Ticker Tape Digest

Tuesday - March 27, 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 - March 27, 2018

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  3

Quality of Breakouts -  Average

Stocks Screened - 12,234

Bull side -  Small list of breakouts. Bulls be conservative.

Stock market  -   Bearish - The daily and weekly market indicators are all bearish. The long-term indicators are holding bullish. Bulls be patient, watchful and extremely conservative for now.

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

Rayonier Advanced Materials (RYAM) - 21.13, up 1.66 - Breakpoint 20.91

Net To Surge 81% This Year, TTD Targets 26 

  RYAM, based in Jacksonville, Fla. produces cellulose products used in manufacturing. Annual revenues: $961 million. RYAM, bucks the big market drop Tuesday, and moves sharply higher. The move carries RYAM out of its 14-week, cup-and-handle base.

  So far today, RYAM is trading a heavy 2 million shares, double its average daily volume of 921,000 shares.

  TTD sees more on the upside off this breakout.

  RYAM as a beta of 3.68 versus 1.00 for the stock market. That shows RYAM has been three times more volatile than the stock market.

  RYAM's 10-minute chart shows the stock moving higher in the morning and then breaking through its upside resistance.

  The stock reached in intraday peak at $21.56 in the early afternoon and held on even as the stock market took a dive.

  Tape Action

  RYAM's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $19.47 in the prior session to as high as $21.40 Tuesday.

  A key bullish trade came in the morning when a block of 33,266 shares crossed the tape at $20.48.

  That was up from the prior block at $19.47 on 6,811 shares.

  Late in the session a massive block of 116,000 shares crossed the tape at $21.10.

  That was up from  the prior block at $21 on 7,326 shares.

  Business

  RYAM makes cellulose specialties and commodity products used in manufacturing.

The  products are sold throughout the world to companies for use to make cigarette filters, foods, pharmaceuticals, textiles and electronics.

The company focuses on producing various forms of cellulose specialties products, such as cellulose acetate and cellulose ethers.

The Company's production facilities are in Jesup, Georgia, and Fernandina Beach, Fla.

Charts

  RYAM's 12-month performance chart shows the stock appreciating 68% versus a 15% gain for the stock market.

  Insiders were buyers at $13.48 last August. They were light sellers at $13.72.

  RYAM's long-term chart shows the stock coming public in 2014 at $38.25. The stock followed that by dropping steadily to an all-time low of $5.75.

  The stock bottomed and turned up has since climbed $21.13.   

  RYAM's daily chart shows the stock climbing from around $14 in November to a peak near $20 by early January.

  The stock then pulled back, rallies and then formed a flat base.

  The breakout clears key resistance - with a significant pick up in volume. That is important.

  RYAM's CCI momentum indicator (bottom of chart) is strongly bullish.

  Earnings Outlook:

  This year, analysts are forecasting an 81% surge in net to $1.76 a share from the 97 cents the year before.

  The stock sells with a price-earnings ratio of 12. TTD sees that as attractive for value-growth investors.

  Looking out to 2019, the Street is currently forecasting a more modest 11% increase in net to $1.95 a share from the $1.76 this year.

  Quarterly earnings growth will be extremely strong.

  Net for the upcoming first quarter is expected to leap 187% to 43 cents a share from 15 cents the year before.

  The highest estimate is at 46 cents a share. The company beat the Street estimate the past two quarters by 35 cents a share and one cent.

  Net for the second quarter should show an acceleration in growth. Net is expected to surge 236% to 37 cents a share from the 11 cents the year before.

Strategy Opinion: TTD is targeting RYAM for a move to $26 off this breakout. A protective stop can be placed near $19.20.   

Intermediate-Term Rating: Above Average.

Suitability: Average Bulls.

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

Probability - Breakout Success -  Very Bullish.  RYAM has scored some very good gains off its recent breakouts.

Probability - Earnings Response - Modestly Bullish -  RYAM rose 5 times after the past 9 earnings reports when there was a significant change.

Probability:  Seasonal Success - Extremely Bullish - RYAM rose an average of 3.7% in March and 6.2% in April 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 -  9

Stocks Screened - 12,234

Long-Term Environment for bears: Neutral.

Bear Side - Selective list of shorts, but some interesting plays for aggressive bears.  Stock market remains volatile.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Tesla Inc. (TSLA) - 279.18, down 25

Posts Quarterly Loss, TTD Sees Decline to 235

    TSLA, based in Palo Alto, Ca., makes electric cars and solar systems. Annual revenues: $11.8 billion. TSLA's stock falls sharply Tuesday and undercuts key technical support. TTD sees more on the downside.

  So far today, TSLA is trading 13.8 million shares, double its average daily volume of 6 million shares.

  TSLA's stock moved lower in the morning and continued to drive steadily lower through the session.

  The stock ended the day near its low for the session. That is bearish.

  Tape Action

  TSLA's tape action shows the recent block trades.

  One can see the price for the blocks falling from $304 in the morning to as low as $279.18 near the close Tuesday.

  A key bearish trade came in the morning when a block of 200,000 shares crossed the tape at $295.89.

  That was down from the prior block trade at $304 on 76,817 shares.   

  Business

  TSLA makes fully electric vehicles, and energy storage systems.

 The auto unit designs and makes electric vehicles.

 The energy generation and storage unit makes stationary energy storage products and solar energy systems for residential and commercial customers.

 Earnings:

  This year, analysts are forecasting TSLA will show a loss of $6.95 a share compared with a loss of $8.66 the year before.

  Looking out to 2019, the Street is forecasting a profit of $1.82 a share.

  For the upcoming first quarter, the Street expects a loss of $3.11 a share and for the second quarter a loss of $2.02 a share.   

Charts:   

  TSLA's daily chart shows the stock falling sharply below key technical support with a pick up in volume.

  TSLA's 12-month performance chart shows the stock up 5% versus an 11% gain for the stock market.

  Insiders were recent buyers around $181 a share. They were sellers at $311 to $353 a share.

Strategy Opinion: TTD is targeting TSLA for a decline to $235 within the next few months, or sooner. A protective stop buy can be placed near $288.

Suitability: Aggressive Bears.

  TTD's special probability research of  Prior Performance:  

Probability - Earnings Response - Extremely Bearish.  TSLA rose just 3 times after the past 8 earnings reports when there was a significant change.

Probability:  Seasonal Activity - Neutral.  TSLA declined an average of 1.9% in March but rose an average of 9.3% in April the past several years.

   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 Pro Report includes a Morning chart slide show of breakout stocks, a Midsession video-audio show with commentary on breakout stocks and shorts and a Final end of day overall report on breakout stocks for the session, short plays and accumulation plays.  There are other features too such as Quick Trades and Long-term Plays.  

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.)