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 - 3
Overall Quality of Breakouts - BELOW AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list small and selective. Utility stocks breaking out. Bulls be conservative as earnings flow in for major firms. Market in down trend.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Bearish
Stock Market Momentum
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bearish, Nasdaq Bearish
Ticker Tape Digest's
TTD's Quality Rating of Stock - CMS - AVERAGE
CMS, based in Jackson, Mich., is an electric utility company. Annual revenues: $6.7 billion. CMS's stock breaks out Wednesday from a 15-week, cup-and-handle base. The move comes on volume of 3.5 million shares. Its average daily volume is 2.8 million shares.
TTD highlighted CMS as a breakout at our midsession video show on the Web.
Selected utility stocks have been moving higher. They are gathering interest and buying as the stock market trends lower due to their yields and conservative price action.
CMS's stock pushed higher in the morning to clear its breakpoint (see 10-minute chart).
The stock reached an intraday peak at $37.60. It then backed off a bit in the afternoon, but held above its breakpoint.
CMS's tape action shows the recent block trades.
One can see a massive bullish block coming late on Tuesday when 495,743 shares crossed the tape at $37.15
That was up sharply from the prior block at $36.88 on 95,249 shares.
Then near the close on Wednesday a large block of 184,377 shares crossed the tape at $37.37.
That was up from the prior block at $37.35 on 6,031 shares.
CMS sells electricity to residential, commercial, and various industrial customers in Michigan's Lower Peninsula.
It operates a network of coal, gas, hydroelectric, oil, and wind generation plants.
The company's gas utility segment handles the purchase, transmission, storage, distribution, and sale of natural gas.
This gas distribution and transmission system comprises 27,169 miles of distribution mains; 1,685 miles of transmission lines and 7 compressor stations.
CMS's 12-month performance chart shows the stock even versus a 7% decline in the stock market.
However, there was massive insider buying in the most recent month. (see green bars on performance chart.
CMS's long-term chart shows the stock tracking the recent bull market that began in 2008 nicely.
The stock advanced from 10 in 2008 to 37.60 on Wednesday. A year ago, it touched a peak of 38.15. If CMS can top that it will have made a 17-year high. TTD sees good chances
The stock being a utility is a slow mover. It has a beta of 0.14 versus 1.00 for the stock market. It is a defensive play.
CMS's daily chart shows the stock climbing from 32 back in September to near 37 by October.
The stock then formed a cup-and-handle base and breaks out Wednesday.
The stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) broke out prior to the price.
That is bullish showing good underlying buying.
Analysts are forecasting CMS will post a 6% rise in net for 2015 to $1.88 a share from $1.77 a year ago.
Going out to 2016, they look for a 7% gain in net to $2.01 a share from the anticipated $1.88 for 2015.
The stock sells with a price-earnings ratio of 18 based on 2016 projected net.
Near-term, the Street looks for a modest acceleration in quarterly earnings.
Net for the fourth quarter should be up 7% to 38 cents a share from 35 cents a year ago.
They are expected to report February 4.
Then for the first quarter of 2016 profits are expected to leap 12% to 82 cents a share from 73 cents the year before.
Strategy Opinion: TTD is targeting CMS for a move to 43 within the next few months, or sooner.
A protective stop can be placed near 35.
The stock has a yield of 3.2%. Its payout ratio is 61%.
TTD rates CMS an average intermediate-term play most suitable for conservative investors.
Sponsorship: Excellent. The largest fund buyer recently was the 5-star rated VA CollegeAmeria Cap World G/I 529E Fund which purchased 2 million shares. It has a 1.6% stake.
Also, the Vanguard Equity-Income Inv. Fund was a recent purchaser of 843,500 shares. The -star rated fund has a 0.68% stake.
CMS has 277 million shares outstanding. Institutions hold 90% of the stock and insiders 1%.
Currently, 16 analysts follow the stock, 8 have a buy, down from 9 three months.
CMS has a book value of $14.08.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
CMS Energy Corp. - (CMS)
|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 - DEG - AVERAGE|
|TTD's Quality Rating of Stock - DF - 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 - 7
Stocks Screened - 8,300
Long-Term Environment for bears: Favorable.
Bear Side - Small list of breakdown stocks given the stock market sell off. Earnings flowing picking up now. Bears can be venturesome since the general market is bearish.
TTD's short from Tuesday was Anacor Pharmaceuticals at 80.84. Wednesday, the stock falls 4.51 to 76.33.
TUP, based in Orlando, Fla., makes cookware and other kitchen items. Annual revenues: $2.4 billion. TUP's stock falls sharply Wednesday after lowering its earnings forecast. So far today, TUP is trading a heavy 6.4 million shares, 10 times its average daily volume of 589,000 shares.
TTD highlighted TUP as a short at our midsession video show on the Web Wednesday.
TUP reported fourth quarter net of $1.35 a share. That was below analysts estimates of $1.38 a share.
The company also said net for the first quarter would be 81 to 85 cents a share.
That was down sharply from consensus Street estimates of $1.02 a share.
For all 2016, TUP projected net at $4.07 to $4.17 a share. The Street was looking for $4.53 a share.
TUP's stock gapped lower in the morning and touched an intraday low of 42.60 in the morning.
The stock rallied a bit to trim some of its deficit.
TUP's tape action shows the recent block trades.
One can see the price for the blocks falling from $51.48 in the prior session to as low as $43.21 in the morning.
A key bearish trade came at the opening when a block of 56,172 shares crossed the tape at $45.50.
That was down from the prior block trade at $51.48 on 23,760 shares.
The company also makes skin and hair care products, cosmetics, bath and body care, toiletries, fragrances, jewelry, and nutritional products under the Armand Dupree, Avroy Shlain, BeautiControl, Fuller, NaturCare, Nutrimetics, and Nuvo brands.
TUP's daily chart shows the stock trending lower from 66 back in July to 48 by September. The stock rallied through October, but then rolled over. Wednesday, it cuts below key technical support. The stock's TTD momentum indicator (top of chart) is strongly bearish.
Strategy Opinion: TTD is targeting TUP for a decline to 38 within the next few months, or sooner. A protective stop buy can be placed near 46.
|TTD's Quality Rating of Stock - TUP - 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.)