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 firstname.lastname@example.org.For service, email Beverly Owen email@example.com. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 6
Quality of Breakouts - BELOW AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list extremely selective. Market rallying within a bear market. Bulls be conservative.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
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 - CCOI - AVERAGE
CCOI, based in Washington, D.C., provides high-speed Internet access and Internet protocol communications services primarily to small and medium-sized businesses. Annual revenues: $396 million. CCOI breaks out Friday from a 17-week flat base.
So far today, CCOI is trading a heavy 2.8 million shares, seven times its average daily volume of 435,000 shares.
TTD highlighted the stock at our midsession video show on the Web Friday.
CCOI's stock gapped higher in the morning to clear its breakpoint lint. The stock hit an intraday high of 37.42. (see 10-minute chart).
The stock then trended mostly sideways the rest of the day. It did give into some profit taking near the close.
The company came in with fourth quarter earnings that were below Street estimates. However, it did raise is dividend.
CCOI's tape action shows the recent block trades.
One can see the price for the blocks climbing from $34.94 in the prior session to as high as $37 on Friday morning.
A key bullish trade came when a block of 19,293 shares crossed the tape at $37.
That was up from the prior block at $34.94 on 20,899 shares.
Afterwards, the price of the blocks dipped a bit.
However, there was another key bullish block when 100,000 shares crossed at $36.77.
That was up from the prior block at $36.65 on 12,700 shares.
CCOI offers on-net Internet access services to bandwidth-intensive users, such as universities, other Internet service providers, telephone companies, cable television companies, Web hosting companies and content delivery networks.
It also provide services to corporate customers located in multi-tenant office buildings, including law firms, financial services firms, and advertising and marketing firms.
CCOI's 12-month performance chart shows the stock appreciating 2% versus an 8% decline in the stock market.
The chart also shows a lot of insider activity both buying and selling.
CCOI's long-term chart shows the stock climbing to a peak of 34.89 in September. It then tumbled down to 3.57 in 2008 due to the bear market.
However, since then, it has been working higher. It hit a peak of 43.50 in early 2014. Since then it has been in a long-term basing pattern.
CCOI's daily chart shows the stock climbing from 27 back in October to a peak near 35 by November.
It then put down a tight flat base. There was a minor pull back in January, but the stock bounced back quickly.
Friday's breakout gaps out of the base with big volume. That is impressive.
The stock's CCI momentum indicator (top of chart) is bullish.
The accumulation - distribution line (bottom of chart) is strongly bullish.
This year, analysts are forecasting a 386% leap in net to 44 cents a share from 9 cents a year ago.
The stock sells with a price-earnings ratio of 81. That is high, but okay.
Going out to 2017, the Street looks for a 48% jump in net to 65 cents a share from the anticipated 44 cents this year.
Net for the upcoming first quarter should come in at 8 cents a share compared with a loss of 4 cents the year before.
The highest estimate on the Street is at 11 cents a share. The company has tended to come in below quarterly estimates. So, the stock should be watched closely.
Looking ahead to the second quarter, analysts predict a profit of 11 cents a share compared with 2 cents the year before.
Strategy Opinion: TTD is targeting CCOI for a move to 44 off this breakout. A protective stop can be placed near 34, which is tight.
TTD rates CCOI a good intermediate-term play provided earnings meet expectations.
Sponsorship: Very Good. The largest fund holder is the 4-star rated VA CollegeAmerica Smcap World 529E Fund with a 2.5% stake. It has kept its position unchanged.
A key fund buyer recently was the 3-star rated Prudential Jennison Small Company B Fund which purchased 179,729 shares. It has a 1.9% stake.
CCOI has 45.2 million shares outstanding. Institutions hold 90% of the stock and insiders have 9%.
Insider Activity: Neutral. Insiders have been just light sellers in recent months.
Currently, 17 analysts follow the stock, 12 have a buy, down from 13 three months ago.
CCOI has a book value of three cents a share.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Cogent Communications Holdings Inc. - CCOI)
|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 - ALRM - AVERAGE|
|TTD's Quality Rating of Stock - HEI - AVERAGE|
|TTD's Quality Rating of Stock - ANIK - BELOW AVERAGE|
|TTD's Quality Rating of Stock - CNSL - 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 - 6
Stocks Screened - 8,300
Long-Term Environment for bears: Favorable.
Bear Side - Small list of shorts Friday. Stock market finishes mixed. Bears be patient and selective.
SMP, based in Long Island City, N.Y., makes replacement parts for motor vehicles in the auto aftermarket industry. Annual revenues: $985 million. SMP's stock falls sharply Friday after reporting disappointing quarterly earnings. TTD sees more on the downside.
So far today, SMP is trading a heavy 597,949 shares, seven times its average daily volume of 87,000 shares.
SMP reported earnings for the fourth quarter of 35 cents a share. That was well below the Street estimate of 56 cents a share.
The stock fell sharply on the news in the morning touching an intraday low of 29.69.
The stock then trended sideways the rest of the day unable to rally.
SMP's tape action shows the recent block trades.
One can see the price for the blocks falling from $36.75 in the prior session to as low as $30.05.
A key bearish trade came in the morning when a block of 5,000 shares crossed the tape at $31.
That was down from the prior block trade at $36.25 on 2,621 shares.
SMP's products cover engines and temperature control.
It makes electronic ignition control modules, fuel injectors, diesel injectors and pumps, ignition wires, coils, switches, sensors, relays, EGR valves, distributor caps and rotors.
The temperature control segment makes control systems, engine cooling systems, power window accessories, and windshield washer systems.
This year, analysts have been forecasting a 19% increase in net. However, that forecast should come down.
SMP's daily chart shows the stock peaking near 45 in November. It then back tracked down to 35 by January. It tried to form a bottom. However, Friday it breaks down hard with big volume.
The stock's accumulation - distribution line (bottom of chart) is now bearish.
Strategy Opinion: TTD is targeting SMP for a decline to 25. A protective stop buy can be placed near 33 giving it room.
|TTD's Quality Rating of Stock - SMP - 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.”
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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.)