Ticker Tape Breakouts

11/22/2002 12:00 am EST


Leo Fasciocco

Investment Columnist and Publisher, Ticker Tape Digest

Leo Fasciocco focuses on isolating stocks that are breaking out of significant price consolidations and showing major accumulation. Expanding his highly popular online Ticker Tape Digest Professional Report, the advisor has recently begun the Ticker Tape Digest Technology Report, which tracks high tech and medical tech stocks. Here are Leo’s recent featured "breakout" recommendations.

Cooper Cos. (COO NYSE) makes contact lenses and vision tools. Its CooperSurgical unit specializes in the women's healthcare market. Its products include bone densitometers for diagnosing osteoporosis, colposcopes, and fetal monitors. Annual revenues are $240 million. COO is one of the stronger medical stocks. Its upward momentum, good technicals, and prospects of 30% earnings growth give it a high probability of moving higher during the next few months. Technically, the stock has been under very strong accumulation ever since it turned up from its low point at 40 earlier this year.

“The company should post strong earnings for the fiscal fourth quarter ended Oct. 30. We see net rising 33% to $1.01 a share from 76 cents a year ago. Sales are growing at 20% clip. Going out to fiscal 2003, we anticipate a 28% gain in net to $3.97 a share and in fiscal 2004, a 20% rise to $4.77 a share. The stock’s p/e ratio is only 18 making it a good play on growth at a reasonable price. Conservative investors should consider scaling into positions.  We target  a move to 66 to 68 during the next few months. A protective stop can be placed near 53. We rate COO a very good intermediate-term play due to its strong growth prospects.”

Covance (CVD NYSE) provides clinical trials of potential commercial drugs. Annual revenues are $855 million. Its customers are pharmaceutical, biotech, and medical device firms. The firm is showing strong earnings. This year, we are projecting a 64% surge in profits to 90 cents a share from 55 cents a year ago. Going out to 2003, we look for a 27% increase in net to $1.14 a share. The stock has a price-earnings ratio of 24. That is very low and makes the stock a good growth play for value minded investors. The stock’s sponsorship is very good. Five-star rated Vanguard Health Care Fund is the largest holder with 5.5% of the stock. Top rated Hancock Small Cap Value Fund was a recent buyer of 48,000 shares. 

“Technically, CVD is a recent breakout that is consolidating above its breakpoint and showing good tape action. The stock has potential to move high and can be entered now. The key would be  a follow up move over 23. We see good prospects for that mainly because the stock is showing very good relative strength to the market. We are calling for CVD to advance to 28 within the next few months. A protective stop can be placed near 19.80. We rate CVD a very good intermediate-term play because of the strong earnings outlook.”

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