Ticker Tape Digest

Professional Report”

Monday - February 11, 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 - Monday Go to Shows for Latest Week: Monday - Tuesday - Wednesday - Thursday -  Friday (Best with Cable or DSL - High quality - Windows Media Video)

Monday - February 11, 2019

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  10

Quality of Breakouts -  Average.

Stocks Screened - 12,234

Bull side -  Large list of breakouts with some plays suitable for aggressive bulls.

Stock market  -  Bullish in all time sectors.

Comment -  Stock market still holding in up trend near-term, but momentum has slowed significantly.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Some earnings beats for Monday -  ARGO, NGL, DCP, MOH, RAMP and VRNS

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

Mellanox Technologies Ltd. (MLNX) - 99.36, up 2.20 - Breakpoint 97.94

Net Tops Estimates, TTD Targets 125 

    MLNX, based in Israel, is a fabless semiconductor firm. Annual revenues: $1.1 billion. MLNX's stock moves higher Monday and breaks out from its 15-week flat base. The move carries the stock to a 6-year high.

  So far today, MLNX is trading a light 866,295 shares. Its average daily volume is 1.2 million shares.

  TTD sees more on the upside.

  MLNX's stock moved higher in the morning to clear its breakpoint line.

  It reached an intraday peak at 99.79 in the morning. The stock then pulled back slightly and trended sideways the rest of the day.

 In after hours trading Monday, the stock was up slightly.

    Tape Action

  MLNX's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $97.02 in the morning to as high as  $99.56.

  A key bullish trade came in the morning when a block of 5,832,000 shares (duplicated)  crossed the tape at $97.49.

  That was up from the prior block at $97.02 on 3,600 shares the prior session.

  Near the close a block of 11,256 shares (duplicated) crossed the tape at $99.36.  

 That was up from the prior block at $99.25 on 4,277 shares.  

  Business

   MLNX is a supplier of interconnect products and solutions based on the InfiniBand and Ethernet standards.

The company's products facilitate data transmission between servers, storage systems, communications infrastructure equipment and other embedded systems.

  It operates its business globally and offers products to customers at various levels of integration.

 The products it offers include integrated circuits , adapter cards, switch systems, multi-core and network processors, cables, modules, software, services and accessories.   

  Charts

   MLNX's 12-month performance chart shows the stock appreciating 60% versus a 3%  gain for the stock market.

  Insiders were recent buyers at $10 to $13 a share. They were sellers at $76 to $90 a share

  MLNX's long-term chart shows the stock running up from $30 back in 2011 to a peak of $120 by 2012.

  However, the stock fell back sharply to around the $40 area by 2014. It trended in a range until late 2017 when it brokeout from  its long-term base. It has since climbed steadily to $99.  

  MLNX's daily chart shows the stock climbing sharply on its earnings in January

  Monday, it clears its break point with a modest pick up in volume.

  The stock showed strong volume at the time of its earnings in late January.

  The stock's CCI momentum indicator has backed off a bit.

    Earnings Outlook

  MLNX's earnings for this year are expected to climb 24% to $6.22 a share from the $5.01 the year before.

  The stock sells with a price-earnings ratio of  15. TTD sees that as attractive for value-growth investors.

  Looking out to 2020, analysts predict a 14% increase in net to $7.10 a share from the anticipated $6.22 this year.

  Six analysts follow the stock.

  Net for the upcoming first quarter should leap 48% to $1.45 a share from the 98 cents the year before.

  The highest estimate on the Street is at $1.48 a share. The company beat the Street consensus estimate the past 7 quarters.

  Looking out to the second quarter, analysts predict a 21% increase in net to $1.51 a share from the $1.25 the year before.

Strategy Opinion:  TTD is targeting MLNX for a move to $125 within the next few months, or sooner.

A protective stop can be placed near $95.

Intermediate-Term Rating:  Above Average.

Suitability:   Aggressive Bulls.

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

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

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

Probability:  Seasonal Success - Bullish. -  MLNX averaged a gain of 6.9% in February and a gain of 3.3% 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.)

Popular Inc. (BPOP) - 21.79

Set a Stop Buy at 22.60 to catch the Breakout

Bank Firm's Net to Leap 29% This Year, TTD Sees 27.50 after a Breakout

  Popular Inc. (BPOP, based in San Juan, Puerto Rico, is a financial holding company for several banks. Annual revenues: $1.6 billion. BPOP's stock moved higher Monday. It is in position to breakout from its 10-week, cup-and-handle base.

  So far today, BPOP is trading a light 397,586 shares. Its average daily volume is 655,959 shares.

  TTD suggests accumulation in anticipation of a breakout. The stock has been a steady climber the past seven years.

  BPOP's stock moved higher in the morning and climbed steadily through the session.

  It reached an intraday near the close at $54.81.

  Tape Action

  BPOP's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $53.89 in the prior session to as high as $54.76.

  A key bullish trade came near the close Monday. That is when a massive block of 39,526 shares (duplicated) crossed the tape at $54,76.

  That was up from the prior block at $54.19 on 5,000 shares.

