Ticker Tape Digest

Tuesday - April 2, 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.

Tuesday - April 2, 2019

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  8

Quality of Breakouts -  Above Average

Stocks Screened - 12,234

Bull side -   Several good plays for aggressive bulls.

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

Comment -  Stock market holding well after recent rally from its lows. They could challenge all-time highs with another push.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats for Tuesday - PLAY, EXFO and LW.

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

Audiocodes Ltd. (AUDC) - 15.69, up 1.44 - Breakpoint 14.98

Net To Rise 20%, TTD Targets 19 

  AUDC, based in Israel, is a vendor of voice networking and media processing solutions. Annual revenues: $176 million. AUDC's stock drives higher Tuesday and breaks out from a 10-week, flat base.

  The move carries the stock to a 14-year high. It came public in 1999.

  So far today, AUDC is trading a heavy 688,237 shares, four times its average daily volume of 169,000 shares.

  The company held a conference in Tel Aviv for its customers from Europe, Middle East and Africa.

  AUDC's stock moved higher in the morning. In the early afternoon, the stock cleared its breakpoint line near $15.

  The stock then continued to drive higher and closed near its high for the day with good volume. That is bullish.

  Tape Action

  AUDC's tape action shows the stock's block climbing from $14 in the prior session to as high as $15.69.

  A key bullish trade came in the morning when a block of 4,500 shares crossed the tape at $14.30.

  That was up from the prior block the day before at $14 on 5,000 shares.

  Then near the close Tuesday a massive block of 21,594 shares (duplicated) crossed at $15.69.  

 That was up from  the prior block at $15.58 on 5,000 shares.  

   Business

  AUDC's voice networking and media products enable firms to operate all IP voice networks in unified communications, contact centers and hosted business services.

  The company categorizes its products and services into two main lines: network and technology.

  Network products consist of customer premises equipment, gateways for the enterprise and service provider markets and of carrier-grade-oriented low- and mid-density media gateways.

   Charts

  AUDC's 12-month performance chart shows the stock appreciating 120% versus a 10% gain for the stock market.

  Insider activity was not available.

  AUDC's long-term chart shows the stock climbing from $3 back in 2013 to a peak at $9.12 by early 2014.

  The stock then drifted back to $2.69 by 2015. However, since then AUDC has trended steadily higher.   

 AUDC's daily chart shows the stock rising from near $10 back in January to a peak near $15 by late January.

  It then pulled back and formed its flat base.

  The breakout is impressive coming with a widening of the daily spread and expanding volume.

  The stock's CCI momentum indicator (bottom of chart) is strongly bullish.

   Earnings Outlook

  The stock is now widely followed by analysts.

  However, this year, the Street is calling for a 20% gain in net to 78 cents a share from the 65 cents the year before.

  The stock sells with a price-earnings ratio of 20. TTD sees that as reasonable.

  Going out to 2020, analysts are projecting a 17% rise in net to 91 cents a share from the anticipated 78 cents this year.

  Profits for the first quarter should be up 15% to 15 cents a share from the 13 cents the year before.

  Then in the second quarter, analysts expect a 28% jump in net - an acceleration in quarter growth. They see 18 cents a share, up from 14 cents the year before.   

Strategy Opinion:  TTD is targeting AUDC for a move to $19 off this breakout.

A protective stop can be placed near 14.20.

Intermediate-Term Rating:  Average.

Suitability:   Average Bulls.

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

Probability - Breakout Success - Bullish -  AUDC scored some massive gains off some of its recent breakouts. The stock is in a long-term up trend.

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

Probability:  Seasonal Success - Bearish -  AUDC averaged a decline of 0.3% in April and a decline of 3.4% 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 - 5

Stocks Screened - 12,234

Long-Term Environment for bears: Unfavorable.

Bear Side -  Small list of shorts but some interesting plays for aggressive bears.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Meridian Bioscience Inc. (VIVO) - 14.20

Revenues to Disappoint, TTD Sees Drop to 11.20

  VIVO, based in Cincinnati, Ohio, makes diagnostic tests kits for gastrointestinal, viral, respiratory and parasitic infectious diseases. Annual revenues: $214 million. VIVO's stock falls sharply Tuesday and undercuts key technical support.

  TTD sees more on the downside.

  So far today, VIVO is trading a heavy 1.6 million shares, five times its average daily volume of 281,000 shares.

  The company forecast that revenue for the second quarter ending in March will be $50 million, down from $56.5 million the prior year. The Street was expecting revenue of $54.7 million.

  VIVO's stock gapped lower in the morning and undercut key technical support. The stock then trended mostly sideways the rest of the day It closed near its low for the session. That is bearish.

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

  Tape Action

  VIVO's tape action shows the recent block trades.

  One can see the price for the blocks falling from $17.77 in the prior session to as low as $14.10 Tuesday.

  A key bearish trade came in the morning when a block of 10,792 shares (duplicated) crossed the tape at $14.93.

  That was down from the prior block trade at $17.77 on 7,491 shares the day before.

  Business

  VIVO's test kits are made in Cincinnati. They are sold in North, Central and South America, Europe, the Middle East and Africa. The company also has facilities in Memphis, Boca Raton, London, England, Luckenwalde, Germany, and Sydney, Australia.

 Earnings:

  This fiscal year ending in September analysts have been forecasting a 3% increase in net to 76 cents a share from the 74 cents the year before. That forecast could come down. Net for the fiscal second quarter was projected to be 21 cents a share, flat with the year before. That may come down too.  

Charts:  

  VIVO's daily chart shows the stock gapping lower on big volume. The move undercuts support.

  VIVO's 12-month performance chart shows the stock up 25% versus a 10% gain for the stock market. However, VIVO has been losing ground the past four months.   

Strategy Opinion: TTD is targeting VIVO for a decline to $11.20 within the next few months, or sooner. A protective stop buy can be placed near $15.40.

Suitability:   Aggressive Bears.

  TTD's probability research of Prior Performance:  

Probability - Earnings Response - Slightly Bullish -  VIVO rose 5 times after the past 8 earnings reports when there was a significant change in price.

Probability:  Seasonal Activity - Bearish. -  VIVO averaged a decline of 4.5% in April and a rise of 0.5% 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

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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.)