Ticker Tape Digest

Tuesday - February 20, 2018

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 Accumulation Trades.

  We also feature stocks under Significant Accumulation that are poised to breakout.

   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.

Tuesday - February 20, 2018

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  7

Quality of Breakouts -  Average

Stocks Screened - 12,234

Bull side -  Small list of breakouts and very selective. Bulls be conservative.

Stock market  -  Bullish, except for the daily Dow, which took a big hit with the drop in WalMart's stock. Market pattern overall indicates a trading range. Earnings will continue and may have a further influence on market direction.

Stock Market Momentum

(Daily is based on a moving average)

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action - Tuesday

(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. They are ranked according to percentage change and classified as leaders or other. (Trading strategy: One should buy breakout stocks at breakpoint by using market order or stop buy)All Timely Breakout Stocks From Tape Action Today )  

Today's Featured TTD Breakout Stock

Mitel Networks Corp. (MITL) - 9.27, up 0.18 - Breakpoint 9.16

Net to Surge 58% This Year, TTD Targets 12

  MITL, based in Ottawa, Canada, provides business communications services covering software and cloud services. Annual revenues: $988 million. MITL breaks out Tuesday from an 18-week, cup-and-handle base.

  So far today, MITL is trading a heavy 2.7 million shares, almost triple its average daily volume of 966,000 shares.

  The company will report earnings for the fourth quarter Thursday.

  The Street expects a 32%  jump in net.

  MITL's stock trended sideways in the early morning. Then later in the morning the stock rose and cut across its breakpoint line.

  The stock rose to a peak of $9.31 around noon.

  MITL then trended mostly sideways the rest of the day.

   Tape Action

  MITL's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $9 a share in the prior session to as high as $9.29 on Tuesday.

  A key bullish trade came late on Tuesday when a massive block of 250,000 shares crossed the tape at $9.29.

  That was in a string of blocks that rose from a prior block at $9.09 on 19,800 shares in the morning.

   Business

  MITL provides business communications and collaboration software, services and solutions.

 The firm's enterprise segment sells and supports products and services for premise-based customers.

 The cloud unit supports products that are deployed in a cloud environment.

  The company's cloud unit offers private, public, hybrid and mobile software as a service solution for businesses of all sizes.

Charts

  MITL's 12-month performance chart shows the stock appreciating 28% versus a 15% gain for the stock market.

  Insiders have been buyers using stock options at $3.80 to $5.16 a share. They were sellers at $7.94 to $8.39 a share.

  MITL's weekly chart shows the stock coming public in May of 2010 at $11.85 a share. The stock fell back to $1.92 a share by late 2011. The stock then formed a bottom and rallied to a peak at $11.94 a share by mid-2014.  

  The stock then faded back to $6 but is now coming on again.

  MITL's daily chart shows the formation of a cup-and-handle base.

  The breakout clears the resistance line with a big expansion in volume.

  The stocks' CCI momentum indicator is strongly bullish.

  Earnings Outlook:

  MITL will report net for the fourth quarter Thursday. The Street expects net to climb 32% to 29 cents a share from 22 cents the year before.

  The company did miss the prior two quarterly net forecasts by 3 cents a share and 2 cents.

  Overall, net for 2017 is expected to be up 10% to 66 cents a share from 60 cents the year before.

  Looking out to 2018, analysts predict a robust 58% surge in net to $1.04 a share from the anticipated 66 cents for 2017.

  That would give the stock a projected p/e ratio of just 9. So, TTD sees that as very attractive for value-growth investors.

  Net for the first quarter is expected to jump 56% to 14 cents a share from 9 cents the year before.

Strategy Opinion: TTD is targeting MITL for a move to $12 within the next few months, or sooner. A protective stop can be placed near $8.50.  

 TTD rates MITL a good intermediate-term play provided the firm meets earnings estimates.

Suitability:  Aggressive Bulls.

                 TTD's special research of  Stock's Prior Performance:  

Probability - Breakout Success -  Bullish.  MITL has scored some good gains off some of its recent breakouts.

Probability - Earnings Response - Bullish. MITL rose 8 times after the past 14 earnings reports when there was a significant change.

