Ticker Tape Digest

Wednesday - February 24, 2021

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 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: 1-480-878-8381 or 480-704-3331.

Wednesday - February 24, 2021

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts   -  13

Quality of Breakouts -  Above Average

Stocks Screened - 12,234

Bull side -  Large list of breakouts with some good looking plays.

Stock market  -  Major averages are bullish in all time sectors - except for the daily Nasdaq which is bearish.

Comment -  Still a good number of breakouts, but market is volatile. Bulls be careful.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats -  OMI, PRAH, ITRI, HZNP and WHD.

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

Celanese Corp. (CE) - 141.21, up 4.25 - Breakpoint 140.21

Net To Climb 30% This Year, TTD Targets 165

  CE, based in Irving, Tex., makes specialty materials and engineered products. Annual revenues: $5.7 billion. CE's stock pushes higher Wednesday and breaks out from its 8-week, cup-and-handle base.

  So far today, CE is trading 913,096 shares. Its average daily volume is 914,000 shares.

  TTD sees potential for more on the upside.

  CE was highlighted as a breakout by TTD at our midsession video show on the Web.

  CE's stock pushed higher in the morning and cleared its breakpoint line.

  The stock reached an intraday high of 142.69 in the morning.

  The stock then trended sideways the rest of the day.

  In after-hours trading, CE's stock was up 79 cents a share.

   Tape Action

  CE's tape action shows the price for the blocks climbing from $136.96 in the prior session to as high as $142.31 in the morning.

  A key bullish trade came in the morning when a block of 9,705 shares (duplicated) crossed at $137.75.

  That was up from the prior block the previous session at $136.96 on a big 94,766 shares.

  Near the close a big block of 54,215 shares crossed the tape at $141.21.

  That was down from the prior block at $141.67 on 1,500 shares.

    Business

  CE 's segments include advanced engineered materials, consumer specialties, industrial specialties and acetyl intermediates.

The consumer specialties segment includes the company's cellulose derivatives and food ingredients businesses, which serve consumer-driven applications.

The industrial specialties segment includes emulsion polymers and ethylene vinyl acetate polymers.

 It also supplies acetyl products, including acetic acid, vinyl acetate monomer, acetic anhydride and acetate esters.

 Charts

  CE's 12-month performance chart shows the stock up 40% versus a 24% gain for the stock market.

  Insiders received stock options. They have not done any recent buying.

  They were sellers at 107 to $137 a share.

  CE's long-ter chart shows the stock advancing from $55 in 2016 to a peak at $128 in 2019.

  The stock then took a dive down to $52 in early 2020. However, since then CE has surged back to $141.

  CE's daily chart shows the stock advancing from $110 in October to a peak at $140 by January.

  The stock pulled back and then rallied to form a cup-and-handle base.

  The breakout comes with a modest expansion of spread and volume.

  The stock's CCI momentum indicator is strongly bullish.

  Earnings Outlook

  Analysts predict 30% jump in net for this year. They see net at $9.90 shares, up from the $7.84 the prior year.

  The stock sells with a price-earnings ratio of 14. That is attractive for value investors.

  Going out to 2022, the Street projects a 12% rise in net to $11.09 a share from the anticipated $9.90 this year.

  Quarterly profit growth will be strong.

  Net for the first quarter should rise 14% to $2.61 a share from the $2.29 the prior year.

  The company beat the Street estimate the past four quarters by 37 cents a share, 26 cents, 21 cents and 10 cents.

  Net for the second quarter should surge 88% to $2.44 a share from the $1.30 the prior year.

Strategy Opinion:  TTD is targeting CE for a move to $165 within the next few months, or sooner.

A protective stop can be placed near $134.

Intermediate-Term Rating: Average.

Suitability:   Average Bulls.

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

           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 Price Performance after Reporting Earnings

 Stock's Performance Chart with Quarterly Earnings Markers vs. S&P 500

Insider Buying in Green  -  Insider Selling in Red

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  - 2

Stocks Screened - 12,234

Long-Term Environment for bears: Unfavorable.

Bear Side -  Small list of breakouts. Stock market rallies and now could be going into a consolidation. Bears be conservative.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Verisk Analytics Inc. (VRSK) - 167.53

Net Disappoints, TTD Sees Drop to 145

  VRSK, based in Jersey City, N.J., provides data analytics for the insurance and financial services industry. Annual revenues: $2.6 billion. VRSK's stock falls sharply Wednesday and undercuts key support with heavy volume.

  So far today, VRSK is trading 3.6 million shares, four times its average daily volume of 771,000 shares.

  The decline was due to an earnings miss. TTD sees potential for more on the downside.

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

  VRSK reported net for the fourth quarter of $1.27 a share.

  That was below the Street consensus of $1.31 a share.

  The stock gapped lower in the morning and undercut key support.

  VRSK touched an intraday low of 166.85 in the morning.

  The stock then lifted slightly and trended sideways the rest of the day.

  In after-hours trading, VRSK was up $2.31.

 Tape Action

  VRSK's tape action shows the recent block trades.

  One can see the price for the blocks falling from $185.36 in the prior session to as low as $167.53 by the close.

  A key bearish trade came in the morning when a block of 13,806 shares (duplicated) crossed the tape at $175.72.

  That was down from the prior block at $185.36 on 134,200 shares in the prior session.

  Business

  VRSK operates in two areas: Risk assessment and decision analytics.

 Its risk assessment segment serves its property and casualty insurance customers and focuses on prediction of loss, selection and pricing of risk, and compliance with their reporting requirements.

 The decision analytics segment develops predictive models to forecast scenarios and produce both standard and customized analytics that help its customers manage their businesses, including predicting loss, selecting and pricing risk and detecting fraud.

 Earnings:

  This year, analysts have been predicting an 8% rise in net to $5.45 a share from $5.04 the prior year.

  Analysts may lower the estimates.

  Net for the first quarter is expected to rise 11% to $1.30 a share from the $1.17 the prior year.

Charts:  

  VRSK's daily chart show the stock gapping lower and cutting below key support. The stock closed near its low for the day. That was bearish.

  VRSK's 12-month performance chart shows the stock up 4% versus a 25% gain for the stock market.

Strategy Opinion: TTD is targeting VRSK for a decline to $145 within the next few months, or sooner. A protective stop buy can be placed near $175.

Suitability:  Aggressive Bears.

  TTD's Stock Probability research of Prior Performance:  

   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. - 2021

    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 1-480-704-3331.

   Distributed by Corona Publishing Enterprises. TickerTape Digest Inc. 1220 W. Sherri, Gilbert, Az. 85233.

  TTD “Professional Report” is available on the Web: $100 per month. Password needed. Published daily - around 20 times a month.  

 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.)