Stockguide
Stockguide
With a new year just beginning, it’s a good time to review your investing
process. In this edition of the MarketSmith® Stock Guide, we’re starting
2019 by covering a smarter strategy you can use when buying stocks.
If you’re not pyramiding into your positions, you could be risking more
than necessary if a trade goes against you. Check out our main article to
find out how it works.
Best Returns,
The MarketSmith Team
MarketSmith.com // 2019 Q1
3050
2940.91
2950
2916.50
2872.87
2850
2815.15
2801.90 2800.18
2791.47
2750
2717.49
2691.99
200 DAY
MOVING 2650
AVERAGE
2603.54
2594.62
50 DAY 2550
2553.80
MOVING 2532.69
AVERAGE
2450
2350
2250
DAILY VOLUME AND 50-DAY AVERAGE DAILY VOLUME LINE
2.5 B
1.4 B
850 M
500 M
22 5 19 2 16 2 16 30 13 27 11 25 8 22 6 20 3 17 31 14 28 12 26 9 23 7 21
JAN 2018 FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
NASDAQ COMPOSITE
CLOSE 6635.28 NASDAQ Composite
8400
8133.30 8200
8107.38
7933.31 8000
7806.60
7800
7637.27
7600
7505.77 7604.24 7486.51
7400
7319.58 7419.56
6922.83
6830.76 6800
6805.96
6200
2.5 B
1.6 B
850 M
22 5 19 2 16 2 16 30 13 27 11 25 8 22 6 20 3 17 31 14 28 12 26 9 23 7 21
JAN 2018 FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
2
Table of Contents
Market Charts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Connect with Us . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
*All screen results are computer-generated and were run on December 31, 2018.
3
MarketSmith.com // 2019 Q1
Feature Article:
How to Build a Full Position
You found a great stock. It’s on the verge of a proper buy point. All that’s
left to do is set an alert and buy your position, right? Not so fast.
The truth is, any stock trade can go against you. You may have reams of
research that point to one stock as the biggest thing since Amazon, but
any stock can fail to break out or trigger a sell signal after hitting your buy
point. That’s where scaling into a position can help.
The concept behind pyramiding is called “averaging up,” and it’s a simple
concept that is often overlooked because it seems counterintuitive. After
all, why wait for a stock to become more expensive before buying more?
The thing is, pyramiding is totally intuitive: you reward stocks that prove
they can go higher by buying more. You’re adding more on the way up
instead of adding on the way down toward a sell signal. As William O’Neil
wrote in How to Make Money in Stocks, “Why add more of your hard-
earned money to stocks that aren’t working?”
First, find the stock you want to buy. Wait for it to hit a proper buy point.
Figure out what your full position size is for this stock; in this example, let’s
say our full position size is $10,000.
4
MarketSmith.com // 2019 Q1
Step 1: Buy a 50% position (in this example, $5,000) as close to the buy
point as possible, then wait. You want to make the stock prove itself by
increasing in price.
Step 2: When the stock goes up 2% to 2.5% from your initial purchase
price, buy 30% of your allotted position size (in this example, $3,000). Now
you’re at 80% of your full position.
Step 3: Finish building out your position by buying 20% of your full
position (example: $2,000) when the stock rises an additional 2% to 2.5%
from your initial purchase price.
(continued)
5
MarketSmith.com // 2019 Q1
(continued)
How Pyramiding Minimizes Risk
In this example, say the stock you bought dropped 8% and triggered your
stop loss. If you bought a full position at the buy point, you would have lost
$800 (8% of $10,000). By pyramiding into the position, your 50% initial
position size would only lead to a $400 loss. This strategy can literally
halve your losses on losing trades.
6
MarketSmith.com // 2019 Q1
Q: How do you avoid making emotional trading decisions in the heat of battle?
The main thing is to have rules. That’s something that I heard Bill O’Neil say
a thousand times. Specific rules and criteria for buying and selling, that’s
the first thing you need. You’re going to be able to learn the correct criteria
if you pick up O’Neil’s book and if you pick up my book. If you read both of
those books, you’re going to get all the rules you need for buying, selling,
for everything. Instead of reading 40 or 50 books, it’s probably better to
read our books 20 times each and master an already proven strategy.
