Ticker Tape Digest

Thursday - October 13, 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.

Thursday - October 13, 2022

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakout Stocks -  8

Quality of Breakouts - Above Average

Stocks Screened -  6,500

Bull side - Good number of breakouts with some interesting plays for aggressive bulls.

Stock market - Major averages remain bearish in all time zones, except for the daily Dow.

Comment - Bear market still in place. Averages will need a key follow through to make a turn. Key now will be the big flow of earnings coming. Late October is when the earnings flow kicks in.

See Latest Earnings Reports -  A company that tops the Street earnings estimate has good chances to move higher. Key Earnings beats: BLK. TSM, CMC, WBA, FAST.

Key Earnings Beats

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.

Thursday Breakouts

TTD Feature Breakout Stock

Lamb Weston Holdings Inc. (LW) - 84.85, up 1.97, Breakpoint 83.44

Net To Surge 42% for Fiscal 2023, TTD Targets 100

  LW, based in Eagle, Idaho, sells a variety of potato products. Annual revenues $4.1 billion. LW's stock drives higher Thursday and breaks out from its 8-week, cup-and-handle base.   

  So far today, LW is trading 1.8 million shares. Its average daily volume is 2.1 million shares.

  TTD sees potential for more on the upside.

  LW's stock dipped in the morning to $81.24.

  However, it turned and rallied steadily through the day reaching an intraday peak at $85.77.

  Tape Action

LW's  tape action chart shows modest buying through the day.  

However, late in the session there was some heavy selling.

The A-D line dropped sharply. I

  Business 

LW sells frozen potato products in North America and international markets. They go to   global and regional quick service and full-service restaurant chains, foodservice distributors, and retailers.

The foodservice segment includes frozen potato products sold throughout the United States and Canada to commercial distributors and , restaurant chains.

The Retail segment includes consumer-facing frozen potato products sold primarily to grocery, mass merchants, clubs, and specialty retailers. The Other segment  includes its vegetable, and dairy businesses.

Charts

 LW's 12-month performance chart shows the stock up 48% versus a 15% loss for the stock market.

 Insiders have not done any recent buying.

They were sellers at $69 to $81 a share. 

 LW's long-term chart shows the stock coming public at $32 back in 2016. The stock climbed to a peak at $96.32 by early 20220

The stock fell back to $4020 later in 2020. The stock has since worked back to $83 where it has formed a cup-and-handle base.

 The daily chart shows LWI rising from $64 in June to $83 by August.

 The stock now breaks out with light volume.

 The CCI  momentum indicator is bullish.. 

  Earnings Outlook

 This fiscal year ending in May of 2023, analysts predict a 42% surge in net to $2.96 a share from the $2.08 the prior year.

 Going out to fiscal 2024, the Street projects a 31%  increase in net to $3.88 a share from the anticipated $2.96 this year.

 For the fiscal second quarter ending in November, the Street sees a 44% surge in net to 72 cents a share from the 50 cents the prior year.

Then in the fiscal third quarter the see a more modest 1% rise in net to 74 cents a share from the 73 cents the prior year. 

The company beat the Street estimate the past four quarters by 23 cents a share, 14 cents, 29 cents and 17  cents..

Strategy Opinion: TTD is targeting LW for a move to $100 within the next few months. A protective stop can be placed near $80.

Intermediate -Term Rating: Average

Suitability:  Average Bulls.

 TTD's special research of Stocks Prior Performance: