Ticker Tape Digest

Tuesday - February 4, 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.

Tuesday - February 4, 2020

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts   -  16

Quality of Breakouts -  Average.

Stocks Screened - 12,234

Bull side -  Large list of breakouts with some plays moving higher on favorable earnings.

Stock market  -  Major averages bullish, except for the daily Dow.

Comment -  Stock market in a consolidation pattern after a big run up. Earnings will be a key as to market direction.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats -  AQUA, MODN, MOD, MLI, and RRR.

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

Penumbra Inc. (PEN) - 181.17, up  3.19 - Breakpoint 178.82

Net To Surge 41% for 2020, TTD Targets 210

    PEN, based in Alameda, Ca., provides health services focused on interventional therapies. Annual revenues: $445 million. PEN's stock moves higher Tuesday and breaks out from a 10-week, double bottom base.

 The stock closed at $181.17. It is close to making a new all-time high. It needs to top $185.10.

 TTD sees good chances for more on the upside.

 So far today, PEN is trading a light 158,830 shares. Its average daily volume is 290,000 shares.

  PEN's stock drove sharply higher in the morning and cleared its breakpoint line.

  The stock reached an intraday high of $183.29 in the morning.

  It then drifted back later in the day.

  Tape Action

  PEN's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $177.98 in the prior session to as high as $182.31 in the morning.

  A key bullish trade came in the morning when a block of ,557 shares (duplicated) crossed the tape at $180.

  That was up from the prior block at $177.98 on 24,994 shares Monday.

  PEN closed strong.

  A block of 15,001 shares crossed the tape at $181.17 at the close.

  That was up from the prior block at $180.96 on 897 shares.

  Business

The company's products address needs across two markets, neuro and peripheral vascular.

 Its products address ischemic stroke, hemorrhagic stroke and various peripheral vascular conditions that can be treated through thrombectomy and embolization procedures.

PEN's products are used by specialist physicians, including interventional neuroradiologists, neurosurgeons, interventional neurologists, interventional radiologists and vascular surgeons.

  Charts 

  PEN's 12-month performance chart shows the stock up 22% versus a 20% gain for the stock market.

  Insiders were buyers using stock options at $4 a share - yes $4.

  They were sellers at $140 to $175 a share.

  PEN's long-term chart shows the stock coming public at $40.15 in 2015.. The stock worked steadily higher to $167 a share by 2018.

  The stock then went into a long-term consolidation. It has since pushed higher and is in position to make a new all-time high.

  PEN's daily chart shows the stock climbing from $130 in September to a peak at $178 by November.

  The stock pulled back and set up a classic double-bottom base.

 The breakout clears the base nicely.

  PEN's CCI momentum indicator is bullish.

   Earnings Outlook

  PEN's net should jump 89% for 2019 to 95 cents a share from 51 cents the prior year.

  They generally report in late February.

  Net for the fourth quarter should jump 38% to 18 cents a share from the 13 cents the prior year.

  The company beat the Street estimate the past four quarters by 7 cents a share, 6 cents, 10 cents and 2 cents.

  Looking out to 2020, the Street predicts a 20% increase in net to $1.14 a share from  the anticipated 95 cents for 2019.

  Profits for the first quarter of 2020 should climb 26% to 29 cents a share from the 23 cents the prior year.

Strategy Opinion:  TTD is targeting PEN for a move to $210 within the next few months, or sooner.  A protective stop can be placed near $172.

Intermediate-Term Rating:  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 - 4

Stocks Screened - 12,234

Long-Term Environment for bears: Unfavorable.

Bear Side - Small list of shorts but some interesting plays for aggressive bears.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

MTS Systems Corp.  (MTSC) - 44.12

Net Disappoints, TTD Sees Drop to 37

  MTSC, based in Eden Prairie, supplies test systems and position sensors. Annual revenues: $893 million. MTSC's stock moves sharply lower Tuesday and undercuts key technical support.

  So far today, MTSC is trading a heavy 577,267 shares, five times its average daily volume of 119,000 shares.

  TTD sees more on the downside.

  MTSC's decline was triggered by disappointing earnings.

  MTSC reported net for the fiscal first quarter ended in December of 37 cents a share. That was below the 46 cents the Street had estimated.

  The stock gapped lower and cut below key technical support.

  The stock closed near its low for the day. That is very bearish.

  Tape Action

  MTSC's tape action shows the recent block trades.

  One can see the price for the blocks falling from $50.28 in the prior session to as low as $44.12 by the close.

  A key bearish trade came in the morning when a block of 4,069 shares (duplicated) crossed at $46.45.

  That was down sharply from the prior block the prior session when 1,922 shares crossed at $50.28.

  Business

 The Company operates through two segments: Test and Sensors.

 The test segment provides testing solutions, including hardware, software and services to ground vehicles, materials and structures markets.

 The sensors segment provides position sensors for industrial and mobile hydraulic applications.

Earnings:

  This fiscal year ending in September analysts have been forecasting a 3% decline in net to $2.38 a share from the $2.44 the prior year.

  However, the 2020 forecast may be cut.

Charts:  

  MTSC's stock gapped lower in the morning and cut below support. The close near the low is bearish.

  The stock has been in a trading range since 2016. It is in a position to cut below the support.

  MTSC's 12-month performance chart shows the stock down 15% versus a 20% gain for the stock market.

Strategy Opinion: TTD  is targeting MTSC for a decline to $37 within the next few months, or sooner.  A protective stop buy can be placed near $48.

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.)