Ticker Tape Digest

Thursday - May 9, 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.

Thursday - May 9, 2019

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  8

Quality of Breakouts -  Below Average

Stocks Screened - 12,234

Bull side -  Very selective list of breakouts Thursday. Bulls be conservative.

Stock market  -  Market averages are bearish in the daily zone. However, they are still holding in the weekly and monthly sectors.

Comment -  TTD sees the stock market in a consolidation after recent up swing. Bulls be patient and watchful.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats for Thursday - None.

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

Parker Drilling Co. (PKD) - 21.88, up 1.65 - Breakpoint 20.28

Net Tops Climb this Year and Next, TTD Targets 27

  PLD, based in Houston, provides drilling services and rental tools to the energy industry. Annual revenues: $481 million. PKD's stock drives higher Thursday and breaks out from its six-week flat base.

  So far today, PKD is trading a heavy 229,117 shares, five times its average daily volume of 39,000 shares.

  TTD highlighted PKD as a breakout at out midsession video show on the Web Thursday.

  The company has gone through restructuring. So, it is only suitable for aggressive bulls.

 PKD's stock moved higher in the morning and cleared its breakpoint zone. The stock reached an intraday high of $24.09 around noon.

  The stock then pulled back a bit and trended sideways into the close.

  Tape Action

  PKD's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $19.09 in the prior session to as high as $22.95 Thursday.

  A key bullish trade came late on Wednesday when a block of 124,000 shares crossed the tape at $20.10.

  That was up from the prior block at $19.98 on 50,000 shares.

Thursday morning a block of 100,000 shares crossed the tape at $21.

  That was up from the prior block at $20.37 on 2,400 shares.

  So, the tape showed big institutional buying.

  Business

PKD's services customers with rig fleets,specializing in remote and harsh environments.

Its rental tools services business supplies equipment and well services to operators on land and offshore markets.

  Charts

   PKD's 2-month chart shows the stock up 42% versus a gain of 7% for the market.

   Insiders were recent sellers at $15.83 to $18.24 a share. They have no done any buying recently.

   PKD's long-term chart only goes back a few weeks. It shows the stock in a clear up trend.   

  PKD's daily chart shows the stock forming a base with upside resistance near 20.

  The stock drives through that with strong volume.

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

   Earnings Outlook

   This year, analysts are forecasting a profit of 55 cents a share. There was no comparison with a year before.

   The stock sells with a price-earnings ratio of 38. That is high, but okay given the earnings growth outlook.

   Analysts are forecasting a 347% surge in profits in 2020 with net hitting $2.46 a share, up from the anticipated 55 cents this year.

  Net for the second quarter is expected to be 26 cents a share. There was no comparable figures from a year ago.

  Then in the third quarter, analysts predict a profit of 42 cents a share.   

Strategy Opinion:  TTD is targeting PKD for a move to $27 within the next few months, or sooner.

A protective stop can be placed near $20.

Intermediate-Term Rating:  Average.

Suitability:   Aggressive Bulls.

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

Probability - Breakout Success - Bullish -   PKD scored some massive gains off some of its recent breakouts. The stock is in a long-term up trend.

Probability - Earnings Response - Bullish -  PKD rose one time after one earnings reports when there was a significant change in price.

Probability:  Seasonal Success - Bullish. -  PKD averaged a gain of  11.5% in May.

           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 -  9

Stocks Screened - 12,234

Long-Term Environment for bears:  Neutral.

Bear Side -  Small list of breakdown stocks, but some good plays for aggressive bears.

  TTD's short from Wednesday was Marathon Petroleum Corp. (MPC) at 55.23. Thursday, MPC declined to 52.96 and is working well for bears.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Applied Optoelectronics Inc. (AAOI) - 10.93

Posts Large Loss, TTD Sees Drop to 8

  AAOI, based in Sugar Land, Tex., provides fiber-optic networking products. Annual revenues: $267 million. AAOI's stock falls sharply Thursday and undercuts key technical support.

  TTD sees more on the downside.

  So far today, AAOI is trading a heavy 2.2 million shares, triple its average daily volume of 609,000 shares.

  The company reported a loss for the first quarter of 53 cents a share. The Street was expecting a profit of 11 cents a share.

  AAOI's stock gapped lower and undercut key technical support.  The stock touched an intraday low of 10.42 in the morning.

  The stock lifted in the late afternoon to cut some of its deficit.

   Tape Action

  AAOI's tape action shows the recent block trades.

  One can see the price for the blocks falling from $12.06 in the prior session to as low as $10.51 Thursday morning.

  A key bearish trade came in the morning when a block of 25,528 shares crossed the tape at $11.12.

  That was down from the prior block at $12.06 on 57,081 shares late on Wednesday.

  Business

  AAOI produces fiber-optic networking products, primarily for networking end markets, such as Internet data center, cable television, fiber-to-the-home  and telecommunications.

 The company makes optical communications products at varying levels of integration, from components, subassemblies and modules to turnkey equipment.

 Earnings:

  This year, analysts are forecasting a loss of 49 cents a share compared with a profit of $1.06 the year before.

 For the second quarter, analysts look for a loss of 20 cents a share compared with a profit of 64 cents the year before.   

Charts:  

  AAOI's daily chart shows the stock cutting below key support and resuming its down trend after peaking at $103 back in 2017.

  AAOi's 12-month performance chart shows the stock down 62% versus a 10% gain for the stock market.   

Strategy Opinion: TTD is targeting AAOI for a decline to 8 within the next few months, or sooner. A protective stop buy can be placed near $11.50.

Suitability:   Aggressive Bears.

  TTD's probability research of Prior Performance:  

Probability - Earnings Response - Neutral - AAOI rose 5 times after the past 10 earnings reports when there was a significant change in price.

Probability:  Seasonal Activity - Slightly Bullish -  AAOI averaged a gain of 18.9% in May but a decline of 3.2% 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

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

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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.)