From July 11th – Aug 11th we have had a total of 7 stocks break out from our daily Stock WatchList Morning Update.
That report is emailed out each market morning before the open. It contains my watch list of high-ranked, fundamentally sound stocks that are setting up in bullish technical bases of consolidation, and which looked poised to breakout.
For each stock in that watch list, I set specific “trading criteria”, including a TRIGGER PRICE. If a stock breaks out above its TRIGGER PRICE, I issue a BreakOut Alert to all subscribers via email. Stocks which trigger BreakOut Alerts are considered BUYs, and then are moved into the PORTFOLIO where each is monitored for SELL signals.
DAY 4: FUNDAMENTAL ANALYSIS
The fundamentals may mostly be thought of as the company’s “books”. How they are doing financially.
However, we can also include any news or events that may affect the company as well. Such as… lawsuits, recalls, strikes, new regulations, changes in management, M&As, competition, etc.
Use a news feed page such as provided by Yahoo! Finance or maybe one that is included with your trading software to get real time news headlines on your stocks.
Social media has also become a great way to be alerted to any events that may affect the companies you own a piece of. 
With that being said, no one would argue that the biggest factor when analysing the “FUNDAMENTAL” status of a holding is… EARNINGS.
There are earnings estimates and there are earnings releases.
Earnings estimates are compiled by analysts who continually cover a particular company. They provide their estimate as to what the company is likely to report as an EPS number for the coming quarter, along with other data pertaining to the company’s financials. When several analysts cover a company, you can get a earnings consense number.
What is ‘Earnings Per Share – EPS
Earnings per share (EPS) is the portion of a company’s profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company’s profitability.
Theses analysts may revise their EPS estimate. You want to be in stocks that are having these revisions ratcheted higher. If you own a stock and analysts are revising upward, that is a good sign.
There are also earnings announcements. Every three months a quarterly announcement rolls around and this undoubtedly the most difficult time for an investor.
If you own a stock which looks like it will be reporting anytime soon, keep an eye out for exactly when. Look for the press release in your news feeds or check the company’s web site for an “Investors” or “Investors Relations” link/page.
In every case, you have to watch for the actual numbers announcement or results, and then wait for the dreaded conference call. Numbers can miss, beat or be in-line with estimates. During the call the company will offer forward looking “guidance”. If the company “warns” or if the CEO so much as sneezes at the wrong time, shares could then sell off.
Keep in mind that if the company is reporting before the open, you would need to make a decision to either sell or hold before the previous day’s close.
The company just reported that earnings per share rose 24% to 93 cents, above estimates for 86 cents. Revenue increased 4% to $297.5 million, passing analyst expectations for $295.5 million.
Every BreakOut We Have Had From the Stock WatchList Morning Update – 7/11 to 8/11
Below are the 7 stocks which broke out from my Technical SetUps WatchList, which is included in the Stock WatchList Morning Update, from 7/11 – 8/11.
If you bought any of these, or just want to learn more about how my investing system works, please do yourself a favor and take a few minutes to continue to read this concise yet informative and even educational report.
|
SYMBOL
|
LAST
|
ADDED TO
WATCH LIST |
BREAKOUT
DATE |
BREAKOUT
PRICE |
CURRENT %
PROFIT/LOSS |
|---|---|---|---|---|---|
| YNDX | $22.87 | 08-03-16 | 08-11-16 | $ 23.31 | -1.89% |
| CDK | $57.69 | 08-01-16 | 08-03-16 | $ 58.27 | -1.00% |
| PCTY | $42.57 | 08-03-16 | 08-03-16 | $ 45.99 | -7.44% |
| CDW | $44.51 | 08-01-16 | 08-03-16 | $ 43.22 | +2.98% |
| BMCH | $20.04 | 07-20-16 | 07-25-16 | $ 20.09 | -0.25% |
| IEX | $92.87 | 07-20-16 | 07-20-16 | $ 87.28 | +6.40% |
| EBIX | $56.18 | 06-14-16 | 07-11-16 | $ 50.03 | +12.29% |
*prices and %P/L as of Wednesday’s (8/17) close.
Below is a detailed update of the fourth breakout we had between July 11th – Aug 11th which occurred on Aug 3rd.
