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 email@example.com.For service, email Beverly Owen firstname.lastname@example.org. TTD’s Tel: 1-480-926-1680.
Total Buy Breakouts so far today - 5
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list small and very selective. Bulls be conservative. Stock market remains in pull back mode after recent rally.
(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 - FN - ABOVE AVERAGE
FN, based in George Town, Ky., makes electronic and optical products used in a variety items. Annual revenues: $845 million. FN's stock break out Tuesday from a six-week flat base after reporting better than expected earnings.
So far today, FN is trading 1.4 million shares, four times its average daily volume of 299,000 shares.
FN reported net for the fiscal third quarter of 56 cents a share. That topped the consensus estimate of 53 cents a share.
The stock responded by surging higher in the morning and clearings its breakpoint line.
FN reached an intraday high 36.75 in the morning.
The stock then trended mostly through the rest of the day.
The stock's tape action shows the recent block trades.
One can see the price for the blocks climbing from $32.20 in the prior session to as high as 36.50.
A key bullish trade came in the morning when a block of 33,575 shares crossed the tape at $35.
That was up sharply from the prior block trade at $32.29 on 22,304 shares.
Then near the close a bullish trade of 23,219 shares crossed at $36.01.
That was up from the prior block trade at $35.89 on 25,000 shares.
FN provides packaging and precision optical, electro-mechanical, and electronic manufacturing services to makers of optical communication components, industrial lasers, medical devices, and sensors.
The company's products include switching products like reconfigurable optical add-drop multiplexers, optical amplifiers, modulators, and other optical components and modules that enable network managers to route voice, video, and data communications traffic through fiber optic cables.
FN's 12-month performance chart shows the stock appreciating a sensational 90% versus a 2% decline in the stock market.
The stock has moved sharply higher after the past two earnings report. (see performance chart)
FN's long-term chart shows the stock coming public in 2010 at $10.75. The stock surged to a peak of $32.91 by early 2011.
However, the stock faded back to around 10 by 2012. Since then, FB has been working higher and Tuesday hits a new all-time high. That could bring in more buying from the new-high crowd Wednesday.
FN's daily chart shows the stock advancing from 20 earlier this year to a peak near 33.
The stock then put down a tight flat base above its rising 50-day moving average line.
The gap breakout comes with strong volume. That is bullish.
FN's CCI momentum indicator is strongly bullish.
The accumulation - distribution line (bottom of chart) is in a solid up trend showing good underlying buying.
This fiscal year ending in June analysts are forecasting a 42% jump in net to $1.91 a share from $1.34 a year ago.
The stock sells with a price-earnings ratio of 18. TTD sees that as attractive for value-growth investors.
Looking out to fiscal 2017 ending in June, the Street is predicting a 25% gain in net to $2.39 a share from the anticipated $1.91 this fiscal year.
The next two quarters should be exceptionally strong.
Net for the fiscal fourth quarter ending in June is expected to surge 63% to 56 cents a share from 34 cents a year before.
The highest estimate for the quarter is at 58 cents a share. TTD sees chances for an upside earnings surprise.
Going out to the fiscal first quarter of 2017 ending in September, analysts look for a 51% leap in net to 57 cents a share from 38 cents the year before.
Strategy Opinion: TTD is targeting FN for a move to 43 off this breakout. A protective stop can be placed near 33 giving it room.
TTD rates FN a very good intermediate-term play provided earnings meet expectations.
Sponsorship: Good. The largest fund buyer recently was the 3-star rated Columbia Small Cap Value Fund II A which purchased 241,000 shares as a new position. The fund has a 0.7% stake.
The largest fund holder is the 4-star rated Fidelity Mid-Cap Stock Fund with a 3.2% stake. It has kept its position steady.
FN has 35.9 million shares outstanding. Institutions hold 79% of the stock and insiders have 14%.
Currently, 6 analysts follow the stock and all 6 have a buy, the same as three months ago.
Insider Activity: Slightly Bearish. Insiders were recent buyers using stock options at $14 to $16 a share. They were sellers a $28 to $30.
FN has a book value of $14.11 a share.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Fabrinet - (FN)
|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 - TECH - AVERAGE|
|TTD's Quality Rating of Stock - HMN - AVERAGE|
|TTD's Quality Rating of Stock - OTTR - AVERAGE|
|TTD's Quality Rating of Stock - ROG - BELOW 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 - 9
Stocks Screened - 8,300
Long-Term Environment for bears: Neutral.
Bear Side - Small list of breakdown stocks Tuesday. Some interesting plays for aggressive bears. Stock market in near-term down trend. TTD's short from Monday was Haemonetics Corp. (HAE) at 27.65. Tuesday, it declined to $27.55.
WDR, based in Overland Park, Kans., is an investment management firm. Annual revenues: $1.5 billion. WDR's stock falls sharply Tuesday after reporting disappointing earnings for the quarter. So far today, WDR is trading 2.4 million shares. Its average daily volume is 1.7 million shares.
TTD highlighted WDR as a short at our midsession video show on the Web Tuesday.
WDR's stock fell sharply in the morning and touched a low at $19.02.
The stock then rallied to around $19.80 by early afternoon. The stock then trended sideways into the final bell.
WDR's tape action shows the recent block trades.
One can see the price for the blocks falling from $20.33 in the prior session to as low as $19.28 Tuesday.
A key bearish trade came late on Monday when a block of 154,052 shares crossed the tape at $20.25. That was down from the prior block trade at $20.33 on 10,000 shares.
WDR reported earnings for the fiscal first quarter ended March of 45 cents a share. That was well below the 55 cents a share expected by the Street.
This year, analysts are forecasting a 39% drop in earnings this year.
WDR provides investment management, underwriting and distribution, and shareholder services administration to mutual funds.
WDR's daily chart shows the stock trending lower from 36 down to 20 by February. The stock then trended sideways for the next few months. However, Tuesday, WDR cuts below key technical support.
Strategy Opinion: TTD is targeting WDR for a decline to 15.20 within the next few months, or sooner. A protective stop buy can be placed near 20.50.
|TTD's Quality Rating of Stock - WDR - 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 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. 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.)