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 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 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 - 4
Overall Quality of Breakouts - BELOW AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list small and quality low. Bulls be conservative and patient. Stock market in trading range on a daily basis. Earnings will soon be reported.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Stock Market Momentum
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - DPS - AVERAGE
DPS, based in Plano, Tex., produces beverages like Dr. Pepper and Snapple. Annual revenues: $6.1 billion. DPS's stock breaks out today from an eight-week flat base. The move comes against a backdrop of decline in the overall stock market. So far today, DPS is trading 1.4 million shares. Its average daily volume is 1.3 million shares.
DPS's stock trended mostly sideways through the day holding its ground. (see 10-minute chart)
The stock then lifted late in the day to clear its breakpoint line. In after-hours trading, the stock did spike up to 76.19 from its close on the NYSE of 74.81.
However, the gap move sharply higher represented just two trades each of 100 shares. The first was at 76.63 and the second at 76.19.
DPS block trading on the tape during the day is show below.
One can see the price for the large blocks climbing from $73.17 in the morning to as high as $74.81.
A key bullish trade during the day came in the afternoon when a block of 12,950 shares crossed the tape at $74.66.
That was up from the prior block trade at $73.47 on 50,000 shares.
DPS distributes non-alcoholic beverages in the United States, Canada, Mexico, and the Caribbean.
The company operates in three segments: Beverage Concentrates, Packaged Beverages, and Latin America Beverages.
It offers a portfolio of flavored (non-cola) carbonated soft drinks and non-carbonated beverages including ready-to-drink teas, juices, juice drinks, mixers, and water.
The company's brands includes Dr Pepper, Canada Dry, 7UP, Squirt, Crush, A&W, Peñafiel, Sunkist soda, Schweppes, and Sun Drop.
It also makes Snapple, Hawaiian Punch, Mott's, Clamato, Mr & Mrs T mixers, and Rose's. It sells its products primarily to bottlers, distributors.
DPS's 12-month performance chart shows the stock appreciating 55% versus a 10% gain for the S&P 500 index.
DPS's long-term chart shows the stock coming public in 2008 and trading at 27. The stock fell back to 11.83 in early 2009. Since then the stock has worked its way in a gradual way to 74.81. It has been a star performer in the beverage sector. It is in position to breakout to a new high.
DPS's daily chart shows the stock advancing from 62 in September to 74 by late November.
The stock then put down a flat base with two shakeouts to the downside.
The base is setup above the rising 50-day moving average line.
The stock broke out in the prior session but faded back.
Today, DPS breaks out and holds above its breakpoint line.
The stock's accumulation - distribution line (bottom of chart) is trending sideways and compliments the price pattern.
The TTD momentum indicator (top of chart) has been mostly bullish the past four months.
Analysts are forecasting earnings for 2014 will climb 14% to $3.64 a share from $3.20 the year before.
Profits for the fourth quarter - to be reported - are expected to decline 11% to 86 cents a share from 97 cents the year before.
However, DPS has had a tendency to top the Street estimate. It did that the past five quarters (see table).
Looking ahead to 2015, the Street predicts a 7% rise in net to $3.90 a share from the anticipated $3.64 for 2014.
Profits for the first quarter of 2015 should rise 4% to 77 cents a share from 74 cents the year before.
Strategy Opinion: TTD is targeting DPS for a move to 85 off this breakout. A protective stop can be placed near 71.
DPS is a very conservative breakout play long-term.
Sponsorship: Average. Many index funds hold the stock.
DPS has 194 million shares outstanding. Institutions hold 97% of the stock. Insiders hold less than 1% of the stock.
Insider Activity: Bearish. Insiders have been recent sellers around $71 to $73. Currently, 21 analysts follow the stock, just 2 have a buy, the same as three months ago. DPS has a book value of $12.15.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
DR Pepper Snapple Group Inc. - (DPS)
|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 - FCE.A - AVERAGE|
|TTD's Quality Rating of Stock - DLR - AVERAGE|
|TTD's Quality Rating of Stock - CLVS - BELOW 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 - 15
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Large list of shorts as stock declines sharply. Market in choppy consolidation near-term. Bears remain conservative. TTD's short from Tuesday was CVR Refining (CVRR) at 14.89. Today, the stock has declined to 13.98 and is working well for bears.
FCX, based in Phoenix, mines for copper, gold and silver. Annual revenues: $22.1 billion. FCX's stock gaps lower today and undercuts key technical support. Volume is running at a heavy 53.7 million shares, almost four times its average daily volume of 15.4 million shares.
FCX is being impacted by a decline in copper prices.
TTD highlighted FCX as a short at our midsession video show on the Web Wednesday.
FCX's stock fell steadily during the session. It hit an intraday low of 17.85 in the afternoon. It then lifted late in the day to trim some of its loss.
FCX's tape action shows the recent block trades.
One can see the price for the blocks falling from $19.33 early in the day to as low as $17.99.
A key bearish trade came in the morning when a block of 50,000 shares crossed the tape at $18.98.
That was down sharply from the prior block that crossed at 19.33 on 1,365,835 shares.
FCX mines and mills copper, gold, and silver in Indonesia, It also refines copper concentrates in Spain and Indonesia. They are the world's lowest-cost copper producer and one of the world's largest producers of copper and gold.
Copper prices slumped to their lowest in five years and pushed as much as a tenth of the world's miners into the red, analysts reported.
The price of copper is sliding along with a decline in oil prices and concerns about a growing metal surplus. Slowing demand is principally coming out of China.
For 2014, analysts are forecasting a 26% drop in FCX's earnings to $2.10 a share from $2.82 a year ago. Net for the fourth quarter should tumble 55% to 38 cents a share from 84 cents the year before.
Looking out to 2015, analysts expect net to rise 4% to $2.19 a share from the anticipated $2.10 for 2014.
FCX's daily chart shows the stock trending lower to around 20 by December. The stock tried to form a bottom. However, today, it gaps lower with big volume. FCX's accumulation - distribution line (bottom of chart) is trending lower indicating clear selling pressure.
Strategy Opinion: TTD is targeting FCX for a decline 14.50 within the next few months or sooner. A protective stop buy can be placed near 19.40.
|TTD's Quality Rating of Stock - FCX - 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.”
For information to subscribe to the Ticker Tape Digest Services call: Beverly Owen at 1-480-926-1680. Distributed by Corona Publishing Enterprises. Ticker Tape Digest Inc. P.O. Box 2044 Chandler, Az. 85244-2044. TTD “Professional Report” is available on the World Wide Web: $100 per month. Password needed. “TTD Professional“ Faxed is $200 per month. The TTD Daily Report is $39.95. Credit cards accepted.
(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.)