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 trades. We also feature stocks under Significant Accumulation that are poised to breakout.
Ticker Tape Digest's
Daily schedule guide for TTD subscribers
1. Pre-market - check Breakout Watch List and Quick Trades.
2. Morning - (11:30 - 12 A.M.) - check breakout stocks tape and breakout chart slide show.
3. Midday (1 P.M.) check TTD Midsession Report and see market video show.
4. After close (4 P.M.) check final TTD Report for day.
Aggressive Investors Bullish - "Breakout Stocks" - ideally suited for bull markets and special situation stocks. Potential for large returns. (See Performance)
Aggressive Investor Bullish- "Quick Trade Stocks" -ideally suited for entry into top performing issues looking for a small quick profit." (See Performance)
Conservative Investors "Bargain Buy Trades for the Long Term." Ideally suited for entry into top performing big cap stocks on pullbacks within overall up trend.(See Performance)
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance)
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 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 email@example.com.For service, email Beverly Owen firstname.lastname@example.org. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 12
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list showing a lot of special situation stocks including several semiconductor plays. Stock market snaps back and holds up trend.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Stock Market Momentum
Market (Daily) - NYSE Bearish, Nasdaq Bullish
Market (Weekly) - NYSE Bearish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - LRCX - ABOVE AVERAGE
LRCX, based in Freemont, Ca., makes semiconductor processing equipment. Annual revenues: $3.7 billion. LRCX's stock breaks out today from a 13-week cup-and-handle base. The move carries the stock to a two-year high. So far today, LRCX is trading a heavy 2.6 million shares, double its average daily volume of 1.3 million shares.
TTD highlighted LRCX as a breakout at our midsession video show on the Web Tuesday.
The stock is part of the strong acting semiconductor sector.
LRCX's stock rose sharply in the morning participating in the stock market's strong rebound.
(see 10-minute chart)
The stock then trended sideways with a slight upward bias. It closed comfortably above its breakpoint.
LRCX's tape action is shown by the recent block trades.
One can see the price for the blocks climbing from $54.58 in the prior session to as high as $55.89.
A key bullish trade came in the morning when a block of 18,053 shares (duplicated) crossed the tape at $54.70.
That was up from the prior block trade at $54,58.
The final block trade near the close went off at $55.89 on a big 98,353 shares.
So, the tape showed very aggressive institutional buying.
LRCX produces semiconductor processing equipment used in the fabrication of integrated circuits.
The company is a leading supplier of front-end wafer processing equipment to the worldwide semiconductor industry.
LRCX's products are used selectively to etch away portions of various films to create an integrated circuit.
LRCX's 12-month performance chart shows the stock appreciating 48% versus a 25% gain for the S&P 500 index.
LRCX's long-term chart shows the stock climbing from $6.63 in 2002 to a peak of 60.82 in 2007, the peak in the prior bull market.
The stock then fell back to 14.72 in 2008 due to the bear market. It has since made a steady recovery. It is in position to make a new high. It needs to hurdle 60.82. If it can do that it could draw in more buying.
LRCX's daily chart shows the stock advancing from 46 back in August to a peak near 55 by October.
The stock then put down a classic cup-and handle type base. The breakout today clears the base as volume picks up.
The TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) showed good buying the past few months.
Analysts are forecasting an 83% surge in LRCX's earnings for the fiscal year ending in June of 2014.
They look for net of $4.07 a share, up from $2.22 a year ago.
The stock sells with a price-earnings ratio of 13. TTD sees that as reasonable.
Looking out to fiscal 2015 ending in June, the Street is projecting net to rise 13% to $4.59 a share from the anticipated $4.07 for fiscal 2014.
For the upcoming fiscal second quarter ending in December of 2013, LRCX's profits should surge 128% to $1.03 a share from 45 cents a year ago. The highest estimate on the Street is at $1.06 a share.
