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.
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)
Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance)
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 email@example.com.For service, email Beverly Owen firstname.lastname@example.org. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 18
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list large with some good looking plays. Bulls need to be selective. Stock market still in a trading range as earnings reports continue to impact stocks.
(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 Bearish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - TYL - ABOVE AVERAGE
TYL, based in Plano, Tex., makes software and provides information technology services. Annual revenues: $493 million. TYL's stock, a leader, breaks out today from a six-week flat base. The move carries the stock to a new high. That is bullish.
So far today, TYL is trading 236,657 shares. Its average daily volume is 174,000 shares.
TYL's stock edged over its breakpoint line in the morning. (see 10-minute chart)
The stock then trended sideways until the afternoon when it began to move steadily higher.
TYL closed near its high for the day with a pick up in intraday volume. That is bullish and gives hope of a follow through on Wednesday.
TYL's tape action shows the recent block trades.
One can see the price for the blocks climbing from $121.86 a few sessions ago to as high as $127.24 on Tuesday.
A key bullish trade came late on Monday when a block of 10,345 shares crossed the tape at 125.50.
That was up sharply from the prior block trade at $123.45 on 2,180 shares.
Then today, the block trades show the price climbing throughout the day. That is bullish showing good institutional accumulation.
TYL provides integrated information management solutions and services .
It produces software and professional IT services, subscription-based services and property appraisal outsourcing services.
Its products generally automate three major functional areas - financial management and education, courts and justice and property appraisal and taxes.
TYL operates in two segments: Enterprise software solutions and Appraisal and Tax software solutions and services.
TYL's 12-month performance chart shows the stock appreciating 61% versus a 14% gain for the S&P 500 index.
Insiders tend to be steady sellers of the stock. (see red bars on performance chart)
TYL's long-term chart shows the stock trading around $15 from 2006 until 2009. The stock then broke out from its long-term basing pattern in late 2009.
Since then it has soared making a sixfold move. The advance today takes TYL to a new high. The stock could be a candidate for a stock split. That would be bullish.
TYL's daily chart shows the stock moving higher from 108 in January up to 126 by March.
The stock then put down a small flat base above its rising 50-day moving average line.
The breakout today is modest but clears resistance.
The TTD momentum indicator (top of chart) is modestly bullish.
The accumulation - distribution line (bottom of chart) is in a strong up trend indicating very good buying in recent weeks. That is bullish.
This year, analysts are forecasting a 20% rise in TYL's net to $2.16 a share from $1.79 a year ago.
The stock sells with a price-earnings ratio of 58. That is high. So, the stock is most suitable for an aggressive investor.
Going out to 2016, the Street looks for a 20% gain in net to $2.59 a share from the anticipated $2.16 this year.
Net for the upcoming first quarter should climb 39% to 50 cents a share from 36 cents a year ago.
The company can sometimes top the consensus.
Looking out to the second quarter, net should be up 21% to 55 cents a share from 45 cents the year before.
Strategy Opinion: TTD is targeting TYL for a move to 155 off this breakout. A protective stop can be placed near 120.
There is a chance for a stock split which could boost the stock. TTD rates TYL more of a trading play because of the high valuation.
Sponsorship: Good. A key buyer recently was Brown Capital Management Small Co Fund which purchased 2,276 shares. The 5-star rated fund is the second largest holder with a 3.5% stake.
The largest fund holder is the 3-star rated Neuberger Berman Genesis Fund which holds a 4.8% stake. It was a recent seller of 94,618 shares.
TYL has 33.6 million shares outstanding. Institutions hold 91% of the stock and insiders have 5%.
Insider Activity: Bearish. Insiders were recent buyers at $6 - yes $6. They were sellers recently at $115 to $117 a share.
Currently, 8 analysts follow the stock, 5 have a buy, the same as three months ago. TYL has a book value of $10.07.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Tyler Technologies Inc. - (TYL)
|TTD Check List||Bullish||Bearish||Neutral|
|Near 52-week High||YES|
|Price Trend - Daily||YES|
|Price Trend - Long Term||YES|
|Price Daily Spread||YES|
|Base - A-D||YES|
|Prior Breakout Success||YES|
Charts of Selected Breakout Stocks
|TTD's Quality Rating of Stock - LXFT - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - SBNY - AVERAGE|
|TTD's Quality Rating of Stock - ECHO - AVERAGE|
|TTD's Quality Rating of Stock - CYBR - 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 - 9
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Large list of breakdown stocks today with some interesting plays. Bears can be venturesome. Earnings continuing to flow in now.
SANM, based in San Jose, Ca., provides electronics contract manufacturing services. Annual revenues: $6.4 billion. SANM's stock falls sharply today after the company reported earnings below Street estimates for the fiscal second quarter ended in March. TTD sees more on the downside.
TTD highlighted SANM as a short at our midsession video show on the Web Tuesday.
SANM reported fiscal second quarter net of 50 cents a share up from 44 cents a share a year ago. However, the Street was looking for 53 cents a share.
The stock was downgraded by some analysts.
SANM fell sharply in the morning hitting an intraday low of 19.65.
It then lifted modestly in the afternoon to trim some of its loss.
SANM's tape action shows the recent block trades. One can see the price for the blocks tumbling from $23.36 in the prior session to as low as $19.75 Tuesday.
A key bearish trade came in the morning when a block of 38,645 shares (duplicated) crossed the tape at $20.67.
That was down from the prior block trade at $23.36 on 67,560 shares.
The company focuses on engineering and fabricating complex components and also on providing complete end-to-end supply chain solutions to OEMs/
SANM's services include product design and engineering, including initial development, detailed design, prototyping, validation, preproduction services and manufacturing design.
This fiscal year ending in September analysts have been forecasting an 11% increase in SANM's net to $2.06 a share from $1.85 a year ago. However, that estimate could come down. Net for the fiscal third quarter ending in June is expected to rise 7% but then decline 8% in the fiscal fourth quarter.
SANM's daily chart shows the stock gapping lower with big volume. The move undercuts key support.
Strategy Opinion: TTD is targeting SANM for a decline to 16 within the next few months or sooner. A protective stop buy can be placed near 21.60.
|TTD's Quality Rating of Stock - SANM - 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.)