Ticker Tape Digest

Monday - April 20, 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 20, 2020

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts   -  10

Quality of Breakouts -  Below Average.

Stocks Screened - 12,234

Bull side -  Large list of breakouts but extremely selective.

Stock market  -  Daily market averages bullish and also Nasdaq weekly and monthly.

Comment -  Market consolidating after lift off of lows. Earnings will now becoming in and it will be important to watch a stock's response. Bulls be alert now.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats -  BSBR, BOH, KALU and TFC.

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

Palomar Holdings Inc. (PLMR) - 63.35, up 5.16 - Breakpoint 61.34

Net To Climb 19% This Year, TTD Targets 74

  PLMR, based in La Jolla, Ca., provides property insurance in 17 states. Annual revenues: $113.3 million. PLMR's stock surges higher Monday and breaks out from its 10-week, cup-and-handle base.

  The move carries the stock to a new all-time high. That is bullish. The stock came public in May of 2019.

  TTD sees potential for more on the upside.

  So far today, PLMR is trading a heavy 604,356 shares, double its average daily volume of 240,000 shares.

  PLMR's stock shot higher in the morning and cleared its breakpoint line.

  The stock reached an intraday high of $65.50.

  PLMR then trended sideways the rest of the day and finished near its high for the session. That is bullish.

   Tape Action

  PLMR's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $58.09 in the morning to as high as $64.90 in the first hour of trading Monday.

  A key bullish trade came when a block of 3,756 shares crossed the tape at $61.98. That was up from the prior block at 58.09 on 5,338 shares.   

   Business

  PLMR is a property insurance firm..

  Its primary business includes residential earthquake, commercial earthquake, homeowners, commercial All Risk, Hawaii hurricane and residential flood.

It distributes products through multiple channels, including retail agents, program administrators, wholesale brokers, and in partnership with other insurance companies.

The Residential Earthquake products offered in 17 states primarily under the brand names Value Select and Flex Choice.

  Commercial Earthquake products focused on providing coverage for benign commercial risks.

Charts

  PLMR's 12-month performance chart shows the stock up 200% versus a 2% loss for the stock market.

  Insiders were recent buyers at $$40 in March. They have been sellers a $40 to $55 a share.

  PLMR's long-term chart shows the stock climbing from $18,50 back in April of 2019. The stock moved steadily higher and reached a peak at $62 in February.

  The stock put down its base and has now broken out.

  PLMR's daily chart shows the stock clearing its breakpoint line with a widening of the daily spread.

  That is bullish showing that buying is able to drive the stock.

  In after-hours trading the stock was up another $1.15.

  The stock's CCI momentum indicator is strongly bullish.

  Earnings Outlook

  This year, analysts are forecasting a 19% increase in net to $2.06 a share from the $1.73 the prior year.

  The stock sells with a price-earnings ratio of 30. That is high given the growth rate in net.

  Looking out to 2021, the Street predicts a 21% gain in net to $2.49 a share from the anticipated $2.06 this year.

  Net for the upcoming first quarter will be weak. The Street predicts 44 cents a share, down 15% from the 52 cents the year ago.

  However, the highest estimate on the Street from 4 analysts is at 55 cents a share.

  In the second quarter, analysts predict a 36% leap in net to 49 cents a share from  the 36 cents the prior year.

Strategy Opinion:  TTD is targeting PLMR for a move to $74 within the next few months, or sooner.

A protective stop can be placed near $59

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  - 4

Stocks Screened - 12,234

Long-Term Environment for bears: Neutral.

Bear Side -  Small list of shorts. Bears be conservative. Earnings will be coming in soon and there could be some good short plays.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Vocera Communications Inc. (VCRA) - 18.25

Loss Seen for 1st Quarter, TTD Sees Drop to 14.50

  VCRA, based in San Jose, Ca., provides mobile communications for workers in healthcare, hospitality, energy and education. Annual revenues: $181 million. VCRA's stock declines Monday and undercuts key support.

  So far today, VCRA is trading a heavy 646,050 shares. Its average daily volume is 390,000 shares.

 TTD sees more on the downside.

  VCRA's stock peaked at $42 earlier this year. It has been in a steady decline down to $18.

  The break down Monday cuts below key support at $18.42.

  On a long-term basis, the breakdown is from a massive head-and-shoulder pattern. That is very bearish.

  Tape Action

  VCRA's tape action shows the recent block trades.

  One can see the price for the blocks falling from $19.32 in the early afternoon to as low as $19.25 by the close.

  A key bearish trade came in the afternoon when a block of 2,000 shares crossed the tape at $19.

  That was down from the prior block at $19.26 on 2,690 shares.

  Business

 VCRA makes the Vocera Communication System, Vocera Care Experience, Vocera Engage integration platform, smartphone applications and its Experience Innovation Network.

The Company's system consists of a software platform that connects communication devices, including its hands-free, wearable, voice-controlled communication badges, and third-party mobile devices that use its software to become part of the Vocera system.

 Earnings:

  This year, analysts are calling for a 7% decline in net to 28 cents a share from the 30 cents the prior year.

  For the upcoming first quarter, analysts predict a loss of 18 cents a share compared with a loss of 17 cents the prior year.

Charts:  

  VCRA's daily chart shows the stock falling below key support and resuming its down trend.

  VCRA's 12-month performance chart shows the stock down 35% versus a 2% loss for the stock market.

  Insiders were recent buyers using stock options at $5 to $12 a share. They were sellers at $21 to $26 a share.

Strategy Opinion: TTD  is targeting VCRA for a decline to $14.50. A protective stop buy can be placed near $19.60.

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.)