Ticker Tape Digest

Friday - February 23, 2018

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.

Friday - February 23, 2018

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  14

Quality of Breakouts -  Above Average

Stocks Screened - 12,234

Bull side - Large list of breakouts with some good looking plays. Aggressive Bulls can be venturesome.

Stock market  -  Bullish. All major averages have moved back above their 15 unit moving average lines. However, the structure of the technical pattern on a daily basis shows them in a consolidation pattern.

Stock Market Momentum

(Daily is based on a moving average)

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action - Friday

(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 at breakpoint by using market order or stop buy)All Timely Breakout Stocks From Tape Action Today )  

Today's Featured TTD Breakout Stock

Planet Fitness Inc. (PLNT) - 36.78, up 3.99 - Breakpoint 35.10

Net to Climb 26% This Year, TTD Targets 45 

     PLNT, based in Newington, N.H., is a franchiser and operator of fitness centers in the U.S. Annual revenues: $378 million. PLNT drives sharply higher Friday and breaks out from a 10-week flat base.

 The move carries the stock to a new all-time high. That is bullish.

  So far today, PLNT is trading a heavy 6.2 million shares - five times Its average daily volume of 1.2 million shares.

  TTD highlighted a few session ago PLNT as a stock to accumulate in anticipation of a breakout.

  PLNT was also featured at TTD's midsession video show on the Web Friday.

 PLNT's stock dove higher in the morning  to clear its breakpoint line. It reached an intraday peak at $37.41 in the morning.

  The stock then pulled back and trended sideways the rest of the day. It finished firm near its high for the day.

  TTD previously noted PLNT was to report earnings Thursday and that  PLNT has a history of moving higher after earnings. (see table below)

  PLNT came in with net for the fourth quarter of 24 cents a share beating the consensus estimate at 23 cents a share.

  Same store sales were up 11.6%.

  Tape Action

  PLNT's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $32.79 in the prior session to as high as $37.10 Friday.

  A key bullish trade came late on Thursday when a block of 16,400 shares crossed the tape at $35.70.

  That was up from the prior block at $32.79 on 51,053 shares.

  The stock closed strong on a block of 83,451 shares (duplicated) at $36.78.

  That was up from the prior block at $36.70 on 50,000 shares.

   Business

  PLNT operates franchised and company-owned stores. It also sells equipment.

 The franchise segment covers operations in the U.S., Puerto Rico, the Dominican Republic and Canada.

 The company-owned stores operate in the U.S. and Canada. The equipment segment covers the sale of equipment to franchisee-owned stores.

 PLNT has 10.5 million members and 1,432 stores of which 1,261 were franchised and 58 company owned.   

  Charts

  PLNT's 12-month performance chart shows the stock climbing 57% versus a 17% gain for the stock market.

  Insiders were buyers using stock options. The price was not disclosed. They were sellers recently at $30 to $34 a share.

  PLNT's long-term chart shows the stock coming public in late 2015 at $16.71. The stock then fell back to its all-time low of $13.23 by early 2016. The decline was due in part to a selloff in the stock market in early 2016.

  Since then, PLNT has been driving steadily higher more than doubling from its low.

  PLNT's daily chart shows the stock breaking out in November at $27 and climbing to $35 by late December.

  The stock then put down a base that showed to shakeouts to the downside.

  PLNT rallied the past few sessions and now on Friday it breaks out with a gap move, a widening of the daily spread and strong volume.

 The stock's CCI momentum indicator is strongly bullish and trending higher.

  Earnings Outlook

   Net for 2918 is expected to climb 26% to $1.06 a share from 84 cents a share for 2017.

  The stock sells with a price-earnings ratio of 34. TTD sees that as reasonable.

  Looking out to 2019, analysts predict an 18%  increase in net to $1.24 a share from the anticipated $1.06 this year.

  Net for the first quarter of 2018 should surge 32% to 25 cents a share from 19 cents the year before.

