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 - 14
Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list large with some good plays. Stock market consolidating recent advance. Key now will be earnings.
(Put mouse on chart to see Nasdaq)
Environment for bulls: Neutral
Stock Market Momentum
Market (Daily) - Dow Bearish, Nasdaq Bearish.
Market (Weekly) - Dow Bearish, Nasdaq Bullish
Market (Monthly) - Dow Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - BCO - ABOVE AVERAGE
BCO, based in Richmond, Va., provides security services including armored trucks and teller machines. Annual revenues: $3 billion. BCO's stock breaks out from a six-week flat base Wednesday. The stock is now poised to challenge its all-time high of $45.10 set last November.
So far today, BCO is trading 213,492 shares. Its average daily volume is 177,000 shares.
TTD highlighted BCO as a breakout at our midsession video show on the Web Wednesday.
BCO 's stock drove sharply higher in the morning. It touched an intraday peak of $43.25 in the morning.
The stock then fell back and trended sideways for most of the day.
Then in the final hour it pushed higher again to close near its peak for the day. That is bullish.
BCO's tape action shows the recent block trades.
One can see the price for the blocks climbing from $42.45 in the prior session to as high as $43.20.
A key bullish trade came in the morning when a block of 5,100 shares crossed the tape at $42.85.
That was up from the prior block at $42.45 on 3,739 shares.
Then near the close a block of 13,768 shares (duplicated) crossed at $43.20.
That was up from the prior block earlier in the day at $42.85 on 6,300 shares.
BCO provides security services.
They include automated teller machines, international transportation of valuables and cash and payment services to financial institutions.
The company operates in the U.S., France, Mexico, Brazil, Canada, Latin America, Europe, Middle East and Africa, Asia and Payment Services.
Its cash-in-transit services include the transportation of cash between businesses and financial institutions. It uses armored cars.
BCO's 12-month performance chart shows the stock appreciating 60% versus a 20% gain for the S&P 500 index.
The stock moved higher after its past two earnings reports.
Insiders were buyers in June and July at 29. They also bought at $19 using options.
BCO's long-term chart shows the stock reaching an all-time peak in 2008 at $41.58. The stock fell back to $18.19 later in 2008 due to the bear market.
Afterwards, BCO traded mostly in a range between $34 and $25. It has since broken out of that long-term trading range. That is bullish.
BCO's daily chart shows the stock climbing from $32 in August to around $45 by November
The stock then pulled back and set up a tight flat base above its rising 50-day moving average line.
Wednesday, it edges out of the base.
The stock's CCI momentum indicator is solidly bullish.
This year analysts are forecasting a 20% increase in net to $2.02 a share from $1.69 a year ago.
The stock sells with a price-earnings ratio of 21. TTD sees that as attractive for value investors.
Next year, analysts are projecting a 26% jump in net to $2.56 a share from the anticipated $2.02 this year.
Net for the fourth quarter should be up 29% to 71 cents a share from the 55 cents the year before.
For the first quarter, the Street expects a 90% surge in net to 57 cents a share from 30 cents the prior year's quarter.
That is an acceleration in quarterly earnings which is bullish.
Strategy Opinion: TTD is targeting BCO for a move to 50. A protective stop can be placed near 39.
TTD rates BCO a good intermediate-term play.
Suitability: Bullish Growth Investors.
TTD's special research of BCO's Stock's Prior Performance after a Breakout:
TTD's research shows that recently BCO has tended to have good gains off its breakouts. It tends to top on the move with a gain of between 15% and 24%. That is good.
BCO's Stock's Prior Performance After A Breakout
Stock's % Change from Breakout to peak prior to a cut below 50-day M/A.
Date of Breakout
Break point Price
Price Peak after Breakout prior to cut below 50-day M/A
Date Trade Closed
(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
|TTD's Quality Rating of Stock -CPA - ABOVE AVERAGE|
|TTD's Quality Rating of Stock -FAST - AVERAGE|
|TTD's Quality Rating of Stock -CGNX - AVERAGE|
|TTD's Quality Rating of Stock -CTXS - 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 - 1
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of bear plays - only one stock, but an interesting play. Bears be conservative and patient.
MNK, based in Chesterfield, U.K., makes and sells drug and provides therapies. Annual revenues: $3.4 billion. MNK's stock falls sharply Wednesday after the company was forced to take a special charge. TTD sees more on the downside as stock cuts below key technical support.
So far today, MNK is trading a heavy 13.6 million shares, six times its average daily volume of 1.7 million shares.
The Irish drugmaker and a U.S. subsidiary will have to pay $100 million and agree to other conditions to settle government antitrust allegations they unlawfully prevented competition for Acthar, a drug that has seen enormous price spikes in recent years.
The stock trended sideways in the morning.
Then around 2 p.m. it took a dive and fell to as low as $42.67. The stock became very volatile and finished the session at $46.53.
MNK's tape action shows the recent block trades.
One can see the price for the blocks falling from $50.24 in the prior session to as low as $43.75 on Wednesday.
A key bearish trade came late on Tuesday when a block of 61,274 shares (duplicated) crossed the tape at $49.42.
That was down from the prior block at $50.24 on 15,876 shares.
MNK medicines treat neurology, rheumatology, nephrology, ophthalmology and pulmonology; immunotherapy and neonatal critical care.
They are also make products to treat respiratory and central nervous problems.
MNK's net for 2016 is expected to decline 2% to $7.71 a share from $7.85 a year before.
Going out to 2017, the Street looks for a 1% decline in net to $7.67 a shares.
Net for the upcoming fourth quarter should drop 12% to $1.83 a share from $2.09 a year before. Net for the first quarter is expected to be down 15% to $1.72 a share from $2.01 the year before.
MNK's 12-month performance chart shows the stock down 22% versus a 20% gain for the stock market.
Late in 2016, the company gave out quite a few stock options. They have not been used yet.
Strategy Opinion: TTD is targeting MNK for a decline to $40 within the next few months, or sooner. A protective stop buy can be placed near $48.50.
Suitability: Conservative Bears.
|TTD's Quality Rating of Stock - MNK - BELOW AVERAGE|
Stock Performance Chart with Quarterly Earnings Markers vs. S&P 500
Insider Buying in Green - Insider Selling in Red
TTD columnist Leo Fasciocco has covered the stock market for over 30 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.)