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 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 - BELOW AVERAGE
Stocks Screened - 8,300
Bull side - Small list of breakouts today and an extremely selective. Stock market falls and momentum pattern turns down. Bulls be conservative.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Stock Market Momentum
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock -MGA - AVERAGE
MGA, based in Canada, produces auto parts. Annual revenues: $33.7 billion. MGA's stock jumps sharply and breaks out from a four-month, cup-and-handle base. The move was triggered by MGA reporting better than expected earnings for the fourth quarter. So far today, MGA is trading a heavy 2.1 million shares, triple its average daily volume of 646,000 shares.
TTD highlighted MGA as a breakout at our midsession video show on the Web Monday.
MGA came in with net for the fourth quarter of $2.03 a share, up from $1.49 a year ago. The $2.03 topped the consensus estimate on the Street of $1.53 a share and also the highest estimate of $1.74 a share.
The company did say it would not match the revenue projections for 2014. However, the stock shook of that bearish news.
The company's sales for the fourth quarter rose 14% to $9.2 billion. It noted that vehicle production in North America rose 6% and in Europe 5%.
MGA's 10-minute chart shows the stock pushing steadily higher during the day and hitting an intraday peak of 94.12.
The stock then trended sideways in the late afternoon holding the bulk of its gain for the day.
MGA's tape action shows the recent block trades.
One can see the price for the blocks climbing from $88.44 in the prior session to as high as $93.65 late on Monday.
A key bullish trade came when a block of 17,911 shares crossed the tape $90. That was up from the prior block at $88.44 late on Friday.
The strong bullish block near the close is a bullish omen for Tuesday.
MGA is an automotive supplier with 313 manufacturing operations and 88 product development, engineering and sales centres in 29 countries.
It designs, develops, and manufactures technologically-advanced automotive systems, assembles modules and components.
It also engineers and assembles complete vehicles for sale to original equipment manufacturers of cars & light trucks.
The company's products include Interior Systems, Exterior Systems, seating Systems, Powertrain Systems, Closure Systems, Roof Systems, Body and Chassis Systems, Electronic Systems, Vision Systems, Vehicle Engineering & Contract Assembly.
MGA's long-term chart shows the stock climbing from 20 in 2011 to a peak of 50 by 2007, the peak in the prior bull market. The stock then fell back to 10 by 2009 due to the bear market.
It then turned and rove to 62 by late 2010, went through a long-term consolidation, and then broke out and has since soared today of 94.12
MGA's daily chart shows the stock in a long, cup-and-handle base. The breakout today is impressive coming with expanding volume and a widening of the daily trading spread (range from high to low).
The stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) has broken out to a new high.
That is good confirmation that there is good underlying buying. It also shows that MGA's lowering of its sales outlook had no impact.
Analysts are forecasting a 21% jump in MGA's profits for 2014.
They look for net of $7.79 a share, up from $6.42 the year before.
The stock sells with a price-earnings ratio of just 12. That makes the stock a good value-growth play.
The Street is looking for MGA to post a 21% gain in earnings for the first quarter. They look for $1.92 a share, up from $1.59 the year before.
The company has a good track record of topping Street projections. They have done in now for the past nine quarters. That is impressive.
Strategy Opinion: TTD is targeting MGA for a move to 119 off this breakout.
A protective stop can be placed near 87.
TTD rates MGA an average intermediate-term play.
Sponsorship: Average. The largest non-index fund holder is the Scout International Fund with a 0.5% stake.
The 3-star rated fund was a recent buyer of 285,267 shares.
Another large buyer recently was the 4-star rated GMO International Equity III Fund which purchased 204,200 shares.
MGA has 222,2 million shares outstanding. Institutions hold 71% of the stock.
Insider Activity: Not available. Currently, 11 analysts follow the stock, 7 have a buy, up from 6 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Magna International Inc. - (MGA)
|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 - QRE - AVERAGE|
|TTD's Quality Rating of Stock - SCHL - AVERAGE|
|TTD's Quality Rating of Stock - ISRG - BELOW AVERAGE|
|TTD's Quality Rating of Stock - OSG - BELOW AVERAGE|
|TTD's Quality Rating of Stock - CMTL - ABOVE 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 - 9
Stocks Screened - 8,300
Long-Term Environment for bears: Neutral
Bear Side - Short list picks up as stock market sells off. Bears be selective. TTD' short from Friday was KBR Inc. (KBR) at 27.57. Today, the stock has declined to 27.21 and is working well for bears.
MBT, based in Moscow, Russia, provides telecom services in Russia. Annual revenues: $392 billion. Today, the company's website is down due to the conflict in the Ukraine. MBT's stock falls sharply today in heavy trading. The move sets off a TTD short play. So far today, MBT is trading 11.1 million shares, triple its average daily volume of 3.1 million shares.
TTD highlighted MBT as a short at our midsession video show on the Web Monday.
MBT's stock gapped lower in the morning. It hit an intraday low of 15.06. The stock then lifted to around 16, backed off and trended sideways the rest of the day.
MBT's tape action shows the recent big block trades.
One can see the price for the blocks falling from $17.22 on 44,206 shares in Friday's session to as low as $15.15 on 186,227 shares on Monday morning
The stock did show some institutional bargain hunting afterwards that lifted the stock's price a bit.
The company provides mobile and fixed line voice and data communications services in Russia, Ukraine, Armenia and Turkmenistan.
This year, analysts are forecasting a 2% decline in earnings to $2.02 a share from the anticipated $2.06 a share for 2013.
MBT's daily chart shows the stock trending lower. It tried to form a bottom around 17. However, today it gaps lower with big volume. The stock's TTD momentum indicator (top of chart) is now bearish.
Strategy Opinion: TTD is targeting MBT for a decline to 12.30. A protective stop buy can be placed near 16.80.
|TTD's Quality Rating of Stock - MBT - 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: B. J. 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.)