Ticker Tape Digest

Monday - April 16, 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.

Monday - April 16, 2018

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  23

Quality of Breakouts -  Average.

Stocks Screened - 12,234

Bull side - Large list of breakouts with some good looking plays. Aggressive bulls can be venturesome.

Stock market  -  Major averages are now bullish except for the weekly S&P. However, stock market remains in a consolidation pattern.

Stock Market Momentum

(Daily is based on a moving average)

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action - Monday

(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

KLX Inc. (KLXI) - 73.70, up 1.35 - Breakpoint 73.17

Net To Jump 31% for Fiscal 2019 (Jan.), TTD Targets 88 

  KLXI, based in Wellington, Fla., sells aerospace fasteners and consumables. Annual revenues: $1.7 billion. KLXI's stock moves higher Monday and breaks out from its 13-week, cup-and-handle base.

  TTD sees more on the upside.

  TTD highlighted KLXI as a breakout at our midsession video show on the web.

  KLXI is trading 290,853 shares. Its average daily volume is 351,000 shares.

  KLXI's 10-minute chart shows the stock spiking higher in the morning and clearing its breakpoint line.

  The stock reached an intraday high of $74.45 in the morning.

  The stock pulled back slightly and then trended sideways the rest of the day.

  Tape Action

  KLXI's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $72.35 in the prior session to as high as $73.83 Monday.

  A key bullish trade came in the morning when a block of 3,291 shares (duplicated) crossed the tape at $73.07.

  That was up from the prior block the day before at $72.35 on 1,132 shares.

  Business

KLXI sells aerospace hardware and consumables and provides inventory management services.

 The company operates through two segments: Aerospace solutions group and energy services group.

The company's Aerospace segment provides inventory management, supply chain solutions, special packaging and bar-coding and quality assurance testing.

 KLXI's Energy unit provides onshore completion services, wireline services, fishing services and tools, down-hole completion and production services.

Charts

  KLXI's 12-month performance chart shows the stock appreciating 58% versus a 15% gain for the stock market.

  Insiders were recent buyers at $39 a share. They did some selling late last year at $61 to $60 a share.

  KLXI's weekly chart shows the stock coming public in late 2014 at $47. The stock fell back $29.23 in early 2016.

  However, since then KLXI has been driving sharply higher. It has more than doubled from its low in early 2016.   

  KLXI's daily chart shows the stock climbing from around $55 back in November to a peak near $73 by January.

  The stock put down a cup-and-handle base that morphed into a flat base.

  The breakout Monday clears resistance with just modest volume.

  The CCI momentum indicator (bottom of chart) is solidly bullish.

  Earnings Outlook:

  This fiscal year ending in January of 2019, analysts are forecasting a 31% jump in net to $4.25 a share from the $3.24 the year before.

  The stock sells with a price-earnings ratio of 17. TTD sees that as attractive for value-growth investors.

  Looking out to fiscal 2020 ending in January, the Street projects an 18% increase in net to $5.01 a share from the anticipated $4.25 a share.

  Quarterly earnings will be strong.

  Net for the upcoming fiscal first quarter ending in April analysts predict a 169% leap in net to 97 cents a share from the 36 cents the year before.

  The highest estimate on the Street is at $1.03 a share. TTD sees chances for an upside surprise. The company topped the consensus estimate the prior two quarters by 12 cents a share and 8 cents.

  Going out to the fiscal second quarter ending in July, analysts predict a 40% surge in net to $1.02 a share from 73 cents the year before.

Strategy Opinion: TTD is targeting KLXI for a move to $88 within the next few months. A protective stop can be placed near $70.

Intermediate-Term Rating: Average.

Suitability: Average Bulls.

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

Probability - Breakout Success - Modestly Bullish-  KLXI has tended to score just modest gains off its recent breakouts. However, the stock is in a strong up trend.

Probability - Earnings Response - Neutral.  KLXI rose 4 times after the past 8 earnings reports when there was a significant change.

Probability:  Seasonal Success - Very Bullish.  KLXI rose an average of 5.8% in April and 1.5% 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:  Neutral.

Bear Side - Small list of shorts Monday as stock market rallies broadly. Stock market still in a trading range. Bears be patient and selective.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Acacia Communications Inc. (ACIA) - 25.63, down 14.40

Big Drop Due To Sales Block, TTD Sees Decline to 21

  ACIA, based in Maynard, Ma., produces high-speed coherent interconnect products. Annual revenues: $385 million. ACIA's stock falls steeply Monday after the company was block from selling certain products.. TTD sees more on the downside.

  So, far today, ACIA is trading is trading 12.8 million shares, 24 times its average daily volume of 398,000 shares.

  The company was block from selling its products to another firm because that firm shipped them to China.

  ACIA's stock fell sharply in the morning and touched an intraday low of $24.72.

  The stock lifted slightly and then trended sideways the rest of the day unable to rally. That is very bearish.

  Tape Action

  ACIA's tape action shows the recent block trades.

  One can see the price for the blocks falling from $39.75 in the prior session to as low as $24.96 Monday.

  A key bearish trade came in the morning when a block of 19,870 shares (duplicated) crossed the tape at $30.94.

  That was down sharply from the prior block trade Friday at $39.75 on 100,000 shares.

  Business

  ACIA makes low-power coherent digital signal processor application-specific integrated circuits.

  The company is also developing optical interconnect modules that will enable transmission speeds of one terabit (1,000 gigabits) per second and above.

  ACIA's modules perform a majority of the digital signal processing and optical functions in optical interconnects.

 Earnings:

  This year, analysts are forecasting a 50% drop in net to 88 cents a share from the $1.75 the prior year.

  Net for the first quarter is expected to plunge 92% and in the second quarter fall 42%.

Charts:   

  ACIA's daily chart shows the stock gapping lower with big volume. The move carries the stock to a new all-time low.

  ACIA's 12-month performance chart shows the stock down 50% versus a 17% gain for the stock market.   

Strategy Opinion: TTD is targeting ACIA for a decline to $21 within the next few months or sooner. A protective stop buy can be placed near $27.70.

Suitability: Aggressive Bears.

  TTD's special probability research of  Prior Performance:  

Probability - Earnings Response - Extremely Bearish.  ACIA rose just one time after the past 5 earnings reports when there was a significant change.

Probability:  Seasonal Activity Near-term - Bearish.  ACIA fell an average of  28% in April but rose an average of 37% in May 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.)