7
MarketSmith.com // 2019 Q1
Say a stock gaps up and runs away from your buy point. You stay away; you
don’t chase it. You’ve got your price range where you’re willing to buy. You
go in with a plan and you stick to it. Then you can determine how did things
work out and if you should adjust your plan.
But you’re doing all that outside market hours. When you’re in the market,
you’re focused on execution and position management—managing the
current stock positions and adhering to your stops.
Now, some people will say, “I’ve done all that, but I can’t sleep at night. I’m a
nervous wreck.” Well, then you’re probably trading too large. We call it the
“pillow factor.” Sell down to the sleeping point: a level where you can sleep
on the trade and not worry about holding it overnight.
In the beginning you might be a little more nervous and jumpier because
you’re not experienced at trading yet. So, you’re going to trade with a smaller
amount of money and smaller positions. As you get better and backlog some
profits, you can finance larger risk trades with those profits and be less
worried about the fluctuations.
Q: Sometimes the best trades are the ones you don’t make. Can you think of a
time in 2018 where you avoided a big loss by sitting out a potential trade?
8
Bitcoin Investment Trust (GBTC)
Pictured: Bitcoin Investment Trust (GBTC), an ETF that seeks to track the
performance of the cryptocurrency Bitcoin.
As for the FANG stocks, it was a similar story. Everyone I knew kept asking
me about them; it felt like it was 1999 all over again. It seemed like everyone
in the market was buying the FANG names like they would never stop
growing.
If you want to find big stock market winners, you want to focus on finding
new leadership. You have to develop the discipline and have the courage
to look for names that are new that you may not have heard of. That’s
where the big potential is, not in “yester-years” leaders of the past that are
“crowded” and over-owned.
Q: You created 1-Month and 5-Month Trend Templates to find new stock ideas
in MarketSmith. How do you use these templates to find new trading ideas as
part of your research routine?
9
MarketSmith.com // 2019 Q1
uptrend. The 200-day moving average has only been trending for 1 month.
That gives some lead time if you start watching and see if it confirms and
ends up rolling over to the 5-Month Template. The other thing, too: high-
tight flags, your power play patterns, will sometimes run up very quickly
and they don’t give the 5-month template enough time to pick it up. So,
you can pick up a lot of high-tight flags in the 1-Month.
The 5-Month Template is my main qualifier. These are stocks that have
had their 200-day moving average trending up for at least 5 months. The
names that show up on this screen (the ones that have proved themselves
to be in a Stage 2 uptrend) are the ones I watch closely and consider
buying, but only if they emerge from a constructive base.
Q: You’ve seen a lot in your 30+ years of trading. How do you keep your edge
and stay ahead of changing market environments?
I still wake up every day excited about trading. I’m doing the same things
now that I was doing 30 years ago: following my rules. The beauty of
trading is that it’s not purely a science; it’s art and science, and you can’t
just mathematically figure it out in a spreadsheet. That’s why you’re
always going to be on-edge with trading. It’s like a game of golf— you
always want a hole-in-one, but that’s not going to happen. The challenge of
getting better and better at it keeps you motivated.
One thing I’ve learned over my 35-year career is, nothing has changed
very much in the market. Most traders don’t fail because of a lack of good
information, but simply a lack of discipline. If you learn sound rules and
develop a plan, you have a great chance to do very well.
10
5-Month Trend Template
*All screen results are computer-generated and were run on December 31, 2018. This screen can also be found on
marketsmith.com in shared screens.
11
Attunity Ltd (ATTU)
ATTUNITY LTD(ATTU) NASDAQ 21.3 SHRS / 16.9 FLT / AVG VOL 318202 $19.68(OH -17%)
COMPUTER SFTWR-DATABASE attunity.com
ISRAELI DEVELOPER OF ENTERPRISE DATA INTEGRATION AND MANAGEM
ENT SOFTWARE APPLICATIONS AND RELATED SERVICES. 11/18 RAISED 2018 REVENUES GUIDANCE TO $83 MIL TO $85 MIL.
