sells popular youth brands like Billabong, Burton, Hurley, Quiksilver, Vans, and Spy Optic, as well as private-label goods.

Technically, he explains, "ZUMZ's chart shows a breakout at $34 and then one at $38. The stock personality tends to show a pattern of breakouts followed by short moves. In other words, the stock is stair-stepping higher. That is typical with its prior patterns and we would expect a breakout soon based on the past action of the stock."

Indeed, he says, "The stock's technicals are ideal." The advisor points to a bullish momentum indicator and an accumulation-distribution line that is in a strong up trend. Overall, he suggests, "That indicates excellent accumulation is still taking place."

Fasciocco is recommending accumulation of ZUMZ as a partial position now with further buying to be done on a move over $42. He is targeting a rise to $52. To protect on the downside, he suggests a trading stop near $36.

For more stock picks from the leading financial newsletter advisors, visit Steven Halpern's free daily website, TheStockAdvisors.com.

Marvel: A breakout buy for Spiderman

Over the past 12 months, Marvel Entertainment Inc. (NYSE: MVL) has lived up to its name, with the stock climbing from $16 to above $27; the stock is now setting up for a breakout and a rally, says Leo Fasciocco -- a technical analyst who looks specifically for stocks that are breaking out from previous resistance areas.

The editor of the Ticker Tape Digest, explains, "The company's success swings on the strength and marketability of its characters. Net income is poised to rise sharply this year, which suggests accumulation of MVL in anticipation of a move higher."

Marvel publishes and licenses products based on its cartoon characters. Fasciocco notes that the firm lends its more than 5,000 characters (Daredevil, Spider-Man, X-Men) to toy development, publishing, and licensing.

Continue reading Marvel: A breakout buy for Spiderman

Symbol Lookup
IndexesChangePrice
DJIA+12.7811,430.21
NASDAQ-8.702,380.38
S&P 500+3.181,277.72

Last updated: August 21, 2008: 09:31 PM

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