Ticker Tape Digest

Thursday - February 13, 2020

 TTD does not publish Friday. Market is closed Monday. We resume Tuesday.

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.

Thursday - February 13, 2020

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts   -  16

Quality of Breakouts -  Average.

Stocks Screened - 12,234

Bull side -  Large list of breakouts with some good looking plays

Stock market  -  Major averages remain bullish in all time sectors.

Comment -  Market holds up trend with a good flow of breakouts. Earnings will continue to be reported. So, one needs to be watchful.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats -  DAVA, PDS, KELYA, PATK and SMICY.

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

MKS Instrument Inc. (MKSI) - 120.84, up 3.29 - Breakpoint 119.08

Net To Spurt 36%This Year, TTD Targets 145

  MKSI, based in Andover, Ma., produces instruments, subsystems and process control solutions that measures, controls, powers, delivers, monitors manufacturing processes. Annual revenues: $1.9 billion. MKSI's stock drives higher Thursday and breaks out from its 16-week, flat base.

  So far today, MKSI is trading 796,082 shares. Its average daily volume is 520,000 shares.

  TTD sees more on the upside.

  MKSI's stock moved higher in the morning and then cleared its breakpoint around noon.

  The stock ran up to an intraday peak at $122.30 in the early afternoon. It then backed off later in the afternoon.

  Tape Action

  MKSI's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $117.55 in the prior session to as high as $122.06 in the afternoon.

  A key bullish trade came in the morning when a block of 7,765 shares (duplicated) crossed the tape at $118.48.

  That was up from the prior block the previous session at $117.55 on 7,152 shares.   

   Business

MKSI's vacuum & analysis segment provides instruments and software that control and measurement gas and vapor.

 They also check for residual gas analysis, leaks and watch reactive gas generation.

 The firm's light and motion segment provides instruments and subsystems derived from its core competencies in lasers, photonics and optics.

Charts

  MKSI's 12-month performance chart shows the stock up 45% versus a 22% gain for the stock market.

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

  They were sellers at $83.90 to $113 a share.

  MKSI's long-term chart shows the stock climbing from $29 back in 2014 to a peak at $128 by 2018.

  The stock then fell back to around $60 later in 2018. However, since then, MKSI has drive higher and is in good position to challenge its all-time high.

  MKSI's daily chart shows the stock climbing from near $90 in October to a peak at $115 by later in October.

  The stock put down a flat base and then broke out in January.

  However, the stock did not follow through but faded back.

  TTD set up a breakpoint zone.

  Thursday, MKSI breaks through with a good pick up in volume.

  The stock's CCI momentum indicator is solidly bullish.

   Earnings Outlook

  This year, analysts are forecasting a 36% surge in net to $6.16 a share from the $4.52 in 2019.

  The stock sells with a price-earnings ratio of 19. TTD sees that as attractive for value investors.

  Looking out to 2021, the Street projects a 30% jump in net to $8.02 a share from the anticipated $6.16 a share for 2020.

  Quarterly earnings should show an acceleration in growth. That is bullish.

  Net for the first quarter should climb 19%  to $1.33 a share from the $1.12 the prior year.

  Then in the second quarter net should spurt 35% to $1.47 a share from the $1.09 last year.   

Strategy Opinion:  TTD is targeting MKS for a move to $145 within the next few months, or sooner.

A protective stop can be placed near  $112.

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 Price Performance after Reporting Earnings

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 as stock market edges lower Thursday.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Turtle Beach Corp.  (HEAR) - 7.18

Loss Seen for 2019, TTD Sees Decline 5

  HEAR, based in San Diego, Ca., is an audio tech firm  producing headsets. Annual revenues: $287 million. HEAR's stock falls sharply Thursday and undercuts key technical support.

  The drop was triggered when HEAR forecast lower than expected earnings.

  TTD sees more on the downside. TTD highlighted HEAR as a short at our midsession video show on the web Thursday.

  HEAR said earnings for the fourth quarter would be 67 to 78 cents a share.

  The Street was forecasting 82 cents a share. The lowest estimate was at 77 cents.

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

  The stock touched an intraday low of $6.90 in the morning.

  It lifted slightly and then trended sideways the rest of the day.

  Tape Action

  HEAR's tape action shows the recent block trades.

  One can see the price for the blocks falling from $8.01 in the prior session to as low as $6.98 Thursday.

  A key bearish trade came in the morning when a block of 10,160 shares (duplicated) crossed at $7.49.

  That was down from the prior block at $8.01 on 6,100 shares Wednesday.

   Business

  HEAR makes its hearing products under the Turtle Beach and HyperSound brands.

 HEAR's products are used for video game and entertainment consoles, handheld consoles, personal computers, tablets and mobile devices.  It sells worldwide.

  Earnings:

  Analysts are forecasting a first quarter loss of 12 cents a share versus a profit of 13 cents the prior year.

  The Street has been expecting a 24% increase in net for 2020. However, that estimate should come down.   

Charts:  

  HEAR's stock gaps lower and cuts below support. The move is a continuation of a downtrend from $34 in 2018.

 The stock did go through a 1-for-4 reverse split.

  HEAR has fallen 58% the past 12 months versus a 22% gain for the stock market.

Strategy Opinion: TTD  is targeting HEAR for a decline to $5. A protective stop buy can be placed near $7.70.

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.)