Ticker Tape Digest

Tuesday - March 9, 2021

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 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.

Tuesday - March 9, 2021

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts   -  17

Quality of Breakouts -  Above Average.

Stocks Screened - 12,234

Bull side -  Large list of breakouts with some interesting plays for aggressive bulls.

Stock market  -  Major averages have turned bullish. However, the Nasdaq and S&P are in trading ranges.

Comment -  Bulls can be venturesome, but need to watch new positions closely.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats -  MTLS, SURF, NARI, AVID and SHC.

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

Element Solutions Inc. (ESI) - 20.24, up 1.36 - Breakpoint 19.43

Net To Rise 24% This Year, TTD Targets 25

  ESI, based in Fort Lauderdale, Fla., produces specialty chemicals for electronics hardware. Annual revenues: $1.9 billion. ESI's stock drives higher Tuesday and breaks out from its 10-week, cup-and-handle base.

  So far today, ESI is trading 4.8 million shares, more than double its average daily volume of 1.9 million shares.

  TTD sees good chances for more on the upside.

   TTD highlighted ESI as a breakout at our midsession video show on Tuesday.

  ESI's stock drove higher in the morning and cleared its breakpoint line.

  The stock then worked steadily higher the rest of the day.

  It reached an intraday high of $20.51 in the afternoon.

  In after-hours trading, ESI was up 21 cents  share.

    Tape Action

  ESI's tape action shows the recent block trades.

  One can see the price for the block climbing from  $18.88 in the prior session to as high as $20.26 later in the morning.

  A key bullish trade came in the morning when a block of 18,040 shares (duplicated) crossed the tape at $19.23.

  That was up from the prior block at $18.88 on a big 601,562 shares in the prior session.

  Near the close a block of 151,170 shares crossed at $20.24.

  That came on a slight down tick from the prior trade at $20.245 on 200 shares.

   Business

  ESI is a specialty chemical firm.

 It  delivers specialty chemicals and materials for electronics hardware such as  printed circuit boards and interconnection materials.

 The company also provides  chemicals to protect and decorate metal and plastic surfaces.

 Charts

  ESI's 12-month performance chart shows the stock up 130% versus a 30% gain for the stock market.

  Insiders were buyers around $11.50 a share and at $11.34 using stock options.

  They were sellers in March at $18.58.

  ESI's long-term chart shows the stock hitting an all-time peak back in 2014 at $28.95. The stock then fell back to 5.25 in 2016.

  The stock then formed a long-term base. It broke out late year cutting through resistance near $15. It has since pushed to $20.24.

  ESI's daily chart shows the stock climbing from $12 in November to a peak near $19 by January.

  The stock put down a cup-and-handle base.

  The breakout is solid coming with a widening of the daily spread and expanding volume.

  The stock's CCI momentum indicator is bullish.

   Earnings Outlook

  This year, analysts predict a 24% increase in net to $1.19 a share from the 96 cents the prior year.

  The stock has a price-earnings ratio of 16. That is attractive for value investors.

  Looking out to 2022, the Street predicts a more modest 8% rise in net to $1.28 a share from the anticipated $1.19 this year.

  Quarterly earnings will show an acceleration in growth.

  Profits for the first quarter should rise 28% to 32 cents a share from the 25 cents the prior year.

  Then in the second quarter, they should jump 50% to 27 cents a share from the 18 cents the previous year.

  The company beat the Street three out of the past four quarters - and matched it once.

Strategy Opinion:  TTD is targeting ESI for a move to $25 within the next few months, or sooner.

A protective stop can be placed near $18.

Intermediate-Term Rating: Average.

Suitability:   Average 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

Charts of Selected Breakout Stocks

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  - 1

Stocks Screened - 12,234

Long-Term Environment for bears: Unfavorable.

Bear Side -  Only one short play. Bears be conservative.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Stitch Fix Inc. (SFIX) - 49.23

Loss Seen for Fiscal 2021 (July), TTD Sees Drop to 40

  SFIX, based in San Francisco, is an online firm that sells clothes and shoes. Annual revenues: $1.7 billion. SFIX's stock falls sharply Tuesday and undercuts key technical support.

  The drop was triggered by disappointing sales.

  So far today, SFIX is trading a heavy 16.4 million shares, 8 times its average daily volume of 2.1 million shares.

  TTD sees potential for more on the downside.

  The company reported a loss of 20 cents a share for fiscal second quarter ended in January.

  The Street was predicting a loss of 22 cents a share.

  The company also reported sales that disappointed the Street.

  The stock fell in pre-market trading undercutting key support.

  SFIX then trended sideways through the early morning.

  However, it worked lower in the day and closed near its low for the session. That is bearish.

  In after-hours trading the stock was 7 cents a share.

   Tape Action

  SFIX's tape action shows the recent block trades.

  One can see the price for the blocks falling from $68.52 in the prior session to as low as $48.11 by midday.

  A key bearish trade came in the morning when a block of 77,199 shares (duplicated) crossed the tape at $52.01.

  That was down sharply from the prior block at $68.52 on 88,251 shares in the prior session.

   Business

  SFIX sells clothes, shoes and accessories. It serves: Women’s, Petite, Maternity, Men’s and Plus.

 The company offers denim, dresses, blouses, skirts, shoes, jewelry and handbags.

  SFIX uses data science throughout its business, including prediction of purchase behavior, forecast demand, optimize inventory and new apparel.

   Earnings:

  This fiscal year ending in July the Street predicts a loss of 25 cents a share compared with a loss of 66 cents the prior year.

  Looking out to fiscal 2022 ending in July they expect a loss of 4 cents a share.

  For the upcoming fiscal third quarter ended in April, the Street predict a loss of 10 cents a share compared with a loss of 33 cents the prior year.

Charts:  

  SFIX's daily chart shows the stock gapping lower and below key support with heavy volume.

  SFIX's 12-month performance chart shows the stock up 110% versus a 25% gain for the stock market.

  However, the stock has been losing ground.

Strategy Opinion: TTD  is targeting SFIX for a decline to $40 within the next few months, or sooner. A protective stop buy can be placed near $55

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. - 2021

    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 1-480-704-3331.

   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.)