Ticker Tape Digest

Monday - March 11,  2019

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: 1-480-926-1680.

Monday - March 11, 2019

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  8

Quality of Breakouts -  Average

Stocks Screened - 12,234

Bull side -   Bulls be selective as stock market now appears to be going into a consolidation.

Stock market  -  Market averages all remain bullish, except for the daily Dow, which was impacted by the drop in Boeing Co. (BA) stock Monday.

Comment -  TTD suggests bulls can be venturesome but need to be very selective.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Earnings beats for Monday - SFIX, ZYNE, CASY and LXFR.

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

Descartes Systems Group Inc. (DSGX) - 35.56, up 0.94 - Breakpoint 34.95

Net To Surge 48% in Fiscal 2020 (Jan.), TTD Targets 43 

    DSGX, based in Waterloo, Canada, provides federated network and global logistics technology solutions that help its customers make and receive shipments and manage the flow. Annual revenues: $237 million.

 DSGX's stock moves higher Friday and breaks out from an eight-month, cup and handle base, that is well structured.

  TTD highlighted DSGX last week as an accumulation play with potential to breakout.

  So far today, DSGX is trading 108,173 shares. Its average daily volume is 100,000 shares.

  DSGX's stock is in a long-term up trend. The stock formed a long-term base that lasted eight months.

  Monday, DSGX's stock rose in the morning and cut across its breakpoint line.

  The stock reached an intraday high of $35.80 in the afternoon. It gave a little ground in the final hour.

  Tape Action

  DSGX's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $34.26 in the prior session to as high as $34.75 in the afternoon.

  A key bullish trade came in the morning when a block of 1,137 shares crossed the tape at $35.19.

  That was up from the prior block trade at $34.26 on 1,100 shares late on Friday.

   Business

    DSGX's network connects people to their trading partners and enable business document exchange such as bookings, bills of lading and status messages.

 The system also aids in regulatory compliance, route and resource planning, execution and monitoring and transportation management, and warehouse operations.

Its solutions include logistics technology platform that works with the Descartes Global Logistics Network.

   Charts

  DSGX's 12-month performance chart shows the stock up 23% versus a flat stock market.

  Insiders have not been active.

  DSGX's long-term chart shows the stock climbing from $5 back in 2010 to peak at $35.89 last year.

  The stock has tended to be a steady long-term bullish play. After peaking in 2018, DSGX pulled back to $25. However, it has come on again and is poised to make a new all-time high. It needs to top $35.86.

  DSGX's daily chart shows the stock peaking near $35 back in August and then declining to $25 by December.

  The stock then rallied back aggressively to get back to its key resistance point near $35. .

  The breakout Monday comes with a nice widening of the daily spread.

  However, volume is just modest.

  The stock needs to show a good follow through move.

  DSGX's CCI momentum indicator is strongly bullish having not shown any significant selling pressure since January.

   Earnings Outlook

  This fiscal year ending in January of 2020, analysts are forecasting a 48% surge in net to 597 cents a share from the 40 cents the year before. The estimate was recently raised.

  The stock sells with a price-earnings ratio of 59. That is high.

  Looking out to fiscal 2021 ending in January, the Street predicts a 25% rise in net to 73 cents a share from the anticipated 59 cents this fiscal year.

  Quarterly earnings will be strong.

  Profits for the upcoming fiscal first quarter ending in April analysts predict a 56% jump net to 14 cents a share from the 9 cents the year before.

  The highest among three analysts is at 15 cents a share.

  Net for the fiscal second quarter ending in July should climb 36% to 15 cents a share from the 11 cents the year before.

  The company tends to come in close to the Street estimate.

Strategy Opinion:   TTD is targeting DSGX for a move to $43 after a breakout.

A protective stop can be placed near $32 after a breakout.

Intermediate-Term Rating: Average.

Suitability:   Average Bulls.

                                 TTD's special research of  Stock's Prior Performance:  

Probability - Breakout Success - Modestly Bullish -  DSGX scored modest good gains off some of its recent breakouts.

Probability - Earnings Response - Bullish -  DSGX rose 5 times after the past 8 earnings reports when there was a significant change in price.

Probability:  Seasonal Success - Bullish -  DSGX averaged a gain of 6.7% in March but a decline of 0.3% in April the past several years.  

           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 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

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 so far today - 2

Stocks Screened - 12,234

Long-Term Environment for bears: Neutral.

Bear Side - Small list of breakdown stocks as stock market rallies. Bears be conservative.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

New Fortress Energy LLC (NFE) - 12.76

Loss Seen This Year and Next, TTD Sees Drop to 10

 NFE, based in New York, is a gas plant building company. Annual revenues: $97 million. NFE's stock falls sharply and undercuts key technical support. TTD sees more on the downside for this recent new issue.

  So far today, NFE is trading 550,546 shares, triple its average daily volume of 185,000 shares.

  NFE's stock moved lower in the morning and then undercut key technical support.

The stock touched an intraday low of $12.50 in the early afternoon. It then trended mostly sideways the rest of the day unable to mount a comeback.

 Tape Action

NFE's tape action shows the recent block trades.

One can see the price for the blocks falling from $14.45 in the prior session to as low as $12.52 Monday.

A key bearish trade came in the morning when a block of 3,489 shares crossed the tape at $13.20.

That was down hard from the prior block at $14.45 on 5,350 shares on Friday.

Business

NFE an integrated gas-to-power company.

It converts existing power plants and build new gas-fired facilities, including cogeneration assets, to provide cleaner reliable energy solutions.

The company funds, builds and operates natural gas infrastructure and logistics.

 Earnings:

  This year, analysts are forecasting NFE will show a loss of 49 cents a share compared with a loss of 60 cents anticipated for 2018.

  The Street expects NFE to report a loss of 16 cents a share for the fourth quarter of 2018 and a loss of 23 cents a share for the first quarter of 2019.   

Charts:  

  NFE's daily chart shows the stock coming public in late January and then climbing to a peak at $16.11 in early March. However, it has since tumbled back and undercut key technical support.

  NFE's 3-month performance chart shows the stock down 2% versus a 5% gain for the stock market.

Strategy Opinion: TTD is targeting NFE for a decline to $10 within the next few months, or sooner. A protective stop buy can be placed near $13.50.

Suitability:   Aggressive Bears.

  TTD's probability research of Prior Performance:  

Probability - Earnings Response - N/A NFE is a recent new issue.

Probability:  Seasonal Activity - N/A -  NFE has not yet traded complete in March and April.

   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. - 2019

    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 or 480-704-3331

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 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.

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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.)