Ticker Tape Digest

Professional Report”

Friday - February 8, 2019

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: 1-480-926-1680.

Ticker Tape Digest's Midsession Stock Market Video Show (Posted around 1 p.m. NYSE Time) Go to TTD Stock Market Show For - Friday Go to Shows for Latest Week: Monday - Tuesday - Wednesday - Thursday -  Friday (Best with Cable or DSL - High quality - Windows Media Video)

Friday - February 8, 2019

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  9

Quality of Breakouts -  Average.

Stocks Screened - 12,234

Bull side -  Very selective list of breakouts, but some good plays for aggressive bulls.

Stock market  -  Bullish in all time sectors.

Comment -  Stock market rallies Friday to trim losses. It remains bullish in all time sectors.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Some earnings beats for Friday - PSX, UBNT, BPL and ESNT.

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

Euronet Worldwide Inc. (EEFT) - 126.57, up 11.24 - Breakpoint 121.81

Net Tops Estimates, TTD Targets 150 

    EEFT, based in Leawood, Kan., is an electronic payments provider. Annual revenues: $2.3 billion. EEFT's stock rises sharply Friday to breakout from its 10-week, cup-and-handle base. The move was triggered by better-than-expected quarterly earnings.

  So far today, EEFT is trading a heavy 1.9 million shares, five times its average daily volume of 360,000 shares.

TTD sees more on the upside.

  EEFT reported net for the fourth quarter of $1.37 a share. That topped the consensus estimate of $1.27 a share and also the highest estimate of $1.28 a share. That came from 6 analysts.

  The stock responded by driving higher in the morning and clearing its breakpoint line.  The stock peaked at $127.76 in the morning. It then trended sideways.

  In the afternoon, EEFT drove to its intraday high of $129.33. It gave some ground in the final hour.

  Tape Action

  EEFT's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $115.33 in the prior session to as high as $127.43 Friday.

  A key bullish trade came in the morning when a giant block of 19,500 shares crossed the tape at $118.62.

  That was up from the prior block at $115.33 on 21,156 shares.

  Business

 EEFT offers payment and transaction processing and distribution solutions to financial institutions, retailers, service providers and individuals.

 It sells automated teller machine, point-of-sale, card outsourcing, card issuing and merchant acquiring services.

 The company operates in three areas: EEFT processing, outsourced ATM and POS management solutions, and credit and debit card outsourcing.

  Charts

  EEFT's 12-month performance chart shows the stock up 58% versus a 4% gain for the stock market.

  Insiders were recent buyers using stock options at $10 to $23 a share. They were sellers at $94 to $120 a share.

  EEFT's long-term chart shows the stock climbing from $16 back in 2012 to a peak at $82 by late 2015.  

  The stock then went into a basing pattern. EEFT eventually climbed to its new all-time high of $120.12 in October.   It based and now breaks out.

  EEFT's daily chart shows the stock climbing from $91 back in September to a peak near $119 by late November.

  The stock put down a cup-and-handle base.

  Friday, it blows out of the base with a widening of the daily spread and expanding volume.

  The stock's CCI momentum indicator is strongly bullish.

   Earnings Outlook

  This year, analysts are forecasting a 24% increase in net to $6.82 a share from  the year ago period.

  The stock sells with a price-earnings ratio of 18. TTD sees that as attractive for value investors.

   Net for the first quarter of 2019 is expected to rise 8% to 79 cents a share from the 73 cents the year before.

   The highest estimate is at 88 cents a share.

Strategy Opinion: TTD is targeting EEFT for a move to $150. A protective stop can be placed near $120.

Intermediate-Term Rating: Average.

Suitability:   Average Bulls.

                                 TTD's special research of  Stock's Prior Performance:  

Probability - Breakout Success - Bullish - EEFT scored some solid gains off some of its recent breakouts. The stock is in a long-term up trend.

Probability - Earnings Response - Bullish - EEFT rose 8 times after the past 11 earnings reports when there was a significant change in price.

Probability:  Seasonal Success - Bullish - EEFT averaged a gain of 4.6% in February and a 3.3% gain in March the past several years. 

           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

TTD’s Feature Stock Under Accumulation

(Trading strategy: Purchase of these stocks is done when either the stock is still in a base, or has emerged and is acting very bullish. Purchase while a stock still is basing should be a scale-in strategy with the final buying to be done on a breakout from a base. Buying of these stocks when they are trending higher can be done aggressively.)

Splunk Inc. (SPLK) - 131.02

Set a Stop Buy at 131.70 to catch the Breakout

Net to Soar 89% for fiscal 2019 (Jan.), TTD targets 155 after a Breakout

      SPLK, based in San Francisco, develops software to be used to collect, index, search, explore, monitor and analyze data. annual revenues: $1.3 billion.  SPLK's stock drives higher Friday. It is close to breaking out from its 5-month, double bottom base.

  So far today, SPLK is trading a heavy 1.1 million shares. Its average daily volume is 1.4 million shares.

  TTD suggest accumulation in anticipation of a breakout to a new all-time high.

  SPLK's slipped lower in the morning, but then turned up. It trended higher the rest of the day even though the stock market declined sharply.

  That is impressive. It reached an intraday high of $131.37.

  Tape Action

  SPLK's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $126.48 in the morning to as high as $130.93 in the afternoon.

  A key bullish trade came late on Thursday when a massive block of 127,200 shares (duplicated) crossed the tape at $128.21.

  That was up from the prior block at $127.58 on 31,800 shares.

  Business

   SPLK's products handle diverse data sets that are referred to as big data and are specifically used for machine data.

