Daily - Go to TTD's Chart scroller of Breakout and Leading Stocks - Tuesday, April 26, 2016 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, April 25, 2016 |
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 - 13
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list large with some good looking plays. Bulls be selective. Stock market consolidating recent gains.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Neutral
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 - ETH - ABOVE AVERAGE |
ETH, based in Danbury, Ct., makes and sells furniture worldwide. Annual revenues: $765 million. ETH's stock breaks out from a seven-week flat base Tuesday. The move carries the stock to a seven-year. The breakout was triggered by favorable quarterly earnings.
TTD highlighted ETH as a breakout at our midsession video show on the Web Tuesday.
So far today, ETH is trading a heavy 765,738 shares, five times its average daily volume of 159,000 shares.
ETH's stock drove higher in the morning off the favorable earnings news.
The company reported net for the fiscal third quarter ended in March climbed to 34 cents a share from 18 cents a year ago.
The 34 cents topped the consensus estimate on the Street of 31 cents a share.
The stock reached an intraday peak of $35.31 around noon. The stock then backed off and slipped to 33.47 in the afternoon.
However, it came on again in the afternoon.
ETH's tape action shows the recent block trades.
One can see the price for the blocks climbing from $31 in the prior session to as high as $34.42.
A key bullish trade came in the morning when a block of 4,500 shares crossed the tape at $32.75.
That was up from the prior block trade at $31.
Near the close, a block of 16,484 shares crossed the tape at $34.42.
That actually came on an up tick from the prior trade at $34.40 on 100 shares.
ETH produces beds, dressers, armoires, tables, chairs, buffets, entertainment units, home office furniture, and wooden accents.
It also makes upholstery items comprising sleepers, recliners, chairs, ottomans, custom pillows, sofas, loveseats, cut fabrics, and leather.
The company markets its products under the Ethan Allen brand through home furnishing retail networks and independent firms.
ETH's 12-month performance chart shows the stock appreciating 39% versus a 2% decline for the stock market.
One can see heavy insider buying in ETH in March prior to the earnings report. (Green Bars on Performance Chart)
ETH's long-term chart shows the stock trading at $45 back in 2006. The stock took a dive down to $6.98 by 2009 due to the bear market. Since then ETH has gradually been working higher, with pullbacks along the way.
ETH's daily chart shows the stock advancing from 22 earlier this year to around 31 by March.
The stock then put down a flat base.
The breakout Tuesday comes with a gap move and strong volume.
ETH's CCI momentum indicator (bottom of chart) is strongly bullish.
The accumulation - distribution line just complimented the price action.
This fiscal year ending in June net is projected to climb 28% to $1.81 a share from $1.41 a year ago.
The stock has a price-earnings ratio of 18. TTD sees that as okay for value-growth investors.
Going out to fiscal 2017 ending in June, analysts predict a 13% rise in net to $2.04 a share from the anticipated $1.81 this fiscal year.
Net for the upcoming fiscal fourth quarter ending in June is expected to climb 20% to 51 cents a share from 43 cents a year ago.
The highest estimate on the Street is at 55 cents a share. TTD sees chances for an upside earnings surprise.
Looking ahead to the fiscal first quarter ending in September, net is expected to rise 11% to 51 cents a share from 46 cents a year ago.
Strategy Opinion: TTD is targeting ETH for a move to 42 off this breakout.
A protective stop can be placed near 32.
TTD rates ETH an average intermediate-term play provided earnings meet expectations.
Sponsorship: Good. The largest fund buyer recently was the 4-star rated Royce Special Equity Inv. Fund which purchased 46,700 shares. It has a 1.5% stake.
The largest fund holder is the Fidelity Series Small Cap Opps Fund with a 4.7% stake. The 3-star rated fund has kept its position stable.
ETH has 27.8 million shares outstanding. Institutions hold 90% of the stock and insiders have 8%.
Insider Activity: Bullish. Insiders were recent buyers at $29 in March. They also bought at $22 using stock options.
Currently, 9 analysts follow the stock, 3 have a buy, up from 2 three months ago.
ETH has a book value of $13.67 a share.
Stock Performance Chart with Quarterly Earnings Markers.
TTD's Breakout Profile
Rating Ethan Allen Interiors Inc. - (ETH) |
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 | 13 | 0 | 1 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock -SHEN - ABOVE AVERAGE |
TTD's Quality Rating of Stock - SANM - AVERAGE |
TTD's Quality Rating of Stock - HEP - AVERAGE |
TTD's Quality Rating of Stock - IIVI - 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 - 3
Stocks Screened - 8,300
Long-Term Environment for bears: Neutral.
Bear Side - Small list of shorts as stock market is mixed. Bears be selective. TTD's short from Tuesday was Sohu.com Inc. (SOHU) at 46.11. Tuesday, it declined to 45.81 and is working well for bears.
HSII, based in Chicago, provides executive search and consulting services on a retained basis to businesses worldwide. Annual revenues: $531 million. HSII's stock falls sharply Tuesday after coming in with disappointing earnings. TTD sees more on the downside.
TTD highlighted HSII as a short at our midsession video show on the Web Tuesday.
So far today, HSII is trading a heavy 473,392 shares, four times its average daily volume of 91,000 shares.
HSII reported net for the first quarter of 18 cents a share That was below the 20 cents expected by the Street.
HSII's stock gapped lower in the morning and touched a low of $20.56.
The stock then trended sideways the rest of the day unable to rally.
HSII's tape action shows the recent block trades.
One can see the price for the blocks falling from $23.92 in the prior session to as low as $20.57 Tuesday.
A key bearish trade came in the morning when a block of 2,747 shares (duplicated) crossed the tape at $22.36.
That was down sharply from the prior block trade at $23.92 on 4,248 shares.
HSII facilitates the recruitment, management, and deployment of senior executives. Its consulting services include leadership assessment; leadership, team, and board development succession planning; talent strategy and organizational ability.
This year, analysts were forecasting a 24% increase in net to $1.14 a share from 92 cents a year ago. That forecast should come down.
HSII's daily chart shows the gap drop Tuesday on big volume. The stock's accumulation - distribution line (bottom of chart) is extremely bearish.
Strategy Opinion: TTD is targeting HSII for a decline to 15.50 within the next few months. A protective stop buy can be placed near 22.
TTD's Quality Rating of Stock - HSII - 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.)