Ticker Tape Digest

Professional Report”

Wednesday - April 24,  2019

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.

Wednesday - April 24, 2019

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  8

Quality of Breakouts -  Average

Stocks Screened - 12,234

Bull side -   Very selective list of breakouts but some interesting plays for aggressive bulls.

Stock market  -  Market averages remain bullish in all time sectors.

Comment -  Market may remain a bit volatile with earnings coming in the next few weeks.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Earnings beats for Wednesday -  None.

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

North American Construction  (NOA) - 13.36, up 0.38 - Breakpoint 13.04

Net To Soar 176% This Year, TTD Targets 17 

    NOA, based in Acheson, Canada, produces mining and heavy construction services for the industrial construction sectors within Western Canada. Annual revenues: $410 million. NOA's stock moves higher Wednesday and breaks out  from its 9-week flat base.

 The move carries the stock to a seven-year high.

  TTD sees more on the upside. TTD highlighted NOA as an accumulation play last Wednesday.

  So far today, NOA is trading 123,325 shares. Its average daily volume is 103,000 shares. 

  NOA's stock moved higher in the morning and cleared its breakpoint line.

  The stock got to around $13.30 and then trended sideways through midday.

 Then late in the session it pushed higher to closer near its high for the day. That is bullish.

    Tape Action

 NOA's tape action shows the recent block trades.

 One can see the price for the blocks climbing from $12.94 in the morning to as high as $13.27.

 A key bullish trade came in the morning when a block of 1,100 shares crossed the tape at $13.25.

  That was up sharply from the prior block at $12.94 on 1,930 shares .

  Business

  NOA's operating divisions include heavy construction and mining; industrial, and environmental construction.

  Its heavy construction division is engaged in hard rock and oil sands mining and development and mine reclamation.

  Its industrial division offers services which include site development, installation of underground utilities and piping and concrete foundations.

 Charts

  NOA's 12-month performance chart shows the stock appreciating 125% versus a 12% gain for the stock market.

  Insiders have not been active recently.

  NOA's long-term chart shows the stock making a bottom at $1.39 in early 2016. The stock then rallied to $5.70 by early 2017.

  The stock then based and broke out in early 2018 at $5.75 and has since climbed to a multi-year high of $13.42..

  NOA's daily chart shows the stock climbing from $8 in December to a peak near $13 by March.

  The stock formed a flat base with one shakeout to the downside.

  It rallied to the top of the base and on Wednesday it breaks out.

  The stock's CCI momentum indicator is solidly bullish.   

   Earnings Outlook

  This year, analysts are forecasting a 176% surge in net to $1.16 a share from  the 42 cents the year before.

  The stock sells with a price-earnings ratio of 10. TTD sees that as attractive to growth investors.

  Looking out to 2020, the Street is predicting a 17% increase in net to $1.36 a share from the anticipated $1.16 this year.

  For the upcoming first quarter, analysts predict a 29% jump in net to 36 cents a share from the 28 cents the year before.

  Profits for the second quarter are expected to come in at 22 cents a share versus a breakeven the year before.  

Strategy Opinion:  TTD is targeting NOA  for a move to $17. A protective stop can be placed near $12.40.

Intermediate-Term Rating: Average.

Suitability:   Aggressive Bulls.

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

Probability - Breakout Success - Extremely Bullish - NOA scored some big gains off some of its recent breakouts.

Probability - Earnings Response - Bullish -  NOA rose 6 times after the past 8 earnings reports when there was a significant change in price.

Probability:  Seasonal Success - Slightly Bullish -  NOA averaged a gain of 9.9% in May, but a loss of 5.9% in June 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 -  7

Stocks Screened - 12,234

Long-Term Environment for bears:  Unfavorable.

Bear Side -  Small list of breakdown stocks again today, but some interesting bear plays.  

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Livent Corp. (LTHM) - 10.83

Stock Cuts Below Support, TTD Sees Drop to 8

  LTHM, based in Philadelphia, produces lithium and batteries. Annual revenues: $443 million. LTHM's stock falls sharply Wednesday and undercuts key technical support.

  TTD sees more on the downside.

  TTD highlighted LTHM as a short at our midsession video show on the Web Wednesday.

  So far today LTHM is trading a heavy 3.1 million shares. Its average daily volume is 2.3 million shares.

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

  By midday, LTHM was down to $11. It then continued lower and finished near its low for the session.

  In after-hours trading Wednesday the stock was down to $10.75.

   Tape Action

  LTHM's tape action shows the recent block trades.

  One can see the price for the blocks falling from $11.61 in the morning to as low as $10.81 late in the day.

 A key bearish trade came in the morning when a block of 100,000 shares (duplicated) crossed the tape at $11.08.

  That was down from the prior block at $11.12 on 12,000 shares.

   Business

  LTHM makes lithium compounds.  Its primary products include battery-grade lithium hydroxide, butyllithium and high purity lithium metal.

 The company  produces lithium compounds for use in applications that have specific performance requirements, including battery-grade lithium hydroxide for use in high performance lithium-ion batteries.

 Earnings:

  This year, analysts are forecasting a 3% increase in net to 94 cents a share from the 91 cents the year before.

  For the first quarter, they expect a profit of 12 cents a share. There was no comparison from a year before.

  Net for the second quarter is projected at 24 cents a share. Four analysts follow the stock.

Charts:  

  LTHM's daily shows the stock declining from near $20 back in November to around 12. The stock trended sideways for several months. However, today, it cuts below key technical support touching an all-time low.

  LTHM came public last October at $16.25.

  LTHM's 12-month performance chart shows the stock down 35%.

Strategy Opinion: TTD is targeting LTHM for a decline to $8 within the next few months, or sooner. A protective stop buy can be placed near $11.50.

Suitability:   Aggressive Bears.

  TTD's probability research of Prior Performance:  

Probability - Earnings Response - Neutral - LTHM rose one times after the past two earnings reports when there was a significant change in price.

Probability:  Seasonal Activity  - Neutral. LTHM did not traded in the current season last year.

   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. - 2019

    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 or 480-704-3331

   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.)