Ticker Tape Digest

Friday - October 7, 2022  

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 Accumulation Trades.

  We also feature stocks under Significant Accumulation that are poised to breakout.

   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 Swing - 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 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: 1-480-878-8381 or 480-704-3331.

Friday - October 8, 2022

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakout Stocks -  None

Quality of Breakouts - None

Stocks Screened -  6,500

Bull side -  No breakouts as stock market falls sharply Friday. Bear market still in effect.

Stock market - Major averages are still bearish in all time sectors.

Comment -  Bulls need to be conservative waiting for a key turn up and follow through move. Earnings now will be coming in soon.

See Latest Earnings Reports -  A company that tops the Street's earnings estimate has potential to go higher. None

Friday's key earnings beats:

None

Stock Market Momentum

(Daily is based on a moving average)

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action

(The “breakout List” gives all stocks breaking out of a base of five weeks or more. These stocks have a good chance to trend higher. However, a stop should be used to avoid those that do not work.

They are ranked according to percentage change and classified as leaders or other.

(Trading strategy: One should buy breakout stocks near breakpoint by using market order or stop buy.  They can also be bought soon after a follow through move, sometimes on an intraday pullback.

Friday Breakouts

None

No Breakouts Friday

TTD's Features A recent Breakout Stock

Richardson Electronics  (RELL) - 19.50, up 0.38, Breakpoint 18.01

Net To Rise 5% for Fiscal 2023 (May), 52% Next Year, TTD Targets 24

   RELL, based in Lafox, Il., makes engineered solutions, power grid and microwave tubes. Annual revenues: $224 million. RELL's stock moves slightly higher Friday. The move is a follow through on the prior sessions breakout.

  TTD sees potential for more on the upside

  So far today, RELL is trading a heavy 499,949 shares, more than double its average daily volume of 189,000 shares.

  RELL's stock moved higher in the morning getting to an intraday high of $20

The stock then backed off slightly and trended sideways the rest of the day.

The stock was down one cent a share in after-hours trading.

  Tape Action

 RELL's tape action was very bullish.

The stock moved higher in the morning with good buying.

It reached an intraday peak at $20. It then backed off and trended sideways showing good buying near the close.

  Business 

RELL makes  power grid and microwave tubes and related consumables, power conversion and radio frequency and microwave components, high value flat panel detector solutions, replacement parts and tubes.

The company's segments include Power and Microwave Technologies, Canvys and Healthcare.

RELL's makes products used in semiconductor manufacturing and visual technology.

Charts

 RELL's 12-month performance chart shows the stock up 68% versus a 15% loss for the stock market.

 Insider were recent buyers at $4.26 to $11.77 a share using stock options.

They were recent sellers at $13.86 to $16.66 a share.

RELL's long-term chart shows the stock falling from 9.66 back in 2018 down to $3.10 by 2020.

The stock turned and then rallied aggressively to $19.50.

 The daily chart shows the stock rising from $12 in May to $18 by August.

 The stock pulled back. However, it had a big day on Thursday blowing out of its base.

  Friday, it follows through to the upside.

 The CCI  momentum indicator is bullish. 

  Earnings Outlook

 This year ending in May of 2023, analysts predict a 5% rise in net to $1.07 a share from the $1.02 the prior year.

 Going out to fiscal 2024,  the Street projects a 52%  jump in net to $1.63 a share from the anticipated $1.07 this year.

 For the fiscal second quarter ending in November,  net should decline 13% to 26 cents a share from 30 cents the prior year.

  For the fourth, net should be jump 33% to 28 cents a share from 21 cents the prior year.

 The company beat the Street estimate the prior quarter by 21 cents a share. It reported net 45 cents a share while the Street expected 24 cents.

Strategy Opinion: TTD is targeting RELL for a move to $24 within the next few months. A protective stop can be placed near $17.50.

Intermediate -Term Rating: Average.

Suitability:  Average Bulls.

 TTD's special research of Stocks Prior Performance: