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 - 12
Overall Quality of Breakouts - AVERAGE
Stocks Screened - 8,300
Bull side - Breakout list large with some good looking plays. Market very selective now as it is in a trading range. Earnings continue to impact stock performance.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
Stock Market Momentum
Market (Daily) - NYSE Bullish, Nasdaq Bullish
Market (Weekly) - NYSE Bullish, Nasdaq Bullish
Market (Monthly) - NYSE Bullish, Nasdaq Bullish
Ticker Tape Digest's
TTD's Quality Rating of Stock - PAYC - ABOVE AVERAGE
PAYC, based in Oklahoma City, is a provider of a cloud-based management software. Annual revenues: $151 million. PAYC, a small cap growth play, breaks out today from a 13-week flat base. The stock drive higher was triggered by favorable earnings for the first quarter. So far today, PAYC is trading a heavy 2.1 million shares, seven times its average daily volume of 277,000 shares.
TTD highlighted PAYC Wednesday when the company reported net for the first quarter of 11 cents a share, up from two cents a year ago.
The 11 cents topped the consensus estimate on the Street of 8 cents a share. The stock pushed higher in after-hours trading on Wednesday. (See 10-minute chart)
Thursday morning the stock fell back a bit. then it came on again late in the day with intraday volume picking up.
PAYC's tape action for Thursday shows the recent block trades.
One can see the price for the blocks climbing from $31.20 a few session ago to as high as $34 on Thursday morning.
A key bullish trade came Thursday morning when a block of 25,000 shares crossed the tape at $33.50.
That was up from the prior block trade at $31.20 on 29,600 shares on May 1.
PAYC provides a cloud-based human capital management software solution delivered as Software-as-a-Service.
It provides data analytics that businesses used to manage an employment life cycle from recruitment to retirement.
The system offers a suite of applications in the areas of talent acquisition, time and labor management, and payroll.
PAYC's system also provides talent management applications.
PAYC's 12-month performance chart shows the stock appreciating a sensational 130% versus a 13% gain for the S&P 500 index.
There was some heavy insider selling in the first quarter (see red bars on chart).
PAYC's long-term chart shows the stock coming public in 2014 and trading at $17. The stock fell back to 12 later in the year.
However, since then it has been trending aggressively higher having made almost three-fold move. Its all-time high is $35.86.
PAYC's daily chart shows the stock advancing from 25 back in January to a peak near 35 by February.
The stock then trended sideways with resistance around 35.
The breakout Thursday just clears resistance with good volume.
It will be important for PAYC to show follow through action.
PAYC's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) has spiked higher and shows a strong impulse of buying.
PAYC is poised to show strong earnings this year and next.
TTD sees that as the key fundamental driver to send the stock higher.
This year, analysts are forecasting a 57% jump in net to 28 cents a share from 18 cents a year ago.
The stock sells with a price-earnings ratio of 114. That is high. So, PAYC is most suitable for aggressive investors.
The strong earnings for the first quarter could cause analysts to raise their forecast.
Looking out to 2016, the Street projects a 37% jump in net to 39 cents a share from the anticipated 28 cents this year.
Going out to the second quarter, net should be up 50% to 6 cents a share from 4 cents the year before.
Then for the third quarter, analysts look for a 20% gain in net to 6 cents a share from 5 cents a year ago.
Strategy Opinion: TTD is targeting PAYC for a move to 44. A protective stop can be placed near 32.
TTD rates PAYC a good intermediate-term play provided earnings meet expectations.
Sponsorship: Excellent. The largest fund buyer recently was the 5-star rated Lord Abbett Developing Growth Fund which purchased 601,121 shares.. It has a 1.6%% stake.
The largest fund holder is the 4-star rated Wells Fargo Advantage Growth Fund with a 2.9% stake. It was a recent seller of 74,000 shares.
PAYC has 58.4 million shares outstanding. Institutions hold just 9% of the stock. Insiders have 90%.
Insider Activity: Bullish. Insiders were light buyers at $32.08 this month. The latest selling was at $22 earlier this year.
Currently, no analysts follow PAYC. The company has a book value of $1.38.
Stock Performance Chart with Quarterly Earnings Markers.
|TTD's Breakout Profile
Paycom Software Inc. - (PAYC)
|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 - CBPX - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - LQ - ABOVE AVERAGE|
|TTD's Quality Rating of Stock - RGEN - AVERAGE|
|TTD's Quality Rating of Stock - BWC - 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 - 20-max
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Large list of shorts even as stock market advances. Many stock getting knocked down because of disappointing quarterly results. Bears be venturesome. TTD's short from Wednesday was Fossil Group Inc. (FOSL) at 80.44. Thursday, the stock declined to 79.65 and is working well for bears.
TROX, based in Stamford, Ct., produces titanium bearing mineral sands and titanium dioxide pigment. Annual revenues: $1.7 billion. TROX's stock breaks down today setting off a TTD short play. So fart today, TROX is trading a heavy 1.3 million shares, five times its average daily volume of 335,000 shares. TTD sees more on the downside.
TTD highlighted TROX as a short at our midsession video show on the Web.
TROX's decline was due to the company reported a loss for the first quarter of 42 cents a share compared with a loss of 51 cents a year before.
The loss was wider than the Street expected.
TROX's stock gapped lower in the morning. It fell to an intraday low of 18.95 in the early afternoon.
The stock then lifted slightly in the late afternoon.
TROX's tape action shows the recent block trades.
One can see the price for the blocks falling from $20.64 in the prior session to as low as $19.25.
A key bearish trade came in the morning when a block of 5,606 shares crossed the tape at $19.86.
That was down from the prior block at $20.64 on 5,460 shares.
TROX produces titanium mineral sands and titanium dioxide pigment in North America, Europe, South Africa, and the Asia-Pacific region. It primarily operates in two segments, Mineral Sands and Pigment.
The mineral sands segment mines mineral sands deposits. This segment produces titanium feedstock, including chloride slag, ilmenite, leucoxene, titanium slag, slag fines, synthetic rutile, and rutile.
The pigment segment produces TiO2 used to make paint and coatings, and plastics and paper.
This year, analysts have been forecasting a loss of 63 cents a share compared with a loss of 66 cents a year ago. The 2015 loss may be lifted due to the weak first quarter.
TROX's daily chart shows the stock cutting below key technical support with expanding volume. The stock's TTD momentum indicator (top of chart) has turned bearish.
Strategy Opinion: TTD is targeting TROX for a decline to 15 within the next few months, or sooner. A protective stop buy can be placed near 21.
|TTD's Quality Rating of Stock - TROX - 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.”
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(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.)