Daily - Go to TTD's Chart scroller of Breakout and Leading Stocks - Thursday, May 19, 2016 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, May 16, 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 - 4
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list small and very selective. Bulls be conservative. Stock market continues to work lower.
(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 - CRM - ABOVE AVERAGE |
CRM, based in San Francisco, provides enterprise cloud computing solutions. Annual revenues: $6.7 billion. CRM's stock breaks out Thursday from a five-week flat base. The move was triggered by better than expected earnings for the quarter.
TTD highlighted CRM as a breakout at our midsession video show on the Web.
So far today, CRM is trading 13.8 million shares, four times its average daily volume of 3.3 million shares.
CRM's 10-minute chart shows the stock spiking higher and clearing its breakpoint line.
The stock reached a peak of 82.48 in the morning.
The stock then pulled back a bit and then trended sideways the rest of the day.
TTD's tape action shows the recent block trades.
One can see the price for the blocks climbing from $77.72 in the prior session to as high as $82.75 Thursday morning.
A key bullish trade came late on Wednesday when a block of 120,090 shares crossed the tape at $77.87.
That was up from the prior block trade at $77.72 on 22,900 shares.
The tape also shows some profit taking later in the day.
CRM's products focus on customer relationship management to various businesses and industries.
The company offers enterprise cloud computing applications and platform services.
They include sales cloud that enables companies to store data, monitor leads and progress, forecast opportunities, gain insights through relationship intelligence, and collaborate around sales on desktop and mobile devices.
CRM also provides service cloud that enables companies to deliver personalized customer service and support, as well as connects their service agents with customers on various devices.
CRM's 12-month performance chart shows the stock appreciating 15% versus a 3% decline for the stock market.
CRM's long-term chart shows the stock reaching a peak of 18.67 in 2008. The stock then fell back to $5.20 late in 2008 due to the bear market.
Since then, CRM has trended steadily higher making a tenfold move. The stock is a leader.
CRM's daily chart shows the stock climbing from 50 in February to around 77 by April.
The breakout comes on gap move on strong volume. That is bullish.
The stock's CCI momentum indicator (bottom of chart) is strongly bullish.
The accumulation - distribution line compliments the price action.
This fiscal year ending in January of 2017, analysts are forecasting a 354% surge in net.
Analysts expect net of 36 cents a share, up from 8 cents a year before.
The stock sells with a price-earnings ratio of 225. That is high but okay given the earnings growth rate.
Going out to fiscal 20018, the Street projects a 68% jump in net to 61 cents a share from the anticipated 36 cents this fiscal year.
Profits for the upcoming fiscal second quarter ending in July, analysts predict an 83% leap in net to 9 cents a share from 5 cents the year before.
The highest estimate on the Street is at 12 cents a share.
Strategy Opinion: TTD is targeting CRM for a move to 94 cents a share.
A protective stop can be placed near 77 giving the stock room.
TTD sees CRM as a good intermediate-term but best for aggressive investors.
Sponsorship: Excellent. The largest fund holder is 5-star rated Fidelity Contrafund Fund with a 3.8% stake. It was a recent buyer of 235,500 shares.
The largest fund buyer recently was the 4-star rated T. Rowe Price Blue Chip Growth Fund which purchased 1.5 million shares. The fund has a 1% stake.
CRM has 678 million shares outstanding. Institutions hold 88% of the stock and Insiders 6%.
Insider Activity: Bearish. Insiders were recent sellers around $75. They were buyers at $27 using stock options.
Currently, 45 analysts follow the stock, 42 have a buy, the same as three months ago.
CRM has a book value of $7.46 a share.
Stock Performance Chart with Quarterly Earnings Markers.
TTD's Breakout Profile
Rating Salesforce.com Inc. - (CRM) |
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 | 13 | 0 | 1 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - BRC - AVERAGE |
TTD's Quality Rating of Stock - APU - AVERAGE |
TTD's Quality Rating of Stock - CRBP - 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 - 18
Stocks Screened - 8,300
Long-Term Environment for bears: Neutral.
Bear Side - Large list of breakdown stocks Thursday. Bears can be venturesome. Stock market trending lower near-term.
CMCM, based in China, operates a platform that offer mobile and personal computer applications for users and global content distribution channels in China. Annual revenues: $565 million. CMCM's stock falls sharply Thursday and undercuts key technical support.
TTD highlighted CMCM as a short at our midsession video show on the web.
So far today, 4.7 million shares are trading Thursday, six times its average daily volume of 688,000 shares.
CMCM's stock fell sharply in the morning. It touched an intraday low of 11 around midday.
The stock then trended sideways the rest of the day.
CMCM's decline came after the company projected a slowdown in revenue growth.
CMCM's tape action shows the recent block trades.
One can see the price for the blocks falling from $14 in the prior session to $11.01 Thursday.
A key bearish trade came in the morning when a big block of 77,135 shares crossed a $12.08.
That was down from the prior block trade at $14 on 15,968 shares.
The company's applications optimizes mobile and PC Internet system performance and provides real time protection against security threats.
Its mobile and PC applications for users include Clean Master, a junk file cleaning, memory boosting, and privacy protection tool for mobile devices and CM Security, an anti-virus and security application for mobile devices. It also makes other products.
This year, analysts have been forecasting a jump in profits to 63 cents a share from 19 cents a year ago. However, with a slowdown in sales that forecast should come down.
CMCM's daily chart shows the stock gapping lower with big volume. The stock's accumulation - distribution line (bottom of chart) is trending lower and bearish.
Strategy Opinion: TTD is targeting CMCM for a decline to 8.50 within the next few months, or sooner. A protective stop buy can be placed near 12.30.
TTD's Quality Rating of Stock - CMCM - 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.)