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.
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.
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)
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance)
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 firstname.lastname@example.org.
For service, email Beverly Owen email@example.com. TTD’s Tel: 1-480-926-1680.
Thursday - February 22, 2018
TTD's Breakout Stocks
Stock Market Overview
Total Buy Breakouts so far today - 12
Quality of Breakouts - Average
Stocks Screened - 12,234
Bull side - Large list of breakouts with some interesting plays. Aggressive bulls can be venturesome.
Stock market - Daily Dow and S&P are bearish, while the Nasdaq holds. Stock market is in a consolidation pattern within an overall up trend. Bulls need to be careful as earnings are still being reported.
Stock Market Momentum
(Daily is based on a moving average)
Dow - Bearish
Dow - Bullish
Dow - Bullish,
Nasdaq - Bullish
Nasdaq - Bullish
Nasdaq - Bullish
S&P 500 - Bearish
S&P 500 - Bullish
S&P 500 - Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - FARO - ABOVE AVERAGE
FARO, based in Lake Mary, Fla., makes software for three-dimensional measurement, imaging and realization systems. Annual revenues: $326 million. FARO's stock moves sharply higher Thursday and breaks out from a 15-week, cup-and-handle base.
So far today, FARO is trading 315,139 shares, triple its average daily volume of 86,000 shares.
TTD highlighted FARO as a breakout at our midsession video show on the Web Thursday.
FARO reported fourth quarter earnings of 50 cents a share topping the Street consensus estimate of 36 cents a share.
The stock responded by gapping higher in the morning and clearings its breakpoint line.
The stock rose quickly to $54.40. It then trended mostly sideways the rest of the day. It closed near its high for the day which is bullish.
FARO's tape action shows the recent block trades.
One can see the price for the blocks climbing from $54 in the prior session to as high as $60.63.
A key bullish trade came in the morning when a block of 3,022 shares (duplicated) crossed the tape at $56.50.
That was up sharply from the prior block the day before at $54 on 30,653 shares.
FARO operates in three areas: Factory metrology, construction BIM-CIM and Other.
Its products are used for manufacturing, industrial, architecture, surveying, building construction and law enforcement.
Its FaroArm, FARO Laser ScanArm, FARO Gage, FARO Laser Tracker, FARO Cobalt Array 3D Imager AMP, and their companion CAM2 software provide for computer-aided design-based inspection and factory-level statistical process control and surveying.
The company operates in Australia, Brazil, Canada, China, India, Italy, Japan, Malaysia, Mexico, Netherlands, Poland, Portugal, Singapore, South Korea, Spain, Switzerland, Thailand, Turkey, the U.K. and the U.S.
FARO's 12-month performance chart shows the stock appreciating 58% versus a 15% gain for the stock market.
Insiders have not been active.
FARO's long-term chart shows the stock climbing to an all-time peak of $65.63 in late 2014. However, the stock then fell back hard dropping to $20.72 by early 2016 - the same time the stock market had a sharp decline.
Since then, FARO has worked its way higher and is poised to challenge its all-time high of $65.63
FARO's daily chart shows the stock spiking higher back in October after coming in with earnings (see yellow highlight).
The stock then went into a long consolidation.
The breakout Thursday is strong coming with a good expansion in volume.
Of course, the favorable net was a key driver.
FARO's CCI momentum indicator is strongly bullish.
This year, analysts are forecasting a robust 224% jump in earnings to 94 cents a share from 29 cents the year before.
The stock sells with a price-earnings ratio of 63. That is high, but okay given the earnings growth rate. Obviously, the stock is best suited for an aggressive bull.
Going out 2019, net is projected to jump 91% to $1.79 a share from the anticipated 94 cents this year.
Quarterly earnings growth will pick up.
Net for the first quarter is expected to be 4 cents a share compared with a loss of 9 cents the year before.
Then in the second quarter net is projected to climb to 17 cents a share from a loss of 22 cents the year before.
