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 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 - 10
Overall Quality of Breakouts - Average
Stocks Screened - 8,300
Bull side - Breakout list average with some good plays. Bulls be selective. Stock market holds up trend.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - EIG - ABOVE AVERAGE
EIG, based in Reno, Nev., provides workers compensation insurance and services. Annual revenues: $580 million. EIG's stock breaks out today from a 10-week flat base. The stock came public in 2007. Today's move carries it close to a new all-time high which is at 23.85 set back in 2007.
So far today, EIG is trading 143,341 shares. Its average daily volume is at 123,000 shares.
EIG's 10-minute chart shows the stock rising slightly in the morning and then trending sideways through most of the day.
Late in the session, the stock headed higher and cleared its breakpoint.
EIG is thinly traded stock. The company has 30.8 million shares outstanding. Institutions hold 74% of the stock.
EIG's tape action is shown by the recent block trades.
One can see the price for the recent blocks advancing from a low of $21.66 recently to as high as $21.99.
A key bullish trade came on Tuesday when a bloc of 14,604 shares crossed the tape at $21.67. That was up from the prior block trade at $21.66.
So, that showed some aggressive buying just prior to today's breakout.
EIG provides workers compensation insurance and services to small American businesses.
The Company conducted operations in 31 states.
However, its business is concentrated in California, where it generates 56% of its in-force premiums.
Workers' compensation provides insurance coverage for the statutorily prescribed benefits that employers are required to provide to their employees who may be injured or suffer illness in the course of employment.
The company markets and sells its insurance products through independent, non-exclusive insurance agents and brokers.
EIG's 12-month performance chart shows the stock doubling from its low of 10 back in 2009. The breakout today has the potential with a follow through to carry the stock to a new high.
EIG's long-term chart shows the stock coming public in 2007 and trading around 22. However, the stock fell back 8 in to 2009 due to the bear market. However, since the stock has worked higher.
EIG's daily chart shows the stock advancing from 18 in November to 21 by January. The stock then put down a tight flat base.
EIG pushed higher on Tuesday on expanding volume and today clears the base.
The stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) has been trending lower, but now is starting to turn up. The AD line, though, should make one very watchful of the stock.
This year, analysts are forecasting a robust 152% surge in profits to 55 cents a share from 22 cents a year ago. The stock sells with a price-earnings ratio of 40. That would seem high but is okay given the earnings growth rate this year and next.
For 2014, the Street is projecting a 46% leap in net to 81 cents a share from 55 cents a year ago.
EIG is poised to show an acceleration in quarterly earnings growth.
Net for the first quarter should climb 63% and then in the second quarter 200%.
Earnings for the first quarter is expected to rise to 10 cents a share from 6 cents a year ago. The highest estimate on the Street is at 13 cents a share.
Looking out to the second quarter, earnings should surge 200% to 12 cents a share from 4 cents a year before.
Strategy Opinion: EIG's breakout looks good so far. One should look for a follow up move to confirm the breakout.
TTD suggests scaling into EIG with further buying to be done on a follow up move.
TTD is targeting EIG for a move to 27 off this breakout. A protective stop can be placed near 20.20. TTD rates EIG a very good intermediate-term play provided earnings meet expectations.
Sponsorship: Very Good. The largest fund holder is 4-star rated T. Rowe Price Small Cap Value Fund with a 3.2% stake. It was a recent seller of 22,000 shares. The second largest fund holder is Fidelity Low-Priced Stock Fund with a 1.8% stake. It has held its position steady.
Insider Activity: Slightly Bullish. There was some light insider buying recently. No selling as of the past six months. Currently, 5 analysts follow the stock, 4 have a buy, up from 3 three months ago.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Employers Holdings Inc. - (EIG)
|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 - GRA - AVERAGE|
|TTD's Quality Rating of Stock - SBH - AVERAGE|
|TTD's Quality Rating of Stock - TRIP - AVERAGE|
|TTD's Quality Rating of Stock - CTSH - 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 - 4
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of breakdown stocks today. Stock market holds up trend. Bears be conservative. TTD's short from Tuesday was JC Penney (JCP) at 15.20. The stock has declined to 14.54 so far and is working well for bears.
AVA, based in Monrovia, Ca., makes unmanned aircraft systems. Annual revenues: $322 million. AVAV's stock falls sharply today after the company reported disappointing earnings for the fiscal third quarter ended January 20. The stock fell hard as volume swelled to 3.8 million shares. 16 times its normal daily volume of 192,000 shares. TTD sees more on the downside.
TTD highlighted AVAV as a short at our midsession video show on the Web Wednesday.
The company reported fiscal third quarter net tumbled to 17 cents a share from 26 cents a year ago. The Street was looking for a rise in net to 37 cents a share.
The stock gapped lower hitting an intraday low of 16.98. It later recovered a chuck of its loss, but still remained in the red.
AVAV's tape action shows the recent big block trades.
One can see the price for the blocks falling from $21.85 a few sessions ago to as low as $17.
A key bearish block came when a block of 65,130 shares (duplicated) crossed the tape at $17. That was down sharply from the prior block at $21.69.
AVAV makes unmanned aircraft aystems and electric energy systems.
The company's small UAS are used extensively by agencies of the U.S. Department of Defense and increasingly by allied military services to provide situational awareness to tactical operating units through real-time, airborne reconnaissance, surveillance, and target acquisition.
AVAV's PosiCharge fast charge systems eliminate battery changing for electric industrial vehicles in factories, airports, and distribution centers.
This fiscal year ending in April, analysts have been forecasting a 6% rise in net to $1.44 a share from $1.36 a year ago. That estimate may come down. Net for the upcoming fiscal fourth quarter ending in April should decline 8% to 73 cents a share from 80 cents a year ago.
AVAV's daily chart shows the stock gapping lower in the morning on heavy volume. The stock had been trending sideways. So, there was no hint of a big drop from the tape.
Strategy Opinion: TTD is targeting AVAV for a decline to 15.50 within the next few months or sooner. A protective stop buy can be placed near 20.50
|TTD's Quality Rating of Stock - AVAV - 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.)