Daily - Go to TTD's Chart scroller of Breakout Stocks - Thursday, March 2, 2017
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Daily - Go to TTD's Chart scroller of Breakout Stocks - Thursday, March 2, 2017 |
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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, February 27, 2017 |
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Go to Video Show - "How to Make Money With Breakout Stocks |
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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.
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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. Trading Strategies Bullish 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) Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance) |
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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.
Breakout Stocks
Total Buy Breakouts so far today - 19
Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list large with some good looking plays and special situations. Bulls be selective. Stock market hoids up trend.
(Put mouse on chart for Nasdaq)
Environment for bulls: Bullish
Stock Market Momentum
Market (Daily) - NYSE Bullish, Nasdaq Bearish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
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TTD's Quality Rating of Stock - AJRD - ABOVE AVERAGE |
AJRD, based near Los Angeles, makes aerospace and defense products. The firm was formerly named GenCorp, Inc. Annual revenues: $1.7 billion. AJRD's stock breaks out Thursday from a three-month, cup-and-handle base. 
The move carries the stock closer to its all-time high of $24.99 set back in 2015.
TTD highlighted AJRD as a breakout at our midsession video show on the Web Thursday.
The push higher was triggered by better than expected quarterly earnings.
So far today, AJRD is trading a heavy 1.8 million shares, six times its average daily volume of 291,000 shares. 
AJRD's stock drove higher in the morning getting above its breakpoint line. (see 10-minute chart). The stock then trended sideways.
TTD highlighted AJRD's stock at our midsession show and the stock drove higher getting to $22.36.
It faded a bit late in the day, but held over its breakpoint.
AJRD came in with earnings for the fourth quarter of 25 cents a share. That topped the consensus estimate of 12 cents a share.
That estimate differs from Zacks.
Tape Action
AJRD's tape action shows the recent block trades.
One can see the price for the blocks climbing from $19.85 in the prior session to as high as $22.08. 
A key bullish trade came in the morning when a block of 153,000 shares crossed the tape at $21.37.
That was up from the prior block at $19.85 on 50,000 shares.
The tape did shows some institutional profit taking late in the session.
Business
AJRD makes aerospace and defense products and systems.
It makes propulsion systems for defense and space applications, and armaments for precision tactical and long-range weapon systems.
AJRD makes aerospace and defense products for the U.S. government including the Department of Defense, National Aeronautics and Space Administration, aerospace and defense prime contractors, as well as the commercial sector.
Charts
AJRD's 12-month performance chart shows the stock appreciating 32% versus a 20% gain for the stock market.
Insiders have been given a lot of stock options in recent months (see light green bars on chart). The price was not disclosed in most cases. However, one director bought using stock options at $5.63 a share. He sold at $18.06 on the same day, August 16,2016.
AJRD's long-term chart shows the stock falling to a bear market low of $1.84 in early 2009. The stock was as high as $20 back in 2006.
The stock rallied to around $7 later in 2009 and then formed a long-term base. It broke out in 2012 and surged to an all-time high of $24.99 in 2015.
It then pulled back but is on the move again and is within range of topping its all-time high.
That would be bullish.
AJRD's daily chart shows the stock breaking out of a base with a widening of the daily spread and expanding volume.
The stock's CCI momentum indicator is strongly bullish.
Earnings Outlook
This year, analysts are forecasting a 24% increase in net to 94 cents a share from 76 cents the year before.
The stock sells with a price-earnings ratio of 22. TTD sees that as reasonable.
Profits for the next two quarter are expected to show an acceleration in growth. That is very bullish.
Net for the upcoming first quarter should leap 88% to 15 cents a share from 8 cents the year before.
Then in the second quarter net is projected to surge 122% to 20 cents a share from 9 cents the year before.
Strategy Opinion: TTD is targeting AJRD for a move to $26 off this breakout. A protective stop can be placed near $19.70 giving it some room.
TTD rates AJRD a good intermediate-term play provided earnings remain on course.
Suitability: Average Bulls.
TTD's special research of AJRD's Prior Performance after a Breakout:
TTD's research shows that recently (see table) AJRD has scored just some modest gains off its breakouts. However, going back a bit it has at times racked up some big gains.
