Ticker Tape Digest

Thursday - March 14,  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.

Thursday - March 14, 2019

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  5

Quality of Breakouts -  Below Average

Stocks Screened - 12,234

Bull side -   Bulls be conservative and selective.

Stock market  -  Market averages remain bullish in all time sectors, except for the daily Dow.

Comment -  TTD suggests bulls be conservative as stock market is now in a consolidation pattern.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Earnings beats for Thursday - None.

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

World Wrestling Entertainment (WWE) - 90.63, up 3.19 - Breakpoint 89.45

Net To Climb 11% This Year, TD Targets 105 

 WWE, based in Stamford, Ct., provides wrestling entertainment. Annual revenues: $930 million. WWE's stock drives higher Thursday and breaks out from  its 5-week, flat base.

  The company announced a marketing deal with snickers and skittles.

  So far today, WWE is trading 1.2 million shares, double its average daily volume of 560,000 shares.

  TTD highlighted WWE as a breakout at our midsession video show.

  WWE's is not close to make a new all-time high. It has been in a strong up trend since 2017.

  WWE's stock surged higher in the morning and cleared its breakpoint line.

  The stock reached an intraday high of $91.81.

  The stock then trended sideways the rest of the day holding the bulk of its gain.

    Tape Action

  WWE's tape action shows the block trades climbing from $87.56 in the prior session to as high as $91.20.

  A key bullish trade came in the morning when a block of 8,930 shares crossed the tape at $88.45

 That was up from the prior the day before at $87.56 on 56,284 shares.  

  Near the close a massive block of 97,874 shares (duplicated) crossed the tape at $90.63.

  That came on an up tick from the prior trade at $90.58 on 100 shares.   

  Business

 WWE provides entertainment World Wrestling and other entertainment.

 The company  is an integrated media and entertainment company.

 It is  principally engaged in developing and marketing of television programming, pay-per-view programming and live events.

 It also is involved in licensing and the sale of branded consumer products, especially its World Wrestling Federation brand.

  Charts

  WWE's 12-month performance chart shows the stock surging 140% versus a 3% gain for the stock market.

  Insiders have received options but have not used them in recent months.

  However, they were recent sellers at $70 to $83 a share.

 WWE's 12-month performance chart shows the stock breaking out from a long-term base from 2015 to 2018

  The stock then surged to an all-time high of $94.22 last October. The stock then pulled back to $58 by late 2018. Now, the stock is coming on again.   

  WWE's daily chart shows the stock climbing from $60 back in November to a peak near $89.

  It formed a small flat base.

  Thursday, it breaks out with a good expansion in volume.

  The stock's CCI momentum indicator (bottom of chart) is strongly bullish.

 Earnings Outlook

  This year, analysts are forecasting a modest 11% increase in net to $1.24 a share from the $1.12 last year.

   The stock sells with a price-earnings ratio of 72. That is high but could be in anticipation of a big 2020.

  For 2020, analysts are predicting a 162% surge in net to $3.25 a share from the anticipated $1.24 this year.

  Three analysts follow the stock.

  For the upcoming first quarter, analysts expect a loss of one cent a share compared with a profit of 18 cents the year before.

  The highest estimate is at 2 cents a share.

  Then in the second quarter they expect flat net at 14 cents a share.

Strategy Opinion:  TTD is targeting WWE for a move to $105 off this breakout.

A protective stop can be placed near $87.

Intermediate-Term Rating:  Average.

Suitability:   Aggressive Bulls.

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

Probability - Breakout Success - Extremely Bullish - WWE has scored some massive gains off some of its recent breakouts.

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

Probability:  Seasonal Success - Neutral - WWE averaged a gain of 0.4% in March but a loss of 0.8% 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 - .5

Stocks Screened - 12,234

Long-Term Environment for bears: . Unfavorable.

Bear Side - .Small list of shorts Thursday. Bears be conservative.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Smart & Final Stores Inc. (SFS) - 5.26

Net Disappointed, TTD Sees Drop to 4

  SFS, based in Commerce, Ca., is a food retailer operating Smart & Final and Cash and Carry. Annual revenues: $4.6 billion. SFS's stock falls sharply Thursday after reporting disappointing earnings for the  fourth quarter.

  So far today, SFS is trading 1.5 million shares, 7 times its average daily volume of 213,110 shares.

  TTD sees more on the downside.

  SFS's stock gapped lower in the morning and cut below key technical support. The stock touched an intraday low  of $4.75 in the morning.  

  The stock then bounced up to $5.20 and then trended sideways the rest of the day unable to rally.

  The company reported fourth quarter net declined to 8 cents a share.

  That was well below the Street consensus estimate of 12 cents a share.

  It had beat the Street 3 out of the prior four quarters.   

   Tape Action

  SFS's tape action shows the recent block trades.

  One can see the price for the blocks falling from $6.30 in the prior session to as low as $4.89 Thursday morning.

  A key bearish trade came in the morning when a block of 13,045 shares crossed the tape at $5.79.

  That was down from the prior block the day before at $6.30 on 15,504 shares.

   Business

  SFS sells grocery items, together with foodservice, packaging and janitorial products. The company operates through two segments: Smart & Final, and Cash and Carry.

The Smart & Final stores offer grocery items both national and private label brands.

The Cash & Carry unit focuses primarily on restaurants, caterers and other foodservice businesses.

 The company operates non-membership warehouse-style grocery stores under the Smart & Final banner in California, Arizona, and Nevada. It operates grocery stores in Washington, Oregon, California, Idaho, Utah, and Nevada under the Cash & Carry name.

 Earnings:

  This year, analysts are forecasting a 7% increase in net to 45 cents a share. For the first quarter, the Street expects a loss of 3 cents a share compared with a loss of 4 cents the year before. Six analysts follow the stock.

  Charts:  

  SFS's daily chart shows the stock gapping lower with big volume Thursday. The move continues a down trend in the stock after it peaked out at $19.84 in 2015.

  SFS's 12-month performance chart shows the stock down 28% versus a 3% gain for the stock market.

  Insiders were recent buyers using stock options at $2.50 a share. They were sellers at $6.32 a share

Strategy Opinion: TTD is targeting SFS for a decline to $4 within the next few months, or sooner. A protective stop buy can be placed near $5.70.

Suitability:   Aggressive Bears.

  TTD's probability research of Prior Performance:  

Probability - Earnings Response - Neutral - SFS rose 4 times after the past 8 earnings reports when there was a significant change in price.

Probability:  Seasonal Activity - Extremely Bearish. -   SFS averaged a decline of 7% in March  and a decline of 3.5% in April the past several years.

   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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(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.)