Ticker Tape Digest

Wednesday - February 5, 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.

Wednesday - February 5, 2020

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts   -  18

Quality of Breakouts -  Average.

Stocks Screened - 12,234

Bull side -  Large list of breakouts, but very selective.

Stock market  -  All major averages are bullish in all time zones.

Comment -  Stock market shows good action and is now holding in recent up trend. Earnings flow will be important to watch.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats -  MCFT, COTY, WD, PAG and CPRI.

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

Walker & Dunlap Inc. (WD) - 74.98, up 6.65 - Breakpoint 68.45

Net Tops Estimates, TTD Targets 90

  WD, based in Bethesda, Md., provides commercial real estate financial products and services primarily to developers and owners of multifamily properties. Annual revenues: $725 million. WD's stock moves higher Wednesday and breaks out from its nine-week flat base.

  So far today, WD is trading 460,051 shares, double its average daily volume of 194,000 shares.

  TTD sees more on the upside with this conservative play.

  TTD highlighted WD as a breakout at our midsession video show on the Web Wednesday.

  WD reported net for the fourth quarter of $1.34 a share. That topped the Street estimate of $1.29 a share and also the prior year's $1.44 a share.

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

  The stock continued to work higher the rest of the day. It closed near its high for the session. That is very bullish.

   Tape Action

  WD's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $68.33 in the prior session to as high as $74.98 by the close.

  A key bullish trade came in the morning when a block of 3,056 shares crossed the tape at $69.80.

  That was up from the prior block the day before at $68.33 on 36,912 shares (duplicated.

  Near the close a block of 24,533 shares crossed at $74.98.

  That was up from the prior block at $74.33 on 2,073 shares.

  That was very bullish action.

    Business

  WD is a holding company that conducts its operations through Walker & Dunlop, LLC.

The company sells and services multifamily and other commercial real estate financing products, including Multifamily Finance, Federal Housing Administration Finance, Capital Markets, and Proprietary Capital.

It originates and sells loans through the Federal National Mortgage Association, Federal Home Loan Mortgage Corp. and together with Fannie Mae, the Government National Mortgage Association and Federal Housing Administration.

  Charts

  WD's 12-month performance chart shows the stock up 51% versus a 21% gain for the stock market.

  Insiders were recent buyers using stock options at $16 to $20 a share. They also bought in the open market at $65 a share.

  They were sellers at $62 to $66 a share.

  WD's long-term chart shows the stock breaking out of a long-term base at $20 back in 2015.

  The stock ran up to a peak near $60 by 2018. It then went into a long-term basing pattern. It broke out long-term late last year and has since been trending higher.

  WD's daily chart shows the sock in a tight base between $64 and $68 a share.

  The breakout Wednesday comes with a widening of the daily spread and expansion in volume.

  The close near the high of the session is a bullish omen.

  WD's CCI momentum indicator is strongly bullish.

   Earnings Outlook

  This year, analysts are forecasting 13% increase in net to $6.10 a share from the $5.38 the prior year.

  The stock has a price-earnings ratio of 12. TTD sees that as attractive for value investors.

  Net for the upcoming first quarter will be strong. Analysts predict at 17% jump in net to $1.63 a share from the $1.39 the prior year.

Strategy Opinion:  TTD is targeting WD for a move to $90 within the next few months, or sooner.

A protective stop can be placed near $68.

Intermediate-Term Rating: Average.

Suitability:   Conservative 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 as stock market rallies strongly Wednesday.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Scansource Inc. (SCSC) - 32.02

Net Disappoints, TTD Sees Drop to 26

  SCSC, based in Greenville, S.C., provides technology solutions for sellers such as point-of-sale products. Annual revenues: $3.9 billion. SCSC's stock falls sharply Wednesday and undercuts key technical support.

  So far today, SCSC is trading 268,374 shares, triple its average daily volume of 85,000 shares.

  TTD sees more on the downside.

  SCSC reported net for the fiscal second quarter ended in December of 45 cents a diluted share, down from 78 cents the prior year.

  The disappointing net caused the stock to gap lower and cut blow key technical support.

  SCSC's stock touched an intraday low at $31.74 in the morning.

  It then trended mostly sideways the rest of the day unable to rebound effectively.

   Tape Action

  SCSC's tape action shows the recent block trades.

  One can see the price for the blocks falling from $35.79 in the prior session to as low as $31.83 during the day.

  A key bearish trade came in the morning when a block of 800 shares crossed the tape at $32.77.

  That was down from the prior block the day before at $35.79 on 2,373 shares.

  Business

 SCSC provides point-of-sale and Barcode related products. It operates through worldwide barcode & security and worldwide communications and services.

  SCSC markets over 100,000 products from  400 hardware and software vendors to about 35,000 reseller customers from distribution centers in Mississippi, Virginia, Florida, Mexico, Colombia, Brazil, Belgium, France, Germany and the U.K.  

  Earnings:

  SCSC's net for the fiscal year ending in June of 2020 is expected to decline 9% to $3.05 a share from the $3.36 the year before.

  Net for the fiscal third quarter ending in March is expected to fall 5% to 73 cents a share from the 77 cents the prior year.   

Charts:  

  SCSC's daily chart shows the stock falling sharply from its head-and-should topping pattern with big volume.

  The stock's 12-month performance chart shows it down 15% versus a 21% gain for the stock market.

Strategy Opinion: TTD  is targeting SCSC for a decline to $26 within the next few months, or sooner. A protective stop buy can be placed near $34.

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.

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  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.)