TTD sees chances for an upside earnings surprise. The prior three quarters, LRCX topped the consensus estimate by 10 cents a share, 7 cents and 6 cents. (see table)
Going out to the fiscal third quarter ending in March, earnings growth should accelerate.
Profits are projected to climb 146% to $1.08 a share from the 44 cents a year ago. That is a very bullish fundamental.
Strategy Opinion: LRCX has a lot going for it especially the fact the semiconductor is acting strong.
TTD is targeting LRCX for a move to 67 off this breakout. A protective stop can be placed near 52, which is tight.
TTD rates LRCX a good intermediate-term play.
Sponsorship: Excellent. The largest fund holder is 5-star rated Artisan Mid Cap Value Investor Fund with a 3.2% stake. It was a recent buyer of 141,100 shares. Also, the 4-star rated Vanguard Windsor Fund was a purchaser of 435,100 shares recently. It has a 1.7% stake.
LRCX has 162.4 million shares outstanding. Institutions hold 96% of the stock.
Insider Activity: Bullish. Insiders have been getting a lot of stock options lately. They have done very little selling recently. Back in October the options were granted at $20 to $29 a share.
Currently, 13 analysts follow the stock, 12 have a buy, down from 13 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Lam Research Corp. - (LRCX)
|TTD Check List||Bullish||Bearish||Neutral|
|Near 52-week High||YES|
|Price Trend - Daily||YES|
|Price Trend - Long Term||YES|
|Price Daily Spread||YES|
|Base - A-D||YES|
|Prior Breakout Success||YES|
Charts of Selected Breakout Stocks
|TTD's Quality Rating of Stock - PKG - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - FFIV - AVERAGE|
|TTD's Quality Rating of Stock - RESI - AVERAGE|
|TTD's Quality Rating of Stock - AVGO - AVERAGE|
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 - 2
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Only a few shorts today. Stock market makes sharp rebound from prior heavy selling day. Bears remain conservative.
GTLS, based in Garfield Heights, Ohio, makes engineered equipment for the energy industry. Annual revenues: $1.2 billion. GTLS's stock falls sharply today with heavy volume. The move causes the stock to cut below key technical support. TTD sees more on the downside.
GTLS was highlighted by TTD as a short at our midsession video show on the Web Tuesday.
GTLS is trading a heavy 1.2 million shares, almost triple its average daily volume of 443,000 shares.
The stock fell sharply in the morning with heavy volume. It dropped to an intraday low of 85.90. The stock then lifted a bit and trended sideways the rest of the day.
GTLS's tape action shows the recent block trades.
One can see the price for the blocks falling from $92.19 a few sessions ago to as low as 86.60.
A key bearish trade came on Tuesday when a block of 5,805 shares crossed the tape at $87.75.
That was down sharply from the prior block trade at $89.84 on 14,217 shares.
GTLS makes engineered equipment used in the production, storage and end-use of hydrocarbon and industrial gases.
The company's products are used throughout the liquid gas supply chain for purification, liquefaction, distribution, storage and end use applications.
This year, analysts are forecasting a 31% jump in GTLS's earnings to $3.88 a share from the anticipated $2.95 for 2013. However, net for the upcoming fourth quarter is expected to be up just 3% to 82 cents a share from 80 cents a year ago.
GTLS's chart shows the stock topping out around 130 in October. The stock has since been trending lower. The break below support Tuesday comes with a pick up in volume. The stock's accumulation - distribution line (bottom of chart) is in a sharp down trend indicating heavy selling pressure the past several weeks.
Strategy Opinion: TTD sees GTLS as a trading short. We are targeting the stock for a decline to 80 within the next few months, or sooner. A protective stop buy can be placed near 89.50.
|TTD's Quality Rating of Stock - GTLS - BELOW AVERAGE|
TTD columnist Leo Fasciocco has covered the stock market for over 20 years. His articles appear in many publications. He is also a speaker at the Intershow 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.”
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(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.)