Daily - Go to TTD's Chart scroller of Breakout Stocks - Monday, March 20, 2017 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, March 20, 2017 |
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Go to Video Show - "How to Make Money With Breakout Stocks |
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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. Trading Strategies Bullish 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) Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance) |
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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.
Breakout Stocks
Total Buy Breakouts so far today - 8
Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list selective with some recent new issues. Stock market holding in a basing pattern after recent run up.
(Put mouse on chart to Nasdaq)
Environment for bulls: Neutral
Stock Market Momentum
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - CCOI - ABOVE AVERAGE |
CCOI, based in Washington, D.C., provides internet access and other services. Annual revenues: $438 million. CCOI, a small cap tech play, breaks out Monday from a 14-week flat base. Volume expands to 509,991 shares. Its average daily volume is 397,000 shares.
CCOI had a breakout a few sessions ago but faded back. Now, the stock reemerges from the base.
CCOI's stock rose steadily in the morning and cut across its breakpoint line. (see 10-minute chart).
The stock reached an intraday peak of $43.25. It then trended sideways the rest of the day.
Tape Action
CCOI's tape action shows the recent block trades.
One can see the price for the blocks climbing from $42.15 in the morning to as high as $43.10.
A key trade came in the morning when a block of 2,500 shares crossed the tape at $42.67.
That was up from the prior block trade at $42.15 on 2,336 shares. (duplicated)
Then near the close a massive block of 61,354 shares (duplicated) crossed at $42.95.
That came on a down tick sequence from $43. That would indicate some profit taking.
Business
CCOI provides internet access and internet protocol communications services.
The company's network is optimized to transmit data using IP.
It delivers its services to small and medium-sized businesses, communications service providers and other bandwidth-intensive organizations in North America, Europe and Asia.
The company offers on-net Internet access services through its own facilities, which run from its network to its customers.
Its on-net service consists of high-speed Internet access and IP connectivity ranging from 100 Megabits per second to 100 Gigabits per second of bandwidth.
Charts
CCOI's 12-month performance chart shows the stock appreciating 13% versus an 18% gain for the stock market.
Insiders were heavy buyers in May of 2016 using stock options. The price was not disclosed.
CEO David Schaeffer was a big buyer of the options. He bought 340,000 shares at that time. Price was undisclosed. He holds 3.8 million shares. He has not done much selling.
CCOI's long-term chart shows the stock reaching a peak of $34.89 in 2007, the top in the prior bull market. The stock's all-time high is $67.80 back in 2002 when it came public.
The stock fell to an all-time low of $3.39 in 2008 due to the bear market. Since then, CCOI has been working higher having made a sensational tenfold move.
CCOI's daily chart shows the stock climbing from around $36 back in November to a peak near $42 by December.
The stock put down a tight flat base above its rising 50-day moving average line.
CCOI had a breakout in late February but then faded back into its base,
The stock then rallied steadily, got back to its breakpoint line and Monday breaks out.
The stock's CCI momentum indicator (bottom of chart) is bullish.
Earnings
This year, analysts are forecasting a 70% surge in net to 56 cents a share from 33 cents the year before.
The stock sells with a price-earnings ratio of 76. That is high but okay given the projected earnings growth rate.
Looking out to 2018, analysts are calling for a 59% leap in net to 90 cents a share from 56 cents anticipated for 2017.
Quarterly earnings growth rate is expected to accelerate. That is bullish.
Net for the first quarter should be up 25% to 10 cents a share from 8 cents a year ago. The highest estimate is at 13 cents a share.
Then for the second quarter profits should climb 40% to 13 cents a share from 9 cents the year before.
Strategy Opinion: TTD is targeting CCOI for a move to $58 off the breakout. A protective stop can be placed near 42.
TTD rates CCOI a good intermediate-term play provided earnings meet expectations.
Suitability: Aggressive Bulls.
TTD's special research of CCOI's Prior Performance after a Breakout:
TTD's research shows that recently (see table) CCOI has scored only small gains off its recent breakouts. That is due in part to the choppy price pattern the past several months.
Going back a few years the stock scored some big gains. The heavy insider buying could be a good bullish omen, along with a better earnings outlook. CCOI.
After the past 10 earnings reports, the stock moved higher 4 times, fell 4 times and was unchanged twice.
CCOI's seasonal chart shows the stock tends to do its best in October and November.
Stock's Prior Performance After A Breakout
Stock's % Change from Breakout to peak - prior to cut below 50-day M/A. |
Date of Breakout |
Break point Price |
Stocks Price Peak after Breakout - prior to cut below 50-day M/A |
Date Trade Closed |
5% |
12/13/2016 | 40.45 | 42.77 | 2/21/2017 |
2% |
6/7/2016 | 40.57 | 41.70 | 6/17/2016 |
9% |
3/29/2016 | 38.15 | 41.70 | 6/17/2016 |
17% |
2/25/2016 |
35.62 |
41.70 |
6/17/2016 |
12% |
1/15/2015 | 35.60 | 40.12 |
2/10/2015 |
44% |
8/7/2013 | 29.82 | 43.08 | 2/11/2014 |
(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
TTD's Quality Rating of Stock - JAZZ - AVERAGE |
TTD's Quality Rating of Stock - DIS - AVERAGE |
TTD's Quality Rating of Stock -KEM- AVERAGE |
TTD's Quality Rating of Stock -VRAY - 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 - 5
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of bear plays Monday. Stock market holds in basing pattern. Bears be conservative.
MLHR, based in Zeeland, Mich., makes and sells furniture, seats, home furnishings and other items. Annual revenues: $2.3 billion. MLHR's stock falls Monday and undercuts key technical support. TTD sees more on the downside.
TTD highlighted MLHR as a short at our midsession video show on the Web Monday.
So far today, MLHR is trading 608,398 shares. Its average daily volume is 389,000 shares.
The company is scheduled to report quarterly earnings on March 23 - Thursday.
MLHR's stock fell steadily through the day undercutting key technical support in the morning.
The stock reached an intraday low of $29.10.
The in the afternoon it trended mostly sideways.
Tape Action
MLHR's tape action shows the recent block trades.
One can see the price for the blocks falling from $30.15 in the prior session to as low as $29.30.
A key bearish trade came in the morning when a block of 72,103 shares crossed the tape at $29.37.
That was down from the prior block trade at $29.53 on 2,000 shares.
Business
MLHR makes furniture for office, education and healthcare environments It sells in the U.S., Canada and the rest of the world.
Earnings
Net for the fiscal year ending in May is expected to decline 9% to $1.98 a share from $2.17 the prior year.
Net for the upcoming fiscal third quarter ending in February should be down 29% to 33 cents a share from 46 cents the year before.
The company missed in its prior two quarters by one cent a share and two cents.
Charts
MLHR's daily chart shows the stock trending lower from $36 down to $29. The stock undercuts key support Monday. It has shown some heavy volume the past two session.
The stock's CCI momentum indicator is solidly bearish.
MLHR's 12-month performance chart shows the stock down 4% versus an 18% gain for the stock market.
Insiders were recent buyers using stock options from $12 to $25 a share. They were sellers around $32 a share.
Strategy Opinion: TTD is targeting MLHR for a decline to $23.50 within the next few months, or sooner. It will be important to see how the stock reacts to upcoming earnings. A protective stop buy can be placed near $32.
Suitability: Aggressive Bears.
TTD's Quality Rating of Stock - MLHR - BELOW AVERAGE |
Stock Performance Chart with Quarterly Earnings Markers vs. S&P 500
Insider Buying in Green - Insider Selling in Red
TTD columnist Leo Fasciocco has covered the stock market for over 30 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.)