Daily - Go to TTD's Chart scroller of Breakout and Leading Stocks - Friday, February 19, 2016
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Daily - Go to TTD's Chart scroller of Breakout and Leading Stocks - Friday, February 19, 2016 |
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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Tuesday, February 16, 2016 |
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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.
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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 - 5
Overall Quality of Breakouts - BELOW AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list small and extremely selective. Bulls be conservative. Stock market still vulnerable to the downside.
(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
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TTD's Quality Rating of Stock - UEIC - AVERAGE |
UEIC, based in Santa Ana, Ca., makes pre-programmed universal wireless remote control products, audio-video accessories, and software for home entertainment systems. Annual revenues: $579 million. UEIC's stock breaks out Friday from a three-month flat base. 
The move comes on volume of 320,295 shares, more than triple its average daily volume of 78,000 shares.
UEIC's stock broke out in the morning with a spike intraday move. (see 10-minute chart).
The stock touched and inraday high of 58.
UEIC then faded back a bit but came on again late in the session to finish comfortably above its breakpoint line.
The intraday accumulation - distribution chart does show profit taking in the afternoon.
UEIC's tape action shows the recent block trades.
One can see the price for the blocks climbing from $51.84 two sessions ago to a peak of $55.68.
A key bullish trade came Friday when a block of 8,100 shares crossed the tape at $52.50.
That was up from the prior block at $59.85 on 4,030 shares. 
The company makes universal infrared and radio frequency remote controls.
It also produces integrated circuits on which software and universal device control database is embedded.
The company sells its products directly, as well as through distributors in Europe, Australia, New Zealand, South Africa, the Middle East, Mexico, Asia, and Latin America.
The products are sold under the One For All and Nevo brands.
UEIC's 12-month performance chart shows the stock declining 15% versus a 9% drop in the stock market.
UEIC's long-term chart shows the stock reaching a peak of 39.33 in 2007, the top in the prior bull market.
The stock then fell back to 10.85 by early 2009 due to the bear market. It then trended mostly sideways until 2013 when it broke out from its long-term basing pattern.
The stock ran up to an all-time high of 66.74 in early 2015. It then backed off, but is now starting to come on again.
UEIC's daily chart shows the stock climbing from 40 in October to a peak near 53 by November.
The stock then pulled back and formed a flat base.
The breakout Friday comes with a widening of the daily spread and increase in volume. That is bullish.
The stock's accumulation - distribution line (bottom of chart) lags.
This year, analysts are forecasting a 19% increase in net to $3.33 a share from $2.79 a year ago.
The stock sells with a price-earnings ratio of 16. TTD sees that as attractive for value investors.
Net for the upcoming first quarter will be exceptionally strong. 
The Street looks for a 36% jump in net to 63 cents a share from 46 cents the year before.
The highest estimate is at 66 cents a share.
TTD sees chances for an upside earnings surprise.
Net for the second quarter is projected to rise 24% to 83 cents a share from 67 cents the year before.
Strategy Opinion: TTD is targeting UEIC for a move to 63 off this breakout.
A protective stop can be placed near 51 giving it room. The stock has a beta of 1.8 versus 1.0 for the stock market.
TTD rates UEIC a good long-term play if it can meet the earnings projections.
Sponsorship: Average. The largest fund holder is the Eagle Small Cap Growth A Fund with a big 9.1% stake.
The 3-star rated fund was a recent buyer of 17,095 shares.
UEIC has 14.5 million shares outstanding. Institutions hold 90% of the stock and insiders have 3%.
Insider Activity: Neutral. Just some light selling in recent months at $47.
Currently, 4 analysts follow the stock, 3 have a buy, the same as three months ago.
UEIC has a book value of $17.84 a share.
Stock Performance Chart with Quarterly Earnings Markers.
| TTD's Breakout Profile
Rating Universal Electronics Inc. - (UEIC) |
| 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 - TR - AVERAGE |
| TTD's Quality Rating of Stock - RMR- AVERAGE |
| TTD's Quality Rating of Stock - BRKR - AVERAGE |
| TTD's Quality Rating of Stock - SJW - 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 - 4
Stocks Screened - 8,300
Long-Term Environment for bears: Favorable.
Bear Side - Small list of breakdown stocks Friday. Stock market finishes mixed. Bears be patient and conservative.
AFOP, based in Sunnyvale, Ca., makes fiber optic components and integrated modules for communications equipment manufacturers. Annual revenues: $83.6 million. AFOP's stock falls sharply Friday after the company reported disappointing earnings. 
TTD highlighted AFOP as a short at our midsession video show on the Web Friday.
The company reported fourth quarter net at 5 cents a share. That was well below Street consensus estimates of 23 cents a share.
AFOP fell sharply in the morning and hit a low of 11.95. The stock then trended mostly sideways the rest of the day.
AFOP's tape action shows the recent block trades.
One can see the price for the blocks falling from $14.63 a share in the prior session to as low as $12 on Friday.
A key bearish trade came in the morning when a massive block of 45,714 shares (duplicated) crossed the tape at $13.25
That was down sharply from the prior block at $14.32 on 5,708 shares.
AFOP produces connectivity modules; optical connectors, adapters, and cable assemblies; fused and planar fiber optical splitters and couplers.
It also makes optical passive products comprising filter WDMs, filter WDMs, dense wave division multiplexers, coarse wavelength division multiplexers and compact coarse wavelength
Analysts are forecasting a 15% decline in AFOP's net for the first quarter and a 21% drop in the second quarter.
AFOP's daily chart shows the stock gapping lower with big volume. The accumulation - distribution line (bottom of chart) is bearish.
Strategy Opinion: TTD is targeting AFOP for a decline to 9.90 within the next few months, or sooner.
A protective stop buy can be placed near 12.70.
| TTD's Quality Rating of Stock - AFOP - 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.)
