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 - 11
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list large with some good looking plays. Bulls can be venturesome. Stock market turning up and now rallying across the basing pattern.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Stock Market Momentum
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - EW - ABOVE AVERAGE
EW, based in Irvine, Ca., produces products to treat cardiovascular disease. Annual revenues: $2.3 billion. EW's stock breaks out today from a 10-week flat base. The push was triggered by favorable reports on a medical valve being produced by EW. So far today, EW is trading a heavy 3 million shares, triple its average daily volume of 887,000 shares.
TTD highlighted EW as a breakout at our midsession video show on the Web Monday.
The company said that 30-day results for high and intermediate-risk patients treated with the SAPIEN 3 transcatheter aortic valve demonstrated the lowest all-cause mortality rates of any of the partner studies.
The news was taken very bullishly by the market.
EW's 10-minute chart shows the stock surging higher in the morning and clearing its breakpoint line.
The continued higher into the afternoon peaking intraday at 149.71.
The tape action shows some heavy institutional accumulation.
A key bullish block came in the morning when a block of 18,496 shares crossed the tape at $137.29. That was up from the prior block trade at $135.72 on 11,400 shares late in the prior session.
Finally near the close Monday a massive block of 109,169 shares crossed at $148.64. That was up from the prior block at $148.07 on 5,900 shares.
EW is a major heart valve producer. It also makes acute hemodynamic monitoring products.
EW focuses on specific cardiovascular disease states including heart valve disease, peripheral vascular disease and critical care technologies.
The company's global brands, which are sold in many countries, include Carpentier-Edwards, Cosgrove-Edwards, FloTrac, Fogarty, LifeStent, PERIMOUNT Magna and Swan-Ganz.
EW's performance chart the past 12 months shows the stock surging 105% versus a 10% gain for the S&P 500 index.
EW's long-term chart shows the stock climbing from 20 back in 2006 to a peak of 110 by 2012, adjusted for a 2-for-1 stock split. The stock then pulled back to 60 in 2013. However, since then EW has surged to 148.64, a new high.
EW's daily chart shows the stock advancing from 100 back in October to a peak near 136 by January.
The stock then put down a flat base.
Today's breakout is strong coming with a widening of the daily spread (range from high to low) and expanding volume.
The stock's TTD momentum indicator (top of the chart) is strongly bullish.
EW's accumulation - distribution line (bottom of chart) has broken out to the upside. That is good confirmation of underlying buying supporting the breakout.
EW should show a strong first quarter. The Street is projecting a 37% surge in profits to $1.04 a share from 76 cents a year ago.
The highest estimate on the Street is at $1.07 a share.
TTD sees good chances for an upside earnings surprise. The company topped the Street estimate the past four quarters. (see table)
Earnings for the second quarter should rise 19% to $1.05 a share from 88 cents a year ago.
Overall, net for 2015 should climb 20% to $4.19 a share from $3.50 a year ago.
The stock sells with a price-earnings ratio of 35. TTD sees that as high. So, the stock is most suitable for an aggressive investor.
Going out to 2016, profits are expected to rise 12% to $4.72 a share from the anticipated $4.19 a share in 2015.
The company is benefiting from solid sales growth and the development of new products.
Strategy Opinion: TTD is targeting EW for a move to 170 off this breakout. A protective stop can be placed near 136.
TTD rates EW a good intermediate-term play with potential for a stock split.
Sponsorship: Average. Some top fund holders have been recent sellers. The largest fund holder is the 4-star rated VA CollegeAmerica Growth Fund of America 529F with a 4.8% stake. It was a recent seller of 1 million shares.
The largest buyers recently among big holders were mostly index funds.
EW has 107.8 million shares outstanding. Institutions hold 94% of the stock and insiders just 1%.
Insider Activity: Bearish. Insiders were buyers at $31 to $50 recently using stock options. They sold around $132 to $135.
Currently, 22 analysts follow the stock, 12 have a buy, the same as three months ago. EW has a book value of $20.33.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Edwards Lifesciences Corp. - (EW)
|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 - QRVO - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - REGN - AVERAGE|
|TTD's Quality Rating of Stock - ORLY - AVERAGE|
|TTD's Quality Rating of Stock - CRMT - 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 - 3
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of breakdown stocks today as stock market rallies strongly. Bears be very conservative and watchful.
NMM, based in Greece, operates dry cargo vessels. $227 million. NMM's stock falls sharply today with heavy volume. The decline was linked to concerns about the company's earnings outlook this year. TTD sees more on the downside.
TTD highlighted NMM as a short at our midsession video show on the Web Monday.
So far today, NMM is trading a heavy 2.1 million shares, four times its average daily volume of 502,000 shares.
NMM's stock fell steadily in the morning and hit an intraday low of 10.58 around noon.
The stock then trended sideways the rest of the day unable to rally.
NMM's tape action shows the recent block trades.
One can see the price for the blocks declining from $11.77 in the prior session to as low as $10.64 Monday.
A key bearish trade came in the morning when a block of 8,766 shares crossed the tape at $11.73.
That was down from the prior block trade at $11.77 on 11,676 shares.
NMM provides seaborne transportation services of drybulk commodities including iron ore, coal, grains, fertilizers and chartering of its vessels under medium to long-term charters.
The firm is based in Piraeus, Greece.
Analysts are forecasting NMM's earnings for the first quarter will decline 28% to 17 cents a share from 24 cents a year before. In the prior quarter, NMM came in below Street estimates. So, there is some concern about the outlook. This year analysts expect a 9% rise in net to 77 cents a share from 71 cents a year ago.
NMM's daily chart shows the stock cutting below key support with expanding volume. The stock's accumulation - distribution line (bottom of chart) has resumed its down trend.
TTD is targeting NMM for a decline to 8.20 within the next few months, or sooner. A protective stop buy can be placed near 11.50.
|TTD's Quality Rating of Stock - NMM - 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.)