Ticker Tape Digest

Friday - February 7, 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.

Friday - February 7, 2020

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts   -  8

Quality of Breakouts -  Average.

Stocks Screened - 12,234

Bull side -  Very selective list of breakouts as stock market falls sharply.

Stock market  -  Market falls sharply Friday but still holds bullish in all time sectors.

Comment -  One needs to be watchful as earnings continue to be reported.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats -  ABBV and CAE.

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

Virtusa Corp. (VRTU) - 49.58, up 4.03 - Breakpoint 46.10

Net To Climb 22% for Fiscal 2920 (March), TTD Targets 57

  VRTU, based in Southborough, Ma., is an information technology firm.. Annual revenues: $1.2 billion. VRTU's stock moves sharply higher Friday and breaks out from its 10-week flat base.

  So far today, VRTU is trading a heavy 768,910 shares, four times its average daily volume of 186,000 shares.

  TTD sees more on the upside. TTD

 VRTU's breakout was triggered by favorable earnings.

 The company reported net for the fiscal third quarter ending in December of 78 cents a share. That topped the consensus estimate on the Street of 76 cents a share.

  VRTU's stock gapped higher in the morning and cleared its breakpoint line.

  The stock reached an intraday high of 52.81.

  VRTU then backed off a bit and then trended sideways the rest of the day.

   Tape Action

  VRTU's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $45.55 in the prior session to as high as $49.83 late in the day.

  A key bullish trade came in the morning when a block of 15,000 shares crossed the tape at $48.50.

  That was up sharply from the prior block on Thursday at $45.55 on 14,638.

  There was strong buying near the final bell. That is bullish.

   Business

  The Company's services include information technology (IT) and business consulting, digital enablement services, user experience (UX) design, development of IT applications, maintenance and support services, systems integration, infrastructure and managed services.

Its services enable its clients to accelerate business outcomes by consolidating, rationalizing and modernizing the clients' core customer-facing processes into one or more core systems.

It delivers solutions through a global delivery model, applying advanced methods, such as Agile, a technique designed to accelerate application development.

The Company uses its consulting methodology, Accelerated Solution Design (ASD). It supports the Chief Information Officers (CIOs) of its client organizations in solving their critical issues, including managing total cost of ownership, accelerating time-to-market and increasing productivity.

   Charts

  VRTU's 12-month performance chart shows the stock up a modest 3% versus a 22% gain for the stock market.

  Insiders were recent buyers at $9 to $14 a share. They were sellers at $35 to $45 a share.

  VRTU's long-term chart shows the stock climbing from $14 back in 2012 to a peak at $59 by 2015.

  However, the stock then fell back to around $20 by 2016. It has since made a good comeback and is in position to challenge its all-time high.

  VRTU's daily chart shows the stock climbing from $35 in October to a peak near $46.

  It formed a flat base that had one shakeout to the downside.

  The stock bounced back and now breaks out with a gap move, widening of the daily spread and expanding volume.

  VRTU's CCI momentum indicator is strongly bullish.   

  Earnings Outlook

  Net for the fiscal year ending in March of 2020 is expected to rise 22%  to $2.58 a share from the $2.12 the prior year.

  Net for the fiscal fourth quarter ending in March should leap 89% to 87 cents a share from the 46 cents the prior year.

  Looking out to fiscal 2021 ending in March, the Street is calling for a 16% rise in net to $3 a share from the anticipated $2.58 for fiscal 2020.

  Net for the fiscal first quarter ending in June should jump 49% to 61 cents a share from the 41 cents the prior year. 

Strategy Opinion:  TTD is targeting VRTU for a move to 57 within the next few months, or sooner.

A protective stop can be placed near 45.

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 - 6

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

U.S. Ecology Inc. (ECOL) - 51.48

First Quarter Net to Fall Sharply, TTD Sees Drop to 44

  ECOL, based in Boise, Idaho. provides waste disposal services. Annual revenues: $566 million. ECOL's stock falls sharply Friday and undercuts key technical support.

  So far today, ECOL is trading 206,948 shares. Its average daily volume is 136,000 shares.

  TTD sees more on the downside.

  TTD highlighted ECOL as a short at our midsession video show  on the Web Friday.

  ECOL's stock fell in the morning and undercut key technical support.

  The stock fell to an intraday low of $51.26. It then rallied in the afternoon to $52.28 and then faded a bit late in the day.

   Tape Action

  ECOL's tape action shows the recent block trades.

  One can see the price for the blocks falling from $53.97 in the prior session to as low as $51.87 by the close Friday.

  A key bearish trade came in the morning when a block of 1,200 shares crossed the tape at $53.53.

  That was down from the prior block at $53.97 on 8,096 shares late on Thursday.

  Business

  ECOL provides treatment, disposal and recycling of hazardous, non-hazardous and radioactive waste, as well as a range of field and industrial services.

The company provides hazardous material management services, including transportation, recycling, treatment and disposal at company-owned landfill, wastewater and other treatment facilities.

Earnings:

  Analysts expect net for 2019 to decline 7% to $2.16 a share from the $2.32 the prior year.

  Fourth quarter net should drop 9% to 59 cents a share from  the 65 cents the prior year.

  Looking to 2020, the Street sees net slipping 1% to $2.14 a share from the anticipated $2.16 for 2019.

Charts:  

  ECOL's daily chart shows the stock trying to form a bottom near 55. However, Friday it cuts below support.

  ECOL's 12-month performance chart shows the stock down 15% versus a 23% gain for the stock market.   

Strategy Opinion: TTD  is targeting ECOL. for a decline to $44 within the next few months, or sooner.  A protective stop buy can be placed near $55.

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.)