SHORT INT .6 DAYS -14% GROWTH RATE DEBT 0% 7.96 X BK VALUE FUNDS 6%
OPTIONS ON EARNINGS STAB NEW CEO INVENTORY TO. BANKS
UP/DOWN 1.9 EPS RANK 76 TIMELINESS A R&D 22.6% MGMT 21%
EX-DIV PE 59 (3.5XS&P) ACC/DIST B RET ON EQUITY N/A ALPHA 0.49
YIELD 5 YR PE 40 - 125 SMR RATING C CASH FLOW $-0.06 BETA 1.15
EARNINGS (DEC) HI LO GROUP REL STR 92 RS EPS (C) COMPOSITE RATING 99
Alteryx A AYX 99 50 PRICE
12$ 0.33 $ 9 2 QTR 3 QTR 4
13 0.12 11 4 Mongodb A MDB 99 25 SCALE
14 0.10 12 5 TableaSftr DATA 97 95
15 0.09 16 8 Workiva A WK 97 35 23.85
16 -0.13 12 4 Splunk SPLK 89 79
17 -0.10 9 5
QTR 2 22.11
18 0.46 EST ↑
19 0.58 EST +26% ↑
QTR 1
20
16.79
15
14.35
12.39 99
10
7.49 7.68
6.97
6.51
5
VOLUME
R S LINE VS
SP500
26 K
2K
5 19 2 16 2 16 30 13 27 11 25 8 22 6 20 3 17 31 14 28 12 26 9 23 7 21
FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
EPS DUE 2/1 QUARTER ENDED DEC 31,17 QUARTER ENDED MAR 31,18 QUARTER ENDED JUN 30,18 QUARTER ENDED SEP 30,18
EARNINGS $ -0.01 VS 0.07 N/A 0.07 VS -0.02 #+450% 0.08 VS -0.12 #+167% 0.20 VS 0.04 +400%
SALES MIL. $ 18.3 VS 15.6 +17% 18.2 VS 13.8 +32% 19.8 VS 13.5 +47% 22.2 VS 16.5 +35%
DIVIDEND-PE N/A N/A N/A N/A N/A N/A N/A 123X -- 77X
SHORT INT 1.1 DAYS -5% GROWTH RATE DEBT 0% 0.73 X BK VALUE FUNDS 0%
OPTIONS ON PH EARNINGS STAB NEW CEO 11/17 INVENTORY TO. 7.4X BANKS
UP/DOWN 1.0 EPS RANK 67 TIMELINESS A R&D N/A MGMT 52%
EX-DIV PE 3 (0.2XS&P) ACC/DIST B RET ON EQUITY 8% ALPHA 0.51
YIELD 5 YR PE 2 - 181 SMR RATING B CASH FLOW $1.61 BETA 0.63
EARNINGS (DEC) HI LO GROUP REL STR 71 RS EPS (C) COMPOSITE RATING 96
One800FlrA FLWS 90 32 PRICE
12$ -0.60 $ 16 7 QTR 3 QTR 4
13 -1.41 10 4 QurateRetl QRTEA 48 72 SCALE
14 -1.62 10 4 QurateRetl QRTEB 37 61
15 -10.14∆ 10 0 Evine Live EVLV 2 14 33.60
16 0.91∆ 5 1
17 2.17 9 3
QTR 2
18 30
19 28.83
QTR 1 26.70
19.85
20
18.58
18.00
14.56 17.02
11.16 13.50
10.82
12.32
10
196/100
9.07 9.10 99
$DIS
0
VOLUME
R S LINE VS
SP500 16 K
2K
5 19 2 16 2 16 30 13 27 11 25 8 22 6 20 3 17 31 14 28 12 26 9 23 7 21
FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
EPS DUE 3/7 QUARTER ENDED DEC 31,17 QUARTER ENDED MAR 31,18 QUARTER ENDED JUN 30,18 QUARTER ENDED SEP 30,18
EARNINGS $ 0.01 VS -2.09∆ #+100% 0.01 VS 2.03 -100% 7.62∆ VS -0.71 #+1189 1.11 VS 0.84 +32%
SALES MIL. $ 5.6 VS 6.1 -9% 5.4 VS 4.7 +16% 6.3 VS 4.5 +39% 8.3 VS 6.0 +38%
DIVIDEND-PE N/A 125X -- 113X N/A 153X -- 4X $14.9 149X -- 4X N/A 181X -- 2X
12
BioTelemetry Inc (BEAT) MarketSmith.com // 2019 Q1
* BIOTELEMETRY INC(BEAT) NASDAQ 33.3 SHRS / 30.3 FLT / AVG VOL 637850 $59.72(OH -20%)
MEDICAL-SERVICES gobio.com
PROVIDES MEDICAL DEVICES, MONITORING SVCS AND CENTRALIZED CO
RE LABORATORY SERVICES FOR CLINICAL RESEARCH. 10/18 RAISED 2018 REVENUES GUIDANCE TO $397 MIL TO $400 MIL.
