Daily - Go to TTD's Chart scroller of Breakout and Leading Stocks - Monday, March 28, 2016
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Daily - Go to TTD's Chart scroller of Breakout and Leading Stocks - Monday, March 28, 2016 |
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Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, March 28, 2016 |
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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.
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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 - 5
Overall Quality of Breakouts - BELOW AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list small and have low quality. Bulls be patient. Stock market rally seems out of gas. Now vulnerable to a pull back.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
Stock Market Momentum
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
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TTD's Quality Rating of Stock - THG - AVERAGE |
THG, based in Worcester, Mas., provides property and casualty insurance products. Annual revenues: $5 billion. THG's stock breaks out Monday from a six-month, cup-and-handle base. The move carries the stock to a new all-time high. 
TTD highlighted THG as a breakout at our midsession video show on the Web Monday.
THG is a conservative breakout play. 
THG's stock is trading 375,814 shares. Its average daily volume is 210,000 shares.
The stock gapped higher in the morning to clear its breakpoint. (see 10-minute chart)
The stock's move was aided by an upgrade to outperform by BMO Capital. It raised its target price from $86 to $98.
THG's stock reached an intraday high of 89.11 late in the day. It closed near its high for the session.
THG's tape action shows the recent block trades.
One can see a key bullish trade coming late in the prior session - prior to the upgrade hitting the wires.
The trade was 74,259 shares crossing at $87.01.
That was up from the prior block trade at $86.82 on 10,927 shares.
THG operates through four segments: Commercial Lines, Personal Lines, Chaucer, and Other.
The commercial lines offer commercial multiple peril, commercial automobile, workers compensation, specialty program business, inland marine, management and professional liability.
Personal Lines take care of automobile and homeowners coverages/
The chaucer segment offers marine and aviation, property, energy, motor, international liability and special coverages.
THG's 12-month performance chart shows the stock appreciating 22% versus a 3% decline for the stock market.
THG's long-term chart shows the stock falling from 55 in 2008 to 28 by 2009. The stock then rallied and trade in a range around 40. It broke out long-term in early 2013 and since then has about doubled. It is in a long-term up trend.
THG's daily chart shows a long-term cup-and-handle base.
The breakout clears key upside resistance with expanding volume.
The stock's CCI momentum indicator is bullish.
At the bottom of the chart, the accumulation - distribution line is in an overall up trend.
THG is poised to show just modest earnings growth.
However, the first quarter will be exceptionally strong and should be the key driver near-term.
Net for 2016 is expected to rise 3% to $6.43 a share from $6.25 a year ago.
The stock sells with a price-earnings ratio of 13.
Going out to 2017, net should be up 5% to $6.77 a share from the anticipated $6.43 this year.
So, earnings growth will be modest on an annual basis.
However, for the upcoming first quarter, profits are expected to leap 26% to $1.60 a share from $1.27 a year ago.
The highest estimate on the Street is at $1.67 a share.
TTD sees good chances for an upside earnings surprise.
THG topped the consensus estimate the past nine quarters - and by a wide margin.
Looking out to the second quarter, analysts predict a 3% increase in net to $1.61 a share from $1.56 a year before.
Strategy Opinion: TTD is targeting THG for a move to 102. TTD sees THG as more of a trading play with the potential for upside earnings surprise. A protective stop can be placed near 86.
TTD rates THG an average intermediate-term play best suited for conservative investors.
Sponsorship: Average. The largest fund buyer recently was the 5-star rated Hennessy Cornerstone Mid Cap 30 Inv. Fund which purchased 403,600 shares as a new position.
THG has 42,8 million shares outstanding. Institutions hold 84% of the stock and insiders have 1%.
Insider Activity: Slightly Bearish. Insiders were buyers using stock options at $42 this year. They were sellers around $85.
Currently, 6 analysts follow the stock, one has a buy, the same as three months ago.
THG has a book value of $66.15 a share.
Stock Performance Chart with Quarterly Earnings Markers.
| TTD's Breakout Profile
Rating Hanover Insurance Group Inc. - (THG) |
| TTD Check List | Bullish | Bearish | Neutral |
| Near 52-week High | YES | ||
| Volume | YES | ||
| Tick Volume | YES | ||
| Price Trend - Daily | YES | ||
| Price Trend - Long Term | YES | ||
| Price Daily Spread | YES | ||
| Base Structure | YES | ||
| Base - A-D | YES | ||
| Earnings-Quarterly | YES | ||
| Earnings-Long Term | YES | ||
| Earnings Outlook | YES | ||
| Industry Group | YES | ||
| Prior Breakout Success | YES | ||
| Fund Sponsorship | YES | ||
| Total Score | 10 | 0 | 4 |
Charts of Selected Breakout Stocks
| TTD's Quality Rating of Stock - O - AVERAGE |
| TTD's Quality Rating of Stock - DTLK - AVERAGE |
| TTD's Quality Rating of Stock - CARO - BELOW AVERAGE |
| TTD's Quality Rating of Stock - FIVN - 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: Neutral.
Bear Side - Small list of breakdown stocks Monday, but some interesting plays. Bears be alert. Stock market extended near-term and liable to pull back.
LC, based in San Francisco, provides an online marketplace connecting borrowers and investors. Annual revenues: $430 million. LC's stock falls sharply Monday and undercuts key technical support. TTD sees more on the downside. 
TTD highlighted LC as a short at our midsession video show on the Web Monday.
LC's stock fell in the morning undercutting key support. The stock continued South touching an intraday low of 7.50.
It then lifted a bit and trended sideways the rest of the day.
LC's tape action shows the recent block trades.
One can see the price for the blocks falling from $8.32 in the prior session to as low as $7.50.
A key bearish trade came in the morning when a block of 31,600 shares crossed the tape at $8.14.
That was down from the prior block at $8.32 on 33,573 shares at the opening.
The stock came public late in 2014 at $24.75. It touched an all-time high of $29.29 a week later. However, since then LC's stock has been trending lower.
LC's marketplace facilitates loans for consumers and small businesses. They include unsecured personal loans, super prime consumer loans, unsecured education and patient finance loans, and unsecured small business loans.
This year, analysts are forecasting LC will show a profit of nine cents a share compared with one cent a year ago.
However, there was a bearish research report earlier in the month questioning the company's outlook.
LC's daily chart shows the stock trending lower from $14 in December to around $6.50 in February. It rallied briefly, based, but has now rolled over.
Strategy Opinion: TTD is targeting LC for a decline to 6.40 within the next few months. A protective stop buy can be placed near 8.10.
| TTD's Quality Rating of Stock - LC - 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.)
