Daily - Go to TTD's Chart scroller of Breakout and Leading Stocks - Wednesday, April 27, 2016 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, April 25, 2016 |
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 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 - 24
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list large with some good looking plays. Bulls can be venturesome. Stock market consolidating recent advance.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
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
TTD's Quality Rating of Stock - NANO - ABOVE AVERAGE |
NANO, based in Milpitas, Ca., provides high-performance process control metrology and inspection systems used primarily in the fabrication of integrated circuits and sensors. Annual revenues: $187 million. NANO's stock breaks out Wednesday from a five-week flat base.
TTD highlighted NANO as a breakout at our midsession video show on the Web.
The breakout was triggered by a report of strong quarterly earnings.
NANO's stock gapped higher in the morning and cleared its base. (see 10-minute chart)
The stock reached an intraday high of 18.95 in the morning.
It then pulled back slightly and trended sideways the rest of the day.
NANO reported net for the first quarter of 16 cents a share, up from 11 cents a year ago.
That was well above the Street estimate of six cents a share.
NANO's tape action shows the recent block trades.
One can see the price for the blocks climbing from $15.74 in the prior session to as high as $18.50.
A key bullish trade came in the morning when a block of 11,278 shares (duplicated crossed the tape at $16.99.
That was up from the prior block trade at $15.74 on 5,122 shares.
NANO offers automated metrology systems that provide optical critical dimension, thin film metrology, and wafer stress for transistor and interconnect metrology applications; and integrated metrology systems that are installed onto wafer processing equipment.
The company's systems addresses various process control applications, including dimension and film thickness measurement, device topography, and defect inspection.
NANO's process control solutions are deployed in the fabrication of semiconductors and wafer-scale packaging applications.
The company sells its metrology and inspection systems to end customers
NANO's 12-month performance chart shows the stock appreciating 12% versus a 1% decline for the stock market.
One can see heavy insider buying in March. (green bars on performance chart).
NANO's long-term chart shows the stock peaking at $11.71 in 2007. The stock fell back to 80 cents a share during the bear market in late 2008.
The stock then trended higher reaching a peak of 21.56 in 2011. The stock then trended in a range between 10 and 17. It is now poised to breakout of that trading range.
NANO's daily chart shows the stock trending sideways the past few months with upside resistance near 16.
Today NANO drives higher with a gap move to clear its base on expanding volume.
The stock's CCI momentum indicator (bottom of chart) is strongly bullish.
The accumulation-distribution line (bottom of chart) lags.
This year, analysts are forecasting a robust 162% surge in profits to 68 cents a share from 26 cents a year ago.
The stock sells with a price-earnings ratio of 26.
TTD sees that as reasonable and attractive for growth investors.
Going out to 2017, they are forecasting a 62% leap in net to $1.10 a share from the anticipated 68 cents this year.
NANO is poised to show an acceleration in quarterly earnings growth. That is very bullish.
Net for the second quarter is expected to climb 67% to 13 cents a share from 8 cents a year ago.
The highest estimate on the Street is at 14 cents a share. TTD sees good chances for an upside earnings surprise.
The company has met or topped the consensus estimate the past nine quarters. (see table)
Looking out to the third quarter, the Street is predicting a 363% surge in profits to 23 cents a share from 5 cents the year before.
Strategy Opinion: TTD is targeting NANO for a move to 22.50 off this breakout.
A protective stop can be placed near 16. TTD rates NANO a very good intermediate-term play provided earnings meet expectations.
Sponsorship: Below Average. The largest fund holder is the 3-star rated Franklin Small Cap Growth A Fund with a 10% stake - yes 10%. It was a recent seller of 144,600 shares.
A key fund buyer recently was the one-star rated Royce Capital Micro-Cap Inv. Fund which purchased 74,900 shares. The fund has a 0.6% stake.
NANO has 24.4 million shares outstanding. Institutions hold 86% of the stock and insiders have 4%.
Currently, 4 analysts follow the stock and all 4 have a buy, the same as three months ago.
Insider Activity: Slightly Bearish. Insiders were recent buyers using stock options at $7.50 a share. They were sellers at $15.
NANO has a book value of $7.73 a share.
Stock Performance Chart with Quarterly Earnings Markers.
TTD's Breakout Profile
Rating Nanometrics Inc. - (NANO) |
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 | 1 | 3 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - DWA - ABOVE AVERAGE |
TTD's Quality Rating of Stock - TRU - ABOVE AVERAGE |
TTD's Quality Rating of Stock - FIVE - ABOVE AVERAGE |
TTD's Quality Rating of Stock - LLL - 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 - 7
Stocks Screened - 8,300
Long-Term Environment for bears: Neutral.
Bear Side - Small list of breakdown stocks, but some interesting plays. TTD's short from Tuesday was Heidrick & Struggles at 20.57. It fell to 19.85 Wednesday.
CMG, based in Denver, operates Mexican food restaurants. Annual revenues: $4.5 billion. CMG's stock falls sharply Wednesday after the company reported a loss for the first quarter. TTD sees more on the downside.
CMG is trading a heavy 3.9 million shares, almost four times its average daily volume of 955,000 shares.
TTD highlighted CMG as a short at our midsession video show on the Web.
CMG reported a loss for the quarter of 88 cents a share compared with a profit of $3.88 a year before.
The 88 cents a share loss was less than the Street's projected loss of $1.06 a share.
CMG's tape action shows the recent block trades.
One can see the price for the blocks falling from $445.92 in the prior session to as low as $417.12.
A key bearish trade came late on Tuesday when a block of 5,000 shares crossed the tape at $424.50.
That was down from the prior block trade at $445.92 on 8,000 shares.
CMG operated 1,971 Chipotle restaurants in the United States; 11 in Canada; 7 in England; 4 in France; and 1 in Germany. It also operated 13 ShopHouse Southeast Asian Kitchen restaurants serving fast-casual and Asian cuisine.
CMG's daily chart shows the stock falling from 620 in November to 417 in January. The stock rallied to just over 500 by March. The stock then pulled back and tried to form a bottom.. However, Wednesday, the stock cuts below key support.
This year, analysts are forecasting a 60% drop in earnings to $6.11 a share from $15.10 the prior year.
For the upcoming second quarter, the Street expects a 65% plunge in net to $1.56 a share from $4.45 a year before.
Strategy Opinion: TTD is targeting CMG for a decline to 350 within the next few months. A protective stop buy can be placed near 435.
TTD's Quality Rating of Stock - CMG - 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.)