Ticker Tape Digest

Friday - February 26, 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.

Friday - February 26, 2021

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts   -  4

Quality of Breakouts -  Average

Stocks Screened - 12,234

Bull side -  Small list of breakouts and very selective.

Stock market  -  Major averages are now bearish on a daily basis. The Weekly and Monthly hold bullish.

Comment -  Breakout list small. So, bulls need to be conservative and watch all positions.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats -  AMCX, AMRX, BLDR, LBRDX and QRTEA.

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

Starbucks Corp. (SBUX) - 108.03, up 4.56 - Breakpoint 107.72

Net To Surge 142% for fiscal 2021 (Sept.), TTD Targets 127

  SBUX, based in Seattle, is a worldwide provider of coffee products. Annual revenues: $23.5 billion. SBUX's stock drives higher Friday and breaks out from its 12-week flat base.

  The stock, a long-term winner, hits a new all-time high.

  So far today, SBUX is trading 15.1 million shares, more than double its average daily volume of 5.6 million shares.

  TTD sees potential for more on the upside.

  TTD highlighted SBUX as a breakout at our midsession video show on the Web Friday.

  SBUX's stock moved higher in the morning and around midday it cut across its breakpoint line.

  The stock reached an intraday peak at $109.48 in the early afternoon.

  SBUX then trended sideways the rest of the day.

   Tape Action

  SBUX's tape action shows the recent block trades.

  One can see the price for the blocks advancing from  $103.47 in the morning to as high as $108.62.

  A key bullish trade came in the morning when a block of 87,362 shares crossed at $104.31.

  That was up from the prior block at $103.47 on 31,540 shares.

  Near the close a big block of 1.4 million shares crossed at $108.03.

  That came in a sequence started by an up tick from $108.02 on 100 shares.

   Business

  SBUX  is a coffee roaster and retailer of specialty coffee with operations in 82 markets around the world.

The Company has some 32,000 company-operated and licensed stores.

It also sells a variety of coffee and tea products and license its trademarks through other channels, such as licensed stores, grocery and foodservice.

It purchases and roasts coffees that it sells, along with handcrafted coffee, tea and other beverages and a variety of food items.

 SBUX also sells under various brands such as Teavana, Seattle’s Best Coffee, Evolution Fresh, Ethos, Starbucks Reserve and Princi.  

  Charts

  SBUX's 12-month performance chart shows the stock up 38% versus a 24% gain for the stock market

  Insiders were recent buyers using stock options at $15 to $60 the past several months.

  They were sellers a $77 to $106 a share.

  SBUX's long-term chart shows the stock climbing from $40 back in 2014 to $64 by 2015.

  The stock then trended sideways. It broke out in late 2018 and ran up to 99 by 2019.

  It was dragged back in 2020 to $50 as the stock market sold off. since then SBUX has drive to a new all-time high of $109.48.

  SBUX's daily chart shows the stock climbing from $86 back in November to a peak near $107 by January.

  It put down a flat base with one shakeout to the downside in January.

  The breakout Friday comes with a widening of the daily spread and expansion in volume.

  The stock's CCI momentum indicator is solidly bullish.

  Earnings Outlook

  This fiscal year ending in September the Street predicts a 142% jump in net to $2.83 a share from the $1.17 the prior year.

  The stock has a price-earnings ratio of 38.

  Looking out to fiscal 2022 ending in September, analysts project a 22% increase in net to $3.44 a share from the anticipated $2.83 this fiscal year.

  Net for the upcoming fiscal second quarter ending in March should climb 59% to 51 cents a share from the 32 cents the previous year.

  SBUX beat the Street estimate the past four quarters by 6 cents a share, 18 cents, 15 cents and one cent.

  Net for the fiscal third quarter ending in June should climb to 77 cents a share from a loss of 46 the previous year.

Strategy Opinion:  TTD is targeting SBUX for a move to $127 within the next few months, or sooner.

A protective stop can be placed near  $101.

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  - 6

Stocks Screened - 12,234

Long-Term Environment for bears: Unfavorable.

Bear Side -  Several interesting plays for aggressive shorts. Stock market churning. Bears  be alert for some potential good plays.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Root Inc. (ROOT) -  13.49

Loss Seen This Year, TTD Sees Drop to 10.50

  ROOT, based in Columbus, Ohio, is an insurance company. Annual revenues: $290 million. ROOT's stock gaps lower Friday and undercuts key support.

  Loss seen for this year.

  So far today, ROOT is trading a heavy 8.8 million shares, six times its average daily volume of 1.4 million shares.

  TTD sees potential for more on the downside.

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

  The company reported a loss for the fourth quarter of 72 cents a share.

  That was more than the Street forecast of a loss of 65 cents a share.

  ROOT gapped lower and undercut key technical support in the morning.

  The stock trended lower most of the day touching an intraday low of $12.85 in the afternoon.

  It lifted slightly late in the day.

  In after-hours trading the stock was up 6 cents a share.

  Tape Action

  ROOT's tape action shows the recent block trades.

  One can see the price for the blocks falling from $16.42 in the prior session to as low as $13.25 in the afternoon.

  A key bearish trade came in the morning when a block of 50,306 shares (duplicated) crossed the tape at $14.75.

  That was down sharply from the prior block the day before at $16.42 on 32,669 shares.

   Business

  ROOT operates Root Insurance Co. It  is a direct-to-consumer personal auto insurance, renters’ insurance and mobile technology company.

 The Company operates through its providing direct-to-consumer insurance products..

 ROOT by collecting and synthesizing sensory behavioral data across various driving variables, including distracted driving, it prices policies  based more on causality than correlation.  

  Earnings:

  This year, the Street predicts a loss of $2.02 a share compared with the anticipated loss of $4.47 fro 2020.

  For the upcoming first quarter, analysts expect a loss of 38 cents a share.

Charts:  

  ROOT's daily chart shows the stock coming public in October at $26. It then fell steadily to $13.78 by December.

  The stock rallied back to $26 in January, but has since been working lower.

Strategy Opinion: TTD is targeting ROOT for a decline to $10.50 within the next few months, or sooner. A protective stop buy can be placed near $14.70.

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.)