Ticker Tape Digest

Friday- May 4, 2018

TTD does not publish Monday. We resume Tuesday.

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.

Friday - May 4, 2018

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  18

Quality of Breakouts -  Average.

Stocks Screened - 12,234

Bull side -  Large list of breakouts Friday with earnings driving the stocks. Bulls can be venturesome.

Stock market  -   Bullish Daily market averages in play as stock market starts rally. The weekly Dow and S&P 500 remain bearish.

Stock Market Momentum

(Daily is based on a moving average)

Ticker Tape Digest's

Timely Breakout Stocks From Tape Action - Friday

(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 at breakpoint by using market order or stop buy)All Timely Breakout Stocks From Tape Action Today )  

Today's Featured TTD Breakout Stock

Idexx Labs Inc. (IDXX) - 212.20, up 4.39 - Breakpoint 206.81

Net Tops Estimates, TTD Targets 250 

  IDXX, based in Westbrook, Me., makes products animal veterinary, livestock and poultry, dairy and water testing markets. Annual revenues: $2 billion. IDXX's stock drives higher Friday and breaks out from its eight-week flat base.

  So far today, IDXX is trading a heavy 939,756 shares, more than double its average daily volume of 369,000 shares.

  IDXX's breakout was triggered by better than expected earnings for the first quarter.

  The company came in with first quarter net of $1.01 a share topping the consensus estimate on the Street of 92 cents a share.

  It also topped the highest estimate of 99 cents a share. That is very bullish.

  IDXX's stock moved higher in the morning and then traded just below its breakpoint line until midday.

  Then the stock pierced the breakpoint line and advanced through the afternoon to close near its high for the day.

  Tape Action

  IDXX's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $195.78 in the prior session to as high as $212.20.

  A key bullish trade came in the morning when a block of 6,783 shares (duplicated) crossed the tape $200.

  That was up from the prior block late on Thursday at $195.78 on 1,319 shares.   

  Then near the close a massive block of 33,524 shares (duplicated) crossed the tape at $212.20.

  That was up from the prior block at $211.78 on 1,300 shares.   

Business

IDXX sells a line of portable electrolytes and blood gas analyzers for the human point-of-care medical diagnostics market.

  Its segments include diagnostic and information technology-based products and services for the veterinary market.

 The company produces diagnostic products and services for livestock and poultry health.

Its products and services include point-of-care veterinary diagnostic products, comprising instruments, consumables and rapid assay test kits.

Charts

  IDXX's 12-month performance chart shows the stock appreciating 30% versus a 12% increase in the stock market.

  Insiders were recent buyers using stock options at $64 to $38 a share. There was some buys at $179.

  The insiders were recent sellers $174 to $190 a share recently.

  IDXX's long-term chart shows the stock climbing from $38.90 back in 2012 to $84.25 by 2015. The stock then went into a long-term base. It broke out in 2016 and has since aced to $212. The stock had a 2-for-1 stock split in 2015.   

  IDXX's daily chart shows the stock advancing from around $160 in December to a peak at $206 in March.

  The stock then pulled back and formed a cup-and-handle base.

  The breakout is powerful coming with a widening of the daily spread and expansion in volume.

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

  Earnings Outlook:

  This year, analysts are forecasting a 25% increase in net to $4.11 a share from the $3.28 the year before.

  The stock sells with a price-earnings ratio of 51. That is high. However, sees good chances for the earnings projection to be boosted by analysts.

  Looking out to 2019, the Street predicts an 18% increase in net to $4.86 a share from the anticipated $4.11 this year.

  Net for the upcoming second quarter is expected to climb 26% to $1.20 a share from the 95 cents the year before.   

Strategy Opinion: TTD is targeting IDXX for a move to $250 within the next few months, or sooner. A protective stop can be placed near $199.   

Intermediate-Term Rating: Average.

Suitability: Aggressive Bulls.    

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

Probability - Breakout Success - Extremely Bullish -  IDXX has score some big gains off its recent breakouts.

Probability - Earnings Response - Extremely Bullish -  IDXX rose 8 times after the past 9 earnings reports when there was a significant change.

Probability:  Seasonal Success - Bullish - IDXX rose an average of 4.6% in May and 0.1% 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 - 12

Stocks Screened - 12,234

Long-Term Environment for bears: Neutral

Bear Side - Large list of breakdown stocks Friday. Bears can be venturesome even though the stock market rose sharply Friday.

  TTD's short  from Thursday was Adient Plc (ADNT) at 55.84. It declined to $54.99 Friday and is working well for bears.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Nektar Therapeutics Inc. (NKTR) - 77.20, down 5.55

Loss Projected for this year and Next, TTD Sees Drop to 67

  NKTR, based in San Francisco, is a biotech working on treatments for cancer and other diseases. Annual revenues: $308 million. NKTR's stock falls sharply Friday and undercuts key technical support. TTD sees more on the downside.

  So far today, NKTR is trading a heavy 3.9 million shares, almost  double its average daily volume of 2.2 million shares.

  TTD highlighted NKTR as a short at our midsession video show on the Web Friday.

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

  The stock touched an intraday low around noon a $75.33.

  The stock then lifted to around $78 and trended sideways the rest of the day.

  The company will report results May 10.

  The Street is predicting a loss for the first quarter of 48 cents a share compared with a loss of 42 cents the year before.

  The company missed to the downside two out of the past four quarter.

  Tape Action

  NKTR's tape action shows the recent block trades.

  One can see the price for the blocks falling from $82.75 in the prior session to as low as $76.50 Friday afternoon.

  A key bearish trade came late on Thursday when a block of 49,155 shares (duplicated) crossed the tape at $82.75.

  That was down from the prior block trade at $82.80 on 12,300 shares.

  Business

  NKTR is working on treatments for cancer, auto-immune disease and chronic pain. It leverages its chemistry platform to discover and design new drug candidates.

These drug candidates utilize its polymer conjugate technology platforms, which are designed to enable the development of new molecular entities.

Earnings:

  This year, analysts are forecasting a loss of $1.48 a share compared with a loss of 55 cents the year before. Looking out to 2019, analysts predict a loss of $2.01 a share.   

Charts:   

  NKTR's daily chart shows the stock shows the stock breaking down from a head-and-shoulder topping pattern.

  NKTR's 12-month performance chart shows the stock up a sensational 310% versus a 12% gain for the stock market. However, the past month NKTR's performance has been trending lower.

Strategy Opinion: TTD is targeting NKTR for a decline to $67 within the next few months, or sooner. A protective stop buy can be placed near $80.

Suitability: Aggressive Bears.

  TTD's special probability research of  Prior Performance:  

Probability - Earnings Response - Neutral  NKTR rose just 3 times after the past 6 earnings reports when there was a significant change.

Probability:  Seasonal Activity - Bullish.   NKTR rose an average of 3.2% in May and 2.1% in June the past several years.

   Stock 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. - 2018

    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 1-480-926-1680.

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  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.)