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.
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.
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)
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance)
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 firstname.lastname@example.org. For service, email Beverly Owen email@example.com. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 17
Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list large but very selective. Bulls be conservative. Stock market still hold up trend.
(Put mouse on chart to see Nasdaq)
Environment for bulls: Bullish.
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
TTD's Quality Rating of Stock - KOP - AVERAGE
KOP, based in Pittsburgh, Pa., produces wood products and chemical compounds used by the railroad and utility industries. Annual revenues: $1.5 billion. KOP's stock breaks out Friday from a 10-week flat base. TTD sees more on the upside.
TTD highlighted KOP as a breakout at our midsession video show on the Web Friday.
So far today, KOP is trading 227,249 shares, almost double its average daily volume of 131,000 shares.
KOP's stock drove higher in the morning and cleared its breakpoint. (see 10-minute chart)
The stock reached an intraday high of $43.75.
The stock then pulled back and trended sideways around $43 the rest of the day.
KOP's tape action shows the recent block trades.
One can see the price for the blocks climbing from $42.40 in the prior session to as high as $43.50 in the morning.
A key bullish trade came in the morning near the opening when a block of 886 shares crossed the tape at $42.80.
That was up from the prior block at $42.40 on 4,119 shares late on Thursday.
Near the close a block of 6,215 shares (duplicated) crossed the tape at $43.15.
That was within a sequence of block trades that climbed from $43.05 on 900 shares.
KOP is a producer of treated wood products, wood treatment chemicals and carbon compounds.
The company operates through three business segments: Railroad and Utility products, carbon materials and chemicals and performance chemicals.
The company sells wood products, rail joint bars to the railroad industry and treated wood products to the utility industry.
Its utility products include transmission and distribution poles and pilings.
The carbon unit makes creosote, carbon pitch, naphthalene, phthalic anhydride and carbon black feedstock.
KOP's 12-month performance chart shows the stock appreciating a sensational 170% versus a 24% gain for the stock market.
Insiders were heavy buyers in early 2016 using stock options. The price was not disclosed. Around mid-2016, they were buyers using stock options at $17 to $29 a share.
They were light sellers later in 2016 around $38.
KOP's long-term chart shows the stock with its ups and downs. The stock came public in 2006 at $14.60.
It climbed to an all-time high of $51.95 in 2008 near the top in the prior bull market. However, the stock took a dive in the following bear market. It fell back to its all-time low of $9.29 in early 2009.
The stock made a comeback, though, climbing back to around $50 by 2013. However, it fell back again to around $15 in late 2015. Nevertheless it has since come back strong. So, the stock is volatile long-term.
KOP's daily chart shows the stock advancing from around $28 back in September to a peak near $42 by December.
The stock then put down a tight flat base above its 50-day moving average line.
The set up is ideal
The breakout comes Friday with an expansion in volume.
KOP's CCI momentum indicator is strongly bullish.
KOP is expected to report 2016 earnings on Feb. 23.
The Street is forecasting a robust 62% surge in net to $2.45 a share from the $1.51 a year ago.
The stock sells with a price-earnings ratio of 17. TTD sees that as okay for growth investors.
Net for the fourth quarter of 2016 should surge 100% to 26 cents a share from 13 cents the year before.
The highest estimate on the Street is at 30 cents a share.
TTD sees good chances for an upside earnings surprise. The company beat the Street estimate the past three quarters by an impressive 33 cents a share, 31 cents and 20 cents.
Turning to 2017, the Street predicts a more modest 15% increase in net to $2.81 a share from the anticipated $2.45 for 2016.
Profits for the first quarter of 2017 should be up 21% to 34 cents a share from 28 cents the year before.
Strategy Opinion: TTD is targeting KOP for a move to $52 within the next few months, or sooner. A protective stop can be placed near $40.50.
TTD rates KOP a good intermediate-term play provided earnings remain on course.
Suitability: Average Bulls.
TTD's special research of KOP's Prior Performance after a Breakout:
TTD's research shows that recently (see table) KOP has scored some solid gains off its recent breakouts. The stock is currently in a long-term up trend running from a year ago at $16 to $43.
Prior to that it was in a down trend. So, right now the long-term pattern favors the potential for a good breakout return. The stock had a big run up off its most recent earnings report.
Also, KOP tends to do well in February and March.
Stock's Prior Performance After A Breakout
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
|11/9/2016||33.62||43.15||Still in play|
(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 - MHK - AVERAGE|
|TTD's Quality Rating of Stock - CUB - AVERAGE|
|TTD's Quality Rating of Stock - PJC - AVERAGE|
|TTD's Quality Rating of Stock - CBG - 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 - 7
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of breakdown stocks but some interesting plays. Bears be conservative.
TWTR, based in San Francisco, provides a communications internet platform . Through the platform it has ads and data partners. Annual revenues: $2.5 billion. TWTR's stock falls sharply Friday undercutting key technical support. TTD sees more on the downside.
TTD highlighted TWTR as a short at our midsession video show on the Web Friday.
So far today, TWTR is trading 72.9 million shares, more than triple its average daily volume of 22 million shares.
There were several investment firms which put out negative comments and some sell recommendations. They included UBS.
The sells came after the company missed revenue goals for the fourth quarter.
TWTR's stock trended lower from the opening at $16 to as low as $15.50 around mid-day.
The stock then trended sideways.
TWTR's tape action shows the recent block trades.
One can see the price for the blocks falling from $16.41 in the prior session to as low as $15.58 near the close Friday.
A key bearish trade came in the morning when a block of 250,000 shares crossed the tape at $16.07.
That was down sharply from the prior block trade at $16.41 on 382,184 shares.
TWTR's service provide current commentary on a variety of topics via its followers. Its internet platform is used for public self-expression and conversation in real time.
Its advertisers promote their brands, products and services, and extend the conversation around their advertising campaigns.
This year, analysts are forecasting a loss of 23 cents a share compared with a loss of 31 cents the year before.
Going out to 2018, analysts forecast a breakeven.
For the upcoming first quarter, the Street is expecting a loss of 8 cents a share compared with a loss of 7 cents the year before.
TWTR's daily chart shows the stock falling sharply in October right before its earnings. The stock then trended sideways using $15 as support.
Friday, the stock falls below support with volume picking up off the financial statement which showed a per share loss of three cents a share.
TWTR's 12-month performance chart shows the stock up 10% versus a 24% gain for the stock market.
Insiders were heavy buyers using stock options. The price was not disclosed. Earlier in 2016, they bought at $11 to $15 a share and in some cases using stock options. Most recently they were sellers around $15 to $32 a share
Strategy Opinion: TTD is targeting TWTR for a decline to $12.50 within the next few months, or sooner. A protective stop buy can be placed near $17
Suitability: Aggressive Bears.
|TTD's Quality Rating of Stock - TWTR - 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.)