Ticker Tape Digest

Wednesday - May 6, 2020

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: 1-480-878-8381 or 480-704-3331.

Wednesday - May 6, 2020

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts   -  6

Quality of Breakouts -  Below Average.

Stocks Screened - 12,234

Bull side -  Small list of breakouts and extremely selective. Bulls be conservative.

Stock market  -  Major daily averages remain bullish and also the Nasdaq weekly and monthly.

Comment -  Stock market consolidating. It will be important to watch the market reaction as businesses open up soon.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats -  CARS, DLPH, ODP, HZNP and NREF.

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

Horizon Therapeutics plc. (HZNP) - 42.60, up 5.22 - Breakpoint 39

Net Tops Estimates, TTD Targets 50

  HZNP, based in Dublin, formerly Horizon Pharma plc, is a rare disease biotech development firm. Annual revenues: $1.3 billion. HZNP's stock drives higher Wednesday and breaks out from its 4-month, cup-and-handle base.

  So far today,HZNP is trading a heavy 11.5 million shares, five times its average daily volume of 1.9 million shares.

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

  HZNP reported net for the first quarter of 40 cents a share. That topped the consensus estimate at 21 cents a share and also the highest estimate at 34 cents a share.

  When a company tops the highest estimate - in this case from six analysts - it is very bullish.

  HZNP's stock shot higher in the morning to cleared its breakpoint line. The stock reached an intraday high of $43.90 in the afternoon.

  It pulled back slightly and trended sideways into the close.

    Tape Action

  HZNP's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $37.38 in the prior session to as high as $43.60 by midday.

   A key bullish block came in the morning when a block of 142,711 shares (duplicated) crossed the tape at $41.19.

  That was up sharply from the prior block a $37.38 on 50,600 shares the day before.

  Business

 HZNP develops medicines for people impacted by rare and rheumatic diseases.

The company markets approximately 10 medicines, of which 6 are for rare and rheumatic diseases.

The Company's marketed medicines include Actimmune,
Buphenyl tablets and Powder, DUEXIS (ibuprofen/famotidine), KRYSTEXXA (pegloticase) and Pennsaid.  

  Charts

  HZNP's 12-month performance chart shows the stock up 52% versus a breakeven for the stock market.

 HZNP insiders were recent buyers in May using stock options. The price was not disclosed.

  They were buyers in March at $12.94 a share. They were recent sellers at $28 to $35 a share.

  HZNP's long-term chart shows the stock surging from $2.11 back in 2013 to a peak at $39.49 in 2015.

  The stock then fell back to the teens and trended sideways. Then in 2019 it broke out and has since soared to $42.

  HZNP's daily chart shows the stock peaking at $39 in January.

  The stock fell back to $24 in March as the stock market fell.

  The stock has since rallied and now breaks out from a cup-and-handle bas.

  The move comes with a gap and strong volume. That is bullish.

  HZNP's CCI momentum indicator is strongly bullish.

  Earnings Outlook

  This year, analysts were forecasting a decline in net. However, with the earnings beat and strong revenues it will be boosted.

  The Street was looking for $1.68 a share, down from $1.94. However, the estimates could be boosted to $2 a share or more.

  The company boosted its Tepezza sales guidance to $200 million this year from a previous $40 million.

  Net for 2021 is expected to jump 41%.

  For the upcoming second quarter analysts have been forecasting 35 cents a share down from 49 cents the prior year. The highest estimate is at 46 cents a share.

Strategy Opinion:  TTD is targeting HZNP for a move to $50 within the next few months, or sooner. It could do even better if they boost earnings projections.

A protective stop can be placed near $40.   

Intermediate-Term Rating: Average.

Suitability:   Aggressive Bulls.

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

           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 Price Performance after Reporting Earnings

 Stock's Performance Chart with Quarterly Earnings Markers vs. S&P 500

Insider Buying in Green  -  Insider Selling in Red

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  - 7

Stocks Screened - 12,234

Long-Term Environment for bears: Unfavorable.

Bear Side -  Large list of shorts with some interesting plays based on weak earnings. Bears can be venturesome.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Lendingclub Corp. (LC) - 5.89

Loss Widens, TTD Sees Drop to 4.50

  LC, based in San Francisco, provides online marketplace to connect borrowers and investors. Annual revenues: $1 billion. LC's stock falls sharply Wednesday and undercuts key technical support.

  The drop was triggered by a wider than expected loss for the first quarter.

  TTD sees more on the downside.

  So far today, LC is trading a heavy 2.4 million shares, about double its average daily volume of $1.3 million shares.

  The company reported for the first quarter a loss of 44 cents a share, much more than the 6 cent a share loss expected by the Street.

  LC's stock fell sharply in the morning and undercut key support.

  It then drifted steadily lower the rest of the day and touched an intraday low of $5.60 in the late afternoon.

   Tape Action

  LC's tape action shows the recent block trades.

  One can see the price for the blocks falling from $6.69 in the prior session to as low as $5.83 in the late afternoon.

  A key bearish trade came in the morning when a block of 39,030 shares (duplicated) crossed at $6.50.

  That was down from the prior block the day before at $6.69 on 217,582 shares.

   Business

  LC provides loans to consumers and small business owners.

  LC's technology automates borrower applications, data gathering, credit decisioning and scoring, loan funding, investing and servicing, regulatory compliance and fraud detection.

 Its platform offers analytical tools and data to enable investors to make decisions and assess their portfolios.

  Earnings:

  This year, the Street was forecasting a profit of 9 cents a share compared with 2 cents the prior year.

  However, with the big loss in the first quarter, results could be much less. Four analysts follow the stock. There is an estimate as low as a loss of 53 cents a share for the year.

  For the second quarter a loss of one cent a share is expected, the same loss as the year before.

Charts:  

  LC's daily chart shows the stock trending lower and then trying to form a bottom. However, the breakdown comes with big volume and is very bearish.

  LC's 12-month performance chart shows the stock down 60%.

Strategy Opinion: TTD  is targeting LC for a decline to $4.50. A protective stop buy can be placed near $6.20.

Suitability:  Aggressive Bears.

  TTD's Stock Probability research of Prior Performance:  

   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. - 2020

    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.

   Distributed by Corona Publishing Enterprises. TickerTape Digest Inc. 1220 W. Sherri, Gilbert, Az. 85233.

  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.)