Ticker Tape Digest

Thursday - April 2, 2020

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 or 480-704-3331.

Thursday - April 2, 2020

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts   -  2

Quality of Breakouts -  Below Average

Stocks Screened - 12,234

Bull side -  Small list of breakouts and very selective.

Stock market  -  Major averages remain bearish in all time zones.

Comment -  Small list of breakouts. Bulls be conservative.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats -  BSET, APOG, FC and SCHN.

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

Moderna Inc. (MRNA) - 33.20, up 3.53 - Breakpoint 32.43

Working on Virus, Loss Seen This Year, TTD Targets 40

  MRNA, based in Cambridge, Ma., develops medicines to treat various illnesses. It is working on a treatment for the corona virus.  Annual revenues: $60 million. MRNA's stock surges higher Thursday and breaks out from its six-week flat base.

  So far today, MRNA is trading 16 million shares. Its average daily volume is 17.3 million shares

  MRNA said it is working on phase 2 and 3 clinical trials for a vaccine to treat the corona virus.

  MRNA's stock broke out in the morning and ran up to $33 by the early afternoon.

  The stock then trended sideways into the close holding most of its gain.

  Tape Action

  MRNA's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $29.67 in the prior session to as high as $33.20.

  A key bullish trade came in the morning when a block of 135,634 shares (duplicated) crossed the tape at $30.60.

  That was up from the prior block the day before at $29.67 on 39,114 shares.

  Near the close Thursday a block of 186,102 shares (duplicated) crossed at $33.20.

  That was up from the prior block at $33.02 on 38,708 shares.

  Business

  MRNA works on medicines based on messenger ribonucleic acid (mRNA).

  It has produced a platform to improve the underlying pharmaceutical properties of its mRNA medicines.

  Its platform consists of three areas: mRNA technologies, delivery technologies, and manufacturing processes.

  It is pursuing mRNA science to minimize the undesirable activation of the immune system by mRNA and to maximize the potency of mRNA once in the target cells.

  Its therapeutics and vaccine development programs span infectious diseases, oncology, cardiovascular diseases, and rare genetic diseases.

  It has produced six modalities prophylactic vaccines, cancer vaccines, intratumoral immmuno-oncology, localized regenerative therapeutics, systemic secreted therapeutics and systemic intracellular therapeutics.

   Charts

  MRNA's 12-month performance chart shows the stock up 53% versus a 13% decline in the stock market.

  Insiders were buyers earlier this year at $12 a share.

  They were sellers at $24 to $30 a share.

  MRNA's long-term chart shows the stock coming public at $14.93 last year. The stock climbed to $29, but then fell back to $11 later in the year.

  It has since surged to an all-time high of $36 earlier this year.

  MRNA's daily chart shows the stock trending around $20 a share.

  Then in late February it spiked to $36 on heavy volume.

  The stock then pulled back and formed a flat base that was a bit wide.

  However, it was good action considering the fall in the stock market.

  Thursday, MRNA breaks out with a modest pick up in volume.

  The stock's CCI momentum indicator is solidly bullish.

  Earnings Outlook

  This year, analysts are forecasting a loss of $1.51 a share compared with a loss of $1.55 the prior year.

  Looking out to 2021, the Street predicts a loss of $1.57 a share.

  The key fundamental with the stock is the development of treatment for the corona virus.

  For the first quarter, analysts expect a loss of 37 cents a share compared with a loss of 40 cents the prior year.

Strategy Opinion:  TTD is targeting MRNA for a move to $40 within the next few months, or sooner.

A protective stop can be placed near  $30.

Intermediate-Term Rating: Average.

Suitability:   Very Aggressive Bulls.

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

           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 Price Performance after Reporting Earnings

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

Insider Buying in Green  -  Insider Selling in Red

Charts of Selected Breakout Stocks

TTD's Breakout Watch List - Friday - April 3, 2020

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  - 3

Stocks Screened - 12,234

Long-Term Environment for bears: Neutral.

Bear Side -  Small list of breakouts. Bears be conservative. Stock market is consolidating after its recent big drop.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Walgreens Boots Alliance Inc. (WBA) - 40.32

Net to decline for fiscal 2020 (Aug.), TTD Sees Drop to 34

  WBA, based in Deerfield, Il. operates drug stores and a pharmacy service. Annual revenues: $137 billion. WBA's stock declines Thursday and undercuts key support with a big pick up in volume.

  So far today, WBA is trading a heavy 18.9 million shares, almost double its average daily volume of 10.2 million shares.

  The decline was triggered by concerns about WBA's outlook.

  TTD sees more on the downside, although WBA is a conservative short.

  The company reported net for the fiscal second quarter of  $1.52 a share topping the Street estimate of $1.46 a share. However, it was down from the prior year's $1.64 a share.

  WBA's stock fell in the morning and undercut key technical support.

  The stock did bounce up, but the trended sideways the rest of the day just below its support line.

  WBA has a low beta of 0.70 versus 1.00 for the stock market.

  Tape Action

 WBA's tape action shows the recent block trades.

  One can see the price for the blocks falling from $43.03 in the prior session to as low as $39.98 Thursday.

  A key bearish trade came in the morning when a block of 209,632 shares crossed the tape at $40.16.

  That was down sharply from the prior block at $43.03 on 1.4 million shares.

  Business

 WBA operates in three areas: Retail pharmacy USA, retail pharmacy International and pharmaceutical wholesale.

The USA unit consists of Walgreens. It covers retail drugstores, care clinics and provides specialty pharmacy services.

The retail pharmacy International unit consists  of the Alliance Boots pharmacy-led health and beauty stores, optical practices and related contract manufacturing operations.

  Earnings:

 This fiscal year ending in August the Street expects a 2% decline in net to $5.85 a share from the $5.99 the prior fiscal year.

  Net for the upcoming fiscal third quarter is expected to rise 4% to $1.53 a share from the $1.47 the prior year.

Charts:  

  WBA's daily chart shows the stock declining from $60 earlier this year down to $40.

  WBA's 12-month performance chart shows the stock down 25% versus a 13% decline for the stock market.

  An insider was a seller late last year at $63. There has been no insider buying in recent months.

Strategy Opinion: TTD  is targeting WBA for a decline to $34 within the next few months, or sooner. A protective stop buy can be placed near $43.

Suitability:  Conservative Bears.

  TTD's Stock Probability research of Prior Performance:  

   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. - 2020

    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.)