  The highest estimate on the Street is at 27 cents a share.

  The company has topped the quarterly Street consensus estimate the past 11 quarters.

  Net for the second quarter of 2018 is expected to rise 23%  to 27 cents a share from 22 cents the year before.

Strategy Opinion: TTD is targeting PLNT for a move to $45 within the next few months, or sooner.

A protective stop can be placed near $33.50.

 TTD rates PLNT a good intermediate-term play.

Suitability:  Average Bulls.

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

Probability - Breakout Success -  Bullish.  PLNT has scored good gains off its recent breakouts. The stock is now in a long-term up trend.

Probability - Earnings Response -  Extremely Bullish.  PLNT rose 9 times after the past 10 earnings reports when there was a significant change in price.

Probability:  Seasonal Success - Very Bullish.  PLNT has averaged a gain of 3.8% in February the past several years and a gain of 1.5% in March.

           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 - 8

Stocks Screened - 12,234

Long-Term Environment for bears: Neutral.

Bear Side - Short list has mane stocks with disappointing financial. Bears can be venturesome. Stock market rallies strongly Friday, but still remains in a trading range.

 TTD's short from Thursday was RPX Corp. (RPXC) at $10.58. The stock fell 0.38 to $10.20 Friday, a decline of 3.6%

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Lifepoint Health Inc. (LPNT) - 42.75, down 6.95

Earnings Disappoint, TTD Sees Decline to 36

  LPNT, based in Brentwood, Ten., operates community hospitals, regional health systems, physician practices, outpatient centers and post-acute facilities. Annual revenues: $6.4 billion. LPNT's stock falls sharply Friday after reporting disappointing earnings for the fourth quarter. TTD sees more on the downside.

  So far today, LPNT is trading a heavy 2.8 million shares, six times its average daily volume of 437,000 shares.

 TTD highlighted LPNT as a short at our midsession video show on the Web Friday.

  LPNT reported earnings for the fourth quarter of 77 cents a share. That was a miss.

  The Street was expecting net of 82 cents a share.

  LPNT's stock gapped lower in the morning and undercut key technical support.

  The stock then trended mostly sideways in a range between $43.35 and $41.35.

  Tape Action

  LPNT's tape action shows the recent block trades.

  One can see the price for the blocks falling from $50.15 in the prior session to as low as $42.65 Friday.

  A key bearish trade came in the morning when a block of 19,147 shares crossed the tape at $45.75.

  That was down from the prior block the day before at $49.70 on 17,761 shares (duplicated).

  Business

 LPNT operates 72 hospital facilities in 22 states with 9,424 licensed beds.

It offers general and specialized healthcare services to patients through a network of hospitals and outpatient facilities.

  Its services include general surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, rehabilitation services and pediatric services. 

 Earnings:

  This year, analysts are forecasting a 14% increase in net to $4.14 a share.

  However, earnings for the upcoming first quarter are expected to be down 1% to $1.06 a share from the $1.07 the year before.   

Charts:   

  LPNT's daily chart shows the stock in a clear down trend and trying to form a bottom. However, it now cuts below support with big volume. That is bearish.

  LPNT's 12-month performance chart shows the stock down 33% versus a 16% gain for the stock market.

  Insiders were recent buyers at $21 to $38 a share. They were sellers at $43 to $65 a share the past several months.

Strategy Opinion: TTD is targeting LPNT for a decline to $36 within the next few months, or sooner. A protective stop buy can be placed near $43.

Suitability:  Average Bears.

  TTD's special probability research of  Prior Performance:  

Probability - Earnings Response - Bearish.  LPNT rose just 5 times after the past 12 earnings reports when there was a significant change.

Probability:  Seasonal Activity - Slightly Bearish.  LPNT declined an average of 0.7% in February, but rose an average of 4% in March the past several years.

   Stock 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. - 2018

    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.

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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.)