Ticker Tape Digest

Tuesday - February 19, 2019

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: 1-480-926-1680.

Tuesday - February 19, 2019

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  13

Quality of Breakouts -  Below Average.

Stocks Screened - 12,234

Bull side -   Large list of breakout, but very selective. Bulls be conservative.

Stock market  -  Bullish in all time sectors.

Comment -  Stock market continues to work higher. Bulls need now to seek out leading stocks with strong earnings.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Earnings beats for Tuesday - HBM, CEQP, OSPN, USAC, LNTH, HSTM and FARO.

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

Solarwinds Corp. (SWI) - 19.10, up 0.08 - Breakpoint 18.99

Net To Climb 33% This Year, TTD Targets 23.50

     SWI, based in Austin, Tex., provides information technology infrastructure management software. Annual revenues: $833 million. SWI breaks out Tuesday from a cup-and-handle base.

 The stock, which came public back in October is poised to make a new all-time high. That is bullish.

 TTD sees more on the upside.

  So far today, SWI is trading 427,682 shares. Its average daily volume is 368,407 shares.

 SWI's stock moved higher in the morning and cleared its breakpoint line. The stock then backtracked in the afternoon.

  However,it lifted near the close to finish slightly above its breakpoint line.

Tape Action

  SWI's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $19.02 in the morning to as high as $19.25 by the early afternoon.

  A key bullish trade came in the morning when a block of 6,300 shares crossed the tape at $19.14.

 That was up from the prior block at $19.02 at 14,675 shares.

  Near the close Tuesday, a block of 10,682 shares (duplicated) crossed the tape at $19.10.

  That came on a up tick sequence from the prior trade at $19.09 on 600 shares.

  So, the tape would indicate institutional buying even though the stock rose only slightly.

   Business

 SWI's products enables organizations to manage the performance of their IT operations, including on premise, in the cloud, and in hybrid models.

 It also allows users to market products directly to network and systems engineers, database administrators, storage administrators, DevOps professionals and managed service providers.

 The Company engages with its registered members through THWACK, which is its online community designed to train and inform technology professionals about its products.  

Charts

  SWI's 6-month performance chart shows the stock up 28% versus a decline of 4% for the stock market.

  There has been no recorded insider activity.

  SWI's long-term chart just covers just 5-months. The stock climbed from $14 in November to a peak at $19 by December. However, the stock fell hard with the stock market drop. SWI dipped to $12.

  However, since then, SWI has rallied strongly to a new all-time high in the prior session.

  SWI's daily chart shows the stock forming a cup-and-handle base.

  The breakout Tuesday is modest but does clear upside resistance.

  A push higher means there is now over head resistance, except perhaps from insider activity.

 The CCI momentum indicator is solidly bullish.

  Earnings Outlook:

  This year, analysts are forecasting SWI will post a 33% profit gain to 80 cents a share from the 60 cents the year before.

  The stock sells with a price-earnings ratio of 23, TTD sees that as attractive for value-growth investors.

  Looking out to 2020, the Street predicts a 17% increase in profits to 93 cents a share from the anticipated 80 cents this year.   

  Net for the upcoming first quarter should come in at 17 cents a share. There was no comparison from a year ago available. The highest estimate on the Street is at 18 cents a share.

 Profits for the second quarter should climb to 19 cents a share.   

Strategy Opinion:  TTD is targeting SWI for a move to $23.50 within the next few months, or sooner. A protective stop can be placed near $17.90.

Intermediate-Term Rating: Above Average

Suitability:  Aggressive Bulls

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

Probability - Breakout Success - Bullish - SWI scored a good gain off its only breakout.

Probability - Earnings Response - Neutral.  SWI rose one time after the report of two earnings.

Probability:  Seasonal Success -  Neutral.  Not available SWI has not traded in December yet.

           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 Monthly Seasonal Performance Chart - Past 5 Years

Showing % Months UP and % Change

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 so far today -  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

Proqr Therapeutics N.V. (PRQR) - 12.50

Loss Seen for This Year, TTD Sees Drop to 9

  PRQR, based in the Netherlands, is a pre-clinical stage biotech firm. Annual revenues: $1.5 million. PRQR's stock falls sharply Tuesday and undercuts key technical support.

  TTD sees more on the downside.

  So far today, PRQR is trading 331,628 shares, double its average daily volume of 147,000 shares.

 TTD highlighted PRQR as a short at our midsession video show on the Web Tuesday.

  PRQR's stock moved lower in the morning and undercut its technical support line.

  The stock fell to an intraday low of $12.49 and closed near its low for the session. That is bearish.

   Tape Action

  PRQR's tape action shows the recent block trades.

 One can see the price for the blocks falling from $14 in the prior session to as low as $12.50.

  A key bearish trade came in the morning when a block of 40,000 shares crossed the tape at $13.45.

  That was down from the prior block at $14 on 5,437 on Friday.

   Business

   PROR is developing ribonucleic Acid -based therapeutics to treat severe genetic disorders.

 The company designs its therapeutic candidates to specifically target and repair the defective messenger RNA, or Messenger Ribonucleic Acid (mRNA).

  The products are used to treat cystic fibrosis and dystrophic epidermolysis bullosa.

 Earnings:

  The company is expected to report a loss for 2018 of $1.24 a share compared with a loss of $1.94 in 2017.

  Looking out to 2019, the Street predicts a loss of $1.44 a share.   

Charts:  

  PRQR's chart shows the stock spiking higher back in September. The stock tried to consolidate. However, it has now rolled over and is now trending lower.

  PRQR's 6-month performance chart shows the stock peaking in performance in early November. However, since then its performance has been trending lower.

Strategy Opinion: TTD is targeting PRQR for a decline to $9 within the next few months, or sooner. A protective stop buy can be placed near $13.50.

Suitability:   Aggressive Bears.

  TTD's probability research of Prior Performance:  

Probability - Earnings Response - Slightly Bullish.  PRQR rose 3 times after the past 5 earnings reports when there was a significant change in price.

Probability:  Seasonal Activity - Slightly Bullish.  PRQR averaged a decline of 7.1% in February but a gain of 11% in March the past several years.

   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. - 2019

    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 1-480-926-1680.

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 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.)