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 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 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 - 2
Quality of Breakouts - BELOW AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list small and very selective. Stock market still holds up trend.
(Put mouse on chart to Nasdaq)
Environment for bulls: Neutral
Stock Market Momentum
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bullish, Nasdaq Bearish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - EVA - AVERAGE
EVA, based in Bethesda, Md., produces wood pellets for the utility industries. Annual revenues: $454 million. EVA's stock breaks out Monday from a four-month flat base. The move carries the stock close to a new all-time high.
TTD highlighted EVA as a breakout at our midsession video show on the Web Monday.
So far today, EVA is trading 202,000 shares, almost double its average daily volume of 121,000 shares.
EVA's stock drove higher in the morning cutting through its breakpoint line.
The stock reached an intraday high of $29.97 in the morning.
It then pulled back to around $29.50 and trended sideways the rest of the day.
There was some selling late in the session.
EVA's tape action shows the recent block trades.
One can see the price for the blocks climbing from $28.55 in the morning to as high as $29.92.
A key bullish trade came in the morning when a block of 1,500 shares crossed the tape at $29.71.
That was up sharply from the prior block at $28.85 on 12,290 shares.
EVA supplies utility-grade wood pellets to power generators under long-term, take-or-pay off-take contracts.
The Company procures wood fiber and processes it into utility-grade wood pellets.
EVA loads the finished wood pellets into railcars, trucks and barges that are transported to deep-water marine terminals, where they are received, stored and ultimately loaded onto oceangoing vessels for transport to its Northern European customers.
The company runs six production plants in the Southeastern U.S. that have a production capacity of 2.3 million metric tons per year.
The wood pellets are exported from a deep-water marine terminal in Chesapeake, Virginia and from third-party deep-water marine terminals in Mobile, Alabama and Panama City, Fla.
EVA's 12-month performance chart shows the stock appreciating 39% versus a 19% gain for the stock market.
Insiders have been award a lot of stock options (see green bar on chart). The price of the options was not disclosed.
EVA's long-term chart shows the stock coming public in 2015 at $20.
The stock fell to $11.85 later that year.
However, since then EVA's stock has been rising steadily. It has almost tripled from its low.
EVA's daily chart shows the stock forming a flat base.
The stock breaks out with a modest pick up in volume.
EVA's CCI momentum indicator is strongly bullish.
This year analysts are forecasting a 16% increase in net to $1.67 a share from $1.44 a year ago.
The stock sells with a price-earnings ratio of 17. TTD sees that as reasonable.
Looking out to 2018, analysts predict a 13% increase in net to $1.88 a share from the anticipated $1.67 this year.
Net for the first quarter should surge 28% to 37 cents a share from 29 cents the year before.
The highest estimate is at 40 cents a share. The company does tend to be erratic with earnings beating the consensus twice and missing twice in the past four months. So, one needs to be watchful.
Net for the second quarter is expected to be down 7% to 44 cents a share from 47 cents the year before.
Strategy Opinion: TTD is targeting EVA for a move to $34 off this breakout. A protective stop can be placed near $28.
TTD rates EVA an average intermediate-term play provided earnings meet expectations.
Suitability: Average Bulls.
TTD's special research of EVA's Prior Performance after a Breakout:
TTD's research shows that recently (see table) EVA's stock has scored some average gains off its breakouts. The stock is in an overall up trend long-term.
The stock has moved higher 7 out of the past 9 earnings reports. However, the gains were small.
The seasonal chart shows EVA's stock does very well in March and April.
Stock's Prior Performance After A Breakout
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
(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 - SPLP - BELOW 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 - 7
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of breakdown stocks Monday. Bears be selective.
TTD's short from Friday was Synaptics Inc. (SYNA) at $50.88. Monday, it fell to $50.54 and is working well for bears.
GPRO, based in San Mateo, Ca., makes wearable HD camcorders and accessories. Annual revenues: $1.2 billion. GPRO's stock fall sharply Monday with heavy volume. The stock was downgraded to sell by Goldman Sachs. TTD sees more on the downside.
So far today, GPRO is trading a heavy 9.9 million shares, three times its average daily volume of 3.1 million shares.
The stock fell sharply in the morning and continued South until noon. It touched an intraday low of $7.95.
In the afternoon, the stock lifted slightly.
GPRO's tape action shows the recent block trades.
One can see the price for the blocks falling from $9.08 to as low as $7.99.
A key bearish trade came late on Friday when a massive block of 214,202 shares (duplicated) crossed the tape at $8.84.
That was down from the prior block trade at $9.08 on 42,057 shares.
Near the close Monday, a block of 148,528 shares (duplicated) crossed at $8.14.
That came on a slight up tick from the prior trade at $8.135 on 100 shares.
GPRO sells cameras and accessories. It also curates videos shot on its cameras and broadcasts those videos on its own channel on YouTube, Xbox Live and Virgin Atlantic flights.
The company offers HERO line of cameras; premium accessories and mounts.
It also sells spare batteries, charging accessories, cables to connect its GoPro cameras to televisions and monitors, video transmitters, external microphones, flotation devices, dive filters, and anti-fogging solutions.
This year, analysts are forecasting GPRO will report a loss of $1.09 a share compared with a loss of $1.94 the year before.
Going out to 2018, the Street is predicting a loss of 89 cents a share.
For the upcoming first quarter, GPRO is expected to show a loss of 62 cents a share compared with a loss of 73 cents a share the year before.
GPRO's daily chart shows the stock declining from $14 in October to around $9 by December. The stock trended sideways, but today undercuts key technical support with expanding volume.
GPRO's 12-month performance chart shows the stock falling 40% versus a 21% gain for the stock market.
Insiders have been steady sellers of the stock from $14 down to $9 recently. A big seller in August was director Edward Gihuly who sold 700,000 shares for $10.6 million.
Strategy Opinion: TTD is targeting GPRO for a decline to $6.20 within the next few months, or sooner. A protective stop buy can be placed near $9.20.
Suitability: Aggressive Bears.
|TTD's Quality Rating of Stock - GPRO - 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.)