Ticker Tape Digest

Tuesday - April 24, 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.

Tuesday - April 24, 2018

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  7

Quality of Breakouts -  Above Average.

Stocks Screened - 12,234

Bull side -  Small list of breakouts and very selective.

Stock market  -  Bearish. Major averages are bearish both daily and weekly.  Stock market falls sharply Tuesday. Earnings flow will continue. Bulls be conservative.

Stock Market Momentum

(Daily is based on a moving average)

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action - Tuesday

(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

Costar Group Inc. (CSGP) - 385.01, up 16.15 - Breakpoint 380.75

Net Tops Estimates, TTD Targets 450 

  CSGP, based in Washington, D.C., provides information, analytics and online marketplaces to the commercial real estate market. Annual revenues: $965 million. CSGP's stock moves higher Tuesday and breaks out from a six-week, cup-and-handle base.

  The move carries the stock to a new all-time high. That is bullish.

  TTD highlighted CSGP as a breakout at our midsession video show on the Web Tuesday.

  The breakout was triggered by CSGP coming in with better than expected earnings for the

  CSGP came in with first quarter net of $1.44 a share. That topped the consensus estimate of $1.37 a share.

  CSGP's stock spiked higher in the morning and cut through its breakpoint line.

  The stock reached an intraday high of $392.07 in the morning.

  The stock then trended mostly sideways the rest of the day. It held well against the stock market's sharp decline.    

  Tape Action

  CSGP's tape action shows the recent block trades.

  One can see the price for the blocks climbing from  $368.86 in the prior session to as high as $389.

  A key bullish trade came in the morning when a block of 1,776 shares (duplicated) crossed the tape at $380.26.

  That was up sharply from the prior block late on Monday at $368.86 on 9,542 shares.

 Business

CSGP provides its services  through its database of commercial real estate information covering the U.S., U.K. and parts of Canada, Spain, Germany and France.

The company provides online marketplaces for commercial real estate, apartment rentals, lands for sale and businesses for sale.

  Its suite of information, analytics and online marketplaces is branded and marketed to its customers.

  Its services are primarily derived from a database of building-specific information and offer customers specialized tools for accessing, analyzing and using its information.

It has five brands: CoStar, LoopNet, Apartments.com, BizBuySell and LandsofAmerica.

Charts

  CSGP's 12-month performance chart shows the stock appreciating 78% versus a 15% gain for the stock market.

  Insiders were recent buyers at $57 to $102 a share using stock options. They were sellers at $347 to $361 a share.

  CSGP's long-term chart shows the stock climbing from $47 in 2011 to a peak of $218.17 in early 2014.   The stock then pulled back and consolidated.

  It has now come on again as the stock has reached an all-time high. The stock is a leader.

  CSGP's daily chart shows the stock climbing from $300 in December to a peak near $380.

  The stock then put down a cup-and-handle base.

  The breakout Tuesday comes with a widening of the daily spread and expansion in volume.

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

   Earnings Outlook:

  This year, analysts are forecasting a 56% surge in net to $7.15 a share from the $4.59 a year before. There is a chance analysts will raise their estimates.

  The stock sells with a price-earnings ratio of 53. That is high. So, the stock is best for an aggressive investor.

  Looking out to 2019, the Street is predicting a 33% leap in net to $9.51 a share from the anticipated $7.15 this year.

  Net for the upcoming second quarter should rise 36% to $1.17 a share from the 86 cents the year before.

  TTD sees chances for another upside earnings surprise. The company topped the consensus estimate three out of the past four quarters

  Going out to the third quarter analysts predict a 50% jump in net to $2.12 a share from the $1.41 the year before.   

Strategy Opinion: TTD is targeting CSGP for a move to $450 off this breakout. A protective stop can be placed near $375.

Intermediate-Term Rating: Average.

Suitability: Aggressive Bulls.

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

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

Probability - Earnings Response - Bullish -  CSGP rose 5 times after the past 9 earnings reports when there was a significant change.

Probability:  Seasonal Success - Very Bullish. CSGP rose an average of 3.4% in April and 3.5% 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 - 17

Stocks Screened - 12,234

Long-Term Environment for bears:  Neutral.

Bear Side - Large list of shorts as stock market falls sharply. Bears can be venturesome.

TTD's short from Monday was ELF Beauty Inc. (ELF) at $17.32. Tuesday, ELF declined to $17.22 and is working well for bears.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Zai Lab Ltd. (ZLAB) - 18, down 2.70

Loss Projected for This Year, TTD Sees Decline to 14

  ZLAB, based in China, is a biotech firm working on treatments for cancer. Annual revenues: N/A. ZLAB's stock falls sharply Tuesday and undercuts key technical support with a big pick up in volume. TTD sees more on the downside.

  So far today, ZLAB is trading 202,935 shares, four times its average daily volume of 52,200 shares.

  TTD highlighted ZLAB as a short at our midsession video show on the Web Tuesday.

  ZLAB's stock fell sharply in the morning and undercut key technical support.

  The stock then lifted to around $19 and then trended sideways through most of the day. Then near the close ZLAB fell again to close near the low of the day.

  Tape Action

  ZLAB's tape action shows the recent block trades.

  One can see the price for the blocks falling from $20.79 in the prior session to as low as $18.50.

  A key bearish trade came in the morning when a block of 11,000 shares crossed the tape at $20.50.

  That was down from the prior block trade at $20.79 on 1,100 shares.

  Business

  ZLAB is developing therapeutics for the Chinese market.

 They cover oncology, autoimmune and infectious diseases.

  The company has a broad pipeline of proprietary drug candidates that range from discovery stage to late-stage clinical programs.

These include three drug candidates with greater China rights and three drug candidates with global rights.

 Earnings:

  This year, analysts are forecasting a loss of $1.02 a share. Going out to 2019, the Street is predicting a loss of $1.13 a share.   

Charts:   

  ZLAB's stock came public in 2017 at $24.25. The stock rose to an all-time high of $35.74 a few weeks later. Since then ZLAB has been trending lower. The breakdown Tuesday sends the stock to a new all-time low.

 ZLAB's performance chart shows the stock falling 34% versus a 12% gain for the stock market.    

Strategy Opinion: TTD is targeting ZLAB for a decline to $14 within the next few months, or sooner. A protective stop buy can be placed near $20.

Suitability: Aggressive Bears.

  TTD's special probability research of  Prior Performance:  

Probability - Earnings Response - Neutral.  Not available.

Probability:  Seasonal Activity - Extremely Bearish.  ZLAB declined an average of 15.7% in April.

   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.

 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.)