Daily - Go to TTD's Tape of Stock Charts - Wednesday. May 14, 2014 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, May 12, 2013 |
Go to Video Show - "How to Make Money With Breakout Stocks" |
---|
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) |
---|
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 today - None
Overall Quality of Breakouts - N/A
Stocks Screened - 8,300
Bull side - No quality breakouts today as stock declines. Bulls be on guard. Stock market is split with blue chips advancing while small caps are acting weak and showing a bearish divergence.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Stock Market Momentum
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bearish
Ticker Tape Digest's
None
(There were no quality breakouts. So, TTD features a recent breakout stock)
TTD's Quality Rating of Stock - WWAV - ABOVE AVERAGE |
WWAV, based in Denver sells branded plant-based foods and beverages. Annual revenues: $2.8 billion. WWAV's stock moves higher today to follow through on its breakout on Tuesday. The stock's move was very good since the stock market fell back sharply. So far today, WWAV is trading a heavy 2.4 million shares. Its average daily volume is 1.5 million shares.
TTD highlighted WWAV as a breakout in our Tuesday TTD report. Wednesday, there were no quality breakouts.
WWAV's stock brokeout nicely on Tuesday and held through the close on that day.
Wednesday, WWAV moves higher and hits an intraday peak 31.48 around midday. The stock then drifted lower in the afternoon, but held up for the session.
WWAV's tape action shows the recent block trades.
One can see the price for the blocks climbing from $30.59 in the prior session to as high as $31.33 on Wednesday.
A key bullish trade came in the morning when a block of 35,325 shares crossed the tape at $30.65. That was up from the prior block trade at $$30.59.
WWAV is a consumer packaged food and beverage company.
It sells branded plant-based foods and beverages, coffee creamers and beverages, and premium dairy products throughout North America and Europe.
The company's products include soy milk, flavored creamers, organic milk, yogurt, cheese, butter, sour creams, and whipped creams.
It serves the grocery and natural foods channels in the United States.
WWAV's 12-month performance chart shows the stock appreciating 62% versus a 12% gain for the S&P 500 index.
The stock has had a tendency to move higher after it reports quarterly earnings.
WWAV's long-term chart shows the stock coming public in late 2012 and trading round $19. The stock has worked higher aided by the bull market. It is now at an all-time high of 31.
WWAV's daily chart shows the stock advancing nicely from 20 back in October to a peak near 30 by early March.
The stock then put down a flat base with two shakeouts to the downside. However, it rallied back and then broke out to the upside with good volume.
WWAV's TTD momentum indicator (top of chart) is strongly bullish. It has been mostly bullish for the past several months.
The accumulation - distribution line (bottom of chart) is now pushing higher. It had been lagging but is now in gear to the upside.
This year, analysts are forecasting a 31% jump in profits to 97 cents a share from 74 cents a year ago.
The stock sells with a price-earnings ratio of 31. That is high for a food company but okay at this time due to the strong earnings outlook.
Going out to 2015, the Street projects a 19% jump in profits to $1.16 a share from the anticipated 97 cents this year.
The next two quarter should be very strong!
Analysts are forecasting net for the second quarter will jump 36% to 22 cents a share from 16 cents a year ago. The highest estimate on the Street is at 23 cents a share.
WWAV topped the consensus estimate by a small margin five out of the past six quarters.
Looking out to the third quarter, the Street expects a 33% leap in profits to 25 cents a share from 19 cents a year ago.
Strategy Opinion: TTD is targeting WWAV's stock for a move to 38. A protective stop can be placed near 28.
TTD rates WWAV a good intermediate-term play provided earnings remain on course.
Sponsorship: Excellent. The largest fund holder is 5-star rated T. Rowe Price Mid-Cap Growth Fund with a 4.5% stake. It has held its position steady.
The largest fund buyer recently was the 4-star rated Fidelity Mid-Cap Stock Fund which purchased as a new position 1.8 million shares.
WWAV has 174 million shares outstanding. Institutions hold 88% of the stock.
Insider Activity: Neutral. Some light selling around $29 back in March. Currently, 11 analysts follow the stock, 9 have a buy, up from 8 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
TTD's Breakout Profile
Rating Whitewave Foods Co. - (WWAV) |
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 | 14 | 0 | 0 |
Charts of Selected Breakout Stocks
None
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: Unfavorable.
Bear Side - Breakdown list expands a bit with some interesting plays. Stock market hitting some selling pressure today. Bears can be venturesome. TTD's short from the prior session was Consolidated Water (CWCO) at 11.19. Today, the stock has declined to 10.68.
FOSL, based in Richardson, Tex., sells consumer fashion accessories like watches and clothing. Annual revenues: $3.3 billion. FOSL's stock gaps lower today and undercuts key technical support. The decline was triggered by a weak forecast. So far today, FOSL is trading a heavy 4.5 million shares, nine times its average daily volume of 557,000 shares.
TTD highlighted FOSL as a short at our midsession video show on the Web Wednesday.
The stock fell sharply in the morning. It was unable to rally through the day and continued to move lower. Near the close it had fallen to 100.28.
FOSL came in with first quarter earnings of $1.22 a share, up from $1.19 a year ago. The consensus estimate on the Street was at $1.19 a share.
Sales rose 14%.
For the second quarter, FOSL said sales should rise 8% to 9.5%. That is down from the second quarter a year ago of 11.4%. Also, profit margins will be less than a year ago.
Wall Street is forecasting earnings for the second quarter will decline 15% to 94 cents a share from $1.10 a year ago. Overall, the Street looks for a 12% gain in net to $7.16 a share from $6.37 a year ago.
FOSL's tape action shows the recent block trades.
One can see the price for the blocks falling from $106.50 to $101.51.
A key bearish trade came when a block of 14,900 shares crossed the tape at $103.88. That was down sharply from the prior block at $106.50. The tape action indicated some heavy institutional selling pressure.
FOSL designs and sells consumer fashion accessories. They include men's and women's watches and jewelry, handbags, small leather goods, belts, sunglasses, soft accessories and clothing.
The company’s brand names includes Adidas, Armani Exchange, Burberry, Diesel, DKNY, Emporio Armani, Karl Lagerfeld, Marc By Marc Jacobs, Michael Kors, Michele, Relic, Skagen, Tory Burch and Zodiac.
FOSL's daily chart shows the stock trending lower since peaking at 134 back in November. Today, FOSL gaps lower with big volume. The stock's accumulation-distribution line (bottom of chart) is trending lower indicating heavy selling pressure.
Strategy Opinion: TTD is targeting FOSL for a decline to 86 within the next few months, or sooner. A protective stop buy can be placed near 110.
TTD's Quality Rating of Stock - FOSL - 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.)