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 firstname.lastname@example.org.For service, email Beverly Owen email@example.com. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 10
Overall Quality of Breakouts - BELOW AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list extremely selective. Earnings impacting a lot of stocks. Bulls be conservative. Stock market pulling back.
(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 Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - MSTR - ABOVE AVERAGE
MSTR, based in Tysons Corner, Va., makes software used with mobile products and for security. Annual revenues: $580. MSTR's stock surge higher Wednesday and breaks out from a 12-week flat base. The move carries the stock to a multi-year. The push higher was sparked by strong earnings.
TTD highlighted MSTR as a breakout at our midsession video show on the Web Wednesday.
So far today, MSTR is trading a heavy 510,256 shares, eight times its average daily volume of 67,000 shares.
MSTR's 10-minute chart shows the stock spiking higher in the morning and hitting an intraday peak of 197.89.
The stock then backed off and drifted back toward its breakpoint line. It then lifted a bit in the final hour.
MSTR's breakout was triggered when the company reported first quarter earnings jumped to $1.79 a share from a loss of 57 cents a share a year ago.
The $1.79 topped the consensus estimate on the Street of $1.08 a share.
It was the second quarter in a row that MSTR beat the Street big time.
MSTR's tape action shows the recent block trades.
One can see the price for the blocks climbing from $169.70 in the prior session to as high as $195.
A key bullish block crossed in the morning when 1,899 shares traded at $180 (duplicated)
That topped the prior block trade at $169.70 on 2,252 shares.
MSTR is a provider of business intelligence software.
The company develops enterprise-ready analytics, mobile, and security software platforms worldwide.
It offers MicroStrategy Analytics Platform that delivers reports and dashboards, and enables users to conduct analysis and share insights through mobile devices or the Web.
The company also provides MicroStrategy Mobile that enable firms to build applications that deliver analytics combined with transactions, multimedia, and custom workflows to mobile devices.
MSTR's 12-month performance chart shows the stock appreciating 60% versus a 16% gain for the S&P 500 index.
The stock has tended to move higher after the past several earnings reports.
MSTR's long-term chart shows the stock climbing from 43 back in 2005 to a peak at 133 by early 2007, the top in the prior bull market.
MSTR then fell back to 30 in 2008. However, afterwards the stock advanced strongly to 178 by 2011. It then pulled back to 83 in 2012, but once again turned high and now has reached a multi-year high. The stock did go through a reverse 1-for-10 split back in 2002.
MSTR's daily chart shows the stock rising from 126 back in September to a peak near 181 by February.
The stock then formed a flat base that took three months to evolve.
The breakout Wednesday is impressive coming with a widening of the daily spread and big surge in volume.
The stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart is in a steady up trend and shows good buying in MSTR while it was basing.
This year, analysts are forecasting a 241% surge in MSTR's profits to $5.94 a share from $1.74 a year ago.
The stock sells with a price-earnings ratio of 31.
Going out to 2016, the Street looks for a 19% rise in net to $7.09 a share from the anticipated $5.94 this year.
Net for the upcoming second quarter should jump to $1.36 a share from a loss of 91 cents a year ago.
Then going out to the third quarter, analysts expect a profit of $1.58 a share compared with a loss of 7 cents the year before.
Strategy Opinion: TTD is targeting MSTR for a move to 222 off this breakout. A protective stop can be placed near 179.
TTD rates MSTR a good intermediate-term play provided earnings meet expectations.
Sponsorship: Average. The largest fund buyer recently was the 2-star rated RS Partners A Fund which picked up 144,095 shares as a new position. It has a 1.3% stake.
One of the largest fund holders is the 3-star rated CREF Stock Fund with a 1.4% stake.
MSTR has 9.3 million shares outstanding. Institutions hold 72% of the stock and insiders 22%.
Insider Activity: Neutral. No activity lately.
Currently, 4 analysts follow the stock, 3 have a buy, the same as three months ago. MSTR has a book value of $28.69.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Microstrategy Inc. - (MSTR)
|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 - LOGM - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - CRI - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - VRSK - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - TSS - 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 - 13
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Large list of shorts Wednesday as stock market falls broadly. Earnings report impacting stocks. Bears can be venturesome. TTD's short from Tuesday was Coach Inc. (COH) at 39.50. Today, COH drops to 38.51 and is working well for bears.
WYNN, based in Las Vegas, operates hotel casinos in Las Vegas and in Macau, which is near Hong Kong. Annual revenues: $5.4 billion. WYNN's stock falls sharply Wednesday after the company reported disappointing earnings for the first quarter. TTD sees more on the downside.
So far today, WYNN is trading a heavy 15.7 million shares, seven times its average daily volume of 1.9 million shares.
TTD highlighted WYNN as a short at our midsession video show on the Web Wednesday.
The company reported a loss for the first quarter of 44 cents a share compared with a profit of $2.22 a share a year ago.
Revenues declined 28% with a big hit coming from Macau. An anti-graft move in China has curbed spending by gamblers. The company also cut its quarterly dividend to 50 cents a share from $2.
WYNN's stock fell sharply in the morning and hit an intraday low of 108.27. The stock then trended sideways the rest of the day unable to lift.
WYNN's tape action shows the recent block trades.
One can see a bearish block coming in the morning when 83,809 shares (duplicated) crossed the tape at $116.20.
That was down sharply from the prior block trade at$130.48 on 337,743 shares (duplicated).
WYNN owns the Wynn Las Vegas and Encore. It is designed the Le Reve in Las Vegas. It also operates the Wynn Macau resort in China.
This year, analysts have been forecasting a 23% decline in WYNN's earnings to $5.82 a share from $7.58 last year. Net for the upcoming second quarter is expected to fall 25%.
WYNN's daily chart shows the stock gapping lower on big volume. The stock's accumulation - distribution line (bottom of chart) is in a down trend showing heavy selling pressure.
Strategy Opinion: TTD is targeting WYNN for a drop to 90 within the next few months or sooner. A protective stop buy can be placed near 115.
|TTD's Quality Rating of Stock - WYNN - 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.)