Ticker Tape Digest

Monday - February 3, 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.

Monday - February 3, 2020

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts   -  6

Quality of Breakouts -  Average.

Stocks Screened - 12,234

Bull side -  Small list of breakouts. Bulls be conservative.

Stock market  -  Daily Dow and S&P still bearish. Daily Nasdaq moves back to bullish with a good gain Monday.

Comment -  Stock market in a consolidation pattern with earnings to pour in soon. So, bulls need to be watchful of all positions and be alert for some good "earnings beats."

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats -  PCRFY, RYAAY, HLIT, GOOG and GOOGL.

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

Evoqua Water Technologies (AQUA) - 20.54, up 0.57 - Breakpoint 20.33

Net To Surge 86% in Fiscal 2020 (Aug.), TTD Targets 25

  AQUA, based in Pittsburgh, Pa., provides wastewater treatment solutions and emergency water supply. Annual revenues: $1.4 billion. AQUA's stock moves higher Monday and breaks out from its eight-week flat base.

  So far today, AQUA is trading 826,669 shares. Its average daily volume is 537,000 shares.

  TTD sees more on the upside.

  AQUA's stock broke out in the morning and reached $20.40.

  However, the stock faded back to its breakpoint line later in the morning.

  Then in the afternoon the stock worked steadily higher to clear its breakpoint line nicely.

  In after-hours trading the stock rose by another 0.45.

   Tape Action

  AQUA's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $19.97 in the prior session to as high as $20.54 by the close Monday.

 A key bullish trade came in the morning when a block of 5,777 shares (duplicated) crossed the tape at $20.10.

That was up from the prior block at $19.97 on 94,271 shares in the prior session.   

    Business

 AQUA provides wastewater treatment systems and technologies and emergency water supply solutions.

  It offers products to support industrial, municipal and recreational customers.

  AQUA provides tailored services for customers backed by lifecycle services including ondemand water, outsourced water, recycle or reuse and emergency response service alternatives.

   Charts

  AQUA's 12-month performance chart shows the stock up 80% versus a 20% gain for the stock market.

  Insiders were recent buyers using stock options at $4.64 a share.

  They were sellers around $19 a share.

  AQUA's long-term chart shows the stock coming public in 2017 at $19. The stock rose to an all-time high at $25.36 in early 2018.

  The stock then took a dive and fell to $8.60 in 2018. It has since been making a big comeback.

  AQUA's daily chart shows the stock climbing from$14 back in August to a peak near $20 by December.

  The stock then put down a classic cup-and-handle base.

  The breakout clears the base with a good pick up in volume from its average volume.

  The stock's CCI momentum indicator is solidly bullish.

   Earnings Outlook

  Net for the fiscal year ending in September analysts are forecasting an 86% surge in net to 54 cents a share from the 29 cents the prior year.

 The stock sells with a price-earnings ratio of 38.

  Looking out to fiscal 2021 ending in September, the Street is calling for a 16% rise in net to 62 cents a share from the anticipated 54 cents in fiscal 2020.

  Net for the upcoming fiscal first quarter ended in December they see a profit of one cent a share versus a breakeven.

  Then in the second quarter the call is for a 7% decline in net to 12 cents a share from 13 cents the prior year.

  Five analysts follow the stock.

Strategy Opinion:  TTD is targeting AQUA for a move to $25 within the next few months, or sooner.

A protective stop can be placed near $19.

Intermediate-Term Rating: Above Average.

Suitability:   Average 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 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

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 for Thursday - 8

Stocks Screened - 12,234

Long-Term Environment for bears: Unfavorable.

Bear Side - Small list of shorts but some interesting plays for aggressive bears. Stock market now in a basing pattern.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Lantheus Holdings Inc. (LNTH) - 17.07

Net to Drop 9% in 2020, TTD Sees Decline to 13.50

  LNTH, based in North Billerica, Ma., makes diagnostic medical imaging agents and products that assist clinicians in treating cardiovascular and other diseases. Annual revenues: $343 million.

  LNTH's stock moves lower Monday and undercuts key technical support.

  TTD sees more on the downside. TTD highlighted LNTH as a short at our midsession video show on the Web Monday.

  The stock's decline was triggered by a disappointing test for its imaging product.

  LNTH's stock fell sharply in the morning and touched an intraday low of $16.51.

  The stock then bounced back to around $17 and then trended sideways the rest of the day.

  Tape Action

  LNTH's tape action shows the recent block trades.

  One can see the price for the blocks falling from $17.94 on Thursday to as low as $16.87 Monday.

  A key bearish trade came in the morning when a block of 7,523 shares crossed the tape at $17.

  That was down from the prior block at $17.51 on 2,837 shares.

  Back on Friday one can see a massive block of 114,180 shares crossing at $17.47.

  That was very bearish and down from the prior block at $3,001 shares at $17.94 on Thursday.

   Business

   LNTH products are used for imaging modalities including echocardiography and nuclear imaging. It operates worldwide.

   In the U.S., it sells to radiopharmacies, integrated delivery networks, hospitals, clinics and group practices.

   Earnings:

  This year, analysts are forecasting a decline in net to $1.03 a share from the anticipated $1.12 for 2019.

  Net for the first quarter of 2020 is expected to fall to 3 cents a share from the 28 cents the prior year.

Charts:  

  LNTH's daily chart shows the stock cutting below key support. The stock has been trending lower from $29 to $17 the past few months.

  LNTH's 12-month performance chart shows the stock at breakeven versus a 20% gain for the stock market.

Strategy Opinion: TTD  is targeting LNTH for a decline to $13.50 within the next few months, or sooner. A protective stop buy can be placed near 18.20.

Suitability:  Aggressive 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.

   Distributed by Corona Publishing Enterprises. TickerTape Digest Inc. 1220 W. Sherri, Gilbert, Az. 85233.

  TTD “Professional Report” is available on the Web: $100 per month. Password needed. Published daily - around 20 times a month.  

 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.)