Ticker Tape Digest

Tuesday - March 20, 2018

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.

Tuesday - March 20, 2018

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  12

Quality of Breakouts -  Average.

Stocks Screened - 12,234

Bull side -  Large list of breakouts. Bulls be selective and conservative.

Stock market  -  Daily market averages bearish. Weekly averages mixed. Long-term still bullish.

Bulls be conservative as daily averages are still working lower.

Stock Market Momentum

(Daily is based on a moving average)

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action - Tuesday

(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 at breakpoint by using market order or stop buy)All Timely Breakout Stocks From Tape Action Today )  

Today's Featured TTD Breakout Stock

Tal Education Group (TAL) - 41.23, up 2.26 - Breakpoint 39.25

Net To Surge 74% for Fiscal 2019 ( Feb.), TTD Targets 51 

  TAL, based in China, provides education for K-12 students after school tutoring programs. Annual revenues: $1 billion. TAL's stock moves higher Tuesday and breaks out from a five week-flat base.

  The move carries the stock to a new all-time high. That is bullish.

  TTD highlighted TAL as a breakout at our midsession video show on the Web Tuesday.

  So far today, TAL is trading 6.4 million shares. Its average daily volume is 5.7 million shares.

  TAL broke out in the morning clearing its breakpoint line.

  The stock rose to an intraday peak of $41.75.

  The stock then trended sideways the rest of the session.

  Tape Action

  TAL's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $38.97 in the prior session to as high as $41.65.

  A key bullish trade came in the morning when a block of 62,834 shares crossed the tape at $39.10.

  That was up from the prior block trade at $38.97 on 58,790 shares late on Monday.

Near the close on the NYSE a block of 199,531 shares (duplicated) crossed the tape $41.23.

  That came on a down tick from the prior trade at $41.24 on 100 shares.

  The tape would indicate some institutional profit taking.

  Business

  TAL is a holding company for a group of companies engaged in after-school tutoring programs for primary and secondary school students in China.

The company's Xueersi Peiyou small classes course consists of four semesters. They include two school semesters in Spring and Fall and two holiday semesters in summer and winter.

  It operates a Website, www.jzb.com, which is an online education platform in China.

The company has over 10 call centers in Beijing, Shanghai, Tianjin, Guangzhou and Shenzhen.

Charts

  TAL's 12-month performance chart shows the stock appreciating 145% versus a 16% gain for the stock market.

  TAL's long-term chart shows the stock coming public in 2010 at $2.91. The stock trended sideways until mid 2013.

  Since then the stock has surged steadily higher having made more than a 10-fold move. The stock went through a 6-for-1 stock split in 2017.   

 TAL's daily chart shows the stock climbing from $28 back in January to a peak near $39 by February.

  The stock put down a small, cup-and-handle raise.

  The breakout is ideal coming with a widening of the daily spread and a pick up in volume.

  Earnings Outlook:

  Net for the fiscal year ending in February of 2018 is expected to surge 50% to 33 cents a share from 22 cents a year ago.

  The highest estimate on the Street is at 37 cents a share. The company tends to report in late April.

  TAL's p/e ratio based on fiscal 2018 net is 124. So, the stock is bested suited for aggressive investors.

  Looking out to fiscal 2019 ending in February, analysts predict a 74% surge in net to 57 cents a share from the anticipated 33 cents for fiscal 2018.

  Net for the upcoming fiscal fourth quarter ending in February should jump 50% to 9 cents a share from 6 cents the year before.  

Strategy Opinion: TTD is targeting TAL for a move to $51 within the next few months, or sooner. A protective stop can be placed near $38.    

Intermediate-Term Rating: Average.

Suitability: Aggressive Bulls.

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

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

Probability - Earnings Response - Bullish. TAL rose 7 times after the past 9 earnings reports when there was a significant change.

Probability:  Seasonal Success - Extremely Bullish. TAL rose an average of 6.3% in March and 9.3% 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 - 13

Stocks Screened - 12,234

Long-Term Environment for bears:  Neutral.

Bear Side - Large list of shorts Tuesday. Aggressive bears can be venturesome.

  TTD's short from Monday was Mallinckrodt (MNK) at $15.20. Tuesday, MNK falls to $14.57, off 0.63, and is working well for bears.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

GoPro Inc. (GPRO) - 5, down 0.33

Loss Projected for this Year, TTD Sees Drop to 3.80.

  GPRO, based in San Mateo, Ca., produces cameras and mountable and wearable accessories. Annual revenues: $1.2 billion. GPRO's stock falls sharply Tuesday on big volume. The move undercuts key technical support. TTD sees more on the downside.

  GPRO is trading a heavy 5 million shares, more than double its average daily volume of 2.2 million shares.

  GPRO's stock moved steadily lower in the morning undercutting key technical support.

  The stock touched an intraday low of $4.92 around noon. The stock then lifted to $5.08 in the afternoon and then trended mostly sideways.

  Tape Action

  GPRO's tape action shows the recent block trades.

  One can see the price for the blocks falling from $5.36 in the morning to as low as $4.96.

  A key bearish trade came in the morning when a block of 30,000 shares crossed the tape at $5.08. That was down sharply from the prior block trade at $5.36 on 15,909 shares (duplicated).

  Business

  GPRO makes HERO5, which is a line of cloud-connected cameras featuring image stabilization, telemetry, cloud connectivity and voice control.

 The  GoPro Plus  is a cloud-based storage solution that enables subscribers to access, edit and share content. The firm  also makes Quik, a mobile editing application that creates edits on a smartphone.

 Earnings:

  This year, analysts are forecasting a loss of 37 cents a share compared with a loss of 69 cents a share the year before.

  For the upcoming first quarter, the Street is forecasting a loss of 36 cents a share compared with a loss of 44 cents the share before.

Charts:   

  GPRO's daily chart shows the stock trending lower from $12 last year to around $5.50. The stock tried to form a bottom. However, Tuesday, GPRO breaks to the downside.

  GPRO's 12-month performance chart shows the stock down 40% versus a 16% gain for the stock market.

  Insiders were recent sellers at $8.23 to $5.60.

Strategy Opinion: TTD is targeting GPRO for a decline to $3.80 within the next few months. A protective stop buy can be placed near $5.40.

Suitability: Average Bears.

  TTD's special probability research of  Prior Performance:  

Probability - Earnings Response - Extremely Bearish.  GPRO rose just 2 times after the past 9 earnings reports when there was a significant change.

Probability:  Seasonal Activity -  Neutral.  GPRO declined an average of 1.1% in March, but rose an average of 5.3% in April the past several years.

   Stock 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. - 2018

    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 1-480-926-1680.

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 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.

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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.)