Daily - Go to TTD's Tape of Stock Charts - Thursday. May 15, 2014
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Daily - Go to TTD's Tape of Stock Charts - Thursday. May 15, 2014 |
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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, May 12, 2013 |
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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.
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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 - 2
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout small as stock market declines sharply and broadly. Dow back in trading range. Action typical of some bull market tops. Bulls be very cautious.
(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 Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bearish
Ticker Tape Digest's
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TTD's Quality Rating of Stock - VIPS - ABOVE AVERAGE |
VIPS, based in China, is an online discount retailer of clothes and other items. Annual revenues: $1.7 billion. VIPS's stock breaks out today from a ten-week flat base that was setup after a big run up. The breakout today was triggered by strong earnings being reported late in the day. It enabled VIPS to clear its base despite a big drop in the stock market. 
VIPS's stock fell in the morning along with the stock market (see 10-minute chart). Then later in the day it began to recover.
It spurted higher late in the session as news of its strong earnings hit the tape. 
The close near the high of the day bodes well for a follow through in the next session.
VIPS volume swelled to 5.1 million shares, four times its average daily volume of 1.2 million shares.
The company came in with first quarter net of 63 cents a share. That beat Street estimates of 41 cents a share and the highest estimate at 44 cents a share.
Often when a stock can top the highest estimate it will jump on the news and move higher for the next few weeks. TTD sees that possibility with VIPS.
VIPS tape action is shown by the recent big block trades.
One can see the price for the blocks climbing from $145 on Wednesday to as high as $164.46 late on Thursday.
A key bullish block came in the final hour when a block of 10,000 shares crossed the tape at $162.53.
That was up from the prior block at $159.25 on 15,700 shares. 
VIPS is an online discount retailer.
The company offers branded products to consumers in China through flash sales on its vipshop.com website.
It provides a wide selection of various famous branded discount products including apparel for women, men and children, fashion goods, cosmetics, home goods and other lifestyle products.
VIPS is headquartered in Guangzhou.
VIPS 12-month performance chart shows the stock appreciating a sensational 410%. That easily tops the 18% gain for the S&P 500 index.
VIPS long-term chart shows the stock trading at $4 back in March of 2012. The stock streaked higher the next several months and then forming a blow off top in March.
It then fell back and formed its base. The push higher with the leading issue could draw in more buying Friday.
VIPS daily chart shows the stock advancing from 80 back in December to a peak of 180 in March. 
The stock then put down a classic flat base that was well defined.
The breakout today looks solid supported by strong profits.
VIPS' TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) has broken out to the upside.
This year, analysts are forecasting a 129% leap in profits to $2.09 a share from 91 cents a year ago.
The stock sells with a price-earnings ratio of 78. TTD sees that as reasonable given the earnings growth outlook.
Next year, Wall Street projects an 84% leap in profits to $3.84 a share from the anticipated $2.09 a share this year.
Net for the upcoming second quarter is expected to jump 175% to 44 cents a share from 16 cents a year ago. TTD sees chances for an upside surprise. In the quarter, VIPS topped the consensus estimate the past several quarters. (see table).
The highest estimate for the second quarter is at 45 cents a share.
Strategy Opinion: VIPS breakout is impressive coming with the stock market heading down again.
TTD is targeting VIPS for a move to 195 off this breakout. A protective stop can be placed near 158. TTD sees chances for a stock split which could spark up the stock.
TTD rates VIPS a good intermediate-term play as long as earnings meet expectations.
Sponsorship: Very Good. One of the largest fund holder is 5-star rated Driehaus Emerging Markets Growth Fund with a 0.35% stake. It was a recent buyer of 63,371 shares.
The largest fund holder is the 5-star rated T. Rowe Price New Horizons Fund with a 0.57% stake. It was a recent seller of 118,300 shares.
VIPS has 55.6 million shares outstanding. Institutions hold 43% of the stock.
Insider Activity: Not available. Currently, 7 analysts follow the stock, 5 have a buy, up from 3 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
| TTD's Breakout Profile
Rating Vipshop Holdings Ltd. - (VIPS) |
| 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
| TTD's Quality Rating of Stock - NJR - BELOW 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 - 20 - The max.
Stocks Screened - 8,300
Long-Term Environment for bears: Neutral.
Bear Side - Large number of shorts as stock market declines sharply. Bears be selective.
WX, based in China, provides drug and biotec research outsourcing services. Annual revenues: $578 million. WX's stock falls sharply today as earnings disappoint. So far today, WX is trading a heavy 2 million shares, almost five times its average daily volume of 418,000 shares. TTD sees more on the downside. 
TTD highlighted WX as a short at our midsession video show on the Web Thursday.
WX came in with earnings for the first quarter of 24 cents a share, down from 30 cents a year ago.
The 24 cents was below the 34 cents a share expected by the Street.
The stock gapped lower sinking to an intraday low of 29.84 in the morning. The stock then lifted a bit in the afternoon to cut back on its loss.
WX's tape action shows the recent block trades.
One can see the price for the blocks tumbling from $36.15 in the prior session to as low as $30.88 on Thursday.
A key bearish trade came in the morning when a block of 26,323 shares crossed the tape at $32.52. That was down from the prior block at $36.40 on 11,896, shares.
WX is a pharmaceutical, biotechnology and medical device R&D services company, with operations in China and the United States.
It provides a portfolio of laboratory and manufacturing services throughout the drug and medical device R&D process to its customers. That includes pharmaceutical, biotechnology and medical device companies. Its services are designed to assist its customers in shortening the cycle and lowering the cost of pharmaceutical and medical device R&D.
This year, analysts have been forecasting a 9% increase in net to $1.72 a share from $1.57 a year ago. That estimate may come down.
WX's daily chart shows the stock gapping lower with big volume on the earnings miss. The stock's TTD momentum indicator (top of chart) is bearish.
Strategy Opinion: TTD is targeting WX for a decline to 26. A protective stop buy can be placed near 34.
| TTD's Quality Rating of Stock - WX - 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.)
