Daily - Go to TTD's Tape of  Stock Charts - Thursday, February 5, 2015

Daily - Bullish Investors  - Go To TTD Pre-Market Opening Breakout Watch  List and Performance - Thursday, February 5, 2015

Ticker Tape Digest

Thursday - February 5, 2015

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.

 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: 1-480-926-1680.

  Breakout Stocks

Total Buy Breakouts so far today - 26

Overall Quality of Breakouts - AVERAGE

Stocks Screened - 8,300

Bull side - Breakout list large with some good looking plays. Paper and Aerospace stocks breaking out. Stock market holds in up trend.  

 (Put mouse on Dow chart to see Nasdaq chart)

Long Term Environment for bulls:  Favorable

    Stock Market Momentum

Market (Daily) - NYSE Bullish, Nasdaq Bullish

Market (Weekly) - NYSE Bullish, Nasdaq Bullish

Market  (Monthly) - NYSE Bullish, Nasdaq Bullish 

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action - Thursday

(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 at breakpoint by using market order or stop buy)All Timely Breakout Stocks From Tape Action Today )  

Today's Featured TTD Breakout Stock

Akorn Inc. (AKRX) - 46.24, up 1.86 - Breakpoint 44.74

Net to Soar 80% This Year, TTD Targets 58

    AKRX, based in Buffalo Grove, Il., makes special drugs for diagnostic and therapeutic use. Annual revenues: $450 million. AKRX's stock breaks out today from a 16-week, double bottom base. The move carries the stock to a new high. AKRX is a leader in the medical sector. So far today, AKRX is trading 1.9 million shares. Its average daily volume is 1.7 million shares.

  TTD highlighted AKRX recently as a stock to accumulate.

  The stock was also featured Thursday on TTD's midsession video show on the Web.

 AKRX drove sharply higher in the morning to clear its breakpoint line. (See table)

The stock pulled back a bit and trended sideways most of the day. Then near the close the stock pushed a bit higher to hit its intraday peak of 46.70.

  AKRX's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $44.38 in the prior session to as high as $46.25 on Thursday.

  A key bullish trade came late Thursday morning  when a block of 32,497 shares  (duplicated) crossed the tape at $45.

  That was up from the prior trade at 44.38 on a block of 6,985 shares.

  AKRX's drugs are used in specialty areas such as ophthalmology, rheumatology, anesthesia and antidotes.

  They also market ophthalmic surgical instruments and related products. Customers include physicians, optometrists, wholesalers, group purchasing organizations and other pharmaceutical companies.

They also provide contract manufacturing services.

 AKRX's 12 month performance chart shows the stock appreciating 116% versus a 19% gain for the S&P 500 index.

  Insiders have been steady sellers of the stock the past few months.

  AKRX's long-term chart shows the stock coming public in late 2004 and trading around 4. The stock climbed to a peak of 8.19 in early 2008.

  However, it then fell sharply during the bear market sinking to as low as 73 cents a share. It has since surged back and has hit a new high.

  AKRX's daily chart shows the stock trending higher from 28 in June to a peak near 44 by October.

  The stock put down a double-bottom base. Today, AKRX breaks out of the base with a good widening of the daily spread.

  The stock's TTD momentum indicator (top of chart) is strongly bullish.

  The accumulation - distribution line (bottom of chart) lags.

  This year, analysts forecast AKRX's earnings will jump 68% to $1.86 a share from $1.11 a year ago.  

 The stock sells with a price-earnings ratio of 24 based on current estimates.

 TTD sees that as reasonable given the strong earnings outlook.

  The company is doing well due to strong growth in its ophthalmic and specialty injectable products

  Net for the upcoming first quarter is expected to soar 207% to 46 cents a share from 15 cents a year ago.

  TTD sees good chances for an upside earnings surprise.

  The past three quarters AKORN has topped the consensus Street estimates. (See table).

  Strategy Opinion: TTD is targeting  AKRX for a move to 58 within the next few months.

  A protective stop can be placed near 42. 

 TTD rates AKRX a very good intermediate-term play provided earnings meet expectations.

 Sponsorship: Very Good.  The largest fund buyer recently was  5-star rated Janus Triton D which purchased 627,225 shares as a new position. It has a 0.58% stake.

  Also, the 4-star rated Vanguard Explorer Fund was a purchaser of 359,561 shares. It has a 1.8% stake.

  AKRX has 108 million shares outstanding. Institutions hold 78% of the stock and insiders 20%.

  Insider Activity: Bearish. Insiders were recent sellers around $41. They were buyers using stock options from $1.50 to $2.60 a share. Right now, 13 analysts follow the stock and 11 have a buy, up from 9 three months ago. The stock has a book value of $2.83.   

Stock Performance Chart with Quarterly Earnings Markers.

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 so far today - 3

Stocks Screened - 8,300

Long-Term Environment for bears: Neutral.

Bear Side - Small list of shorts today. Stock market continues to rally across trading range. Bears remain conservative. TTD's short from Wednesday was Fastenal Co. (FAST) at 42.40. Today, FAST has declined to 42.06 and is working well for bears.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Cadence Design System Inc. (CDNS) - 17.15, down 0.95

Profits to Decline 6% This Year, TTD Sees Drop to 13.50

  CDNS, based in San Jose, Ca., makes electronic automation software. Annual revenues: $1.5 billion. CDNS's stock falls today with heavy volume of 11.1 million shares, four times its average daily volume of 2.9 million shares. TTD sees more on the downside.

  TTD highlighted CDNS as a short at our midsession video show on the Web Thursday.

  It projected earnings for the first quarter at 20 to 22 cents a share. That Street is looking for 23 cents.

  CDNS's stock fell sharply in the morning. It hit an intraday low of 16.52.

  The stock then stabilized, edged higher and then trended sideways the rest of the day.

  CDNS's tape action shows the recent block trades.

  One can see the price for the blocks falling from $18.10 on Wednesday to as low as $16.73 on Thursday.

  A key bearish trade came when a block of 122,904 shares crossed Thursday morning at $17.20.

  That was down from the prior block trade at $18.10 on 125,738.

 CDN produces software and other technology and offers design and methodology services for the development requirements of electronics companies.

 The firm  licenses its electronic design automation software and hardware technology and provides services to companies to help optimize product development.

  This year, analysts are forecasting a 7% decline in CDNS's net to 72 cents a share from 77 cents in 2014.

  The stock peaked around 19.50 recently, pulled back, but now undercuts support. The TTD momentum indicator (top of chart) is bearish.

   Strategy Opinion: TTD is targeting CDNS for a decline to 13.50 within the next few months or sooner. A protective stop buy can be placed near 18.10.

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. - 2014

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.”

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.)