Ticker Tape Digest

Friday - April 13, 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.

Friday - April 13, 2018

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  4

Quality of Breakouts -  Average.

Stocks Screened - 12,234

Bull side -  Small list of breakouts Friday as market moves lower. Bulls be conservative.

Stock market  -  Daily market averages are now bullish, but the weekly indicators are bearish. Monthly still bullish.  Stock market in a long-term trading range. Bulls be patient as earnings will now be hitting the tape.

Stock Market Momentum

(Daily is based on a moving average)

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action - Friday

(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

F5 Networks Inc. (FFIV) - 155.06, up 6.71 - Breakpoint 153.40

Net To Rise 13% in Fiscal 2018 (Sept.), TTD Targets 185 

  FFIV, based in Seattle, makes software for networking and security. Annual revenues: $2.1 billion. FFIV's stock moves higher Friday and breaks out from a seven-week flat base. The move carries the stock to a new high. That is bullish.

  So far today, FFIV is trading a heavy 1.8 million shares, triple its average daily volume of 580,000 shares.

  The stock was upgraded by William Blair to market outperform.

  TTD featured FFIV as a breakout at our midsession video show on the Web Friday.

  FFIV's 10-minute chart shows the stock gapping higher in the morning to clear its breakpoint.

  The stock reached a peak of $157.20 in the morning.

  The stock then pulled back and trended mostly sideways the rest of the day.

  The stock held well against the stock market's decline.

  Tape Action

  FFIV's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $147 in the prior sessions to as high as $156.78 Friday.

  A key bullish trade came near the close Thursday when a block of 41,035 shares (duplicated) crossed the tape at $148.35.

  That was up from the prior block at $147 on 8,100 shares late on Thursday.

  Near the close Friday a block of 63,374 shares crossed the tape at $155.06.

  That came on a slight down tick from the prior trade at $155.07 on 137 shares.

  Business

  FFIV sells networking products that optimize the security, performance and availability of network applications, servers and storage systems.

The company covers the U.S., Europe, the Middle East, Africa  Japan, and Asia.

FFIV's traffic management operating systems cover software for local and global traffic management, network and application security, access management, Web acceleration and various network services.

Charts

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

  Insiders were recent buyers, but the price was not disclose.

  They were sellers at $142 to $148 recently.

  FFIV's long-term chart shows the stock hitting a bear market low in 2013 at $67.53. The stock rallied to $136.11 by late 2014.

  However, it fell back to $86 by early 2016. Since then FFIV has moved higher and hits a new high Friday.   

  FFIV's daily chart shows the stock climbing from $120 in November to a peak near $153 by early March.

  The stock then trended sideways in a flat base.

  The breakout comes with a gap move on expanding volume.

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

 Earnings Outlook:

  Net for the fiscal year ending in September is expected to rise 13% to $9.43 a share from the $8.38 a year ago.

  The stock sells with a price-earnings ratio of 16. TTD sees that as reasonably.

  Going out to fiscal 2019 ending in September, analysts predict an 8% rise in net to $10.20 a share from the anticipated $9.43 this year.

  Net for the upcoming fiscal second quarter ending in March should be up 16% to $2.26 a share from the $1.95 the year before. The highest estimate is at $2.31 a share.

  TTD sees chances for a good upside earnings surprise. The company topped the consensus the past two quarters by 22 cents a share and 24 cents.

  Looking ahead to the fiscal third quarter, analysts predict a 16% gain in net again. This time to $2.35 a share from the $2.03 the year before.   

Strategy Opinion: TTD is targeting FFIV for a move to $185 off this breakout. A protective stop can be placed near  $150.

Intermediate-Term Rating: Average.

Suitability: Average Bulls.

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

Probability - Breakout Success - Bullish  FFIV has tended to score modest buy solid  gains off its recent breakouts.

Probability - Earnings Response - Neutral.  FFIV rose 5 times after the past 10 earnings reports when there was a significant change.

Probability:  Seasonal Success - Bullish. FFIV rose an average of 0.3% in April and 2.7% in May 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 - 5

Stocks Screened - 12,234

Long-Term Environment for bears:  Neutral.

Bear Side - Small list of shorts Friday. Bears be selective. Stock market in a trading range that is now starting to narrow.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Glaukos Corp. (GKOS) - 27.62, down 3.05

Loss Expected This Year, TTD Sees Drop to 22.50

  GKOS, based in San Clemente, Ca., is a medical firm selling treatments for glaucoma. Annual revenues: $159 million. GKOS's stock gaps lower Friday and undercuts key technical support. TTD sees more on the downside.

  So far today, GKOS is trading a heavy 3.5 million shares, five times its average daily volume of 609,000 shares.

  The stock was downgraded by Stifel Nicolaus from a buy to a hold.

  GKOS's stock fell sharply in the morning and undercut key support. The stock fell to an intraday low of $27 in the late morning.

  It lifted slightly to $28 and then trended sideways the rest of the day.

  Tape Action

  GKOS's tape action shows the recent block trades.

  One can see the price for the blocks falling from $30.67 in the prior session to as low as $27.13 Friday.

  A key bearish trade came in the morning when a block of 27,472 shares crossed at $27.18.

  That was down sharply from the prior block trade at $30.67 on 29,686 shares.

  Business

  GKOS develops products and procedures to treat glaucoma.  It offers iStent, a micro-invasive glaucoma surgery device.

  The iStent is a micro-bypass stent inserted through the small corneal incision made during cataract surgery and placed into Schlemm's canal, a circular channel in the eye that collects aqueous humor and delivers it back into the bloodstream.

   The company is developing three additional products: the iStent Inject, the iStent Supra and iDose.

   The iStent Inject includes two stents pre-loaded in an auto-injection inserter.

 The iStent Supra is designed to access an alternative drainage space within the eye. iDose is a drug delivery system.

 Earnings:

  This year, analysts are forecasting GKOS will show a loss of 38 cents a share. Looking out to 2019, they see a loss of 3 cents a share.

  For the upcoming first quarter, the Street expects a loss of 12 cents a share compared with a profit of 2 cents this year.   

Charts:   

  GKOS's daily chart shows the stock gapping lower with big volume. The stock has been in a down trend since topping out at $52 in 2017.

  GKOS's 12-month performance chart shows the stock down 38% versus a 15% gain for the stock market.

  Insiders were recent buyers using stock options at $1.25 to $1.93 a share. They were also buyers at $23 a share without options. They were sellers at $30 to $41 a share.

Strategy Opinion: TTD is targeting GKOS for a decline to $22.50 within the next few months or sooner. A protective stop buy can be placed near $28.50.

Suitability: Average Bears.

  TTD's special probability research of  Prior Performance:  

Probability - Earnings Response - Bearish.  GKOS rose just 3 times after the past 9 earnings reports when there was a significant change.

Probability:  Seasonal Activity - Slightly Bearish.  GKOS declined an average of 2% in April but rose 7.4% in May 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.

   Distributed by Corona Publishing Enterprises. TickerTape Digest Inc. 1220 W. Sherri, Gilbert, Az. 85233.

  TTD “Professional Report” is available on the Web: $100 per month. Password needed. Published daily - around 20 times a month.  

 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.

 Credit cards accepted. Payable to Corona Publishing Enterprises.

(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.)