Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, May 7 |
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 - 4
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Just a few breakouts. Bulls be patient and selective. Stock market heading down through its trading range. (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
TTD's Quality Rating of Stock - TNGO - ABOVE AVERAGE |
TNGO, based in Orange, Ct., produces communication software. Annual revenues: $105 million. TNGO breaks out today from a 12-week base. The stock had broken out of the base a few weeks ago, but then fell back into the base. The move today is strong and comes after TNGO posted favorable first quarter earnings.
So far today, TNGO is up sharply today. Volume is running at 2 million shares, four times its normal daily volume of 479,000 shares.
TNGO's 10-minute chart shows the stock surging higher in the morning. The stock peaked at 23.05. It then drifted back a bit late in the day.
TNGO reported first quarter net of 9 cents a share compared with a loss of 22 cents a share a year ago. The 9 cents topped the consensus estimate on the Street of 8 cents a share.
The stock responded very bullishly to the news. TNGO came public back in August of 2011 and traded around 11 at that time.
TNGO's tape action shows the recent block trades.
A key bullish trade came in the morning when a block of 19,300 shares crossed the tape at $20.75. That was up from the prior block trade at $19.33.
The following block trade was even more impressive. It came in at $22.35 on 18,000 shares. So, the stock attracted a lot of institutional buying on the earnings news.
TNGO provides communication lifecycle management software and related services.
The company markets software to help companies manage and control their fixed and mobile communications assets and costs.
The software helps companies track sourcing, asset procurement, services provisioning, invoice processing, expense allocation, bill payment, policy enforcement, usage management, and inventory.
TNGO's 12-month performance chart shows the stock appreciating 88% versus a 1% gain for the S&P 500 index.
TNGO's long-term chart shows the stock trading around 12 back in July of last year. The stock then gradually worked its way higher. A key move came when it broke out of base at 16 in mid-February. It climbed to 19 and now breaks out again.
The push to a new high on a breakout could draw in more buying from the new-high crowd on Thursday.
TNGO's daily chart show the stock in a flat base bracketed between 16.50 and 20 roughly through April. The stock broke out from the base, but then faded back. It move out again, faded back.
However, the third time comes with more power, volume and bullish earnings news.
The TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) lags due to a breakdown in late March. The AD line is improving, though. So, that is encouraging.
This year, analysts forecast a profit of 41 cents a share compared with a loss of 18 cents a year ago. The stock sells with a price-earnings ratio of 54. TTD sees that as reasonable given the earnings outlook.
Next year, analysts look for a 34% gain in net to 55 cents a share from the anticipated 41 cents a share this year.
Net for the second quarter should show a 50% gain coming in at 9 cents a share compared with 6 cents a year ago.
The company is forecasting revenues for this year of $142 to $144 million.
Strategy Opinion: TTD is targeting TNGO for a move to 27.50 within the next few months, or sooner. A protective stop can be placed near 19.
TTD rates TNGO an above average intermediate-term play provided earnings meet expectations.
Sponsorship: Very Good. A key fund buyer recently was 4-star rated Lord Abbett Developing Growth Fund which purchased 797,107 shares. It is the largest holder with a 2.3% stake. Also, 4-star rated BMO Small Cap Growth Y Fund purchased 267,700 shares. TNGO has 37.2 million shares outstanding. Institutions hold 32% of the stock.
Insider Activity: Bearish. Insiders have been steady sellers of the stock around $17.48. They were buyers using stock options at 25 cents to 88 cents a share.. Currently, 5 analysts follow the stock, and all have a buy, the same as three months ago.
Stock Performance Chart with Quarterly Earnings Markers
Insider Activity - Buying in Green - Selling in Red
TTD's Breakout Profile
Rating Tangoe Inc. - (TNGO) |
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 | 12 | 1 | 1 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - GSIG - AVERAGE |
TTD's Quality Rating of Stock - DIS - AVERAGE |
TTD's Quality Rating of Stock - IILG - 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 - 14
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Large number of breakdown stocks today as stock market works lower in trading range. TTD's short from Tuesday was Wesco Aircraft Holdings Inc. (WAIR) at 14.18. The stock has declined to $14.01 and is working well for bears.
WTI, based in Houston, produces oil and natural gas. Annual revenues: $996 million. WTI's stock falls sharply today cutting through key technical support with heavy volume. Oil stocks have been weak. Today, the oil sector is down 1.4%. WTI is trading 1.6 million shares, double its normal daily volume of 701,000 shares. TTD sees more on the downside.
TTD highlighted WTI as a short at our midsession video show on the Web Wednesday.
The stock fell sharply in the morning. It hit an intraday low of $16.15. The stock then drifted higher the rest of the day to trim some of its loss.
WTI's tape action is shown by its recent big block trades.
One can see the price for the blocks declining from $19.13 to as low as $16.55 in the morning. The key bearish block trade took place when a block of 19,851 shares crossed the tape at $16.55. That was down from the prior block trade at $19.13.
WTI works the Gulf of Mexico area, including the deep water. They have grown through acquisition and exploration. It holds working interests in over two hundred fields in federal and state waters and a majority of its daily production is derived from wells it operates.
This year, analysts are forecasting a 27% decline in WTI's earnings to $1.73 a share from $2.38 a year ago. Net for the upcoming second quarter is expected to drop 44%.
WTI's daily chart shows the stock cutting below key technical support with a pick up in volume. The stock's TTD momentum indicator (top of chart) has turned bearish.
Strategy Opinion: TTD is targeting WTI for a drop to 13.50 within the next few months, or sooner. A protective stop buy can be placed near 18.50.
TTD's Quality Rating of Stock -WTI - 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.)