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 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 - 52
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list large with some good looking plays, but bulls should be selective. Stock market stages bounce back 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 Bearish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - STC - ABOVE AVERAGE
STC, based in Houston, Tex., provides title insurance services. Annual revenues: $1.9 billion. STC's stock breaks out from a three-month flat base. The move puts it close to a seven-year high. So far today, STC is trading a light 77,457 shares. Its average daily volume is 113,000 shares.
Thursday, there were quite a few breakouts. STC's breakout although coming on light volume sets it up well for a potential follow through, especially since earnings this year will be strong.
STC is a unique play in that a group called Bulldog Investors is seeking to nominate five directors to the STC board. The action could pressure on STC to show better performance. Bulldog did not state its overall intentions.
STC's 10-minute chart shows the stock gapping higher in the morning to near its breakpoint line
The stock then spent most of the mid-part of the day hugging its breakpoint line. Then late in the session I pushed higher with volume in the final hour picking up significantly.
STC's tape action shows the recent block trades.
One can see the price for the blocks climbing from $36.99 in the prior session to as high as $38.46 late in the day.
A key bullish trade came late on Wednesday when a block of 8,029 shares crossed the tape at $37.13.
That was up from the prior block at $36.99 on 613 shares.
STC is a title insurance firm.
STC issues policies through issuing locations on homes and other real property located in all 50 states and several foreign countries.
The company also sells computer-related services and information, as well as mapping products and geographic information systems, to domestic and foreign governments and private firms.
STC's 3-year performance chart shows the stock appreciating 190% versus a 50% gain for the S&P 500 index.
One can see heavy insider buying in mid-2014 and later that year. That is bullish.
STC's long-term chart shows the stock advancing from 22 in 2003 to an all-time peak of 54 in early 2006.
The stock then tumbled back due in part to the bear market. It fell to as low as 5.64 in 2008. The stock then spent three years forming a bottom around 10.
In 2012 the stock turned higher and has since climbed to 38, a seven-year high.
STC's daily chart shows the stock advancing from 28 back in October to a peak near 38 by late December.
The stock then formed a good flat base. It attempted a breakout in February, but faded.
Today, STC clears resistance.
The accumulation - distribution line (bottom of chart) is working higher.
The TTD momentum indicator (top of chart) has been mostly bullish the past six months.
This year, analysts are forecasting STC's earnings will soar 84% to $2.73 a share from $1.48 a year ago.
The stock sells with a price-earnings ratio of just 13. That is very low given the earnings growth rate. So, the stock is a good value-growth play.
Going out to 2016, the Street looks for a 24% gain in profits to $3.38 a share from the anticipated $2.73 this year.
Net for the upcoming first quarter should climb to 6 cents a share from a loss of 54 cents a year ago.
The company at times can top the consensus by a wide margin. (see table)
Going out to the second quarter the Street projects a 47% jump in earnings to 97 cents a share from 66 cents the year before.
Strategy Opinion: TTD is targeting STC for a move to 47 off this breakout. Since volume was soft on the breakout, it will be important to look for a follow through move.
A protective stop can be placed near 36. The play on Bulldog seeking seats could provide an incentive for management to push earnings and stock performance.
TTD rates STC a very good intermediate-term play.
Sponsorship: Average. The largest fund buyer recently was the 3-star rated Special Opportunities Fund which purchased 27,768 shares. It has a 1.3% stake.
The largest fund holder is the DFA US Small Cap Value II Fund with a 2.7% stake. It was a recent buyer of 2,498 shares.
STC has 24 million shares outstanding. Institutions hold 88% of the stock and insiders 10%.
Insider Activity: Slightly Bullish. Insiders were recent buyers around $37.
Currently, 5 analysts follow the stock, 2 have a buy, the same as three months ago. The book value is $28.88.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Stewart Information Services Corp. - (STC)
|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 - MTN - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - LQ - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - MYL - AVERAGE|
|TTD's Quality Rating of Stock - MD - 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 - 10
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Large list of breakdown stocks today even as stock market surges higher. Many shorts hit by disappointing earnings. Bears be conservative.
BOX, based in Los Altos, Ca., provides a cloud based product platform. Annual revenues: $192 million. BOX's stock drops sharply today after reporting a loss for the fourth quarter that was greater than expected. So far today, BOX is trading at 6.8 million shares, seven times its average daily volume of 996,000 shares.
TTD highlighted BOX as a short at our midsession video show on the Web.
BOX reported a loss for the fourth quarter of $1.65 a share. That was greater than analysts projections of a loss of $1.17 a share.
BOX's stock fell sharply in the morning and hit an intraday low of 16.76.
The stock then lifted slightly and trended sideways the rest of the day.
The tape action shows the recent block trades.
One can see the price for the blocks falling from $20.60 a few sessions ago to as low as $16.94.
A key bearish trade came in the morning when a massive block of 157,737 shares crossed the tape at $17.21.
That was down from the prior block traded at $17.51 on 10,000 shares.
BOX's solutions include Box OneCloud, FTP alternative, document management, executive boardroom, project management, virtual data room, marketing asset management, sales portal and secure enterprise mobility.
The company's platform offers content management and collaboration, storing, sharing and managing files. It serves advertising, construction, consumer packaged goods, education, energy, financial services and insurance and government.
This fiscal year ending in January of 2016 analysts are forecasting a loss of $1.50 a share. For the fiscal first quarter ending in April, analysts look for a loss 40 cents a share.
BOX's daily chart shows the stock gapping lower with volume and undercutting key technical support. The stock's accumulation - distribution line has broken down showing heavy selling pressure.
Strategy Opinion: TTD is targeting BOX for a decline to 14.50 within the next few months. A protective stop buy can be placed near 18.60.
|TTD's Quality Rating of Stock - BOX - 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.)