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 - 18
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list large with some good looking plays. However, bulls need to be selective. Stock market holds overall up trend.
(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 Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - HNI - ABOVE AVERAGE
HNI, based in Muscantine, Iowa, produces office furniture and hearth products. Annual revenues: $2.2 billion. HNI's stock moves higher today and breaks out from a seven-week flat base. The move carries the stock to an eight-year high. So far today, HNI is trading a heavy 467,711 shares, double its average daily volume of 193,000 shares.
TTD highlighted HNI as a breakout at our midsession video show on the Web Friday.
HNII was also featured as a potential breakout earlier this month.
HNI's stock rose steadily in the morning and cut across its breakpoint line (see 10-minute chart).
The stock hit an intraday peak in the afternoon at 54.41 The stock backed off a bit near the final bell.
The large volume late in the day reflected a big block of 82,445 shares that crossed the tape at $53.85 after the NYSE close.
That cam on an up tick from $53.84 on 100 shares.
HNI's tape action shows the recent blocks.
One can see the price for the blocks climbing from $52.83 in the prior session to as high as $53.85.
A key bullish trade early in the day came when a massive block of 101,394 shares crossed the tape at $53.17.
That was up from the prior block at $52.83 on 7,173 shares late on Thursday.
HNI Corp has two reportable core operating segments: office furniture and hearth products.
They are the second largest office furniture manufacturer in the United States and the nation's leading manufacturer and marketer of gas-and wood-burning fireplaces.
HNI's 12-month performance chart shows the stock appreciating 50% versus a 10% gain for the S&P 500 index.
One can see heavy insider selling taking place late last year after the stock advanced strong. (see red bars on chart)
HNI's long-term chart shows the stock climbing from 9 back in 2009, the bottom in the prior bear market., to 36 by early 2011.
The stock then pulled back again to around 15. However, since then HNI has been in a solid up trend.
HNI's daily chart shows the stock climbing from 46 back in November to around 53 by late December.
The stock then formed a cup and handle base. However, it extended itself into a flat base.
Today, HNI breaks out with strong volume. That is bullish.
The stock's TTD momentum indicator (top of chart) is solidly bullish.
The accumulation - distribution line (bottom of chart) is trending higher and broke out prior to the price breakout.
This year, analysts are forecasting a 28% increase in HNI's earnings to $2.53 a share from $1.97 a year ago.
The stock sells with a price-earnings ratio of 20. TTD sees that as attractive for value-growth investors.
Going out to 2016, they look for HNI's profits to climb 17% to $2.96 a share from the anticipated $2.53 this year.
Net for the upcoming first quarter should soar 75% to 21 cents a share from 12 cents a year ago.
TTD sees that as the potential fundamental driver to push the stock higher near-term.
HNI has topped the quarterly consensus estimate seven out of the past eight quarters. (see table)
Looking ahead to the second quarter, the Street expects net to jump 35% to 52 cents a share from 39 cents the year before.
Strategy Opinion: TTD is targeting HNI for a move to 64 of this breakout. A protective stop can be placed near 49 giving it room.
TTD rates HNI a good intermediate-term play provided earnings meet expectations.
Sponsorship: Very Good. The largest fund holder is the 5-star rated Fidelity Small Cap Discovery Fund with a 4.6% stake. It was a recent seller of 974 shares.
A key buyer recently was the 4-star rated Waddel & Reed Small Cap Fund which purchased 34,000 shares. It has a 0.77% stake.
HNI has 44.2 million shares outstanding. Institutions hold 68% of the stock. Insiders have just 1%.
Insider Activity: Bearish. Insiders have been recent sellers around $51. They were buyers using stock options from $17 to $31 a share.
Currently, 4 analysts follow the stock and all are neutral, the same sentiment as three months ago. HNI has a book value of $9.39 a share.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
HNI Corp. - (HNI)
|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 - KNL - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - NKE - AVERAGE|
|TTD's Quality Rating of Stock - SCVL - AVERAGE|
|TTD's Quality Rating of Stock - COST - 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 broadly. TTD's short from Thursday was Meritor Inc. (MTOR) at 12.47. Today, it is trading at 12.36 and working well for bears.
ARG, based near Philadelphia, is a distributor of industrial, medical, and specialty gases. Annual revenues: $5.3 billion. ARG's stock falls sharply Monday after the company lowered its earnings outlook. So far today, ARG is trading a heavy 1.8 million shares, triple its average daily volume of 495,000 shares.
TTD highlighted ARG as a short at our midsession video show on the Web Friday.
ARG's stock gapped lower in the morning and then trended mostly sideways the rest of the day.
However, in the final hour it fell a bit more to hit an intraday low of 107.07.
ARG's tape action shows the recent block trades.
One can see the price for the blocks declining from $115.30 to as low as $108.34.
A key bearish trade came in the morning when a massive block of 69,099 shares crossed the tape at $108.98.
That was down from the prior block at $113.01 on 34,676 shares. The tape indicated heavy institutional selling pressure.
ARG is the largest U.S. distributor of industrial, medical, and specialty gases, and hardgoods, such as welding equipment and supplies.
It is a producer of nitrous oxide and dry ice, liquid carbon dioxide and distributor of process chemicals, refrigerants, and ammonia products.
ARG lowered its forecast of fiscal fourth quarter March 31 earnings to $1.13 to $1.16 a share. It previously was forecasting net at $1.25 to $1.30 a share.
For the year, the Street was forecasting a 5% rise in net to $4.97 a share. However, that will come down.
ARG's daily chart shows the stock gapping lower on big volume The stock's TTD momentum indicator (top of chart) is now bearish.
Strategy Opinion: TTD is targeting ARG for a decline to 90 within the next several months. A protective stop buy can be placed near 115 giving it room.
|TTD's Quality Rating of Stock - ARG - 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.”
For information to subscribe to the Ticker Tape Digest Services call: Beverly Owen at 1-480-926-1680. Distributed by Corona Publishing Enterprises. Ticker Tape Digest Inc. P.O. Box 2044 Chandler, Az. 85244-2044. TTD “Professional Report” is available on the World Wide Web: $100 per month. Password needed. “TTD Professional“ Faxed is $200 per month. The TTD Daily Report is $39.95. Credit cards accepted.
(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.)