  Machine data is produced by various software application and electronic devices and contain a definitive, time-stamped record of various activities, such as transactions, customer and user activities and security threats.

 SPLK's products are used for information technology (IT), security and business professionals, to analyze their machine data and achieve real-time visibility.

In addition, the Company offers user behavioral analytics to help detect, respond to and mitigate advanced, hidden and insider threats.

Charts

  SPLK's 12-month  performance chart shows the stock appreciating 52% versus a 4% gain for the stock market.

  Insiders have not done any buying, but have been getting stock options. The price was not disclosed.  They were sellers at $104 to $126 a share recently.

  SPLK's long-term chart shows the stock coming public in May of 2012 at $32. The stock surged to an all-time high of 106.15 by early 2014.

  The stock then pulled back to around $40 in 2014. It rallied to $74 in 2015, but then broke down to $31.36 in early 2016 due in part to the stock market sell off.

 SPLK rallied back to around $65, trended sideways and then broke out in 2017. It has since raced to an all-time high of 131.43 earlier this year.

  SPLK's daily chart shows the stock climbing to around $131 in February.

  The stock has put down a classic, long-term, double-bottom base.

  It is now in good position to breakout.

  SPLK's CCI momentum indicator is still bullish.

   Earnings Outlook

  Analysts are forecasting a robust 89% surge in net for the fiscal year ending in January. They are looking for net of $1.17 a share, up from 62 cents the year before.

  The stock sells with a price-earnings ratio of 111. That is high. So, the stock is best for an aggressive investor.

  Going out to fiscal 2020 ending in January, analysts predict a 41% jump in net to $1.65 a share from the anticipated $1.17 for fiscal 2019.

  Net for the upcoming fiscal fourth quarter ending in January is being projected at 76 cents a share, a 105% jump from the 37 cents the year before.

  For the fiscal first quarter of fiscal 2020 ending in April, analysts look for a loss  of one cent a share compared with a loss of 7 cents the year before. 

  The company has beat the consensus estimate the past 18 out of 19 quarters.

Strategy Opinion:  TTD suggests accumulation of a partial stake in SPLK with further buying to be done on a breakout over $131.70. TTD is targeting SPLK for a move to $155 within the next few months, or sooner.

Intermediate-term Rating: Average.

Suitability:  Aggressive Bulls.

        TTD's special research of  Stock's Prior Performance:  

Probability - Breakout Success - Bullish - SPLK has scored just modest gains off breakouts recently. However, it has at times scored big.

Probability - Earnings Response - Bullish - SPLK rose 6 times after the past 10 earnings reports when there was a significant change.

Probability:  Seasonal Success - Bullish. - SPLK has risen an average of 6.9%  in February and 1.7% in March.

                     Stock's Prior Performance After a Breakout

           Stock Performance Chart with Quarterly Earnings Markers vs. S&P 500

Insider Buying in Green  - Insider Selling in Red

  Stock's Long-term Chart

Pro-DEX Inc.  (PDEX) - 14.83

Set a Stop Buy at 15.60 to Catch the Breakout

Stock nears breakpoint. Net to climb 14% this year.

ETSY Inc. (ETSY) - 53.08

Set a Stop Buy at 60.65 to catch the Breakout

Stock moves toward breakpoint. Net to climb 29% this year.

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 - 4

Stocks Screened - 12,234

Long-Term Environment for bears: Neutral.

Bear Side - Small list of shorts Friday. Bulls be conservative.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Goodyear Tire & Rubber Co. (GT) - 18.69, down 1.86

Net Misses, TTD Sees Drop to 15

  GT, based in Akron, Ohio, makes tires. Annual revenues: $15.4 bullion. GT's stock falls sharply Friday and cuts below key technical support. The drop was triggered by an earnings miss. TTD sees more on the downside.

  So far today, 14.1 million shares, more than double its average daily volume of 5.8 million shares.

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

   GT reported net for the fourth quarter of 51 cents a share. That was well below the consensus estimate of 69 cents a share.

  The stock fell sharply in the morning and undercut key technical support. GT touched an intraday low of $18.49 in the morning.

  The stock then lifted slightly and trended sideways the rest of the day. It was unable to rally.

  Tape Action

  GT's tape action shows the recent block trades.

  One can see the price for the blocks falling from $20.55 in the prior session to as low as $18.52 Friday morning.

  A key bearish trade came in the morning when a block of 38,365 shares crossed the tape at $19.83.

  That was down from the prior block at $20.55 on 121,905 shares late on Thursday.   

   Business

  GT is a major producer of tires. It sells in the U.S., Central and South America and other markets.

 It makes tires for cars, trucks, buses, earthmoving, mining and industrial equipment and aircraft.

 Earnings:

  This year, analysts are forecasting a 6% increase in GT's earnings to $2.57 a share from the $2.42 the year before.

  However, net for the first quarter is expected to tumble 22% to 13 cents a share from the 50 cents the year before.   

Charts:  

  GT's daily chart shows the stock gapping lower with big volume. The move continues the stock's down trend from $36 back in early 2018.

  GT's 12-month performance chart shows the stock down 38% versus a 4% gain for the stock market.

Strategy Opinion: TTD is targeting GT for a decline to $15 within the next few months, or sooner. A protective stop buy can be placed near $19.90.

Suitability:   Aggressive Bears.

  TTD's probability research of Prior Performance:  

Probability - Earnings Response - Neutral.  GT rose 5 times after the past 10 earnings reports when there was a significant change in price.

Probability:  Seasonal Activity - Neutral.  GT averaged a decline of 0.8% in February but a gain of 1.3% in March the past several years.

   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. - 2019

    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 1-480-926-1680.

   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.)