I will update the remaining three breakouts, one each day this week, as part of this 7-part series.
Also included will be a daily brief summary lesson from my 7-Day Comprehensive Study Course.
Today, I covered the basics of fundamental analysis.
Of course, I go into much more detail in my 7-Day Comprehensive Study Course here.
#4 CDW Corporation (CDW – Nasdaq)
CDW Corporation distributes information technology (IT) solutions in North America and the United Kingdom.
This was another selection from the Computer-Tech Services group which was added the Technical SetUps WatchList on 8/1 along with CDK.
Shares of this leader broke out two days later on 8/3 as management announced earnings which beat the Street’s consensus.
The stock plowed higher that morning, trading above its TRIGGER PRICE of $43.21 with a sharp increase in volume.
This bullish action always triggers a technical BUY signal by default, and this stock then became the latest edition to the portfolio.
|
SYMBOL
|
LAST
|
ADDED TO
WATCH LIST |
BREAKOUT
DATE |
BREAKOUT
PRICE |
|---|---|---|---|---|
| CDW | $ 44.51 | 08-01-16 | 08-03-16 | $ 43.22 |
| 1st SUPPORT |
2nd SUPPORT |
MAX STOP LOSS GUIDE |
EARNINGS | CURRENT % GAIN/LOSS |
|---|---|---|---|---|
| $43.oo | 50 DMA | $39.76 | 08-03-16 | +2.98% |
Charts courtesy of StockCharts.com | Prices and %P/L as of Wednesday’s (8/17) close.
Trading was rather mild for the remainder of the first week as shares inched just slightly higher.
We had a nice up day on 8/9 as the stock closed with a +1.91% gains with a +34% increase in volume, and closed at the session highs.
However, there were some above average volume declines yesterday (Wednesday) and that is a bit of a concern.
Ranks do remain solid and technically I am going keep our 1st SUPPORT at the highs of the previous base at $43.
Below there we have more formidable support offered by the rising 50-day moving average, which is currently at $42.26.
From here, any continued above average volume declines would be the first thing to watch out for.
This is how you can do it.
Want to start receiving my morning watch list of high-ranked, fundamentally sound leaders which are setting up in bullish technical bases ?
Then sign up today for my – Stock WatchList Morning Update – here.
If anyone needs any additional information, please let me known, as I would be glad to assist you.
Have Any Questions or Concerns ?
If you would like to schedule a phone appointment with me to answer any questions, address any concerns, or discuss the services I offer for self-directed investors, you can do so by using my appointment setter program here.
I talk to investors and traders on a regular basis, and I am always glad to help.
____________________________________________________
James F. Taulman – For more than 8 years James served as Editor-in-Chief of an independently licensed website that offered stock reports and services based on the CAN SLIM® investment system. He developed a knack for being able to quickly and accurately analyze high-ranked stocks based on this winning investment strategy. Over the years, Mr. Taulman has enjoyed assisting individuals from professional money managers to private investors with their needs in relation to implementing this investment approach on a daily basis in the current marketplace.
Each Sunday you could hear him deliver his weekly market report as part of the “Your Money Matters” radio program on ABC and CBS radio networks.
James now runs two websites and a portfolio service where he features select stocks which match up very favorably with the guidelines of the winning investing system.
At his long-standing SundayStockReport.com website, he produces a weekly newsletter that includes his High Ranked Leaders Watch List, and ongoing portfolio style coverage on breakouts from that concise list.
His newer site, BuyingBreakOuts.com is where he offers a stock watch list each market morning, emailed out as a Stock WatchList Morning Update. This report contains his hand selected stocks which looked the most poised to break out. There are also real-time “BreakOuts Alerts!” of stocks from that list which trade above his Trigger Price. These are sent via email to those who sign up for this free service.
Most recently James introduced – James Taulman’s Personal Portfolio Service where he gives more specific BUY, HOLD or SELL calls on suitable high-ranked market leaders. These selections have solid fundamentals along with bullish technical chart patterns. He also presents stocks for shorting and gives, SHORT and COVER alerts on those as well. He designed this service to take only what he sees as the most sound stock selections from all of the services which he currently offers. This new service is basically how he uses the information which he has available to him, to trade a personal brokerage account.