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.
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 email@example.com.For service, email Beverly Owen firstname.lastname@example.org. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 5
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Small list of breakouts, but some interesting plays. Aggressive bulls can be venturesome. Stock market has volatile session.
(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
TTD's Quality Rating of Stock -MLNX - AVERAGE
MLNX, based in Israel, is a semiconductor firm that makes products used for storage and communications. Annual revenues: $658 million. MLNX's stock breaks out Wednesday from a four month flat base.
The move comes on volume of 1.6 million shares, double its average daily volume of 674,000 shares.
MLNX's 10-minute chart shows the stock advancing in the morning and cutting across its breakpoint line.
The stock continued to work higher in the afternoon. It reached an intraday high of 49.82.
MLNX's tape action shows the recent block trades.
One can see the prices rising from $46,40 in the prior session to as high as $49.49.
A key bullish trade came in the morning when a block of 6,683 shares (duplicated) crossed the tape at $47.32.
That was up from the prior block trade at $46.40 on 9,602 shares.
MLNX makes products used for computing, storage, and communications in the high-performance sector.
Its products facilitate data transmission between servers, storage systems, communications infrastructure equipment, and other embedded systems.
The company offers 40/56/100Gb/s InfiniBand solutions, including switch and gateway integrated circuits, adapter cards, cables, modules, and software/
It also provides adapters to server, storage, communications infrastructure, and embedded systems.
The company supports server operating systems, including Linux, Windows, AIX, HPUX, Solaris,
MLNX's 12-month performance chart shows the stock appreciating 15% versus a 9% decline for the stock market.
The strong performance came after the company reported its recent quarterly earnings.
MLNX's long-term chart shows the stock coming public in 2007 and trading at 21. The stock traded mostly sideways until 2011. That it surged from 20 to an all-time peak of 120.05 in September of 2012.
However, the stock reversed and fell back quickly to around 32. It has since been trending mostly in a range.
MLNX's daily chart shows the stock climbing from 34 back in September to a peak near 48.
The stock then trended sideways with a shakeout down to 37 due to the market selloff in January.
The stock has since rallied back and today breaks out with a nice widening of the daily spread and expanding volume.
The stock's CCI momentum indicator is bullish.
The accumulation - distribution line (bottom of chart) has hit a new peak. That shows good underlying buying.
This year, analysts are forecasting a 23% increase in net to $2.25 a share from $1.83 a year ago.
The stock sells with a price-earnings ratio of 21. TTD sees that attractive value-growth investors.
Going out to 2017, profits are projected to jump 26% to $2.84 a share from the anticipated $2.25 this year.
Net for the upcoming first quarter is expected to jump 29% to 45 cents a share from 35 cents a year ago.
The highest estimate on the Street is at 46 cents a share.
The company has topped the consensus quarterly the past eight quarters. So, there is a good chance for an upside earnings surprise.
Net for the second quarter is expected to rise 16% to 55 cents a share from 47 cents the prior year period.
Strategy Opinion: TTD is targeting MLNX for a move to 58 off this breakout. A protective stop can be placed near 46 giving it some room.
TTD rates MLNX a good intermediate-term play provided earnings meet expectations.
Sponsorship: Very Good. The largest fund holder is the 5-star rated Fidelity Growth Co. Fund with a 2% stake.
A key fund buyer recently was the 5-star rated Vanguard Strategic Small-Cap Equity Inv. Fund which purchased 45,000 shares.
MLNX has 46.8 million shares outstanding. Institutions hold 70% of the stock and insiders have 19%
Insider Activity: Slightly Bearish. Insiders have been recent light sellers around $50. They were buyers using stock options at $8 to $10 a share.
Currently, 12 analysts follow the stock, 9 have a buy, up from 8 three months ago.
MLNX has a book value of $18.45 a share.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Mellanox Technologies Ltd. - (MLNX)
|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 - JBT - AVERAGE|
|TTD's Quality Rating of Stock - WNMD - AVERAGE|
|TTD's Quality Rating of Stock - HIMX - AVERAGE|
|TTD's Quality Rating of Stock - EIX - 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 - 7
Stocks Screened - 8,300
Long-Term Environment for bears: Neutral.
Bear Side - Small list of breakouts and selective. Stock market rallies to wipeout loss. However, short list shows some interesting plays.
CAR, based in Parsippany, N.J., provides car and truck rentals, car sharing, and other services. Annual revenues: $8.4 billion. CAR's stock drives south and undercuts key technical support. The fall was due to a report of a loss for the fourth quarter. TTD sees more on the downside.
TTD highlighted CAR as a short at our midsession video show on the Web Wednesday.
CAR reported a loss of 6 cents a share for the fourth quarter.
Adjusted for non-recurring items, CAR had a profit of 18 cents a share. That met analysts forecasts. However, CAR made bearish comments on the outlook for this year.
So far today, CAR is trading a heavy 24.7 million shares, eight times its average daily volume of 3.1 million shares.
The stock fell early in the session and touched an intraday low of 21.91 in the morning.
It then lifted slightly and trended sideways the rest of the day.
CAR's tape action shows the recent block trades.
One can see the price for the blocks declining from $30.15 in the prior session to as low as $23.
A key bearish trade came in the morning when a block of 37,400 shares crossed at $25.70.
That was down from the prior block trade at $29.99 on 103,693 shares.
The company has three segments: North America, International, and Truck Rental. It operates the Avis car rental system with 5,450 locations.
Its budget vehicle rental system has 3,500 car rental locations,.
The company also operates the Payless brand with 160 vehicle rental locations, as well as operates Apex brand primarily in the deep-value segment of the car rental industry with 19 rental locations.
CAR's net for the upcoming first quarter is expected to fall 35% to 11 cents a share from 17 cents a year ago.
Overall, for the year, the Street is forecasting a 10% rise in net to $3.48 a share from $3.17 in 2015. Those estimates could come down.
CAR's daily chart shows the stock trending lower from around 50 in October to around 24 by January. The stock gaps lower Wednesday to undercut support.
Strategy Opinion: TTD is targeting CAR for a decline to 18 within the next few months or sooner.
A protective stop buy can be placed near 24.
|TTD's Quality Rating of Stock - CAR - 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.)