Ticker Tape Digest

Thursday - March 5, 2020

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

Thursday - March 5, 2020

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts   - 1

Quality of Breakouts -  Average.

Stocks Screened - 12,234

Bull side -  Only one breakout as stock market falls sharply. Bulls be patient and conservative.

Stock market  -  Major averages are in a near-term down trend. They need to form a bottom, show a contraction in volatility and volume. Until then, bulls need to be patient and selective.

Comment -  Market is bearish daily and weekly and the Dow is bearish monthly. Bulls need to be patient looking for a bottom to form.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats -  OOMA, MMX, VIPS, CIEN and MEI.

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

Vipshop Holdings Ltd. (VIPS) - 16.66, up 3.54 - Breakpoint 15.34

Net To Climb 22% This Year, TTD Targets 21

  VIPS, based in China, is an online discount retailer for brands in China. Annual revenues: 84.5 billion Chinese Yuan. VIPS's stock surges higher Thursday and breaks out from its nine-week, double bottom base.

  So far today, VIPS is trading a heavy 38.5 million shares, 7 times its average daily volume of 5.5 million shares.

  TTD sees potential for more on the upside.

  VIPS breakout came after the company reported favorable sales and earnings.

  VIPS stock broke out in the morning, but then pulled back and hugged its breakpoint line.

  In the afternoon, the stock drove higher, cleared its breakpoint line and reached an intraday high of $17.06.

  It closed near its high. That is bullish.

   Tape Action

  VIPS's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $13.12 in the prior session to as high as $16.66.

  A key bullish trade came in the morning when a block of one million shares crossed the tape at $14.20.

  That was up sharply from the prior block at $13.12 on 1.1 million shares late on Wednesday.

  Near the close a block of 755,764 shares crossed at $16.66.

  That was up sharply from the prior block at $15.31 on 79,968 shares.

   Business

  VIPS sells its products in China through flash sales mainly on its vip.com Website.

  Through its flash sales model, VIPS sells limited quantities of discounted branded products for a limited time.

  The company sells apparel for women, men and children, fashion goods, cosmetics and home goods..

 VIPS also sells through lefeng.com branded cosmetics, apparel, healthcare products, food and consumer products.  

   Charts

  VIPS's 12-month performance chart shows the stock up 100% versus a 10% gain for the stock market.

  Insider activity was not available.

  VIPS long-term chart shows the stock climbing from$1.80 back in 2013 to an all-time high of $30.72 in 2015.

  However, afterwards the stock trend lower finally making a bottom near $5 in 2018. Since then the stock has rallied steadily.

  VIPS's daily chart shows the stock climbing from $8 back in October to a peak near $15 by January.

  The stock formed a double-bottom base.

  Thursday, it gaps higher and out of the base with a big pick up in volume.

  The move was triggered by its earnings announcement.

  VIPS's CCI momentum indicator is strongly bullish.

   Earnings Outlook

  This year, analysts are forecasting a 22% increase in net to $1.16 a share. The stock sells with a price-earnings ratio of just 9.

  For the first quarter of this year, analysts predict a 67% leap in net to 30 cents a share from the 18 cents the prior year.

  VIPS has topped Street estimates the past four quarters.

Strategy Opinion:  TTD is targeting VIPS for a move to $21 within the next few months, or sooner.

A protective stop can be placed near  $14.90.

Intermediate-Term Rating: Average.

Suitability:   Aggressive 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

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 for Thursday - 9

Stocks Screened - 12,234

Long-Term Environment for bears: Unfavorable.

Bear Side - Large list of shorts with some good plays for aggressive bears. Bears be selective.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Cantel Medical Corp. (CMD) - 52.38

Net Misses, TTD Sees Drop to 45

  CMD, based in Little Falls, N.J., provides infection prevention products and services. Annual revenues: $918 million. CMD's stock falls sharply Thursday after the company posted disappointing earnings.

  So far today, CMD is trading a heavy 1.7 million shares, four times its average daily volume of 365,000 shares.

  TTD sees more on the downside. TTD highlighted CMD as a short at our midsession video show on the Web Thursday.

  CMD's stock gapped lower in the morning after posting disappointing earnings.

  The company reported net for the fiscal second quarter ended in January of 61 cents a share. That was well below the 67 cents the share was expecting.

  The stock gapped lower in the morning and cut below support.

  CMD touched an intraday low of $51.23 in the morning.

  The stock bounced up to $55.85 later in the morning.

  CMD then drifted lower in the afternoon. It closed near the low for the session. That is bearish.

  Tape Action

  CMD's tape action shows the recent block trades.

  One can see the price for the blocks falling from $63.26 in the prior session to as low as $52.38 by the close.

  A key bearish trade came in the morning when a block of 19,787 shares (duplicated) crossed the tape at $56.20.

  That was down from the prior block at $63.26 on 70,060 shares.

   Business

  CMD's operating segments include: Endoscopy, water purification and filtration. It also provides healthcare disposables, and dialysis.

  Its endoscopy segment includes medical device reprocessing systems, disinfectants, detergents and other supplies.

The company's water purification and filtration covers water purification equipment and services, filtration and separation products, and disinfectant, sterilization and decontamination products.

 Earnings:

  This fiscal year ending in July the Street was forecasting a 17% rise in net to $2.77 a share from the $2.37 the prior year.

  However, that estimate will come down.

  Net for the fiscal third quarter is projected to be up 25% to 69 cents a share from the 55 cents the prior year.

Charts:  

  CMD's daily chart shows the stock gapping lower and continuing its down trend. That is very bearish.

  CMD's 12-month performance chart shows the stock down 21% versus a 10% gain for the stock market.   

Strategy Opinion: TTD  is targeting CMD for a decline to $45 within the next few months, or sooner. A protective stop buy can be placed near $57.

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. - 2020

    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 1-480-878-8381.

   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.)