Daily - Go to TTD's Tape of Stock Charts - Tuesday, February 4, 2014
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Daily - Go to TTD's Tape of Stock Charts - Tuesday, February 4, 2014 |
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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Tuesday, January 21, 2013 |
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Go to Video Show - "How to Make Money With Breakout Stocks" |
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Go To Special TTD Feature - A Bull Market - Long in the Tooth
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.
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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. Trading Strategies Bullish 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) Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance) |
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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 leo@tickertapedigest.com.For service, email Beverly Owen owen@tickertapedigest.com. TTD’s Tel: 1-480-926-1680.
Breakout Stocks
Total Buy Breakouts so far today - 5
Overall Quality of Breakouts - ABOVE AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list small and selective. Bulls be conservative. Stock market rallies with a down trend. Look for a choppy market the next few weeks.
(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 Bearish, Nasdaq Bearish
Ticker Tape Digest's
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TTD's Quality Rating of Stock - KORS - ABOVE AVERAGE |
KORS, based in Hong Kong, makes footware and hand bags. Annual revenues: $2.6 billion. KORS's stock surges higher and breaks out from a 13--week flat base. The move was triggered by KORS report of strong than expected earnings for the fiscal third quarter ended December 31. The stock gapped higher at the opening. 
KORS came in with net for fiscal third quarter of $1.11 a share. That topped the Street consensus to 86 cents a share. It was the ninth straight quarter that KORS topped the Street.
TTD highlighted KORS as a breakout at our midsession video show on the Web on Tuesday.
KORS is trading a heavy 23 million shares, almost six times its average daily volume of 4.4 million shares. 
The stock gapped higher at the opening (see 10-minute chart).
It peaked at 93.18 in the morning. It then spent the rest of the session trending mostly sideways and held easily above its breakpoint line.
KORS' tape action shows the recent big block trades.
One can see the price for the blocks soaring from $76.67 in the prior session to as high as $92.75. 
A key bullish trade came in the morning when a block of 36,703 shares crossed the tape at $92.50. That was up sharply from the prior block at $76.67.
Near the close a block of 198,585 shares crossed the tape at $89.91.
That was down from the prior block trade at $90.56. The tape action late in the day would indicate institutional selling. So, one needs to be very watchful of the stock on the opening Wednesday.
KORS offers two primary collections: the Michael Kors luxury collection and the MICHAEL Michael Kors accessible luxury collection.
They also offer select footwear and outerwear through their KORS Michael Kors accessible luxury collection.
They operate their business in three segments-retail, wholesale and licensing-and have a global distribution network focused on company-operated retail stores, leading department stores, specialty stores and select licensing partners.
KORS 12-month performance chart shows the stock appreciating 62% versus a 18% gain for the S&P 500 index.
KORS long-term chart shows the stock coming public in late 2011 and trading around 25. It climbed to a peak near 50 in early 2012 and has since been working higher. The push to a new high could bring in more buying on Wednesday. However, one needs to be careful because the stock has had trouble following through on breakouts.
KORS daily chart shows the stock gaping higher with big volume to clear the base.
That move was a big turnaround from the decline in the prior session. That would indicate there was very "leaking" on the earnings report.
The stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) lags.
For fiscal 2014 ending in March, the Street is projecting a 44% leap in net to $2.83 a share from $1.97 a year ago.
They have been moving up their estimates.
The stock sells with a price-earnings ratio of 31. TTD sees that as reasonable.
Going out to fiscal 2015 ending in March, earnings are projected to climb 23% to $3.48 a share from the anticipated $2.83 a share for fiscal 2014.
For the upcoming fiscal fourth quarter ending in March, analysts look for a 304% gain in net to 65 cents a share from 50 cents the year before. 
Strategy Opinion: KORS has been a winner since coming public. However, the stock is a bit extended on the breakout. TTD suggests scaling into this breakout.
TTD is targeting the stock for a move to 105 within the next few months or sooner. A protective stop can be placed near 82
TTD rates KORS a very good intermediate-term play due to its strong earnings outlook.
Sponsorship: Excellent. The largest non index fund buyer recently was 4-star rated Harbor Capital Appreciation Inst. Fund which purchased 465,119 shares It has a 1.3% stake.
The largest fund holder is 4-star rated JP Morgan Large Cap Growth Select Fund with a 1.7% interest.
KORS has 203.8 million shares outstanding.
Insider Activity: Neutral. some insider selling around 82 recently. Currently, 14 analysts follow the stock, 10 have a buy, the same as three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
| TTD's Breakout Profile
Rating Michael Kors Holdings - (KORS) |
| TTD Check List | Bullish | Bearish | Neutral |
| Near 52-week High | YES | ||
| Volume | YES | ||
| Tick Volume | YES | ||
| Price Trend - Daily | YES | ||
| Price Trend - Long Term | YES | ||
| Price Daily Spread | YES | ||
| Base Structure | YES | ||
| Base - A-D | YES | ||
| Earnings-Quarterly | YES | ||
| Earnings-Long Term | YES | ||
| Earnings Outlook | YES | ||
| Industry Group | YES | ||
| Prior Breakout Success | YES | ||
| Fund Sponsorship | YES | ||
| Total Score | 13 | 0 | 1 |
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - EQT - ABOVE AVERAGE |
| TTD's Quality Rating of Stock - ENTA - AVERAGE |
| TTD's Quality Rating of Stock - CBM - AVERAGE |
| TTD's Quality Rating of Stock - CGI - 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 - 12
Stocks Screened - 8,300
Long-Term Environment for bears: Favorable.
Bear Side - Large number of shorts today even as the stock market has a bounce. Bears be venturesome.
AFOP, based in Sunnyvale, Ca., makes fiber optic components. Annual revenues: $66 million. AFOP's stock gaps lower today cutting below key technical support. The drop was triggered by disappointing earnings for the fourth quarter. So far today, AFOP is trading a heavy 3.3 million shares, six times its average daily volume of 537,000 shares. 
TTD highlighted AFOP as a short at our midsession video show on the Web Tuesday.
AFOP reported earnings for the fourth quarter were 25 cents a share. That was well below the 32 cent share estimate on the Street. The stock reacted very bearishly to the news as one would expect.
AFOP's stock fell sharply in the morning with heavy intraday volume. The stock hit an intraday low of 12 in the morning. It then trended sideways the rest of the session.
AFOP's tape action shows the recent block trades.
One can see the price for the blocks falling from $16.15 in the prior session to $12.14 Tuesday.
A key bearish trade came in the morning when a big block of 65,281 shares crossed the tape (duplicated) at $14.20. That was down from the prior block at $15.54.
AFOP makes fiber optic components and integrated modules for communications equipment manufacturers and service providers.
The company offers products including interconnect devices that are used to connect optical fibers and components, couplers and splitters that are used to divide and combine optical power, and dense wavelength division multiplexing, or DWDM, devices that separate and combine multiple specific wavelengths.
Analysts are forecasting 2014 earnings to climb 43% to $1.27 a share from a year ago. However, that estimate could come down due to the earnings disappointment.
AFOP's daily chart shows the stock gapping lower with big volume. The stock's accumulation - distribution line (bottom of chart) is in a down trend showing consistent selling pressure the past few months.
Strategy Opinion: TTD is targeting AFOP for a decline to 9 within the next few months, or sooner. A protective stop buy can be placed near 13.
| TTD's Quality Rating of Stock - AFOP - 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.)
