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 - 7
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list small but some interesting plays for aggressive investors. Stock market lifts Monday. It may need more time to set up for a rally.
(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 Bearish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - SCMP - ABOVE AVERAGE
SCMP, based in Bethesda, Md., produces drugs to treat gastrointestinal and cancer problems. Annual revenues $112 million. SCMP's stock breaks out today from a seven-week, flat base. The move carries the stock to a seven-year high. SCMP came public back in 2007.
TTD highlighted SCMP as a breakout at our midsession video show on the Web Monday.
So far today SCMP is trading a heavy 734,379 shares. Its average daily volume is 307,000 shares.
SCMP's 10-minute chart shows the stock advancing steadily in the morning and cutting across its breakpoint line.
The stock continued to work high through the day and closed near its high for the session. That is bullish.
SCMP's tape action shows the recent block trades.
One can see the price for the blocks advancing from $15.30 in the prior session to as high as $17.26 Monday.
A key bullish trade came in the prior session when a block of 13,490 shares (duplicated) crossed the tape at $15.64.
That was up from the prior block trade at $15.30 on 6,993 shares.
Then Monday, a bullish block crossed near the close at $17.26 on 14,172 shares (duplicated).
That was up from the prior block at $16.85 on 6,300 shares.
SCMP develops drugs based on prostones and other drug technologies .
It is developing prostone-based drugs to treat gastrointestinal, ophthalmic, neurologic, and oncology-based inflammatory disorders.
The company, through its collaboration and license agreement with Takeda Pharmaceutical Co., Ltd., offers AMITIZA in the U.S.to treat chronic idiopathic constipation in adults; irritable bowel syndrome with constipation in adult women and opioid-induced constipation in adults with chronic non-cancer pain.
SCMP also provides AMITIZA in Japan through an agreement with Abbott Japan Co., Ltd., for chronic constipation in adults; and in the United Kingdom and Switzerland for the treatment of chronic idiopathic constipation.
In addition, SCMP markets RESCULA in the U.S.to treat open-angle glaucoma and ocular hypertension. Its pipeline also includes AMITIZA, which is in Phase III trial for pediatric functional constipation.
SCMP's 12-month performance chart shows the stock appreciating 105% versus a 12% gain for the S&P 500 index. The stock has had a recent tendency to move higher after reporting earnings.
SCMP's long-term chart shows the stock coming public in 2007 at 11.50. The stock shot ahead to its all-time high 19.74 in late 2007, the peak in the prior bull market. The stock then tumbled back to $2.74 during the subsequent bear market.
It finally hit a bottom in 2011 at $2.75. Since then the stock has been working higher and in the past six months has about tripled.
SCMP's daily chart shows the sock climbing from 7 back in October to 16 by January.
The stock then put down a tight flat base.
Today's breakout clears the base with good volume.
It was showing strong buying the prior session as it setup for its breakout.
The stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) has broken out to the upside.
This year, analysts are forecasting a 58% surge in SCMP's earnings to 63 cents a share from 40 cents a year ago.
The stock sells with a price-earnings ratio of 26. Sees that as low given the annual growth rates. So, the stock is a good growth play for an aggressive investor.
Going out to 2016, the Street looks for a 40% gain in profits to 88 cents a share from the anticipated 63 cents this year.
Quarterly earnings will be strong.
For the upcoming first quarter, analysts look for a 600% surge in net to 14 cents a share from 2 cents a year ago.
Then for the second quarter they expect a 275% leap in profits to 15 cents a share from 4 cents the year before.
Strategy Opinion: SCMP is a good looking play in the hot medical sector. The stock is not that speculative in that it is showing good earnings growth.
TTD is targeting SCMP for a move to 21.50 off this breakout. A protective stop can be placed near 15.80.
TTD rats SCMP a very good intermediate-term play as long as earnings remain on course.
Sponsorship: Good. The largest fund holder is the 4-star rated Vanguard VIF Small Co. Growth Fund with a 1.7% stake. It has held its position steady.
One of the largest fund buyers recently was 3-star rated Hartford Smallcap Growth Fund which purchased 63,100 shares as a new position. It has a 0.1% stake.
SCMP has 44.1 million shares outstanding. Institutions hold 24% of the stock. Insiders have 65% of the stock.
Insider Activity: Slightly Bearish. Insiders have been buyers around $4. They were sellers at $12.91 late last year.
Currently 5 analysts follow the stock, 4 have a buy, the same as three months ago. SCMP has a book value of $1.87
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Sucampo Pharmaceuticals Inc. - (SCMP)
|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 - SFNC - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - MAC - AVERAGE|
|TTD's Quality Rating of Stock - BIG - AVERAGE|
|TTD's Quality Rating of Stock - SSP - 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 - 16
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Large number of shorts Monday even though the stock market moves higher. Energy plays lead the bear plays lower. Bears should be selective.
KORS, based in Hong Kong makes clothes, handbags and accessories for women and men. Annual revenues: $4.2 billion. KORS's stock falls sharply Monday and undercuts key technical support. The decline was due in part to weak sales in China recently. TTD sees more on the downside.
So far today, KORS is trading a heavy 6 million shares, almost double its average daily volume of 3.2 million shares.
KORS's stock gapped lower in the morning. It fell to an intraday low of 63.31 in the morning.
The stock then lifted modestly and trended sideways the rest of the day.
KORS's tape action shows the recent block trades. One can see the price for the blocks falling from $66.85 in the prior session to as low as $63.83 Monday.
The tape showed consistent institutional selling pressure.
A key bearish trade came Monday morning when a block of 68,045 shares crossed the tape at $64.48.
That was down from the prior block trade at $65.98 on 106,570 shares.
KORS operates in three areas: retail, wholesale, and licensing. The retail segment sells handbags and small leather goods, such as wallets; footwear. Itoperates 176 stores and 176 locations operated through its licensing partners.
The wholesale unit sells handbags and small leather goods, footwear, and women's and men's apparel to department stores and specialty shops in North America and Europe.
The licensing segment licenses its trademarks on products, such as fragrances, cosmetics, eyewear, leather goods, jewelry, watches, coats, men's suits, swimwear, furs, and ties.
Analysts have been forecasting a 34% jump in KORS's earnings for the fiscal year ending in March 2015 with the fiscal fourth quarter to be up 17%. However, with the weak sales, the company may not come up to those expectations.
KORS's daily chart shoes the stock trending lower from 82 in August to 65 by January. The stock tried to rally but then rolled over. Today, it undercuts key technical support with expanding volume. The stock's TTD momentum indicator is strongly bearish.
Strategy Opinion: TTD is targeting KORS for a drop to 56 within the next few months, or sooner. A protective stop buy can be placed near 66.
|TTD's Quality Rating of Stock - KORS - 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.)