Ticker Tape Digest

Monday - April 6, 2020

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: 1-480-878-8381 or 480-704-3331.

Monday - April 6, 2020

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts Monday   -  7

Quality of Breakouts -  Average.

Stocks Screened - 12,234

Bull side -  Large list of breakouts with some good looking plays.

Stock market  -  Daily market averages turn bullish. However, weekly and monthly remain bearish.

Comment -  Stock market has key follow through move to the upside. Aggressive bulls can now start moving in to the market. Key is to go with leaders with strong earnings outlook.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats -  None.

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

Vertex Pharmaceuticals (VRTX) - 255.30, up 16.99 - Breakpoint 249.71

Net To Surge 40% This Year, TTD Targets 310

    VRTX, based in Boston, develops medicines for serious diseases. Annual revenues: $4.2 billion. VRTX's stock moves higher Monday and breaks out from  its 10-week, cup-and-handle base.

  So far today, VRTX is trading 3.1 million shares. Its average daily volume is 2.6 million shares.

  TTD sees more on the upside. TTD highlighted VRTX recently as a stock to accumulate in anticipation of a breakout.

  VRTX's stock rose sharply in the morning and cleared its breakpoint line.

  However, the stock fell back and trended just below its breakpoint line through most of the day.

  Then near the close the stock shot higher to finish near its high for the session.

  In after-hours, trading the stock was up 4.65.   

  Tape Action

  VRTX's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $238.31 in the morning to as high as $255.30 by the close.

  A key bullish trade came in the morning when a block of 31,899 shares crossed the tape at $248.61.

  That was up sharply from the prior block at $238.31 on 81,058 shares in the prior session.

  Near the close a block of 320,620 shares (duplicated) crossed at $255.30.

  That was up from the prior block at $248.04 on 30,600 shares.

  Business

 VRTX develops therapies to treat cystic fibrosis. and other diseases.

 The company's marketed medicines are ORKAMBI and KALYDECO. ORKAMBI (lumacaftor in combination with ivacaftor) to treat homozygous and mutation in the cystic fibrosis transmembrane.

  Charts 

  VRTX's 12-month performance chart shows the stock up 35% versus an 8% decline for the stock market.

  VRTX insiders were buyers using stock options at $57 to $187 a share.

  They were recent sellers at $229 to $243 a share.

  VRTX's long-term chart shows the stock advancing from $50 back in 2013 to a peak near $200 by 2018.

  The stock went into a base and broke out last year. It has continued to hold its long-term up trend.

  VRTX's daily chart shows the stock advancing from $200 in January to a peak near $250 by February.

  The stock then pulled back and formed a cup-and-handle base.

  The stock held well against the stock market's recent decline.

  Monday, VRTX breaks out with a pick up in volume.

  The stock's CCI momentum indicator is solidly bullish.

  Earnings Outlook

  This year, analysts are forecasting a 40% surge in net to $7.47 a share from  the $5.33 the year before.

  The stock sells with a price-earnings ratio of 32. TTD sees that as reasonable.

  Looking out to 2021, the Street predicts a 27% jump in net to $9.47 a share from the anticipated $7.47 for 2020.

  Net for the first quarter should leap 53% to $1.74 a share from the $1.14 the previous year.

 The highest estimate is at $2.05 a share. 11 analysts follow the stock.

  TTD sees good chances for an earnings beat. The company topped the consensus estimate the past four quarters by 49 cents a share, 9 cents, 23 cents and 16 cents.

  Then in the second quarter analysts predict a 40% jump in net to $1.77 a share from the $1.26 the previous year.

Strategy Opinion:  TTD is targeting VRTX for a move to $310.  A protective stop can be placed near $245.

Intermediate-Term Rating:  Average.

Suitability:  Aggressive Bulls.  

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

           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 Price Performance after Reporting Earnings

 Stock's Performance Chart with Quarterly Earnings Markers vs. S&P 500

Insider Buying in Green  -  Insider Selling in Red

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  -  3

Stocks Screened - 12,234

Long-Term Environment for bears: Neutral.

Bear Side -  Small list of breakdown stocks as stock market rallies strongly. Bears be watchful of any positions and conservative.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Menlo Therapeutics Inc. (MNLO) - 1.40

Loss Seen This Year and Next, TTD Sees Drop to 0.90

  MNLO, based in Redwood City, Ca., is a biotech firm working on treatments for skin problems. Annual revenues: $10.6 million. MNLO's stock falls sharply Monday and undercuts key support.

  So far today, MNLO is trading a heavy 10.1 million shares, 10 times its average daily volume of 950,000 shares.

  TTD sees more on the downside.

  The decline in the stock was triggered by disappointing test results for its drug to treat pruritus, an itch problem.

  MNLO's stock gapped lower in the morning and cut below support.

  It then trended mostly sideways the rest of the day.

   Tape Action

  MNLO's tape action show the recent block trades.

  One can see the price for the blocks falling from $2.68 in the prior session to as low as $1.33.

  A key bearish trade came in the morning when a block of 498,000 shares crossed the tape at $1.50.

  That was down sharply from the prior block the day before at $2.68 on 932,228 shares.

 Business

MNLO develops serlopitant to treat pruritus (itch) associated with dermatologic conditions, such as atopic dermatitis, psoriasis and prurigo nodularis.

The company is developing and commercializing a variety of solutions using its molecule stabilizing technology.

 Earnings:

  This year,analysts forecast a loss of $2.17 a share compared with a loss of $3.09 the prior year.

  Looking out to 2021, they predict a loss of $1.39 a share.

  For the upcoming first quarter, the Street expects a loss of 73 cents a share compared with a loss of 81 cents the prior year.

Charts:  

  MNLO's daily chart shows the stock peaking earlier this year at $7.48. However, since the it has trended lower.

  The stock's 12-month performance shows it down 80% versus an 8% decline for the stock market.  

Strategy Opinion: TTD is targeting MNLO for a decline to 90 cents within the next few months, or sooner.  A protective stop buy can be placed near $1.65.

Suitability:  Aggressive Bears.

  TTD's Stock Probability research of Prior Performance:  

   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. - 2020

    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.

   Distributed by Corona Publishing Enterprises. TickerTape Digest Inc. 1220 W. Sherri, Gilbert, Az. 85233.

  TTD “Professional Report” is available on the Web: $100 per month. Password needed. Published daily - around 20 times a month.  

 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.)