Daily - Go to TTD's Tape of Stock Charts - Tuesday, May 12, 2015 |
Weekly - Bullish Conservative Investors - Go To TTD Long-Term Plays - Monday, May 11, 2015 |
Go to Video Show - "How to Make Money With Breakout Stocks" |
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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. Trading Strategies Bullish 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) Bearish Aggressive Bearish Investors - "Breakdown Stocks" to Sell Short. Ideally suited for bear markets or market pull backs. Potential for large returns (See Performance) |
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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.
Breakout Stocks
Total Buy Breakouts so far today - 6
Overall Quality of Breakouts - BELOW AVERAGE
Stocks Screened - 8,300
Bull side - Small list of breakouts today. Bulls be patient and selective. Stock market in a trading range. Earnings still having an impact on stocks.
(Put mouse on Dow chart to see Nasdaq chart)
Long Term Environment for bulls: Favorable
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 - ZIXI - ABOVE AVERAGE |
ZIXI, based in Dallas, Tex., provides hosted email encryption and e-prescribing services. Annual revenues: $51 million. ZIXI, a low-priced growth stock, breaks out today from a two-month basing pattern. The stock is part of the strong acting cyber protection sector.
TTD highlighted the stock as a breakout at our midsession video show on the Web Tuesday.
So far today, ZIXI is trading a heavy 672,538 shares. Its average daily volume is 379,000 shares.
ZIXI's stock drove higher in the morning overcoming a weak stock market.
The stock crossed its breakpoint line and hit an intraday peak of 4.79.
The stock then backed off slightly and trended sideways the rest of the day. It held nicely over its breakpoint line.
TTD's clip of the tape shows the recent block trades.
One can see the price for the blocks climbing from $4.53 in the prior session to as high as $4.75 on Tuesday.
A key bullish trade came in the morning.
That is when a block of 35,543 shares crossed the tape at $4.69 a share
That was up sharply from the prior block at $4.59 on 7,400 shares.
The size of the block indicated important institutional accumulation. That is significant.
ZIXI provides hosted email encryption and e-prescribing services.
The firm's hosted Email Encryption Service provides a way to ensure customer privacy and regulatory compliance for corporate email.
The firm's PocketScript e-prescribing service reduces costs and improves patient care by automating the prescription process between payors, doctors, and pharmacies.
ZIXI's 12-month performance chart shows the stock appreciating 42% versus an 11% gain for the S&P 500 index.
There has been some heavy insider selling the past few months. (see red bars on performance chart)
Back in 2006, the stock was 51 cents a share. It climbed to a peak of 6.24 in 2007, the prior bull market.
However, it fell back to 92 cents a share in 2009 due to the following bear market.
ZIXI then rallied back to around 4 by 2011. It has since been trending in a range with upside resistance near 5. A breakout from its long-term pattern to the upside would be very bullish.
ZIXI's daily chart shows the stock advancing from 3 back in December to a peak near 4.40 by March.
The stock then formed a flat base and broke out in April. It then trended sideways forming a small base.
Today, it clears a key resistance zone.
The volume pattern is very bullish (note the blue bars on volume which indicate up days in price).
The stock's TTD momentum indicator (top of chart) is strongly bullish.
The accumulation - distribution line (bottom of chart) compliments the price action.
This year, analysts are forecasting a 67% jump in ZIXI's earnings to 20 cents a share from 12 cents a year ago.
The stock has a price-earnings ratio of 23. TTD sees that as low making the stock a good value play for aggressive investors.
Going out to 2016, net is expected to rise 20% to 24 cents a share from the anticipated 20 cents this year.
For the upcoming second quarter, net should rise 33% to 4 cents a share from 3 cents a year ago. ZIXI tends to come in close to the Street forecast.
Looking out to the third quarter net should be up 25% to 5 cents a share from 4 cents the year before.
Strategy Opinion: TTD is targeting ZIXI for a move to 6 off this breakout. A protective stop can be placed near 4.20.
The stock is a low-priced play most suitable for aggressive investors. TTD rats ZIXI a good intermediate-term play provided earnings meet expectations.
Sponsorship: Average. The largest fund buyer recently was Perritt MicroCap Opportunities Investor Fund which recently bought 582,328 shares. The 2-star rated fund has a 1.8% stake.
The 3-star rated Buffalo Emerging Opportunities Fund is the largest holder with a 2.7% stake. It was a recent seller of 131,000 shares.
ZIXI has 57.4 million shares outstanding. Institutions hold 59% of the stock and insiders 14%.
Insider Activity: Neutral. Insiders were recent buyers using stock options from $1.50 to $3.99. They were sellers around $3.90 to $4.29.
Currently, 4 analysts follow the stock and all 4 have a buy, the same sentiment as three months ago. ZIXI has a book value of $1.05 a share.
Stock Performance Chart with Quarterly Earnings Markers.
TTD's Breakout Profile
Rating Zix Corp. - (ZIXI) |
TTD Check List | Bullish | Bearish | Neutral |
Near 52-week High | YES | ||
Volume | YES | ||
Tick Volume | YES | ||
Price Trend - Daily | YES | ||
Price Trend - Long Term | YES | ||
Price Daily Spread | YES | ||
Base Structure | YES | ||
Base - A-D | YES | ||
Earnings-Quarterly | YES | ||
Earnings-Long Term | YES | ||
Earnings Outlook | YES | ||
Industry Group | YES | ||
Prior Breakout Success | YES | ||
Fund Sponsorship | YES | ||
Total Score | 11 | 0 | 3 |
Charts of Selected Breakout Stocks
TTD's Quality Rating of Stock - VRTU - AVERAGE |
TTD's Quality Rating of Stock - CMCM - BELOW AVERAGE |
TTD's Quality Rating of Stock - SIGM - 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 -15
Stocks Screened - 8,300
Long-Term Environment for bears: Unfavorable.
Bear Side - Large list of breakdown stocks today as stock market continues to move in a trading range. Bears be selective.
LDOS, based in Reston, Va., provides science and technology solutions to the government agencies. Annual revenues: $5.1 billion. LDOS's stock falls sharply Tuesday. The drop was linked to a lowering of the company's revenue outlook. TTD sees more on the downside.
TTD highlighted LDOS as a short at our midsession video show on the Web Tuesday.
So far today, LDOS is trading a heavy 1.6 million shares, five times its average daily volume of 312,000 shares.
LDOS's stock fell sharply in the morning and hit an intraday low of 38.36.
The stock then lifted slightly and trended sideways the rest of the day.
LDOS's tape action shows the recent block trades.
One can see the price for the blocks declining from $42.88 in the prior session to as low as $38.63.
A key bearish trade came in the morning when a block of 4,668 shares crossed the tape at $41.75.
That was down from the prior block trade at $42.84 on 1,700 shares.
The company operates in four areas: Defense Solutions; Health, Energy and Civil Solutions; Intelligence and Cybersecurity Solutions, and Corporate.. It serves in the areas of national security, engineering and health.
Analysts said LDOS stock fell due to a reduction in its backlog projections for the year. The company also replaced its CEO.
This fiscal year ending in January of 2016 analysts are forecasting a 7% decline in net to $2.37 a share from $2.56 a year ago.
LDOS's daily chart shows the stock with a big selloff in March, a consolidation, and then today another big volume selloff.
Strategy Opinion: TTD is targeting LDOS for a decline to 32 within the next few months, or sooner. A protective stop buy can be placed near 42.
TTD's Quality Rating of Stock - LDOS - 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.”
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.)