Ticker Tape Digest

Tuesday - February 18, 2020

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.

Tuesday - February 18, 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, but selective. Gold stocks lead the list.

Stock market  -  Major averages still hold up trend. However, the Dow now appears to be out of gas and going into a consolidation. One needs to be watchful.

Comment -  Breakout stocks still showing up. Bulls be selective.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats -  

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

Wheaton Precious Metals (WPM) - 31.40, up 1.41 - Breakpoint 30.25

Net To Soar 59% for 2020, TTD Targets 38

    WPM, based in Vancouver, Canada, mines and produces gold and silver. Annual revenues: $794 million. WPM's stock drives higher Tuesday and breaks out from its nine-week flat base.

  So far today, WMP is trading 5.5 million shares, triple its average daily volume of 1.8 million shares.

  TTD sees more on the upside.

 TTD highlighted WMP as a breakout at our midsession video show on the Web Tuesday. Several other gold stocks were on the move higher too.

  WPM's stock moved higher in the morning and cleared its breakpoint line.

  The stock reached a peak $31.60 around noon.

  It then trended sideways the rest of the day.

   Tape Action

  WPM's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $29.99 in the prior session to as high as $31.47 around noon.

  A key bullish trade came in the morning when a block of 69,570 shares (duplicated) crossed the tape at $30.17.

  That was up from the prior block at $29.99 on 62,803 shares in the prior session. on Thursday.

  The stock  closed strong with good institutional buying around the close.

  Business

 WPM, formerly Silver Wheaton Corp, is a Canada-based pure precious metals streaming company engaged in the sale of silver and gold.

 The Company operates through eight segments: The silver produced by the San Dimas, Penasquito and Antamina mines, the gold produced by the Sudbury and Salobo mines, the silver and gold produced by the Constancia mine and other mines.

 WPM has entered into long-term purchase agreements and early deposit long-term purchase agreements whereby WPM acquires silver and gold production at various mines.

  Charts

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

  Insider activity was not available.

  WPM's long-term chart shows the stock dipping to $10 a share in 2016 after being as high as $47 back in 2011.

  The stock rallied to $31 by 2016, faded back and now  is coming on again.

  WPM's daily chart shows the stock climbing from $25 back in October to a peak around $30 by December.

  The stock put down a flat with a wedge to the upside.

  The breakout is impressive coming with a widening of the daily spread and expansion in volume.

  The stock's CCI momentum indicator is strongly bullish.   

  Earnings Outlook

   Analysts are forecasting for 2019 a 19% increase in net to 57 cents a share from  the 48 cents the year before.

  The stock sells with a price-earnings ratio of 54. That is high given the growth rates.

  However, looking out to 2020, the Street predicts a 59% surge in net to 90 cents a share from  the anticipated 57 cents this year.

  Quarterly earnings growth will be strong.

  Net for the fourth quarter should surge 125% to 18 cents a share from the 8 cents the year before.

  The highest estimate on the Street is at 20 cents a share. The company tends to come in at the consensus.

  For the first quarter, the Street predicts a 54% leap in net to 20 cents a share from the 13 cents the year before.

Strategy Opinion:  TTD is targeting WPM for a move to $38 within the next few months, or sooner.

A protective stop can be placed near 29.

Intermediate-Term Rating:  Average.

Suitability:   Aggressive Bulls.

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

Probability - Breakout Success - Bullish -  WPM scored some big gains off some of its recent breakouts.

Probability - Earnings Response - Bullish -  WPM rose 2 times after the past 3 earnings reports when there was a significant change in price.

Probability:  Seasonal Success - Bearish -  WPM averaged a decline of 3.9% in August and a decline of 0.3% in September the past several years. 

                                   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 - 3

Stocks Screened - 12,234

Long-Term Environment for bears: Unfavorable.

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

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Fluor Corp. (FLR) - 14.79

Accounting Questioned, TTD Sees Drop to 11

  FLR, based in Irving, Tex., provides construction for the energy, mining and government. Annual revenues: $19.2 billion. FLR's stock falls sharply Monday and undercuts key technical support.

  So far today, FLR is trading a heavy 13.2 million shares. 8 times its average daily volume of 1.7 million shares.

  The drop was triggered when the company came under scrutiny from the SEC for problems with FLR's accounting.

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

  The stock fell in the morning and undercut key technical support at $16.06.

  It touched an intraday low of $14.30 in the morning. The stock then lifted slightly later in the day.

  Tape Action

  FLR's tape action shows the recent block trades.

  One can see the price for the blocks falling from $19.54 last week to as low as $14.52 Tuesday.

  A key bearish trade came in the morning when a block of 135,945 shares (duplicated) crossed the tape at $16.67.

  That was down sharply from the prior block last week at $19.54 on 222,280 shares.

  Business

 FLR provides engineering and construction services for the: Energy, chemical, Mining , Power industries. It also services the government.

 The company handles engineering, procurement, construction, fabrication and modularization, commissioning and maintenance, as well as project management services.  

 Earnings:

  The Street expects FLR to show a loss of $9.53 a share for 2019 compared with a profit of $2.15 the prior year.

  Looking out to 2020, the predict net of $1.49 a share.

  However, there is a chance the numbers may be adjusted.

Charts:  

  FLR's daily chart shows the stock gapping lower with big volume. The move undercuts key technical support. It resumes the stock's down trend from $60 back in 2018.

  FLR's 12-month performance chart shows the stock down 60% versus a 23% gain for the stock market.

Strategy Opinion: TTD  is targeting FLR for a decline to $11. A protective stop buy can be placed near $15.60.

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.)