Ticker Tape Digest

Tuesday - May 14,  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.

Tuesday - May 14, 2019

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts so far today -  3

Quality of Breakouts -  Below Average

Stocks Screened - 12,234

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

Stock market  -  Market averages are bearish in the daily time frame. They remain bullish weekly and monthly.

Comment -  TTD sees the stock market trying to form a bottom after the recent decline.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats for Tuesday -  CTST, CPIX, KMDA, NEWR, MIXT and FSM.

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

Lawson Products Inc. (LAWS) - 37.34, up 3.84 - Breakpoint 35

Net To Rise 24% This Year, TTD Targets 44 

  LAWS, based in Chicago, makes fastening systems and other parts for the auto suppliers. Annual revenues: $350 million. LAWS surges higher Tuesday and breaks out from its 8-month, cup-and-handle base.

  The move carries the stock to a 10-year high.

  TTD sees more on the upside.

  So far today, LAWS is trading a heavy 117,341 shares, triple its average daily volume.

  LAWS's stock moved higher in the morning and cleared the breakpoint line.

  The stock drove steadily higher to an intraday high of $37.39. It closed near its high for the day. That is bullish.

  Tape Action

  LAWS's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $33.20 in the prior session to as high as $37.34.

  A key bullish trade came late on Monday when a block of 1,678 shares (duplicated) crossed the tape at $33.50.

  That was up from the prior block at $33.20 on 915 shares.   

  The stock closed strongly.

   Business

  LAWS makes fastening systems, fluid power, specialty chemicals, cutting tools and abrasives and aftermarket automotive supplies.

The company supplies a range of auto products, including body hardware, body shop, brake/wheel, fleet/truck and repair harness assembly.

 LAWS offers some 200,000 different core products for sale to firms in the auto repair, commercial vehicle maintenance, government, manufacturing, food processing and construction industries.

  Charts

  LAWS's 12-month performance chart shows the stock up 58% versus a 3% gain for the stock market.

  LAWS insiders were recent buyers at $31 to $32 a share. They were sellers at $32.

  LAWS's long-term chart shows the stock climbing from $15 back in 2016 to a peak at $36.90 in late 2018. The stock based and now breaks out.   

  LAWS's daily chart shows the stock spiking higher Tuesday and clearing its base.

  The move comes with strong volume.

  The stock had a good move in April after it reported earnings.

  The stock's CCI momentum indicator is strongly bullish.

   Earnings Outlook

  This year, analysts are forecasting a 24% jump in net to $1.73 a share from the $1.39 the year before.

  The stock sells with a price-earnings ratio of 21. TTD sees that as reasonable.

  Looking out to 2020, the Street is forecasting an 8% rise in net to $1.88 a share from the anticipated $1.73 this year.

  Net for the second quarter should jump 40% to 49 cents a share from the 35 cents the year before.

  The highest estimate on the Street is at 51 cents a share. Just two analysts follow the stock.

 For the third quarter, though, analysts expect a 9% decline in net to 49 cents a share from the 54 cents the year before.

Strategy Opinion:  TTD is targeting LAWS for a move to $44 within the next few months, or sooner.

A protective stop can be placed near $35.20.

Intermediate-Term Rating:  Average.

Suitability:  Average Bulls.

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

Probability - Breakout Success - Very Bullish -   LAWS  scored some big gains off some of its recent breakouts.

Probability - Earnings Response - Extremely Bullish -  LAWS rose 2 times after the past 2 earnings reports when there was a significant change in price.

Probability:  Seasonal Success - Slightly Bullish. -  LAWS averaged a gain of 1.7% in May and a gain of 2.4% 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 -  6

Stocks Screened - 12,234

Long-Term Environment for bears:  Unfavorable.

Bear Side -  Small list of breakdown stocks. Aggressive bears can be venturesome.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Solid Biosciences Inc. (SLDB) - 6.32

Posts Loss for the Quarter, TTD Sees Drop to 4.50

  SLDB, based in Cambridge, Ma., formerly Solid Biosciences, LLC, is working for treatments for muscles. Annual revenues: Nil. SLDB's stock gaps lower Tuesday and undercuts key technical support.

  So far today, SLDB is trading a heavy 4.8 million shares, 15 times its average daily volume of 321,000 shares.

  The decline was triggered by the report of a wider quarterly loss.

  TTD highlighted SLDB as a short at our midsession video show on the Web Tuesday.

  SLDB reported a loss for the first quarter of 85 cents a share compared with a loss of 63 cents the year before.

  Tape Action

  SLDB's tape action shows the recent block trades.

  One can see the price for the blocks falling from $8.85 in the prior session to as low as $5.35 on Tuesday.

  A key bearish trade came in the morning when a block of 48,900 shares crossed the tape at $5.50.

  That was down from the prior block at $8.85 on 12,210 shares.

   Business

  SLDB is developing therapies for duchenne muscular dystrophy.

  It is developing gene therapies, disease modifying therapies and assistive devices, all targeting the various facets of DMD.

  Its lead program, SGT-001, is an adeno-associated virus  microdystrophin gene therapy candidate. It  focuses on enabling the systemic delivery of a shortened yet functional version of the dystrophin gene.

  Earnings:

  SLDB is expected to show a loss of $2.53 a share this year compared with a loss of $2.25 the year before.

  Looking out to 2020, analysts predict a loss of $2.10 the share.

  For the upcoming second quarter, analysts expect a loss 59 cents a share compared with a loss of 52 cents the year before.   

Charts:  

  SLDB's 12-month performance chart shows the stock down 52% versus a 3% gain for the stock market.

  Insiders have been steady sellers the past few months. There has been no insider buying.   

Strategy Opinion: TTD is targeting SLDB for a decline to $4.50 within the next few months, or sooner. A protective stop buy can be placed near $6.60.

Suitability:   Aggressive Bears.

  TTD's probability research of Prior Performance:  

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

Probability:  Seasonal Activity - Extremely Bullish -  SLDB averaged a gain of 10.2% in May and a gain of 65% 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

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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.

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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.)