Daily - Go to TTD's Tape of Stock Charts - Thursday. March 6, 2014 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, March 3, 2013 |
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.
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 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 - 19
Overall Quality of Breakouts - Below Average
Stocks Screened - 8,300
Bull side - Breakout list large. Bulls be conservative and selective. Many lagging issues breaking out. Stock market holds near-term up trend.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Stock Market Momentum
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - MTSI - ABOVE AVERAGE |
MTSI, base in Lowell, Ma., provides analog semiconductor solutions for the wireless market. Annual revenues: $327 million. MTSI's stock breaks out today from a six-month flat base. The move carries the stock to 52-week high. MTSI had come public in 2012. So far today, MTSI is trading a heavy 270,179 shares, triple its average daily volume of 95,000 shares.
TTD highlighted MTSI as a breakout at our midsession video show on the Web.
MTSI's stock rose in the morning and cut across its breakpoint line. The stock continued its upward trend during the day. (See 10-minute chart)
Late in the session, more buying came in and push the stock higher enabling it to finish on its high for the session. That is bullish.
MTSI's tape action shows the recent block trades.
One can see the price for the blocks climbing from $18.10 late on Wednesday to a peak of $19.55 near the close on Thursday.
A key bullish trade came in the morning when a block of 5,000 shares crossed the tape at $18.25.
That was up from the prior block trade at $18.
Then later in the session, near the close, a block of 3,125 shares crossed on a big up tick to $19.55 from the prior block at $18.80 on 3,500 shares.
MTSI provides analog semiconductor solutions for use in wireless and wireline applications across the RF, microwave and millimeterwave spectrum.
The company's primary markets are Networks which includes CATV, cellular backhaul, cellular infrastructure and fiber optic applications, A&D and Multi-market, which includes automotive, industrial, medical, mobile and scientific applications.
It's product lines include active splitter, amplifier, attenuator, automotive module, capacitor, component, coupler, diode, down converter IC, filter, frequency multiplier and many other products.
MTSI's 12-month performance chart shows the stock appreciating 19% versus a 21% gain for the S&P 500 index. The stock did show strong insider buying in February, prior to its advance today.
MTSI's long-term chart shows the stock coming public in March of 2012 and trading around $21. The stock took a tumble and fell to 10 by mid-2013. However, sing then the stock has been trending higher. It is part of the semiconductor sector which has been performing well in recent months.
MTSI's daily chart shows the stock breaking out of its base with good volume.
The stock's base goes back about four months.
A key bullish indicator was the earlier breakout of the accumulation - distribution line (see lower chart). That indicated good underlying buying prior to the breakout.
The stock's TTD momentum indicator (top of chart) is strongly bullish.
This fiscal year ending in September, analysts are forecasting a 29% jump in profits to $1.11 a share from 86 cents a year ago.
The stock sells with a price-earnings ratio of just 16. TTD sees that as low making the tech play attractive on a valuation basis.
Earnings for the next two quarters of this year should show an acceleration in growth. TTD sees that as very bullish.
Net for the fiscal second quarter ending in March should climb 18% and then in the second quarter leap 37%.
Net for the first quarter should be 25 cents a share, up from 21 cents a year ago. The highest estimate on the Street for the quarter is 26 cents a share.
Going out to the fiscal third quarter ending in June, analysts look for a 37% gain in profits to 30 cents a share from 22 cents the year before.
Looking ahead to fiscal 2015 ending in September, profits should increase 26% to $1.39 a share from the anticipated $1.11 this fiscal year.
Strategy Opinion: TTD is targeting MTSI for a move to 24 off this breakout. A protective stop can be paced near 17.
TTD rates MTSI a good intermediate-term play due to its solid earnings outlook.
Sponsorship: Very Good. The largest fund holder is the 5-star rated T. Rowe Price Small-Cap Stock Fund with a 1.7% stake. It has held its position steady. Also, the 5-star rated T. Rowe Price Institutional Small Cap Stock Fund is a holder of 0.29% of the stock.
MTSI has 46.9 million shares outstanding. Institutions hold 39% of the stock.
Insider Activity: Slightly Bearish. Some insider selling the past few months around $17. Some stock options granted at 32 cents a share.
Currently,6 analysts follow the stock, and all 6 are bullish, the same as three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
TTD's Breakout Profile
Rating Ma Com Technology Solutions Holdings - (MTSI) |
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 | 11 | 0 | 3 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - BIDU - AVERAGE |
TTD's Quality Rating of Stock - SFUN - AVERAGE |
TTD's Quality Rating of Stock - WOOF - AVERAGE |
TTD's Quality Rating of Stock - POWI - 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 - 4
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of shorts today. Stock market continues to hold near-term up trend. Bears remain conservative. TTD's short from Wednesday was UIL Holding (UIL) at 35.73. Today, UIL has declined to 34.61 and is working well for bears.
EPZM, based in Cambridge, Ma., is a biotech firm working on therapeutics for patients with genetically defined cancers. Annual revenues: $68 million. EPZM's stock falls sharply today. So far today, EPZM is trading 381,632 shares. Its average daily volume is 394,000 shares. TTD sees more on the downside.
EPZM's stock has been a volatile issue this year.
Today, the stock trended lower from the opening bell. It hit an intraday low of 27.29 in the early afternoon.
Afterwards it trended sideways unable to mount a comeback rally.
EPZM's tape action shows the recent block trades.
One can see the price for the blocks declining from $29.55 to as low as $27.70 late on Thursday.
A key bearish block came when in the afternoon when 3,545 shares crossed the tape at $27.07. That was down sharply from the prior block at $29.24.
EPZM systematically identifies the genetic alterations that create cancer causing genes, called oncogenes, select patients in whom the identified genetic alteration is found, and then design small molecule therapeutic product candidates to inhibit the oncogene.
This year, analysts are forecasting EPZM will show a loss of $1.96 a share compared with a loss of 22 cents a year ago. Going out to 2015, they look for a loss of $2.16 a share.
EPZM's daily chart shows the stock cutting below near-term support. The stock's TTD momentum indicator (top of chart) has now turned slightly bearish.
Strategy Opinion: TTD is targeting EPZM for a decline to 22.50. A protective stop buy can be placed at 29.
TTD's Quality Rating of Stock - EPZM - 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: B. J. 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.)