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 - 4
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list small and extremely selective. Bulls be very selective. Stock market rally holding.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Stock Market Momentum
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - EDU - AVERAGE
EDU, based in China, provides private educational services under the New Oriental brand in China. Annual revenues: $1.4 billion. EDU's stock pushes higher Monday and breaks out from a three-month base. The move carries the stock close to its all-time high.
TTD highlighted EDU as a breakout at our midsession video show on the Web Monday.
So far today, EDU is trading 1.5 million shares. Its average daily volume is 1 million shares.
EDU's stock ran up sharply in the morning to a peak of 33.95. (see 10-minute chart)
The stock then trended mostly sideways through the mid-portion of the day. Then near the close it pushed high reaching its peak for the session of 34.10.
EDU's tape action shows the recent block trades.
One can see the price for the blocks climbing from $32.85 to as high as $33.96.
A key bullish trade came in the morning when a block of 8,805 shares crossed the tape at $33.25.
That was up from the prior block trade at $33 on 5,795 shares.
Then late in the day a massive block of 55,700 shares - the largest of the day - crossed at $33.84
That was up from the prior block at $33.82 on 6,900 shares.
The tape showed aggressive institutional buying.
EDU offers test preparation courses to students taking language and entrance exams used by educational institutions in the U.S., China, and commonwealth countries.
EDU provides after-school tutoring courses for middle school and high school students to help students achieve better scores on entrance exams for admission into high schools or higher education institutions.
The company also provides language training courses consisting of English, German, Japanese, French, Korean and Spanish.
EDU operates full-time private primary and secondary boarding school in Yangzhou.
EDU's 12-month performance chart shows the stock appreciating 64% versus a 2% decline in the stock market.
EDU's long-term chart shows the stock coming public in 2006 at $6. The stock eventually rose to an all-time peak of $34.77 in 2011.
The stock then fell back hard to $10 in 2012. It climbed back to around 33 in 2013, fell back again and now has advance back to its long-term resistance line. After all that, EDU is now in position to breakout to a new high. That would be bullish.
EDU's daily chart shows an ideal set up.
EDU's stock ran up from 20 back in October to around 33 by December.
The stock then put down a basing pattern.
The breakout clears key resistance going back to December.
EDU's accumulation - distribution line (bottom of chart) is working higher.
That shows good underlying buying.
This fiscal year ending in May the Street is looking for a 15% increase in net to $1.39 a share from $1.21 a year ago.
The stock sells with a price-earnings ratio of 24. TTD sees that as reasonable.
Going out to fiscal 2017 ending in May analysts predict a 25% rise in net to $1.74 a share from the anticipated $1.39 this year.
There have been no quarterly forecasts.
One can see on our table, though, that EDU tends to beat the consensus.
Strategy Opinion: TTD is targeting EDU for a move to 41 off this breakout.
A protective stop can be placed near 30.50 giving it room.
TTD rates EDU an average intermediate-term play.
Sponsorship: Average. One of the largest fund buyers recently was 5-star rated Boston Partners Long/Short Research Inst. which purchased 459,080 shares. It now has a 0.5% stake.
The largest fund holder is the 4-star rated Opppenheimer Developing Markets A Fund with an 8.4% stake. It was a recent seller of 1 million shares.
EDU has 157 million shares outstanding. Institutions hold 86% of the stock and insiders have 12%.
Insider Activity: Not available.
Currently, 12 analysts follow the stock, 9 have a buy, up from 7 three months ago.
EDU has a book value of $8.22 a share.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
New Oriental Education & Technology. - (EDU)
|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 - SRG - AVERAGE|
|TTD's Quality Rating of Stock - EBF - AVERAGE|
|TTD's Quality Rating of Stock - XIN - 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 - 1
Stocks Screened - 8,300
Long-Term Environment for bears: Neutral.
Bear Side - Small list of breakdown stocks Monday. Bears be conservative. TTD's short from Friday was Acorda Therapeutics Inc. (ACOR) at 31.73. Today, ACOR is trading at 29.51, off 2.49.
TA, based in Westlake, Ohio, operates and franchises travel centers primarily along the United States interstate highway system. They sell fuel and provide restaurant services. Annual revenues: $6.2 billion. TA's stock falls sharply Monday after reporting a fourth quarter loss.
The company came in with a loss of 4 cents a share compared with a profit of 91 cents a year ago.
The stock was anticipating a profit of 2 cents a share.
TA's stock gapped lower in the morning and fell to an intraday low of 7.45.
The stock then lifted slightly and trended sideways the rest of the day.
TA's tape action shows the recent block trades.
One can see the price for the blocks falling from $9.34 in the prior session to as low as $7.55.
A key bearish trade came in the morning when a block of 18,505 shares crossed the tape at $8.25.
That was down sharply from the prior block at $9.34 on 5,000 shares.
TA operates full service restaurants under the Iron Skillet and Country Pride brands, as well as quick service restaurants under Arby's, Burger King, Dunkin' Donuts, Godfather's Pizza, Pizza Hut, Popeye's Chicken & Biscuits, Starbuck's Coffee, Subway, and Taco Bell brand names.
It also operates truck repair and maintenance facilities that offer maintenance and emergency repair, and road services, such as oil changes, wheel alignments, and tire repair; and specialty services, including diagnostics and repair of air conditioning, brakes, and electrical systems.
This year analysts are forecasting a profit of 91 cents a share. That could come down if analysts readjust after the disappointing quarter.
TA's daily chart shows the stock gapping lower with big volume. The stock's accumulation - distribution line is now trending lower.
Strategy Opinion: TTD is targeting TA for a decline to 6 within the next few months, or sooner. A protective stop buy can be placed near 8.50.
|TTD's Quality Rating of Stock - TA - 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.)