Ticker Tape Digest

Monday - March 18, 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 18, 2019

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  7

Quality of Breakouts -  Average

Stocks Screened - 12,234

Bull side -  Small list of breakouts. Bulls be conservative.

Stock market  -  Market averages are bullish in all time sectors.

Comment -  TTD sees the Dow still in a basing pattern. The Nasdaq is acting strong/

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Earnings beats for Monday: NRCG, CMLS, STNE and XYF.

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

Kornit Digital Ltd. (KRNT) - 23.88, up 0.93 - Breakpoint 23.68

Net To Jump 59% This Year, TTD Targets 29 

    KRNT, based in Israel, makes digital printing solutions for the global printed textile industry. Annual revenues: $142 million. KRNT drives  higher Monday and breaks out from its 19-week, cup-and-handle base.

  The move carries KRNT to a new all-time high. The sock came public back in 2015,

  So far today, KRNT is trading 292,313 shares. Its average daily volume is 220,000 shares.

  TTD featured KRNT as an accumulation play last week. TTD sees more on the upside.

  KRNT's stock moved steadily higher in the morning. It finally cleared its base in the afternoon.

  The stock finished the day near its high for the session. That is bullish and bodes well for a potential follow through move.

  Tape Action

  KRNT's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $22.95 in the prior session to as high as $23.88 Monday.

  A key bullish trade came in the morning when a block of 3,726 shares (duplicated crossed the tape at $23.05.

 That was up from the prior block late on Friday at $22.95 on 20,493 shares (duplicated).

  That stock finished bullishly with a block of 6,648 shares (duplicated) at $23.88.

 That was up from the prior block at $23.84 on 14,700 shares.

  Business

 KRNT provides digital printing systems, ink and other consumables and software.

Its customers include custom decorators, online businesses, brand owners and contract printers.

 The company categorizes its Direct to Garment systems into two groups: entry level and high throughput.

 The company's entry-level systems consist of its Breeze and Thunder systems.

  Its high throughput systems consist of its Avalanche family of systems.   

Charts

  KRNT's 12-month performance chart shows the stock appreciating 75% versus a 5% gain for the stock market.

  Insider activity was not available.

  KRNT's long-term chart show the stock coming public in 2015 at $12. The stock moved a bit higher, but then rolled over and fell to $8.10 by 2016.

  However, afterwards, KRNT staged a rally to $23.15 by mid-2017. It fell back again. This time it dropped to $11.70 earlier in 2018. The stock came on again and reached $23 in late 2918.  It based and now has broken out.   

  KRNT's daily chart shows the stock climbing from $16 back in December to a peak near $23.

  It pulled back and formed a small cup-and-handle base and further back a larger cup-and-handle base too

  KRNT' pushes higher Monday and breaks out with a pick up in volume.

  KRNT's CCI momentum indicator is solidly bullish.

 Earnings Outlook:

  This year, analysts are forecasting a 59% surge in net to 59 cents a share from 37 cents a year ago.

  The stock sells with a price-earnings ratio of 40. TTD sees that as okay given the strong earnings growth.

  Looking out to 2020, analysts predict a 52% leap in net to 89 cents a share from the anticipated 59 cents this year.

  Net for the upcoming first quarter is expected to be flat at 6 cents a share. The highest estimate on the Street is at 7 cents a share. Two analysts follow the stock.

  Profits for the second quarter of 2019 are projected to jump 44% to 13 cents a share from  the 9 cents the year before.

Strategy Opinion:  TTD is targeting KRNT for a move to $29 after a breakout.

 A protective stop can be placed near $22 after a breakout.

Intermediate-Term Rating: Average

Suitability:  Aggressive Bulls

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

Probability - Breakout Success - Bullish - KRNT has scored big gains off its recent breakouts.

Probability - Earnings Response - Neutral.  KRNT rose 3 times after the past 6 earnings reports when there was a significant change.

Probability:  Seasonal Success - Extremely Bullish - KRNT rose an average of 2.8% in March and 17.2% 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 - 3

Stocks Screened - 12,234

Long-Term Environment for bears: .Unfavorable.

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

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Nu Skin Enterprises Inc.  (NUS) - 56.69

Stock Cuts Below Support, TTD Sees Drop to 49

  NUS, based in Provo, Utah,  is a direct seller of personal care products and nutritional supplements. Annual revenues: $2.7 billion. NUS's stock falls sharply Monday and undercuts key technical support.

  TTD sees more on the downside.

  So far today, NUS is trading a heavy 1.3 million shares, double its average daily volume of 609,000 shares.

  TTD highlighted NUS as a short at our midsession video show on the Web Monday.

  NUS's stock fell sharply in the morning and undercut key technical support. The stock touched an intraday low of $55.30 in the morning.

  The stock then trended most sideways in the morning. In the early afternoon the stock lifted slightly, but then trended sideways into the closing bell.

  Tape Action

  NUS's tape action shows the key block trades of the day.

  One can see the price for the blocks falling from $59.69 in the prior session to as low as $55.67 Monday.

  A key bearish trade came in the morning when a block of 24,000 shares crossed the tape at $56.65.

  That was down from the prior block at $57.22 on 6,527 shares.   

 Business

  NUS sells anti-aging personal care products and nutritional supplements under its Nu Skin and Pharmanex brands.

  The company sells in China, North Asia, Americas, South Asia/Pacific, and Europe, the Middle East and Africa.

 Earnings:

  This year, analysts are forecasting an 11% rise in NUS's earnings to $3.91 a share from the $3.52 the year before.

  Net for the first quarter is expected to rise 14% to 73 cents a share from the 64 cents the year before.

  For the second quarter, though, net is projected to decline 6% to $1.01 a share from the $1.08 the year before.

  The company missed on earnings two out of the past four quarters.

Charts:  

 NUS's daily chart shows the stock cutting below key support with a pick up in volume. The move resumes the stock's down trend.

  NUS 12-month performance chart shows the stock down 20% versus a 5% gain for the stock market.

  Insiders were recent buyers using stock options at $9.40 to $54 a share. They have done some selling at $67 to $60 a share.

Strategy Opinion: TTD is targeting NUS for a decline to $49 within the next few months, or sooner. A protective stop buy can be placed near $59.

Suitability:   Aggressive Bears.

  TTD's probability research of Prior Performance:  

Probability - Earnings Response - Extremely Bearish.  -  NUS rose one time after the past 10 earnings reports when there was a significant change in price.

Probability:  Seasonal Activity - Bullish.  NUS averaged a gain of 9.5% in March but a decline of 0.9% 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

   Distributed by Corona Publishing Enterprises. TickerTape Digest Inc. 1220 W. Sherri, Gilbert, Az. 85233.

  TTD “Professional Report” is available on the Web: $100 per month. Password needed. Published daily - around 20 times a month.  

 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.

 Credit cards accepted. Payable to Corona Publishing Enterprises.

(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.)