Ticker Tape Digest

Tuesday - May 19, 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.

Tuesday - May 19, 2020

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts   -  9

Quality of Breakouts -  Below Average.

Stocks Screened - 12,234

Bull side -  Large list of breakouts but very selective. Bulls be conservative.

Stock market  -  All averages are bullish daily. However, the Dow is bearish weekly and monthly and so is the S&P 500 weekly.

Comment -  The stock market is in good position to push higher, especially if the economy gears back up. The NASDAQ is the leader.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats -  PFMT, EXP, CSV and NTES

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

DLH Holdings Cop. (DLHC) - 6.18, up 0.22 - Breakpoint 5.99

Net To jump 44% This Year, TTD Targets 8

    DLHC, based in Atlanta, provides healthcare and social services to military agencies in the U.S. Annual revenues: $160 million. DLHC's stock moves higher Tuesday and breaks out from  its 12-week, cup-and-handle base.

  So far today, DLHC is trading 45,124 shares. Its average daily volume is 49,000 shares.

  TTD sees more on the upside. The stock is best suited for an aggressive bull.

  TTD featured DLHC as a potential breakout back on May 7.

  DLHC's stock moved higher in the morning and cleared its breakpoint lie.  It reached an intraday peak at $6.25 in the morning. .

  The stock then pulled back slightly, but came on again late in the day.   

  Tape Action

  DLHC's tape action shows the recent block trades.

  One can see the price for the blocks climbing from $6.02 in the morning  to as high as $6.11 in the afternoon.

  A key bullish trade came in the morning when a block of 1,400 shares crossed the tape at $6.10.

  That was up from  the prior block at $6.02 on 700 shares.

  Late in the day a block of 4,520 shares crossed at $6.05. That was up from the prior block at $6.04 on 826 shares.

  Business

 DLHC provides its services to the Department of Veteran Affairs, Department of Health and Human Services, Department of Defense and other government agencies.

It offers services for veterans health solutions, human services and public health and life sciences.

The Company operates through its subsidiaries, DLH Solutions, Inc. and Danya International, LLC.

 DLHC provides healthcare, logistics and technical services while DLH Danya provides technology-enabled program management, consulting and digital communications .

   Charts 

  DLHC's 12-month performance chart shows the stock up 11% versus a 4 gain for the stock market.

  Insiders have been heavy buyers in recent months. They bought in the open market at $4 to $4.50 a share and with stock options at $1.03.

  They have not done any selling. The key buyers were the CEO Zachary Parker and Wynnefield Partners.

  DLHC's long-term chart shows the stock climbing from 70 cents a share back in 2013 to a peak at $7.38 by late 2018.

  The stock has since been in a long-term base.

  DLHC's daily chart shows the stock peaking near $6 in early March.

  The stock then fell back with the stock market.

  However, DLHC rallied strongly back to its breakpoint and now it clears it.

 The stock's CCI momentum indicator is solidly bullish.

   Earnings Outlook

  This fiscal year ending in September analysts look for a 24% increase in net to 61 cents a share from the 49 cents the prior year.

  The stock has a price-earnings ratio of 10. TTD sees that as attractive for value investors.

  Net for the second quarter is expected to jump 150% to 15 cents a share from  6 cents the prior year.

Strategy Opinion:  TTD is targeting DLHC for a move to $8 within the next few months. A protective stop can be placed near $5.60.

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  - 2

Stocks Screened - 12,234

Long-Term Environment for bears: Unfavorable.

Bear Side -  Small list of shorts even as stock market sells off sharply late in the day. Bears be conservative.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

Culp Inc. (CULP) - 5.34

Net to Fall 71% for Fiscal 2020, TTD Sees Drop to 4

  CULP, based in High Point, N.C., makes mattress fabrics and sells upholstery fabrics for furniture. Annual revenues: $297 million. CULP's stock falls sharply with heavy volume Tuesday. The move undercuts key technical support.

  So far today, CULP is trading 132,549 shares, double its average daily volume of 66,000 shares.

  TTD sees more on the downside.

  CULP's stock moved lower in the morning and undercut key technical support.

  The stock continued lower through the day. It finished near its low  for the session. That is bearish.

  Tape Action

  CULP's tape action shows the recent block trades.

  One can see the price for the blocks falling from $5.67 in the morning to as low as $5.30 in the afternoon.

  A key bearish trade came in the morning when a block of 2,700 shares crossed the tape at $5.63 a share.

  That was down from the prior block at $5.67 on 2,900 shares.

  Business

 CULP makes mattress fabrics and sewn covers used for covering mattresses and box springs, and upholstery fabrics, including cut and sewn kits used in production of upholstered furniture.

The company operates through two segments: mattress fabrics and upholstery fabrics.

It markets mattress fabric and mattress covers to bedding manufacturers.  

 Earnings:

  This fiscal year ending in April analysts are forecasting a 71% drop in net to 12 cents a share from the 41 cents the prior year.

  For the upcoming fiscal fourth quarter ending in April, analysts expect a loss of 16 cents a share compared with a loss of 11 cents the prior year.

  The most bearish forecast is for a loss of 62 cents a share.

Charts:  

  CULP's daily chart shows the stock trending lower from $16 in November down to $6.50 by April of this year. The stock tried to form a bottom, but cuts below support with heavy volume.

  CULP's stock has fallen 70% the past 12 months versus a 4% gain for the stock market.

  Insiders were recent purchasers in the open market at $8.15 to $7.43 a share.

Strategy Opinion: TTD  is targeting CULP for a decline to $4 in the next few months, or sooner. A protective stop buy can be placed near $6.

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.)