Daily - Go to TTD's Tape of Stock Charts - Wednesday, March 11, 2015
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Daily - Go to TTD's Tape of Stock Charts - Wednesday, March 11, 2015 |
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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, March 9, 2015 |
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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 - 6
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list small and extremely selective. Bulls be conservative. Stock market may need time to attempt a rally and a turn.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Stock Market Momentum
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
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TTD's Quality Rating of Stock - INFN - AVERAGE |
INFN, based in Sunnyvale, Ca. provides digital optical networking systems to telecom carriers, cable operators and other service providers worldwide. Annual revenues: $668 million. INFN's stock breaks out today from a five-week flat base. The move carries the stock to a seven-year high. 
TTD featured INFN as a breakout at our midsession video show on the Web Wednesday.
So far today, INFN is trading 1.5 million shares. Its average daily volume is 1.3 million shares. 
The stock pushed higher in the morning to clear its breakpoint line (see 10-minute chart
The stock hit a morning peak of 18.20, but then slipped back a bit. In the afternoon, INFN came on strong again and hit an intraday high of 18.49.
TTD's clip of the tape shows the recent block trades.
One can see the price for the blocks advancing from $17.93 in the morning to as high as $18.38.
A key bullish trade came in the morning when a block of 5,000 shares crossed the tape at $18.32.
That was up from the prior block trade at $17.93 on 9,931 shares. 
Late in the day a block of 67,424 shares (duplicated) crossed the tape at $18.33.
That was down from the prior trade of 100 shares at $18.34.
INFN makes digital optical networking systems.
Its large-scale photonic integrated circuit incorporates hundred Gigabits per second of transmit and receive capacity and the functionality of more than sixty discrete optical components into a pair of indium phosphide chips.
Infinera's DTN system and PIC technology are designed to provide optical networks that provide operating simplicity, enhanced revenue generation and faster time-to-service.
INFN's 12-month performance chart shows the stock appreciating a sensational 178% versus a 10% gain for the S&P 500 index.
There has been a lot of insider selling the past 12 months (see red bars on chart)
INFN's long-term chart shows the stock coming public in 2007 -the top in the prior bull market - at $26.90. The stock then fell down to $5 by early 2009 due to the bear market. The stock then put in a long-term bottom trading mostly between 5 and 10
The stock broke out to the upside on its long-term chart late last year at 10.
Today's daily chart shows INFN forming a base around 16 to 17 starting in January.
The stock tried to breakout a few sessions ago but stalled.
Today it clears its resistance line.
INFN's TTD momentum indicator (top of chart) is solidly bullish.
The accumulation - distribution line (bottom of chart) is in a solid up trend and compliments the price action.
This year, analysts are forecasting a 45% jump in INFN's earnings to 25 cents a share from 17 cents a year ago.
The stock sells with a price-earnings ratio of 72. That is high but is okay given the strong earnings growth to come this year and next.
For 2016, analysts predict a 78% jump in net to 44 cents a share from the anticipated 25 cents this year.
Net for the upcoming first quarter is expected to rise to 4 cents a share from a loss of 2 cents a year ago. 
The highest estimate on the Street is at 5 cents a share.
INFN tends to top the quarterly Street estimate. (see table)
Going out to the second quarter, net is projected to be down 33% to 4 cents a share from 6 cents the prior year.
Strategy Opinion: INFN is a speculative breakout most suitable for aggressive investors.
TTD is targeting the stock for a move to 23 off this breakout. A protective stop can be placed near 16.89
TTD rates INFN an average intermediate-term play.
Sponsorship: Excellent. The largest fund buyer recently was the 5-star rated Lord Abbett Developing Growth Fund which purchased 2.5 million shares as a new position. It has a 2% stake. Impressive!
The largest fund holder is the 5-star rated Fidelity Growth Co. Fund which purchased 102,000 shares recently. It has a big 9.4% stake.
INFN has 128 million shares outstanding. Institutions hold 60% of the stock and insiders 3%.
Insider Activity: Bearish. Insiders have been steady sellers from $16 to $17. They were buyers using stock options around $7.
Currently, 10 analysts follow the stock, 8 have a buy, down from 9 three months ago. INFN has a book value of $3.82 a share.
Stock Performance Chart with Quarterly Earnings Markers.
| TTD's Breakout Profile
Rating Infinera Corp. - (INFN) |
| 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 | 10 | 0 | 4 |
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - SMG - AVERAGE |
| TTD's Quality Rating of Stock - RAVE - AVERAGE |
| TTD's Quality Rating of Stock - SLGN - AVERAGE |
| TTD's Quality Rating of Stock - XHR - 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 - 13
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Large list of short plays today with some interesting plays. Stock market off slightly. Bears can be venturesome.
VRA, based in Roanoke, Ind., makes ladies handbags and leisure items. Annual revenues: $518 million. VRA's stock falls sharply Wednesday after the company lowered its forecast of earnings for the fiscal second quarter ending April. TTD sees more on the downside. 
TTD highlighted VRA as a short at our midsession video show on the web Wednesday.
VRA said it expects net for the second quarter to be flat to three cents a share.
That is well below the 17 cents a share projected by analysts.
VRA's stock fell sharply in the morning and hit an intraday low of 14.81.
The stock then trended sideways the rest of the session unable to rally.
VRAs' tape action shows the recent block trades. One can see the price for the blocks declining from $18.07 in the prior session to as low as $14.92.
A key bearish trade came in the morning when a block of 50,000 shares crossed the tape at $16.10.
That was down sharply from the prior block trade at $18.07 on 26,450 shares.
VRA's products include handbags, accessories and travel and leisure items. It sells through two reportable segments Indirect and Direct. Its indirect business consists of sale of Vera Bradley products to independent retailers in the U.S. as well as select national retailers and third party e-commerce sites.
Its direct business consists of sales of Vera Bradley products through its stores, its outlet stores, verabradley.com, and its annual outlet sale in Fort Wayne, Indiana.
This fiscal year ending in January of 2016, analysts were forecasting a 20% increase in net to $1.23 a share. That forecast will come down to about $1.05 a share based on current company projections.
VRA's daily chart shows the stock trending lower from 24 back in September to 18 by January. The stock then trended sideways. However, today's drop is sharp coming with expanding volume and a gap move. The stock's accumulation - distribution line (bottom of chart) is very bearish.
Strategy Opinion: The drop in VRA comes as a surprise. TTD is targeting the stock for a decline to 12 within the next few months, or sooner. A protective stop buy can be placed near 16.
| TTD's Quality Rating of Stock - VRA - 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.)
