Daily - Go to TTD's Tape of Stock Charts - Monday, February 23, 2015
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Daily - Go to TTD's Tape of Stock Charts - Monday, February 23, 2015 |
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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, February 23, 2015 |
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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 - 12
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list large with some good looking plays. Medical and healthcare stocks dominate. Stock market shows little change.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Stock Market Momentum
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
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TTD's Quality Rating of Stock - WCG - AVERAGE |
WCG, based in Tampa, Fla., provides managed care services. Annual revenues: $12.8 billion. WCG breaks out today from a 10-week, cup and handle base. The move carries the stock to a seven-year high. So far today, WCG is trading 978,911 shares, double its daily volume of 473,000 shares. 
TTD highlighted WCG as a breakout at our midsession video show on the Web Monday. 
The stock was one of several medical plays that broke out during the session.
WCG's stock drive higher in the morning to clear its breakpoint linen (see 10-minute chart).
The stock peaked intraday at 90.58 well above its breakpoint.
WCG then trended sideways the rest of the day.
WCG's tape action shows the recent block trades.
One can see the price for the blocks climbing from $82.61 in the prior session to as high as $90.38. 
A key bullish trade came in the morning when a block of 25,000 shares crossed the tape at 87.09.
That was up sharply from the prior block at $84.62 on 17,188 shares late the prior day.
WCG provides managed care services targeted exclusively to government-sponsored healthcare programs, focusing on Medicaid and Medicare.
WCG provides healthcare services to members in Florida, New York, Connecticut, Illinois and Indiana.
WCG's 12-month performance chart shows the stock appreciating 45% versus 15% for the stock market.
Insider have been recent big sellers. (see red bars on chart)
WCG's long-term chart shows the stock hitting an all-time peak of 128.42 in 2007 - the top in the prior bull market.
The stock then tumbled down to 6.12 in 2008 due in part to the bear market.
Since then, WCG has been working higher and since 2010 has been holding nicely above its rising trend line.
WCG's daily chart shows the stock climbing from 58 back in October to a peak near 84 by December.
The stock then trended sideways forming a cup-and-handle base.
The breakout today comes with a widening of the daily spread (range from high to low). That is bullish.
The TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) lags but is improving.
This year, analysts are forecasting a robust 66% surge in profits to $3.43 a share from $2.06 a year ago. The stock sells with a price-earnings ratio of 26. That is high historically, but okay given the earnings outlook.
Going out to 2016, the Street looks for a 42% jump in earnings to $4.86 a share from the anticipated $3.43 expected for this year. 
However, WCG's net for the upcoming first quarter is expected to drop 76% to 28 cents a share from $1.13 a year ago.
WCG's earnings have been a bit erratic lately. So, the stock needs to be watched closely. The highest estimate for the first quarter is 53 cents a share.
For the second quarter, analysts expect a profit of 86 cents a share compared with a loss of 7 cents a year ago.
The highest estimate on the Street is at $1.01 a share.
Strategy Opinion: TTD is targeting WCG for a move to 110 off this breakout. A protective stop can be placed near 85.
TTD rates WCG a good intermediate-term play provided earnings meet expectations for the year.
Sponsorship: Excellent. The largest fund buyer recently was 5-star rated T. Rowe Price Health Sciences Fund which purchased 792,900 shares.
Also, the 3-star rated T. Rowe Price Small-Cap Value Fund was a buyer of 559,200 shares as a new position.
WCG has 43.8 million shares outstanding. Institutions hold 97% of the stock.
Insider activity: Bearish. Insiders were buyers using stock options $28. They were sellers at $82 recently.
Currently, 16 analysts follow the stock, 7 have a buy, down from 8 three months ago. WCG has a book value of $36.46.
Stock Performance Chart with Quarterly Earnings Markers.
| TTD's Breakout Profile
Rating Wellcare Health Plans - (WCG) |
| 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 | 1 | 1 |
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - HUM - AVERAGE |
| TTD's Quality Rating of Stock - DPZ - AVERAGE |
| TTD's Quality Rating of Stock - ST - 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: Unfavorable.
Bear Side - Small list of shorts today, but some interesting plays. Stock market holds up trend. Bears remain conservative. TTD's short from Friday was Rocker Fuel Inc. (FUEL) at 10.91. Monday, the stock has declined to 10 and is working well for bears.
SPPI, based in Henderson, Nev., develops drugs to treat cancer and hematology. Annual revenues: $176 million. SPPI's stock falls sharply today after Roth investment firm downgraded the stock from a buy to a hold. So far today, SPPI is trading a heavy 6.5 million shares, six times its average daily volume of 1.1 million shares. TTD sees more on the downside. 
TTD highlighted SPPI as a short at our midsession video show on the Web Monday.
SPPI's stock gapped lower in the morning hitting an intraday low of 5.65.
The stock then lifted a bit and then trended sideways the rest of the day.
SPPI's tape action shows the recent block trades.
One can see the price for the blocks declining from $7.64 a share in the prior session to as low as $5.55 on Monday morning.
The selling in the stock kicked in near the close on Friday.
A key bearish trade came in after hours trading Friday when a block of 49,700 shares crossed the tape at $4.95 a share.
That was down sharply from the prior block that crossed at $7.46 on 39,321 shares.
SPPI is developing drugs to treat cancer. The company seeks undervalued drugs with demonstrated safety and efficacy, and adds value through further clinical development.
The company's pipeline includes promising early and late-stage drug candidates with unique formulations and mechanisms of action that address seriously ill patients.
Analysts expect SPPI to post a loss of 74 cents a share for 2014. Looking out to 2015, they project a loss of 25 cents a share.
SPPI's daily chart shows the stock gapping lower with big volume. That followed the start of the selloff in the prior session. The stock's accumulation - distribution line (bottom of chart) has been trending lower indicating clear selling pressure the past few months.
Strategy Opinion: TTD is targeting SPPI for a decline to 4.70 within the next few months, or sooner. A protective stop buy can be placed near 7.10.
| TTD's Quality Rating of Stock - SPPI - 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
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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.)
