Ticker Tape Digest

Monday - October 21, 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: 1-480-878-8381.

Monday - October 21, 2019

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts Monday  -  21

Quality of Breakouts -   Average.

Stocks Screened - 12,234

Bull side -  Large list of breakouts with some interesting plays. Aggressive bulls can be venturesome.

Stock market  -  Market remains bullish in all time sectors.

Comment -  Stock market holding in a trading range. Large list of breakouts. Earnings coming in now so one needs to be watchful.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats for Monday - HMST, HSTM, ONB, NWBI, BFIN, HLX, GNTY and BMRC.

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

RPM International Inc. (RPM) - 70.02, up 0.60 - Breakpoint 69.60

Net To Rise 24% in Fiscal 2020 (May), TTD Targets 85

     RPM, based in Medina, Ohio, makes chemical products for construction and painting. Annual revenues: $5.6 billion. RPM's stock moves higher Monday and breaks out from its 12-week flat base.

  The stock is close to making a new all-time high. It needs to surpass $70.49.

  TTD sees more on the upside.

  So far today, RPM is trading 569,522 shares. Its average daily volume is 553,000 shares. 

  RPM's stock gapped higher in the morning and cleared its breakpoint line.

  The stock reached an intraday high of $70.41 around noon.

   Tape Action

  RPM's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $69.42 in the prior session to as high as $70.32 in the early afternoon.

  A key bullish trade came in the morning when a block of 9,667 shares  (duplicated) crossed the tape at $70.09.

  That was up sharply from the prior block at $69.42 on 96,354 shares Friday.

  Near the close a massive block of 75,593 shares crossed the tape.

  That was up from the prior block at $69.99 on 1,400 shares.

  The tape action would indicate significant accumulation late on Monday.

Business

 RPM makes specialty paints, protective coatings, roofing systems, sealants and adhesives.

 The company operates through three segments: Industrial. specialty and consumer.

  RPM's products include: API, Carboline, CAVE, DAP, Day-Glo, Dri-Eaz, Dryvit, Euclid, EUCO, Fibergrate, Flecto, Flowcrete, Grupo PV, Hummervoll, illbruck, Mohawk, Rust-Oleum, Stonhard, TCI, Toxement, Tremco, Tuf-Strand, and Universal Sealants. They are sold in 164 countries.

 Charts

  RPM's 12-month performance chart shows the stock up 18% versus an 8% gain for the stock market.

  However, RPM has been strong the past five months rising about 28%.

  RPM insiders have been buyers in the open market at $59 to $60 a share.

  They were recent sellers at $66.to $68 a share.

  RPM's long-term chart shows the stock climbing from $30 back in 2013 to a peak near $55 by 2016.

  The stock based and then broke out in 2018. It reached a peak at $68 in 2018, based and broke out again and then based a gain.

  RPM's daily chart shows the stock climbing from $54 back in June to a peak near $69 by August. .

  The stock put down a long tight flat base.

 That was a great setup.

  RPM's breakout clears the base.

  The stock's CCI momentum indicator (bottom of chart) is now strongly bullish.

    Earnings Outlook

  RPM's net for the fiscal year ending in May of 2020 is projected to climb 24% to $3.37 a share from the $2.71 the year before.

  The stock sells with a price-earnings ratio of 20. TTD sees that as attractive for value-growth  investors.

  Looking out to fiscal 2021 ending in May, the Street predicts a 21% increase in net to $4.06 a share from the $3.37 expected in fiscal 2020.

  Quarterly earrings growth will be strong and could be the driver for the stock.

  Net for the fiscal second quarter ending in August should leap 40% to 73 cents a share from the 52 cents the year before.

  Profits for the fiscal third quarter ending in February should surge 71% to 24 cents a share from the 14 cents the year before.

  The company beat the Street estimate the past three quarters.

Strategy Opinion:  TTD is targeting RPM for a move to $85 within the next few months, or sooner.

A protective stop can be placed near $65.

Intermediate-Term Rating: Average.

Suitability:   Average Bulls.

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

Probability - Breakout Success - Bullish -  RPM scored some good gains off some of its recent breakouts.

Probability - Earnings Response - Bullish -  RPM rose 9 times after the past 15 earnings reports when there was a significant change in price.

Probability:  Seasonal Success - Very Bullish -  RPM averaged a gain of 0.1% in October and a gain of 5.3% in November 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 for Thursday -  3

Stocks Screened - 12,234

Long-Term Environment for bears:   Unfavorable.

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

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Infosys Ltd. (INFY) - 9.29

Cuts Below Key Support, TTD Sees Drop to 7

   INFY, based in Bangalore, Ind., provides consulting, technology and outsourcing services. Annual revenues: $827 million. INFY's stock falls sharply Monday and undercuts key technical support.

  So far today, INFY is trading a heavy 77.2 million shares, four times its average daily volume 17.7 million shares.

  TTD sees more on the downside. The company is being targeted with charges of  alleged unethical practices by certain parties.

  INFY's stock fell sharply in the morning and undercut key technical support. It touched an intraday low of $8.93.

  The stock then lifted to around $9.40 and trended sideways the rest of the day.

  Tape Action

  INFY's tape action shows the recent block trades.

  One can see the price for the blocks falling from $10.60 in the prior session to as low as $9.05 in the morning.

  A key bearish trade came in the morning when a block of 751,975 shares (duplicated) crossed the tape at $9.14.

  That was up from the prior block the prior session a $10.60 on 2.4 million shares.

   Business

  The company provides business information technology services. It is made up of application development, infrastructure management and engineering services.

 INFY's segments are financial services and Insurance.   

 Earnings:

  This year, analysts are forecasting a 2% increase in net to 55 cents a share from the 54 cents the year before.

  Net for the fourth quarter should be flat at 14 cents a share. The company tends to come in at close to the Street estimate.   

Charts:  

  INFY's daily chart shows the stock gapping lower Monday with big volume.

  INFY's 12-month performance chart shows the stock down 1% versus a 3% gain for the stock market.

Strategy Opinion: TTD is targeting INFY for a decline to 7 within the next few months, or sooner.  A protective stop buy can be placed near 10.40.

Suitability:  Aggressive Bears.

  TTD's probability research of Prior Performance:  

Probability - Earnings Response -  Bearish. -   INFY stock rose 6 times after the past 14 earnings reports.

Probability:  Seasonal Activity - Bearish. -  INFY  declined an average of  5.6% in October in prior years and fell 1.1% in November.

   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.

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 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.)