Ticker Tape Digest

Thursday - February 18, 2021

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 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 18, 2021

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts   -  7

Quality of Breakouts -  Average.

Stocks Screened - 12,234

Bull side -  Small list of breakouts and very selective.

Stock market  -  Major averages still holding bullish in all time sectors. However, upside momentum is fading.

Comment -  Bulls be conservative and watchful of any market weakness.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats -  ITGR, BLMN, NMRK, CFX and IBEX.

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

Lantronix Inc. (LTRX) - 5.50, up 0.48 - Breakpoint 5.21

Net To Climb 33% This Year, TTD Targets 7.50

  LTRX, based in Irvine, Ca., produces software and provides engineering services and hardware. Annual revenues: 60 million. LTRX's stock, a low priced issue, drives higher Thursday and breaks out from its 5-month flat base.

  So far today, LTRX is trading a heavy 1 million shares, four times its average daily volume of 243,000 shares.

 TTD sees potential for more on the upside due to its strong earnings outlook.

  LTRX's stock shot higher in the morning and cleared its breakpoint line.

  The stock ran up to an intraday high of $5.84 in the early afternoon.

  It then gave some ground late in the day.

  In after-hours trading, LTRX was up 10 cents a share.

  Tape Action

  LTRX's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $5.04 a share in the prior session to as high as $5.77 in the afternoon.

  A key bullish trade came in the morning when a block of 7,800 shares crossed the tape at $5.20.

  That was up from the prior block at $5.04 on 13,347 shares in the prior session.

  Near the close a block of 10,352 shares crossed at $5.50.

  That came on an up tick from the prior trade at $5.49 on 100 shares.

   Business

  LTRX provides software, engineering services, and hardware for Edge Computing, the Internet of Things and Remote Environment Management.

 LTRX’s products address each layer of the IoT Stack including Collect, Connect, Compute, Control and Comprehend, enabling its customers to deploy IoT and REM solutions.

Its services and products focused on integrating a SaaS management platform with custom application development layered on top of external and embedded hardware.  

  Charts

  LTRX's 12-month performance chart shows the stock up 58% versus a 17% gain for the stock market.

  Insiders have received options at $1.51 a share. to $1.90 a share. They have not done any selling.

  LTRX's long-term chart shows the stock making a bottom at 80 cents a share in 2016.

  Since then the stock has worked higher and at times showing a spike in price.

  Back in 2009, the stock went through a 1-for-6 reverse split.

  LTRX's daily chart shows the stock in a flat base for five months.

  The stock drives out of its base with a good pick up in volume.

  That is very bullish.

  Notice the stock has been picking up volume in recent sessions.

  LTRX's CCI momentum indicator is bullish.

   Earnings Outlook

  This fiscal year ending in June analysts predict a 33% rise in net to 12 cents a share from the 9 cents the prior fiscal year.

  The stock has a price-earnings ratio of  45.

  Looking out to fiscal 2022 ending in June, the Street projects a 150% surge in profits to 30 cents a share from the anticipated 12 cents this fiscal year.

  Net for the upcoming fiscal third quarter ending in March should be flat at 2 cents a share.

  Then in the fiscal fourth quarter ending in June net should climb 25% to 5 cents a share from the 4 cents the prior year.

Strategy Opinion:  TTD is targeting LTRX for a move to $7.50 within the next few months, or sooner.

A protective stop can be placed near  $4.85

Intermediate-Term Rating: Average.

Suitability:   Aggressive 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 Price Performance after Reporting Earnings

 Stock's Performance Chart with Quarterly Earnings Markers vs. S&P 500

Insider Buying in Green  -  Insider Selling in Red

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  - 2

Stocks Screened - 12,234

Long-Term Environment for bears: Unfavorable

Bear Side -  Small list of shorts. Bears be conservative, but alert since market may be topping.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

GTT Communications Inc. (GTT) - 2.79

Loss Seen This Year and Next, TTD Sees Drop to 15.50

  GTT, based in Mc Lean, Va., provides cloud networking services to many firms. Revenues: $1.7 billion. GTT's stock fell sharply and undercut key technical support.

  So far today, GTT is trading a heavy 8.5 million shares, 8 times its average daily volume of 1.1 million shares.

  TTD sees more on the downside even though the stock is low priced.

  GTT's stock has trended lower from a peak at $62 in 2018.

  GTT's stock trended sideways in the morning. Then around noon the stock took a dive down to $2.41.

  It then lifted to around $2.80 and trended sideways.

  In after hours trading GTT was up 9 cents a share.

  Tape Action

  GTT's tape action shows the recent block trades.

  One can see the price for the blocks falling from  $3.86 in the prior session to as low as $2.47 in the afternoon.

  A key bearish trade came in the morning when a block of 28,922 shares crossed at $3.26.

  That was down sharply from the prior block at $3.86 on 22,219 shares.

  Business

 GTT offers global communications services, wide area network services, Internet services, managed network and security services and voice and unified communication services.

It provides Layer 2 (Ethernet) and Layer 3 (multiprotocol label switching (MPLS)) WAN solutions for multinational clients.

It offers customers with high-bandwidth global Internet connectivity and Internet protocol  transit with availability and packet delivery.

 It provides services to multinational enterprises, carriers and government customers in over 100 countries. 

 Earnings:

  For 2020, the Street predicts GTT will show a loss of $2.73 a share compared with a loss of 68 cents a share.

 This year, the Street predicts a loss of $1.79 share this year.

  For the upcoming fourth quarter, the Street expects GTT to show a loss of 38 cents a share compared with a loss of 21 cents the prior year.

Charts:  

  GTT's daily chart shows the stock falling sharply below key support.

  The stock's 12-month performance chart shows the stock down a big 80% versus a 17% gain for the stock market.

   Insiders have been getting stock options. They have not done any buying in the open market, nor any selling the past several months.

Strategy Opinion: TTD  is targeting GTT for a decline to $2 within the next few months, or sooner. A protective stop buy can be placed near 3.

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. - 2021

    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 1-480-704-3331.

   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.)