Strategy Opinion: TTD is targeting FARO for a move to $70 within the next few months. A protective stop can be placed near $55.
TTD rates FARO an average intermediate-term play.
Suitability: Aggressive Bulls.
TTD's special research of Stock's Prior Performance:
Probability - Breakout Success - Modestly Bullish. FARO has only a few key breakouts. The most recent gain was impressive.
Probability - Earnings Response - Neutral. FARO rose 8 times after the past 16 earnings reports when there was a significant change.
Probability: Seasonal Success - Bullish. FARO rose an average of 9.9% in February the past several year. It was just flat in March.
Stock's Prior Performance After A Breakout
Stock's % Change from Breakout to peak - prior to cut below 50-day M/A.
Date of Breakout
Break point Price
Stocks Price Peak after Breakout - prior to cut below 50-day M/A
Date Trade Closed
(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
|TTD's Breakout Profile Rating
Faro Technologies Inc. (FARO)
|TTD Check List||Bullish||Bearish||Neutral|
|Near 52-week High||YES|
|Price Trend - Daily||YES|
|Price Trend - Long Term||YES|
|Price Daily Spread||YES|
|Base - A-D||YES|
|Prior Breakout Success||YES|
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - MLNX - ABOVE AVERAGE
TTD's Quality Rating of Stock - ZBRA - AVERAGE
TTD's Quality Rating of Stock - GDOT - AVERAGE
TTD's Quality Rating of Stock - FCN - 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 - 12,234
Long-Term Environment for bears: Neutral.
Bear Side - Small list of breakdown stocks. Many have been hit by weak earnings. Bears can be venturesome.
TTD's short from the prior session was Jeld-wen Holding Inc. (JELD) at $34.50. JELD fell to $33.54 Thursday and is working well for bears.
RPXC, based in San Francisco, provides an alternative to litigation through its patent risk management services. Annual revenues: $330 million. RPXC's stock falls sharply Thursday after reporting a loss for the fourth quarter.
TTD sees more on the downside.
So far today, RPXC is trading a heavy 1.8 million shares, six times its average daily volume of 251,000 shares.
TTD highlighted RPXC as a short at our midsession video show on the Web Thursday.
RPXC posted a loss for the fourth quarter of $1.93 a share compared with a profit of 3 cents a share the year before.
The stock fell sharply in the morning and cut across key technical support.
RPXC touched a low of $10.50 in the late morning.
The stock tried to rally getting back $10.97 in the afternoon, but then it faded into the close.
RPXC's tape action shows the recent block trades. One can see the price for the blocks falling from $13 to $10.58.
A key bearish trade came in the morning when a block of 14,900 shares crossed the tape at $12.44.
That was down from the prior block at $13 on 21,146 shares.
RPXC helps companies reduce patent litigation risk and corporate legal expense through two primary services: patent risk management services and discovery services.
Its patent risk management segment generates revenues from membership subscriptions, premiums earned from insurance policies, and management fees for marketing, underwriting, and claim management.
Its discovery services gets revenues from fees for data collection, hosting and processing and document review services.
This year, analysts have been forecasting a profit of 74 cents a share. However, that forecast could come down.
RPXC's daily chart shows the stock gapping sharply lower with big volume.
The 12-month performance chart shows the stock down 5% versus a gain of 15% for the stock market.
Strategy Opinion: TTD is targeting RPXC for a decline to $8 within the next few months, or sooner. A protective stop buy can be placed near $11.50.
Suitability: Aggressive Bears.
TTD's special probability research of Prior Performance:
Probability - Earnings Response - Bearish. RPXC rose just 4 times after the past 13 earnings reports when there was a significant change.
Probability: Seasonal Activity - Neutral. RPXC declined an average of 1.2% February the past several years, but rose an average of 6.4% in March.
TTD's Quality Rating of Stock - RPXC - BELOW AVERAGE
Stock Performance Chart with Quarterly Earnings Markers vs. S&P 500
Insider Buying in Green - Insider Selling in Red
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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(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.)