Daily - Go to TTD's Chart scroller of Breakout and Leading Stocks - Tuesday, February 16, 2016 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Tuesday, February 16, 2016 |
Go to Video Show - "How to Make Money With Breakout Stocks" |
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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. Trading Strategies Bullish 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) Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance) |
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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.
Breakout Stocks
Total Buy Breakouts so far today - 4
Overall Quality of Breakouts - BELOW AVERAGE
Stocks Screened - 8,300
Bull side - Small list of breakout stocks even as the stock market climbs sharply. Down trend still in place. Bulls be selective.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Bearish
Stock Market Momentum
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bearish, Nasdaq Bearish
Ticker Tape Digest's
TTD's Quality Rating of Stock - HSIC- AVERAGE |
HSIC, based in Melville, N.Y., produces health care products and services to dental practitioners and laboratories, animal health clinics, physicians, government and health care clinics. HSIC breaks out Tuesday from a 12-week flat base. The move carries the stock to a new all-time high. That is bullish.
So far today, HSIC is trading 532,913 shares. Its average daily volume is 589,000 shares.
HSIC's stock broke out in the morning (see 10-minute chart.
The stock then advanced steadily reaching an intraday peak of 162.50 in the afternoon.
The stock then trended mostly sideways into the close.
The intraday accumulation - distribution line showed good strength late in the day.
That indicated good buying near the close and that shows up too in the block trade report.
HSIC's tape action is show by the recent block trades.
One can see on the table several blocks going off at higher prices than the prior block.
That is bullish showing good institutional accumulation.
A key bullish trade came late last Thursday when a block of 85,753 shares (duplicated) crossed the tape at $157.91.
That was up sharply from the prior block trade at $154.44 on 8,080 shares.
HSIC's 12-month performance chart shows the stock appreciating 14% versus a 10% loss for the stock market.
HSIC operates in two segments, Health Care Distribution; and Technology and Value-Added Services.
The Health Care Distribution segment offers dental products, such as infection-control products, handpieces, preventatives, impression materials, composites, anesthetics, teeth, dental implants, gypsum, acrylics, articulators, abrasives and dental chairs.
The company also sells animal health products, including branded and generic pharmaceuticals, surgical and consumable products and medical products.
The technology unit sells software systems for dental and medical practitioners, and animal health clinics.
There has been some heavy insider selling in recent months.
HSIC's long-term chart shows the stock reaching a peak of 63 back in 2007, the top in the prior bull market.
The stock fell back to 32 in 2008 due to the following bear market.
Since then HSIC has trended higher participating nicely in the bull market.
The push to a new all-time high is bullish and could draw in more buying.
HSIC's daily chart shows the stock advancing from around 130 back in September to a peak near 160 by December.
The stock then trended sideways and was pulled back during the January market selloff.
It has since rebounded strongly breaking out to the upside.
The TTD accumulation - distribution line (bottom of chart) is working higher.
That shows good recent buying interest.
This year, analysts are forecasting an 11% increase in net to $6.61 a share from $5.96 a year ago.
The stock sells with a price-earnings ratio of 24. That is high given the earnings growth rate.
Going out to 2017, analysts predict a 10% rise in net to $7.30 a share from the anticipated $6.61 this year.
Net for the upcoming first quarter should be up 9% to $1.40 a share from $1.28 the prior year period.
HSIC tends to slightly top the consensus estimates. (see table)
Net for the second quarter should climb 12% to $1.63 a share from the $1.46 a year before.
Strategy Opinion: HSIC is a conservative play. TTD is targeting the stock for a move to 185 off this breakout.
A protective stop can be placed near 155.
There is a chance for a stock split. That could boost the stock.
TTD rates HSIC an average intermediate-term play.
Sponsorship: Excellent. Currently, eight 5-star rated funds hold the stock. The largest fund buyer recently was the 5-star rated Janus Enterprise D Fund which purchased 102,763 shares.
HSIC has 82 million shares outstanding. Institutions hold 98% of the stock and insiders 1%.
Insider Activity: Neutral. Just some light insider selling in recent months.
Currently, 15 analysts follow the stock, 6 have a buy, down from 8 three months ago.
HSIC has a book value of $35 a share.
Stock Performance Chart with Quarterly Earnings Markers.
TTD's Breakout Profile
Rating Henry Schein Inc. - (HSIC) |
TTD Check List | Bullish | Bearish | Neutral |
Near 52-week High | YES | ||
Volume | YES | ||
Tick Volume | YES | ||
Price Trend - Daily | YES | ||
Price Trend - Long Term | YES | ||
Price Daily Spread | YES | ||
Base Structure | YES | ||
Base - A-D | YES | ||
Earnings-Quarterly | YES | ||
Earnings-Long Term | YES | ||
Earnings Outlook | YES | ||
Industry Group | YES | ||
Prior Breakout Success | YES | ||
Fund Sponsorship | YES | ||
Total Score | 12 | 0 | 2 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock -RSG - AVERAGE |
TTD's Quality Rating of Stock - USAT - AVERAGE |
TTD's Quality Rating of Stock - CINF - BELOW 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 - 6
Stocks Screened - 8,300
Long-Term Environment for bears: Favorable.
Bear Side - Small list of shorts Tuesday as stock market stages bounce-back rally. Bears be patient and conservative looking for the right opportunity.
CYH, based in Franklin, Ten., provide hospital healthcare services to patients in the U.S. Annual revenues: $19.6 billion. CYH's stock falls sharply Tuesday after the company reported a loss for the quarter. So far today, CYH is trading a heavy 26 million shares, six times its average daily volume of 3.5 million shares.
TTD highlighted CYH as a short at our midsession video show on the Web Tuesday.
CYH's stock fell sharply in the morning, lifted slightly and then faded to touch its intraday low at 12.86 in the morning.
The stock then worked slightly higher the rest of the day.
The company reported a fourth quarter loss of 28 cents a share. That was below the 95 cent share profit expected by the Street.
Revenues decline 2.4% to $4.8 billion. The decline reflected less admissions from flu patients than expected.
CYH's tape action shows the recent block trades.
One can see the price for the blocks falling from $18.30 last Thursday to as low as $13.03 Tuesday.
A key bearish trade came in the morning when a block of 209,223 shares crossed the tape at $14.
That was down from the prior block trade at $18.30 on 151,970 shares.
The company operates general acute care hospitals that offer a range of inpatient and outpatient medical and surgical services, such as general acute care, emergency room, general and specialty surgery, critical care, internal medicine, obstetrics, diagnostic, psychiatric, and rehabilitation services.
CYH's daily chart shows the stock trending lower the past few months from 56 to around 20. The stock gaps lower Tuesday with big volume.
The Street has been forecasting a 6% rise in net this year. However, that forecast could come down after the dismal fourth quarter.
Strategy Opinion: CYH's stock is extended to the downside. However, TTD sees more and a decline to 11.20 within the next few months, or sooner. Many institutions will seek to exit causing more selling pressure.
A protective stop buy can be placed near 15.60.
TTD's Quality Rating of Stock - CYH - BELOW AVERAGE |
TTD columnist Leo Fasciocco has covered the stock market for over 20 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.)