Daily - Go to TTD's Tape of Stock Charts - Monday, April 20, 2015 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, April 20, 2015 |
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.
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 extremely selective. Bulls be patient. Stock market still in trading range. Earnings will be coming in now.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Stock Market Momentum
Market (Daily) - NYSE Bearish, Nasdaq Bearish
Market (Weekly) - NYSE Bearish, Nasdaq Bearish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - HCKT - ABOVE AVERAGE |
HCKT, based in Miami, Fla., is an advisory and technology consulting firm. Annual revenues: $214 million. HCKT's stock breaks out Monday from a nine-week, cup-and-handle base.
The move carries the stock to a 14-year high. So far today, HCKT is trading a heavy 237,504 shares, triple its average daily volume of 68,000 shares.
TTD highlighted HCKT as a breakout at our midsession video show on the Web Monday.
The stock shot higher in the morning clearing its breakpoint line. (see 10-minute chart).
HCKT reached an intraday peak of 10.27. The stock then backed off a bit and trended mostly sideways in the afternoon.
TTD's clip of the tape shows HCKT's recent block trades.
One can see the price for the blocks climbing from $9.21 on Friday to as high as $10.12 Monday.
A key bullish trade came in the morning when a block of 7,271 shares (duplicated) crossed the tape at $9.35.
That was up from the prior block trade at %9.21 on 5,523 shares Friday.
Then later in the morning a block of 4,400 shares crossed at $10.12. That was up from the prior block at $10 on 7,000 shares.
HCKT provides advisory and technology consulting primarily in the United States and Western Europe.
The company offers executive advisory programs, benchmarking, business transformation, and technology consulting.
Its executive advisory programs include advisor inquiry, an inquiry service used by clients for access to fact-based advice on proven approaches and methods to increase the efficiency of selling, general, and administrative processes.
HCKT's 12-month performance chart shows the stock appreciating 50% versus a 15% gain for the S&P 500 index.
There has been some recent pickup in insider selling (see red bars on performance chart).
HCKT's long-term chart shows the stock trading mostly in a range between 3 and 7 for several years.
Today's breakout is significant since it clears all the near-term overhead resistance.
HCKT's daily chart shows the stock climbing from 6.80 back in November an climbing to around 9.
The stock then traded sideways forming a flat base. The breakout today is impressive coming with a widening of the daily spread and pick up in volume.
The stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) lags a bit.
So, it will be important to see a follow through move on the breakout.
This year, analysts are forecasting a robust 44% jump in HCKT's earnings to 50 cents a share from 35 cents a year ago.
The stock sells with a price-earnings ratio of 19. TTD sees that as attractive for value-growth investors.
Net for the upcoming first quarter should soar 113% to 11 cents a share from 5 cents a year ago.
The company tends to come in close to Street estimates.
For the second quarter, analysts look for a 24% gain in net to 14 cents a share from 11 cents the year before.
Strategy Opinion: TTD is targeting HCKT for a move to 13 off this breakout. A protective stop can be placed near 8.80.
TTD rates HCKT a good intermediate-term play provided earnings meet expectations.
Sponsorship: Very Good. The largest fund buyer recently was the 4-star rated Pyramis Small Company Composite Fund which purchased 330,428 shares as a new position.
Also, the 5-star rated AlianzGi Ultra Micro Cap Institutional Fund was a buyer of 7,468 shares. It has a 0.34% stake.
HCKT has 29.8 million shares. Institutions hold 70% and insiders 14%.
Insider Activity: Slightly Bearish. Insiders were recent buyers using stock options at $3.96 a share. They sold at $9.36.
Right now, 3 analysts follow the stock and all 3 have a buy, the same sentiment as three months ago. HCKT has a book value of $3.07 a share.
Stock Performance Chart with Quarterly Earnings Markers.
TTD's Breakout Profile
Rating Hackett Group Inc. - (HCKT) |
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 | 11 | 0 | 3 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - HAR - AVERAGE |
TTD's Quality Rating of Stock - AFSI - BELOW AVERAGE |
TTD's Quality Rating of Stock - RDN - BELOW AVERAGE |
TTD's Quality Rating of Stock - CIEN - 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 - 4
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Small list of breakout stocks Monday as stock market rises broadly and strongly. The action is a rebound from the sharp drop on Friday. Bears be selective. TTD's short from Friday Iconix Brand group Inc. (ICON) falls 6.67 to 25.34 Monday. The short was triggered at 32.21.
KORS, based in Hong Kong makes women's clothes and accessories. Annual revenues: $4.2 billion. KORS's stock falls sharply Monday on heavy volume. The drop was due in part by negative comments from investment firm Mizuho. So far today, KORS is trading 5.4 million shares. Its average daily volume is 2.9 million shares. TTD sees more on the downside.
TTD highlighted KORS as a short at our midsession video show on the Web.
Mizuho said it lowered its rating to neutral. It said it made the move after doing an online survey of 342 women.
KORS stock gapped lower in the morning and then hit an intraday low of $61.22.
The stock then staged a modest rally to trim some of its loss.
KORS's tape action shows the recent block trades.
One can see the price for the blocks falling from $63.25 Friday to as low as $61.44.
A key bearish trade came in the morning when a massive block of 126,230 shares crossed the tape at $62.49.
That was down from the prior block trade at $63.25 on 57,500 shares.
KORS makes and sells branded women's apparel and accessories, and men's apparel. The company operates in three segments: Retail, Wholesale, and Licensing.
The retail segment sells clothes and asscesories. It has 176 stores operated through its licensing partners.
The Wholesale segment sells accessories, which include handbags and small leather goods, footwear, and women's and men's apparel to department stores and specialty shops in North America and Europe.
The Licensing segment licenses its trademarks on products.
For fiscal 2016 ending in March, analysts are forecasting an 11% rise in net.
KORS's daily chart shows the stock trending lower from 80 late last year down to around 63 by March. The stock then cuts below key support with volume picking up. The stock's accumulation - distribution line (bottom of chart) is trending lower showing clear selling pressure.
Strategy Opinion: TTD is targeting KORS for a decline to 55 within the next few months, or sooner. A protective stop buy can be placed near 64.50.
TTD's Quality Rating of Stock - KORS - 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.)