Ticker Tape Digest

Wednesday - May 1,  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 - May 1, 2019

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  13

Quality of Breakouts -  Average

Stocks Screened - 12,234

Bull side -  Large list of breakouts with some interesting plays.

Stock market  -  Market averages bullish in all time sectors.

Comment -  TTD sees the market going into a consolidation. Earnings will continue to have an important impact on the market averages.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats for Wednesday - TRK, GCI, PDFS, CRUS, COOP and H.

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

Strategic Education Inc. (STRA) - 158.56, up 15.21 - Breakpoint 147.50

Net Tops Estimates, TTD Targets 190 

     STRA, based in Herndon, Va., provides a variety of educational services. The firm was formerly known as Strayer Education, Inc.  Annual revenues: $634 million. STRA's stock drives higher Wednesday and breaks out from its 10-week flat base.

  The move carries the stock to a 7-year high.

  TTD highlighted STRA as a breakout at our midsession video show on the Web Wednesday. TTD sees more on the upside.

 So far today, STRA is trading a heavy 609,698 shares, about six times its average daily volume of 110,000 shares.

  The breakout was triggered when STRA reported net for the first quarter of $1.66 a share topping the consensus estimate of $1.43 a share. It also topped the highest estimate at $1.48 a share. When a company can do that, the stock often does well.

  STRA's stock gapped higher in the morning to clear its breakpoint line.

  The stock reached an intraday peak at $159.24. It trended sideways through the afternoon not giving ground.

   Tape Action

  STRA's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $143.35 in the prior session to as high as  $158.56

  A key bullish trade came in the morning when a block of 50,000 shares crossed the tape at $150.75.

  That was up from the prior block at $143.35 on 43,900 shares in the prior session.

  Near the close a massive block of 69,217 shares (duplicated) crossed the tape at $158.56.

 That was up from the prior block at $156.50 on 5,000 shares.

  Business

  STRA  provides post-secondary education and other academic programs. It operates through Strayer University, New York Code and Design Academy and Capella Education Co.

  STRA provides programs in business, accounting, information technology, education, nursing, public administration and criminal justice at 74 campuses in the Mid-Atlantic and Southern U.S. and online.

  The University also offers an executive Master of Business Administration (MBA) online through its Jack Welch Management Institute.

  Charts

  STRA's 12-month performance chart shows the stock appreciating 50% versus a 10% gain for the stock market.

  Insiders were recent buyers using stock options at $51.95 a share recently. They were sellers at $101 to $138 a share.

  STRA's long-term chart shows the stock falling from around $160 back in 2011 to $33 by 2013.

 However, since then the stock put down a bottom and has since been working higher. Since 2016, it has climbed from $50 a share to $158.

  STRA's daily chart shows the stock rising from $110 back in February to a peak near $144 by March.

  The stock put down a tight flat base and Wednesday gaps out of the base with heavy volume.

  That is a very powerful breakout.

  STRA's CCI momentum indicator (bottom of chart) is strongly bullish.

  Earnings Outlook

  This year, analysts have been  forecasting a 27% jump in net to $6.04 a share from the $4.75 the year before.

  That Street estimate could be boosted after the strong first quarter.

  The stock sells with a price-earnings ratio of 26. TTD sees that as reasonable.

  Going out to 2020, the Street is predicting a 17% jump in net to $7.09 a share from the anticipated $6.04 this year.

  Quarterly earnings will be strong and show an acceleration in growth. That is bullish.

  Profits for the second quarter should surge 56% an acceleration in growth from the first quarter's 35% gain. The Street is predicting $1.36 a share up from  87 cents the year before.

Strategy Opinion: TTD is targeting STRA for a move to $190 within the next few months, or sooner.  

 A protective stop can be placed $146.

Intermediate-Term Rating: Above Average.

Suitability:   Average Bulls.

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

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

Probability - Earnings Response - Extremely Bullish. - STRA rose 5 times after the past 6 earnings reports when there was a significant change in price.

Probability:  Seasonal Success - Slightly Bullish.  STRA has averaged a decline of 0.8% in May but a gain of 1.3% 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 -  6

Stocks Screened - 12,234

Long-Term Environment for bears:  Unfavorable.

Bear Side -  Small list of breakdown stocks Wednesday. Many shorts hit by weak earnings.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Pitney Bowes Inc. (PBI) - 5.37

Profits Falls Sharply, TTD Sees Drop to 3.90

  PBI, based in Stamford, Con., provides produce solution services for shipping and mailing. Annual revenues: $3.5 billion. PBI's stock falls sharply Wednesday and undercuts key technical support.  

 TTD sees more on the downside.

  So far today, PBI is trading 15.3 million shares, seven times its average daily volume of 2.4 million shares.

  PBI reported net for the first quarter of 12 cents a share. That was below the Street estimate of 21 cents a share.

  PBI responded by falling sharply in the morning and undercut key technical support.

  The stock touched an intraday low of $5.28 late in the session. The stock closed near its low for the day. That is bearish.

  Tape Action

  PBI's tape action shows the recent block trades.

  One can see the price for the blocks falling from $7.11 in the prior session to as low as $5.32 Wednesday.

  A key bearish trade came late on Tuesday when a block of 539,743 shares (duplicated) crossed the tape at $7.11. That was down from the prior block at $7.115 on 26,500 shares.

  Then near the close a block of 826,228 shares (duplicated) crossed at $5.37 a share.

  That was down from the prior block at $5.39 on 35,000 shares.

  Business

  PBI offers customer information management to help clients market to their customers and mail and use e-commerce.

  The company's segments include small business Solutions and digital commerce solutions.

 Earnings:

  This year, analysts are forecasting a 2% decline in net to $1.14 a share from the $1.16 the year before.

  Net for the upcoming second quarter should fall 8% to 24 cents a share from the 26 cents the year before.  

Charts:  

  PBI's daily chart shows the stock gapping lower and cutting below support with big volume.

  PBI's 12-month performance chart shows the stock down 42% versus a gain of 11% for the stock market.   

Strategy Opinion: TTD is targeting PBI for a decline to $3.90 within the next few months or sooner. A protective stop buy can be placed near $5.80.

Suitability:   Aggressive Bears.

  TTD's probability research of Prior Performance:  

Probability - Earnings Response -  Extremely Bearish.  -  PBI rose 3 times after the past 11 earnings reports when there was a significant change in price.

Probability:  Seasonal Activity - Very Bearish. -  PBI averaged a decline of 6.8% in May and a decline of 2.8% in June the past several years.

   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

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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.)