Ticker Tape Digest

Friday - March 29, 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.

Friday - March 29, 2019

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  10

Quality of Breakouts -  Average

Stocks Screened - 12,234

Bull side -   Large list of breakouts Friday with several good looking breakouts.

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

Comment -  TTD suggests Stock market holding firm in a consolidation after its recent rally from the low in December.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Earnings beats for Friday - BB, SBS and KMX

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

Fidelity National Information (FIS) - 113.10, up 1.92 - Breakpoint 111.27

Net To Jump 42% This Year, TTD Targets 130

  FIS, based in Jacksonville, Fla., provides financial services to banks and savings and loans. Annual revenues: $8.4 billion. FIS's stock drives higher Friday and breaks out from a 7-month, flat base.

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

  So far today, FIS is trading 5.5 million shares. Its average daily volume is 4.1 million shares.

  TTD highlighted FIS as a breakout at our midsesion video show on the Web Friday.

  FIS's 10-minute chart shows the stock breaking out in the morning.

  The stock continued to work higher and closed near its high for the day with strong volume near the final bell.

  The stock has a beta of 0.73 versus 1.0 for the stock market. So, it tends not to be a volatile as the stock market.

  Tape Action

  FIS's tape action shows the recent block trades.

  One can see the price for the blocks climbing form $111.18 in the prior session to as high as $113.10 near the close.

  A key bullish trade came in the morning when a block of 40,477 shares crossed the tape at $111.61.

  That was up from the prior block at $111.18 on 147,840 shares late on Thursday.

  Near the close a block of 634,511 shares (duplicated) crossed at $113.10.

  That was up from the prior block at 113,01 on 16,500 shares.

   Business

 FIS is a financial services technology firm.

  It serves community banks and savings with transaction and account processing, payment solutions, channel solutions, digital channels, and risk and compliance solutions.

  It also services international financial institutions with a range of capital markets and asset management.

  Charts

  FIS's 12-month performance chart shows the stock climbing 18% versus a 4% gain for the stock market.

  Insiders were recent buyers using stock options at $34 to $58 a share. They were sellers at $105 to $110 a share.

  FIS's long-term chart shows the stock as a steady climber. It rose from $35 back in 2013 to a peak at $73 by 2015.

  It pulled back and consolidated and then broke out and continued its advance. It has been a great long-term play.  

  FIS's daily chart shows the stock breaking out from its flat base a few sessions ago, but it stalled.

  It held its position and then on Friday it clears its breakpoint zone with a pick up in volume.

  The stock's CCI momentum indicator is strongly bullish.   

  Earnings Outlook

  This year, analysts are forecasting a robust 42% surge in net to $7.43 a share from the $5.23 the year before.

   The stock sells with a price-earnings ratio of 15. TTD sees that as reasonable.

  Looking out to 2020, the Street is predicting a 12% rise in net to $8.29 a share from the anticipated $7.43 this year.

  Quarterly earnings will be strong.

  Net for the upcoming first quarter is expected to jump 42% to $1.55 a share from the $1.09 the year before.

  The highest estimate on the Street is at $1.60 a share.. Currently, 12 analysts follow the stock.

   Net for the second quarter is projected to leap 45% to $1.78 a share from the $1.23 the year before.

   The company tends to slightly exceed quarterly projects. It beat the Street the past four quarters by 2 cents a share, 3 cents, 3 cents and 5 cents.

Strategy Opinion:  TTD is targeting FIS for a move to $130 within the next few months. A protective stop can be placed near $110.

Intermediate-Term Rating:  Average.

Suitability:   Average Bulls.

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

Probability - Breakout Success - Modestly Bullish -  FIS scored small gains off its recent breakouts. However, the stock has been in a very good long-term up trend.

Probability - Earnings Response - Slightly Bearish -  FIS rose 4 times after the past 10 earnings reports when there was a significant change in price.

Probability:  Seasonal Success - Bullish. -  FIS averaged a breakeven in April and a gain of 5.7% in May 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 -  2

Stocks Screened - 12,234

Long-Term Environment for bears: Unfavorable.

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

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Smart Global Holdings Inc. (SGH) - 19

Sales Disappoint, TTD Sees Drop to 15.50

  SGH, based in Grand Cayman, provides specialty memory and storage solutions. Annual revenues: $1.3 billion. SGH's stock falls sharply Friday. The move undercuts key technical support.

  TTD sees more on the downside.

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

  So far today, SGH is trading 6.7 million shares, 10 times its average daily volume of 595,000 shares.

  SGH's decline was triggered by disappointing quarterly sales. The company reported fiscal second quarter sales of $304 million. That was down from analysts estimates of $317 million.

  The stock fell in the morning. It touched an intraday low of $18.27 in the morning. The stock then worked a bit higher the rest of the day.

   Tape Action

  SGH's tape action shows the recent block trades.

  One can see the price for the blocks falling from $23.87 in the prior session to as low as $18.30 Friday.

  A key bearish trade came in the morning when a block of 40,128 shares (duplicated) crossed the tape at $19.15. That was down from the prior block the day before at $23.87 on 13,189 shares.

  Business

   SGH  delivers components, modules and storage solutions to original equipment makers. The products are sold to the computing, networking, communications, storage, mobile and industrial markets.

The company offers its services for specialized computing platforms in artificial intelligence, machine learning, advanced modeling.

 SGH operates in the U.S., Europe, Asia and Latin America.

 Earnings:

  This fiscal year ending in August, analysts are forecasting a 27% drop in net to $4.63 a share from the $6.36 a year before.

  For the upcoming fiscal third quarter ending in May, the Street is predicting a 47% decline in net to 97 cents a share from the $1.84 the year before.

Charts:  

  SGH's daily chart shows the stock gapping lower and cutting below key technical support with big volume.

  SGH's 12-month performance chart shows the stock down 60% versus a 5% gain for the stock market.

  Insiders were recent sellers at $23 to $30 a shares. They were buyers using stock options at $2.64 to $11.55 a share.

Strategy Opinion: TTD is targeting SGH for a decline to $15.50 within the next few months, or sooner. A protective stop buy can be placed near $20.30.

Suitability:   Aggressive Bears.

  TTD's probability research of Prior Performance:  

Probability - Earnings Response - Bullish - SGH rose 5 times after the past 7 earnings reports when there was a significant change in price.

Probability:  Seasonal Activity - Bearish. -  SGH averaged a decline of  21.4% in April but a gain of 16.4% in May 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.

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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.

 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.)