The stock has moved higher 5 out of the past 11 earnings reports. When AJRD does move higher off strong earnings it sometimes scores some big gains.
The seasonal chart shows AJRD tends to do well in February and March. They are the strongest months for the stock.
Stock's Prior Performance After A Breakout
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Stock's % Change from Breakout to peak - prior to cut below 50-day M/A. |
Date of Breakout |
Break point Price |
Stocks Price Peak after Breakout - prior to cut below 50-day M/A |
Date Trade Closed |
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7% |
4/18/2016 | 17.20 | 18.46 | 4/28/2016 |
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12% |
7/13/2015 | 21.57 | 24.27 | 7/16/2015 |
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23% |
2/11/2015 | 18.75 | 23.19 | 3/31/2015 |
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10% |
10/25/2013 |
16.59 |
18.35 |
11/27/2013 |
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23% |
6/10/2013 | 13.98 | 17.31 |
7/24/2013 |
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33% |
1/18/2013 | 10.24 | 13.68 | 4/2/2013 |
(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
| TTD's Quality Rating of Stock - BURL - AVERAGE |
| TTD's Quality Rating of Stock - GCP - AVERAGE |
| TTD's Quality Rating of Stock - MCRI - AVERAGE |
| TTD's Quality Rating of Stock - MEI - 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 - 11
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Large list of breakdown stocks Thursday as market flips lower after big rally on Wednesday. Bears can be venturesome.
ANIP, based in Baudette, Min., develops drugs to treat cancer and other illnesses. Annual revenues: $108 million. ANI's stock falls sharply Thursday after reporting disappointing earnings for the fourth quarter. TTD sees more on the downside. 
TTD highlighted ANIP as a short at our midsession video show on the Web Thursday.
ANIP is trading a heavy 972,236 shares, seven times its average daily volume of 138,000 shares.
The company reported net for the fourth quarter of 84 cents a share. That was well below the Street consensus estimate of $1.10 a share.
Results were also below the lowest Street estimate of $1 a share. That is very bearish.
ANIP's stock gapped lower in the morning and fell to an intraday low of $50.07.
The stock then lifted to around $52.50 and trended sideways the rest of the day.
Tape Action
ANIP's tape action shows the block trades falling from $59.80 in the prior session to as low as $51.51 Thursday morning.
A key bearish trade came when a block of 15,546 shares (duplicated) crossed the tape at $55.80
That was down sharply from the prior block at $59.80.
Business
ANIP makes and sells generic prescription drugs. The company's focus is on anti-cancer, hormones and steroids, and complex formulations.
The Company's generic products include Esterified Estrogen with Methyltestosterone, Etodolac, Erythromycin Ethylsuccinate, Fenofibrate, Flecainide, Fluvoxamine, Hydrocortisone Enema, Methazolamide and Metoclopramide Syrup. ,
Its Inderal XL and InnoPran XL capsules are a beta-adrenergic blocker used to treat hypertension
Earnings
This year, analysts have been forecasting a 14% increase in earnings to $4.12 a share. However, that forecast could come down. The company has cut its forecast to $3.94 a share.
Net for the upcoming first quarter has been projected at 93 cents a share, up 41% from 66 cents the year before. That may come down too. Only two analysts have made a forecast.
The stock has fallen five times out of the past eight earnings reports. The drops have been sharp.
Charts
ANIP's daily chart shows the stock gapping lower with big volume. The move undercuts key technical support. The CCI momentum indicator is bearish. The stock has cut below its 14 and 50 day moving average lines.
ANIP 12-month performance chart shows the sock up 45% versus a 20% gain in the stock market.
Insiders were sellers in August at $66 to $67 a share. CEO Arthur Przybyl was a buyer at $6.36 using stock options. He turned around and sold the same day in August at $66.67 a share making a profit of about $2 million.
Strategy Opinion: TTD is targeting ANIP for a decline to $44 within the next few months, or sooner. A protective stop buy can be placed near $55.
Suitability: Aggressive Bears.
| TTD's Quality Rating of Stock - ANIP - BELOW AVERAGE |
Stock Performance Chart with Quarterly Earnings Markers vs. S&P 500
Insider Buying in Green - Insider Selling in Red
TTD columnist Leo Fasciocco has covered the stock market for over 30 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.)