  Business

  BPOP operates  Banco Popular de Puerto Rico, which includes its Puerto Rico business, and Banco Popular North America (BPNA), which includes its the U.S.mainland business.

 The Company has operations in Puerto Rico, the U.S. and the Caribbean.

The Company's provides retail, mortgage and commercial banking services. It also handles auto and equipment leasing and financing, investment banking, broker-dealer and insurance services .

The banking operations in the U.S. are based in New York, Florida and New Jersey. They are conducted under the name of Popular Community Bank.

  Charts

  BPOP's 12-month performance chart shows the stock up 38% versus a 3% gain for the stock market.

  Insiders were buyers the past year using stock options. The price was not disclosed.

  They were sellers at $49 to $55 a share.

  BPOP's long-term chart shows the stock climbing from $13.38 back in 2012 to a peak at $45 by early 2017.

  The stock based and has since broken out from its long-term base in early 2018

  BPOP's daily chart shows the stock peaking near $56 in November.

  It pulled back and then rallied to form a cup-and-handle base.

  The stock is in good position to breakout.

  BPOP's CCI momentum indicator has backed off in recent sessions.

  Earnings Outlook

  This year, analysts are forecasting a 26% jump in net to $6.01 a share from the $4.77 in 2018.

  The stock sells with a price-earnings ratio of 9. That is attractive for value investors.

  Looking out to 2020, the Street predicts a 10% rise in net to $6.63 a share from the anticipated $6.01 this year.

  Quarterly earnings will be strong.

  Net for the upcoming first quarter should surge 63% to $1.45 a share from the 89 cents the year before.

  Two analysts follow the stock. The company beat the Street's quarterly estimate seven out of the past 10 quarters.

 Profits for the second quarter are projected to climb 28% to $1.51 a share from  the $1.18 the year before.

Strategy Opinion:  TTD suggests accumulation of a partial stake in BPOP with further buying to be done on a breakout over $22.60. TTD is targeting the stock for a move to $27.50.   

A protective stop can be placed near $21.

Intermediate-Term Rating: Average.

Suitability:  Conservative Bulls.

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

Probability - Breakout Success - Modestly Bullish -  BPOP has tended to score modest gains off some of its recent breakouts.

Probability - Earnings Response - Bullish -  BPOP rose 7 times after the past 12 earnings reports when there was a significant change in price.

Probability:  Seasonal Success - Bullish -  BPOP averaged a decline of 4% in February and  again of 021% in March the past several years.

                     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

VeriSign Inc. (VRSN) - 151.23

Set a Stop Buy at 152.30 to Catch the Breakout

Stock nears breakpoint. Net to rise 4% his year.

Salesforce.com Inc. (CRM) - 159.61

Set a Stop Buy at 161.30 to catch the Breakout

Stock nears breakout. Net to leap 93% for fiscal 2019 (Jan.)

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 -     3

Stocks Screened - 12,234

Long-Term Environment for bears: Neutral.

Bear Side - Small list of shorts Monday. Bears be conservative.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

AU Optronics Corp.  (AUO) - 3.65

Loss Expected for This Year, TTD Sees Drop to 2.60

  AUO, based in Taiwan. makes flat panel displays. Annual revenues: $341 million. AUO's stock falls Monday with heavy volume. The move undercuts key technical support. TTD sees more on the downside.

  So far today, AUO is trading a heavy 2.3 million shares, double its average daily volume of 1.1 million shares.

  TTD highlighted AUO as a short at our midsession video show on the Web Monday.

  TTD sees more on the downside.   

  AUO's stock fell in the morning and undercut key support. The stock worked lower touching an intraday low of $3.57 in the afternoon.

  Tape Action

  AUO's tape action shows the recent block trades.

  One can see the price for the blocks falling from $3.73 to $3.62.

  A key bearish trade came in the morning when a block of 21,275 shares crossed the tape at $3.70.

  That was down from the prior block at $3.73 on 116,026 shares.

  Business

  AUO makes thin-film-transistor liquid-crystal display panels. The company operates in two area display and solar.

  Its panels are used in televisions, monitors, mobile personal computers (PCs), mobile devices and teller machines and point of sale terminals.

  The company makes ingots, solar wafers and solar cells.

  Earnings:

  This year, analysts are forecasting a loss of 7 cents a share compared with a profit of 34 cents in 2018.

Charts:  

  AUO's daily chart shows the stock cutting below support with big volume. The stock has been in a down trend the past two weeks.

  AUO's 12-month performance chart shows the stock down 20% versus a 4% gain for the stock market.

Strategy Opinion: TTD is targeting AUO for a decline to $2.60 within the next few months, or sooner. A protective stop buy can be placed near $4.30.

Suitability:   Aggressive Bears.

  TTD's probability research of Prior Performance:  

Probability - Earnings Response - Bearish.  -  AUO rose 4 times after the past 10 earnings reports when there was a significant change in price.

Probability:  Seasonal Activity - Slightly Bearish. -   AUO averaged a decline of 3.7% 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.)