Daily - Go to TTD's Chart scroller of Breakout Stocks - Monday, February 6, 2017
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Daily - Go to TTD's Chart scroller of Breakout Stocks - Monday, February 6, 2017 |
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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, January 23, 2017 |
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Go to Video Show - "How to Make Money With Breakout Stocks |
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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 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 - 11
Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list selective. Bulls be conservative. Stock market holds overall up trend.
(Put mouse on chart to Nasdaq)
Environment for bulls: Neutral
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
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TTD's Quality Rating of Stock - PCMI - ABOVE AVERAGE |
PCMI, based near Los Angeles, provides technology products, services and solutions through direct marketing channels, and operated data centers. Annual revenues: $2.2 billion. PCMI's stock breaks out Monday from a 10-week flat base and hits a new high. 
TTD highlighted PCMI as a breakout at our midsession video show on the Web Monday.
The company will report earnings on Wednesday after the market closes.
So far today, PCMI is trading a heavy 364,982 shares, four times its average daily volume of 89,000 shares.
PCMI's stock gapped higher in the morning to clear its breakpoint. 
The stock reached an intraday high of $25.75 around noon.
The stock then trended sideways giving a little ground.
Tape Action
PCMI's tape action shows the recent block trades
One can see a key bullish block trade crossing in the morning at $24.95 on 15,239 shares (duplicated).
That was up from the prior block trade at 23.65 on 2,043 shares late on Friday.
The price for the block trades worked as high as $25.45 in the late afternoon. 
Business
PCMI sells complex products, services and solutions to commercial businesses in the U.S..
Its public sector business sells primarily to federal, state and local governments, as well as educational institutions.
The MacMall segment consists of sales made through telephone and the Internet to consumers, small businesses and creative professionals.
Charts
PCMI's 12-month performance chart shows the stock appreciating a sensational 205% versus a 20% gain for the stock market.
Insiders were buyers using stock options at $4 to $12.
They were sellers through 2016 at prices form $15 to $24.
PCMI's long-term chart shows the stock reaching a peak of $20.50 in 2007. The stock then fell back to $2.60 in 2008 due to the bear market.
The stock then traded in a range until 2016. It was that year when PCMI broke out from its long-term range. It then raced strongly to $25.
PCMI's daily chart shows the stock climbing from $12 back in July to a peak near $24 by October.
The stock then backed of in November turned up and trended sideways.
The gap breakout Monday is impressive coming with an expansion in volume.
PCMI's CCI momentum indicator is strongly bullish.
Earnings Outlook
Net for 2016 will be reported soon. Analysts are forecasting a 637% surge in profits to $1.40 a share from 19 cents the year before.
The stock sells with a price-earnings ratio of 17. TTD sees that as reasonable.
Going out to 2017, the Street expects a 23% rise in net to $1.72 a share from the anticipated $1.40 a year before.
Profits for the fourth quarter of 2016 - to be reported soon - are expected to leap 610% to 36 cents a share from 5 cents the year before.
The company topped the Street consensus estimate by a wide margin the past two quarters - 21 cents a share and 28 cents.
Strategy Opinion: TTD is targeting PCMI for a move to $31 off this breakout within the next few months. A protective stop can be placed near 23.
TTD rates PCMI an average intermediate-term play.
Suitability: Average Bulls.
TTD's special research of Stock's Prior Performance after a Breakout:
TTD's research shows that recently (see table) PCMI has scored some bi gains recently after its breakouts. That shows in that the stock has been trending higher the past several months. Also, volume during the past several months has increased tremendously. So, that is a big plus too.
PCMI's monthly performance chart shows the stock doing much better after January. So, that is a plus for bulls. Its best month in recent years has been June.
Stock's Prior Performance After A Breakout
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Stock's % Change from Breakout to peak - prior to cut below 50-day M/A. |
Date of Breakout |
Break point Price |
Stocks Price Peak after Breakout - prior to cut below 50-day M/A |
Date Trade Closed |
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20% |
9/20/2016 | 18.95 | 22.83 | 10/17/2016 |
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92% |
7/22/2016 | 11.89 | 22.83 | 10/17/2016 |
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138% |
4/29/2016 | 9.59 | 22.83 | 10/17/2016 |
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10% |
6/30/2014 |
10.66 |
11.82 |
7/3/2014 |
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6% |
10/18/2013 | 10.71 | 11.40 |
10/22/2013 |
(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
| TTD's Quality Rating of Stock -HAS - AVERAGE |
| TTD's Quality Rating of Stock -AUDC - AVERAGE |
| TTD's Quality Rating of Stock -RMAX - AVERAGE |
| TTD's Quality Rating of Stock -MS - 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 - 11
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Large list of shorts Monday. Stock market off slightly. However, it still holds up trend. Bears be conservative.
ATW, based in Houston, is an offshore drilling company. Annual revenues: $832 million. ATW's stock falls sharply Monday undercutting key technical support. TTD highlighted ATW as a short at our midsession video show on the Web. TTD sees more on the downside. 
So far today, ATW is trading a heavy 10.3 million shares, double its average daily volume of 4.8 million shares.
ATW's stock has a beta of 2.6 versus 1.0 for the stock market.
That means it is more than twice as volatile as the market.
ATW's stock fell steadily from the opening to around $11 by noon.
It then trended sideways for awhile, but then weakened into the close. It finished near its low for the day.
S&P said it was keeping a sell recommendation on the stock.
ATW reported earnings on Friday of 15 cents a share. That was below the 18 cents projected by the Street.
Tape Action
ATW's tape action shows the block trades falling in price from $12.70 in the prior session to as low as $10.91.
A key bearish trade came in the morning when a block of 55,405 shares crossed the tape at $11.91.
That was down from the prior block trade at $12.65 on 96,187 shares.
Then near the close a massive block of 215,580 shares (duplicated) crossed at $10.91.
That was down from the prior block at $11.03 on 20,000 shares.
Business
ATW owns various types of drilling rigs, such as Ultra-Deepwater Rigs, Deepwater Semisubmersibles and Jackups.
Its Ultra-deepwater rigs and deepwater semisubmersibles include Atwood Achiever, Atwood Archer, Atwood Admiral, Atwood Advantage, Atwood Condor, Atwood Eagle and Atwood Osprey.
ATW's Jackup Rigs included Atwood Mako, Atwood Manta, Atwood Aurora, Atwood Beacon and Atwood Orca.
Earnings
This fiscal year ending in September analysts are forecasting a loss of 62 cents a share compared with a $4.63 profit the year before.
Going out to fiscal 2018, the Street is expecting a loss of $2.38 a share.
For the upcoming fiscal second quarter ending in March, the Street expects a loss of 23 cents a share compared with a profit of $1.89 the year before.
Charts
ATW's daily chart shows the stock falling sharply Monday and cutting below key support with heavy volume. Earnings disappointed and S&P put out a sell.
ATW's performance chart shows heavy insider buying using stock options in December. The price was not disclosed. The largest buyer was CEO Robert Saltiel.
Strategy Opinion: TTD is targeting ATW for a decline to $8.20 within the next few months, or sooner. A protective stop buy can be placed near $12.05.
Suitability: Aggressive Bears.
| TTD's Quality Rating of Stock - ATW - BELOW AVERAGE |
Stock Performance Chart with Quarterly Earnings Markers vs. S&P 500
Insider Buying in Green - Insider Selling in Red
TTD columnist Leo Fasciocco has covered the stock market for over 30 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.)
