Ticker Tape Digest

Friday - August 16, 2019

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 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.

Friday - August 16, 2019

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts Friday  -  10

Quality of Breakouts -  Average

Stocks Screened - 12,234

Bull side -  Large list of breakouts with some interesting plays for aggressive bulls.

Stock market  -  Market averages remain bearish both daily and weekly. Monthly is still holding bullish.

Comment -  TTD sees the stock market still trying to form a bottom. One needs to be very watchful at this time.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats for Friday - QD.

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. )  

Today's Featured TTD Breakout Stock

PagSeguro Digital Ltd. (PAGS) - 51.54, up 5.02 - Breakpoint 48.98

Net To Jump 33% This Year, TTD Targets 60 

    PAGS, based in Sao Paulo, Brazil, provides financial technology solutions to companies in Brazil. Annual revenues: $4.6 billion Brazilian Real. PAGS's stock drives higher Friday and breaks out from its five-week flat base.

  So far today, PAGS is trading a heavy 5.7 million shares, double its average daily volume of 2.4 million shares.

  TTD sees more on the upside. TTD highlighted PAGS as a breakout at our midsession video show on the Web Friday.

  The company reported net for the second quarter that was slightly below Street estimates.

  Key Banc raised its price target for the stock.

  PAGS's stock rose in the morning and cleared its base. It hit an intraday high of $53.43.

  The stock then trended sideways holding the bulk of its gain through the day.

   Tape Action

  PAGS's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $46.52 in the prior session to as high as $51.54 late in the day.

  A key bullish trade came in the morning when a block of 49,875 shares crossed the tape at $49.19.

  That was up from the prior block at $46.52 on 95,277 shares late on Thursday.

  Near the close Friday a massive block of 157,329 shares crossed at $51.54.

  That was up from the prior block earlier in the day at $50.73 on 150,700 shares.

   Business

  PAGS provides  financial technology solutions to micro-merchants, small companies and medium-sized companies in Brazil.

 The company offers multiple digital payment solutions, In-person payments via POS devices that it sells to clients, free digital accounts, and withdrawing account balances.

  Its end-to-end digital enables its customers accept payments and manage their businesses.

   Charts

  PAGS's 12-month performance chart shows the stock appreciating 90% versus a 1% gain for the stock market.

  Insider activity was not available.

  PAGS's long-term chart shows the stock coming public in 2018 at $27.90. The stock moved up to $39.97 by March of last year, but then rolled over and fell to $17.02.

  However, since then, PAGS has climbed sharply tripling and getting to a new all-time high.    

  PAGS's daily chart shows the stock climbing from $24 May to a peak near $48 by July.

  The stock formed a small flat base.

  The breakout Friday is impressive coming with expanding volume and a gap move.

  PAGS's CCI momentum indicator (bottom of chart) is strongly bullish.

  Earnings Outlook

   This year, analysts are forecasting a 33% jump in net to $1.17 a share from the 88 cents the year before.

   The stock sells with a price-earnings ratio of 43. So, the stock is best for a growth investor.

  Looking out to 2020, the Street predicts a 32% gain in net to $1.54 a share from the anticipated $1.17 this year.

  Quarterly earnings will be strong.

  Net for the third quarter should climb 29% to 31 cents a share from the 24 cents the year before.

  The highest estimate on the Street is at 33 cents a share. The company topped the consensus estimate the past four quarters by one cent a share, 2 cents, 2 cents and 4 cents.

  Going out to the fourth quarter, analysts predict a 33% gain in net to 36 cents a share from 27 cents the year before.

Strategy Opinion:  TTD is targeting PAGS for a move to $60 within the next few months, or sooner.

A protective stop can be placed near $47.

Intermediate-Term Rating:  Average.

Suitability:   Aggressive Bulls.

                                 TTD's special research of  Stock's Prior Performance:  

Probability - Breakout Success - Very Bullish -  PAGS scored some big gains off some of its recent breakouts. The stock is in a long-term up trend.

Probability - Earnings Response - Bullish -  PAGS rose 4 times after the past 6 earnings reports when there was a significant change in price.

Probability:  Seasonal Success - Bullish. -  PAGS averaged a gain of 12.9% in August but a decline of  4.2% in September the past several years. 

           Stock's Prior Performance After A Breakout

(In actual trading, entry and exit points could vary depending on broker execution.

