Ticker Tape Digest

Wednesday - August 18, 2021

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 Swng - 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 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.

Wednesday - August 18, 2021

TTD's Breakout Stocks

  Stock Market Overview

Total Buy Breakouts   -  2

Quality of Breakouts -  Average.

Stocks Screened - 12,234

Bull side -  Small list of breakouts and very selective.

Stock market  -  The Daily major averages have now turned bearish. Weekly and monthly still hold bullish.

Comment -  Small list of breakouts. Bulls be conservative and watchful of all positions.

See Latest Earnings Reports -  A company that tops the Street's highest earnings estimate has potential to go higher. Key earnings beats -  LOW, TJX, WB, OSIS and LITE.

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

Fabrinet  (FN) - 98.77, up 2.31 - Breakpoint 97.05

Net to rise 11% for fiscal 2022 (June), TTD Targets 115

  FN, based in Thailand, makes electronics products used in laser and medical devices. Annual revenues: $1.9 billion. FN's stock moves sharply higher Wednesday and breaks out from its 11-week, flat base.

  The move carries the stock to a new all-time high. That is bullish.

  So far today, FN is trading 213,099 shares, double its average daily volume of 104,000 shares.

  TTD sees more on the upside.

  TTD highlighted FN as a breakout at our midsession video show on the Web.

  FN's stock worked higher in the  morning and cleared its breakpoint line.   

  The stock then trended sideways.

  In the afternoon, the stock pushed higher to an intraday peak of $99.66.

  It finished near its high for the day.

  In after-hours trading FN was up 23 cents a share.

    Tape Action

  FN's tape action shows the recent block trades.

  One can see the price for the blocks climbing from  $96.46 in the prior session to as high as $98.95 in the afternoon.

  A key bullish trade came in the morning when a block of 839 shares crossed at $97.

  That was up from the prior block at $96.46 on 2,535 shares.

  Near the close a block of 18,023 shares crossed at $98.77.

  That came on an up tick from the prior trade at $98.70 on 300 shares.

   Business

  FN provides optical packaging and electronic manufacturing services to makers of optical communication components, modules and sub-systems, industrial lasers, medical devices and sensors.

 The company offers process design and engineering, supply chain management, manufacturing, complex printed circuit board assembly, advanced packaging, final assembly and test.

FN serves firms in  optical communications, industrial lasers, automotive, medical and sensors.

  Charts

  FN's 12-month performance chart shows the stock up 34% versus a 32% gain for the stock market.

  Insiders were recent sellers at $67.86 to $91.

  They have not been recent buyers.

  FN's long-term chart shows the stock climbing from $29 in early 2018 to a peak at $73 in 2020. The stock consolidated and now pushes to $98.77 a new high. The stock came public back in 2010 at $10,75 a share.

   FN's daily chart shows the stock climbing from $77 back in May to a peak at $97 by June.

  FN pulled back and formed a tight flat base.

  The stock rose in the prior session and then on Wednesday it drives out of the base despite a big stock market sell off.

  The stock's CCI momentum indicator is strongly bullish.

    Earnings Outlook

  This fiscal year ending in June of 2022, the Street predicts an 11% rise in net to $5.19 a share from the $4.67 the prior year.

  The stock has a price-earnings ratio of 19.

  Looking out to fiscal 2023 ending in June, the Street predicts a 7% rise in net to $5.58 a share from the anticipated $5.19 this fiscal year.

  Net for the fiscal first quarter ending in September should rise 19% to $1.25 a share from the $1.05 the prior year.

  For the fiscal second quarter, net should rise 19% too. The Street sees $1.31 a share against $1.10 the previous year.   

Strategy Opinion:  TTD is targeting FN for a move to $115 within the next few months, or sooner.

A protective stop can be placed near  $93

Intermediate-Term Rating: Average.

Suitability:   Average 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  - 3

Stocks Screened - 12,234

Long-Term Environment for bears: Unfavorable.

Bear Side -  Small list of shorts. Bears be alert now as stock market is weakening.

List of Stocks To Sell or Short

TTD’s Feature Bear Play

CREE Inc. (CREE) - 78.36

Loss Seen This Year and Next, TTD Sees Drop to 68

  CREE, based in Durham, N.C., provides silicon carbide technology and production. Annual revenues: $904 million. CREE's stock falls sharply Wednesday and undercuts key technical support.

  So far today, CREE is trading a heavy 7.7 million shares, seven times its average daily volume of 1.1 million shares.

  TTD sees more on the downside.

  CREE's decline was triggered when it reported a loss of 23 cents a share for the fiscal fourth quarter ended in September.

  CREE's stock fell in the morning and undercut key support with heavy volume.

  The stock touched an intraday low of $75.06 in the morning. It then lifted to $80.99 in the morning. However, the stock faded during the rest of the day to end with a big loss.

  In after-hours trading, CREE was up 74 cents a share.

  Tape Action

  CREE's tape action shows the recent block trades.

  One can see the price for the blocks falling from $78.67 in the morning to as low  as $75.43 later in the morning.

  Near the close a big block of 193,609 shares crossed at $78.36.

  That came on a slight up tick from the prior trade at $78.35 on 189 shares.

  Business

  The company operates through Wolfspeed which is a  silicon carbide and GaN materials, power devices and RF devices based on wide bandgap semiconductor materials and silicon.

  its materials products and power devices are used in electric vehicles, motor drives, power supplies, solar and transportation applications. 

  Earnings:

  This fiscal year ending in June of 2022, the Street predicts a loss of 75 cents a share compared with a loss of 93 cents a share the prior year.

  Looking out to fiscal 2023 ending in June, analysts project a profit of 24 cents a share.

  For the upcoming third quarter analysts expect a loss of 24 cents a share compared with a loss of 19 cents the year before.

Charts:  

  CREE's daily chart show the stock cutting below support with a gap move and big volume. The move represents a resumption of the down trend.

  CREE's 12-month performance chart shows the stock up 22% versus a 32% gain for the stock market.   

Strategy Opinion: TTD is targeting CREE for a decline to $68 within the next few months, or sooner. A protective stop buy can be placed near $83.

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. - 2021

    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 1-480-704-3331.

   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.)