Probability:  Seasonal Success - Extremely Bullish. MITL rose an average of 3.8% in February and a big 7.3% in March the past several years.

           Stock's Prior Performance After A Breakout

(In actual trading, entry and exit points could vary depending on broker execution.

Also, ideal are breakouts to a new 52-week high or better, perhaps all-time highs.)

  Stock's Long-term Chart

   Stock's Performance Chart with Quarterly Earnings Markers vs. S&P 500

Insider Buying in Green  - Insider Selling in Red

   Stock's Monthly Seasonal Performance Chart - Past 5 Years

Showing % Months UP and % Change

Charts of Selected Breakout Stocks

Ticker Tape Digest’s

Stocks To “Sell or Short”

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 -  3

Stocks Screened - 12,234

Long-Term Environment for bears:  Neutral.

Bear Side - Small list of shorts. Stock market falls sharply led by Walmart. Bears be conservative.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Franklin Electric Inc. (FELE) - 39.85, down 4.60

Profits Disappoint, TTD Sees Decline to 34

 FELE, based in Fort Wayne, Ind., makes water and fuel pumping systems. Annual revenues: $950 million. FELE's stock falls sharply Tuesday after the company reported disappointing earnings for the fourth quarter. TTD sees more on the downside.

  So far today, FELE is trading 219,966 shares, almost double its average daily volume of 124,000 shares.

  The company reported fourth quarter net of 42 cents a share.

  That was below the 45 cents share consensus estimate on the Street and the lowest estimate of 43 cents a share.

  FELE's stock gapped lower in the morning and continued south through the day cutting below key technical support.

  The stock finished the session near its low for the day of $39.85.

  That is very bearish.

  Tape Action

  FELE's tape action shows the recent block trades.

  One can see the price for the blocks falling from $44.45 in the prior session to as low as $39.85.

  A key bearish trade came in the morning when a block of 1,399 shares (duplicated) crossed the tape at $42.25.

  That was down from the prior block trade at $44.45 on 1,426 shares the session before.

   Business

  FELE makes water and fuel pumping systems. They consist of submersible motors, pumps, electronic controls and related parts.

  Its water systems unit sells motors, pumps, drives, electronic controls and monitoring devices.

  It also makes motors, pumps, electronic controls and related parts and equipment for use in groundwater, wastewater and fuel transfer applications.  

 Earnings:

  This year, analysts are forecasting a 12% increase in net to $2.12 a share. However, the company issued guidance for this year of $2.16 to $2.28 a share. However, the stock still fell on the news.

  Net for the upcoming first quarter is expected to rise 12% to 37 cents a share from 33 cents the year before.

Charts:   

  FELE's daily chart shows the stock falling sharply through support and with a widening of the daily price spread.

  The 12-month performance chart shows the stock up 10% versus a 15% gain for the stock market.

  The past several months insiders were buyers using stock options at $8.67 to $16 a share. They were sellers at $41 to $45 a share.

Strategy Opinion: TTD is targeting FELE for a decline to $34 within the next few months, or sooner. A protective stop buy can be placed near $41.70.

Suitability: Average Bears.

  TTD's special probability research of  Prior Performance:  

Probability - Earnings Response - Bearish.   FELE rose just 5 times after the past 13 earnings reports when there was a significant change.

Probability:  Seasonal Activity -  Bullish.  FELE rose an average of 3.6% in February and 3.2% in March the past several years. However, it declined an average of 5.1% in April.

   Stock Performance Chart with Quarterly Earnings Markers vs. S&P 500

Insider Buying in Green  - Insider Selling in Red

   TTD takes no responsibility for trading by those using this information. The stocks presented in our report are those we deem the best looking "Day Trades" for the long side. We take no responsibility for the accuracy of this data, although every effort is made to present the information correctly. Copyright Ticker Tape Digest. - 2018

    TTD columnist Leo Fasciocco has covered the stock market for over 30 years. His articles appear in many publications. He has also been  a speaker at the Money Show 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.

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TTD Daily Report is $39. It covers a Morning slide show of charts of stocks breaking out and a TTD

end of day print report covering breakout stocks and shorts.

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(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.)