Also, ideal are breakouts to a new 52-week high or better, perhaps all-time highs.)

  Stock's Long-term Chart

 Stock's Performance Chart with Quarterly Earnings Markers vs. S&P 500

Insider Buying in Green  -  Insider Selling in Red

   Stock's Monthly Seasonal Performance Chart - Past 5 Years

Showing % Months UP and % Change

Charts of Selected Breakout Stocks

Ticker Tape Digest’s

Stocks To “Sell or Short”

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 -  4

Stocks Screened - 12,234

Long-Term Environment for bears: Neutral.

Bear Side -  Small list of breakdown stocks Friday. Bears be conservative.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Tilrlay Inc. (TLRY) - 31.31

Posts Large Loss, TTD Sees Decline to 26

  TLRY, based in Canada, produces and sells cannabis products to drug distributors. Annual revenues: $43.1 million. TLRY's stock falls sharply Friday and undercuts its key technical support.

  So far today, TLRY is trading 4.7 million shares, four times its average daily volume of 1.3 million shares.

  TTD sees more on the downside.  TTD highlighted TLRY as a short at our midsession video show on the Web.

  TLRY's stock was hit when the company reported a wider than expected loss for the second quarter. It posted a loss of 32 cents a share when the Street expected a loss of only 23 cents a share.

  TLRY's stock moved lower in the morning and undercut key technical support.

  The stock touched an intraday low of $30.58 in the afternoon. It then moved sideways into the close.

 Tape Action

  TLRY's tape action shows the recent block trades.

  One can see the price for the blocks falling from $35.50 in the morning to as low as $31.10 Friday afternoon.

  A key bearish trade came in the morning when a block of 7,000 shares crossed the tape at $33.64. That was down from the prior block at $35.50 on 16,824 shares.

   Business

 TLRY is focused on medical cannabis research, cultivation, processing and distribution of cannabis products worldwide.

Through its subsidiary, FHF Holdings Ltd manufactures, markets and distributes hemp-based consumer products.

It also supplies cannabis to patients worldwide  through its subsidiaries in Australia, Canada and Germany and it produces medical cannabis in Canada and Europe.

 Earnings:

  This year, analysts are forecasting a loss of 98 cents a share compared with a loss of 57 cents a share the year before.

  Looking out to 2020, the Street projects a loss of 49 cents a share.

Charts:  

  TLRY's stock soared to a peak of $300 last year. Since then, the stock has been trending lower.

  TLRY's 12-month performance chart shows the stock up 15%, although it has decline sharply in recent months.   

Strategy Opinion: TTD is targeting TLRY for a decline to $26 within the next few months, or sooner. A protective stop buy can be placed near $33.50

Suitability:   Aggressive Bears.

  TTD's probability research of Prior Performance:  

Probability - Earnings Response - Bearish.  -  TLRY rose zero times after the past 2 earnings reports when there was a significant change in price.

Probability:  Seasonal Activity - Bullish - TLRY averaged a gain of 86% in August and a gain of 120% in September the past several years.

   Stock's Performance Chart with Quarterly Earnings Markers vs. S&P 500

Insider Buying in Green  - Insider Selling in Red

   TTD takes no responsibility for trading by those using this information. The stocks presented in our report are those we deem the best looking "Day Trades" for the long side. We take no responsibility for the accuracy of this data, although every effort is made to present the information correctly. Copyright Ticker Tape Digest. - 2019

    TTD columnist Leo Fasciocco has covered the stock market for over 30 years. His articles appear in many publications. He has also been  a speaker at the Money Show 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 1-480-878-8381 or 480-704-3331

   Distributed by Corona Publishing Enterprises. TickerTape Digest Inc. 1220 W. Sherri, Gilbert, Az. 85233.

  TTD “Professional Report” is available on the Web: $100 per month. Password needed. Published daily - around 20 times a month.  

 TTD Pro Report includes a Morning chart slide show of breakout stocks, a Midsession video-audio show with commentary on breakout stocks and shorts and a Final end of day overall report on breakout stocks for the session, short plays and accumulation plays.  There are other features too such as Quick Trades and Long-term Plays.  

TTD Daily Report is $39. It covers a Morning slide show of charts of stocks breaking out and a TTD end of day print report covering breakout stocks and shorts.

 Credit cards accepted. Payable to Corona Publishing Enterprises.

(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.)