Daily - Go to TTD's Chart scroller of Breakout and Leading Stocks - Friday, February 5, 2016
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Daily - Go to TTD's Chart scroller of Breakout and Leading Stocks - Friday, February 5, 2016 |
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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, February 1, 2016 |
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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 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 Daily schedule guide for TTD subscribers 1. Pre-market - check Breakout Watch List and Quick Trades. 2. Morning - (11:30 - 12 A.M.) - check breakout stocks tape and breakout chart slide show. 3. Midday (1 P.M.) check TTD Midsession Report and see market video show. 4. After close (4 P.M.) check final TTD Report for day. Trading Strategies Bullish Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. (See Performance) Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." (See Performance) Conservative Investors "Bargain Buy Trades for the Long Term." Ideally suited for entry into top performing big cap stocks on pullbacks within overall up trend.(See Performance) Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance) |
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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 - Long Term. These are for conservative bullish Investors These long-term buys are ideally suited for entry into stocks on pull backs within overall up trend. These stocks can give a good return long-term especially during a bull market.
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 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 high 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 - 4
Overall Quality of Breakouts - ABOVE AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list small and selective. Bulls be conservative market still vulnerable.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Bearish
Stock Market Momentum
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bearish, Nasdaq Bearish
Ticker Tape Digest's
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TTD's Quality Rating of Stock - LITE - ABOVE AVERAGE |
LITE, based in Milpitas, Ca., sells optical and photonic products for optical networking and commercial laser customers. Annual revenues: $830 million. LITE's stock breaks out from an eight-week, cup-and-handle base Friday. 
So far today, LITE is trading 1.8 million shares, triple its average daily volume.
The stock broke out during the prior session, but then pulled back.
Friday, LITE broke out again and held its ground despite the heavy selling in the stock market.
LITE's 10-minute chart shows thes tock clearing its breakpont line in the morning and reaching an intraday peak of $24.40.
The stock held its ground well.
LITE's tape action shows the recent block trades.
One can see the price for the blocks climbing from $22.20 in the prior session to as high as $23.86.
A key bullish trade came late on Thursday when a block of 27,184 shares crossed the tape at $23.24.
That was up from the prior block trade at $22.73 on 47,100 shares. 
The stock finished the day strong with a bullish block of 19,870 shares (duplicated) crossing at $23.79.
That was up from the prior block at $23.40 on 32,680 shares.
LITE operates two business areas: Optical Communications and Commercial Lasers.
The Optical Communications area offers components, modules, and subsystems that enable the transmission and transport of video, audio, and text data over high-capacity fiber optic cables.
It offers optical communication products, including optical transceivers, optical transponders, and supporting components, such as modulators and source lasers; modules or sub-systems containing optical amplifiers.
The commercial lasers segment offers diode, direct-diode, diode-pumped solid-state, fiber, and gas lasers; and photonic power products.
LITE's 9-month performance chart shows the stock appreciating 38% versus a 5% decline for the stock market.
LITE's long-term chart shows the stock coming public in July of last year at 18.60.
The stock shot up to an all-time high of 26.88 in August.
However, the stock turned and fell back to a low of 13.97 by October of last year. The stock has since rallied strongly from the low and Friday breaks out from its base.
LITE's daily chart shows the stock climbing from around 15 in October to a peak near 22 by late December.
The stock formed its cup-and-handle base.
Friday, it breaks out and clears the base.
LITE's TTD momentum indicator is strongly bullish.
The accumulation - distribution line (bottom of chart) lags.
The company reported net for the fiscal third quarter ended in December came in at 24 cents a share. That topped the Street consensus forecast of 17 cents a share.
The stock responded bullishly to the news.
Net for the fiscal year ending in June of 2016 is expected to be 73 cents a share. There was no comparison with a year ago. 
The stock sells with a price-earnings ratio of 31. TTD sees that as reasonable given the earnings growth rate.
Profits for the fiscal third quarter ending in March is expected come in at 13 cents a share. There was no comparision with a year ago.
Going out to fiscal 2017, the Street is projecting a 45% surge in profits to $1.06 a share from the anticipated 73 cents a share anticipated for fiscal 2016.
Strategy Opinion: TTD is targeting LITE for a move to 27 off this breakout. A protective stop can be placed near 21.80.
TTD rates LITE a good intermediate-term play provided earnings meet expectations.
Sponsorship: Excellent. The largest fund holder is the 4-star rated VA CollegeAmerica Amcap 529F Fund with a 5.2% stake. It has held its position steady.
A key fund buyer recently was 5-star rated VA CollegeAmerica New Economy 529F fund which purchased 171,100 shares. It has a 1.4% stake.
LITE has 59 million shares outstanding. Institutions hold 29% of the stock and insiders have 20%.
Insider Activity: Not available.
Currently, 12 analysts follow the stock, 6 have a buy, down from 7 three months ago.
LITE has a book value of $7.92 a share.
Stock Performance Chart with Quarterly Earnings Markers.
| TTD's Breakout Profile
Rating Lumentum Holdings Inc. - (LITE) |
| 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 | 13 | 0 | 1 |
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - TSN - AVERAGE |
| TTD's Quality Rating of Stock - EL - AVERAGE |
| TTD's Quality Rating of Stock - SCBT - ABOVE AVERAGE |
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 - 20
Stocks Screened - 8,300
Long-Term Environment for bears: Bearish.
Bear Side - Large number of shorts Friday as stock market falls sharply. Bears can be venturesome.
SWIR, based in Richmond, B.C., provides cellular wireless solutions to the machine-to-machine and connected device markets in North America, Europe, and the Asia Pacific. SWIR's stock drops sharply due to lower earnings. TTD sees more on the downside.
TTD highlighted SWIR as a short at our midsession video show on the Web Friday.
SWIR came in with net for the fourth quarter of 8 cents a share against 10 cents a year ago.
The results disappointed the Street and the stock fell sharply in the morning and then trended sideways the rest of the day.
SWIR's tape action shows the recent block trades.
One can see the price for the blocks tumbling from $14.69 in the prior session to as low as $11 Friday.
A key bearish trade came in the morning when a massive block of 36,088 shares (duplicated) crossed at $11.73.
That was down sharply from the prior block trade at $14.69 on 11,116 shares.
SWIR operates in two areas, original equipment solutions and enterprise solutions.
The company offers cellular embedded modules, software, and tools to integrate wireless connectivity into various products.
It also provides its products and solutions to the automotive, transportation, enterprise networking, energy, sales and payment, mobile computing, security, industrial monitoring and healthcare industries.
This year, analysts have been forecasting a 13% increase in net to 63 cents a share from 56 cents the year before.
SWIR's daily chart shows the stock trending lower from 25 in November down to 15. Friday, the stock gaps lower with big volume. The stock's accumulation - distribution line (bottom of chart) is trending lower indicating clear selling pressure.
Strategy Opinion: TTD is targeting SWIR for a decline to 9.50 within the next few months. A protective stop buy can be placed near 11.50.
| TTD's Quality Rating of Stock - SWIR - BELOW AVERAGE |
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: Beverly 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.)