SHORT INT 4.4 DAYS -7% GROWTH RATE +119% DEBT 79% 7.35 X BK VALUE FUNDS 54%
OPTIONS ON AM/NY EARNINGS STAB 49 NEW CEO INVENTORY TO. 54.6X BANKS 1%
UP/DOWN 1.2 EPS RANK 99 TIMELINESS A R&D 3.9% MGMT 8%
EX-DIV PE 35 (2.0XS&P) ACC/DIST D RET ON EQUITY 16% ALPHA 0.34
YIELD 5 YR PE 20 - 240 SMR RATING A CASH FLOW $1.7 BETA 1.66
EARNINGS (DEC) HI LO GROUP REL STR 72 RS EPS (C) COMPOSITE RATING 99
12$ -0.28 $ 3 1 Catasys CATS 98 8
QTR 3 QTR 4 PRICE
13 0.06 11 2 BioScrip BIOS 97 33 SCALE
14 0.10 11 6 Invitae NVTA 97 31
15 0.46 16 7 GuardantHl GH 95 17 74.73
16 0.85 24 8 NeoGenomic NEO 93 91
17 0.97 39 21
QTR 2
18 1.81 EST +87% ↑ 70
19 1.81 EST +0% ↑
66.02
QTR 1
60
55.60
50
47.30
40
98
35.80 36.15
30
30.00 29.85
28.90
20
R S LINE VS VOLUME
SP500
400 K
138 K
5 19 2 16 2 16 30 13 27 11 25 8 22 6 20 3 17 31 14 28 12 26 9 23 7 21
FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
EPS DUE 2/22 QUARTER ENDED DEC 31,17 QUARTER ENDED MAR 31,18 QUARTER ENDED JUN 30,18 QUARTER ENDED SEP 30,18
EARNINGS $ 0.32 VS 0.23 +39% 0.39 VS 0.16 +144% 0.46 VS 0.23 +100% 0.53 VS 0.24 +121%
SALES MIL. $ 91.7 VS 54.0 +70% 94.5 VS 55.9 +69% 101.4 VS 58.1 +74% 100.0 VS 81.0 +23%
DIVIDEND-PE N/A 42X -- 27X N/A 42X -- 31X N/A 40X -- 28X N/A 47X -- 34X
SHORT INT 3 DAYS +0% GROWTH RATE DEBT -151.44 X BK VALUE FUNDS 35%
OPTIONS ON EARNINGS STAB NEW CEO INVENTORY TO. 8.8X BANKS 0%
UP/DOWN 1.2 EPS RANK 48 TIMELINESS A R&D 25.6% MGMT 3%
EX-DIV PE ACC/DIST C RET ON EQUITY N/A ALPHA 0.59
YIELD 5 YR PE 81 - 396 SMR RATING D CASH FLOW $-0.47 BETA 1.34
EARNINGS (DEC) HI LO GROUP REL STR 88 RS EPS IPO 7/17/14 $10.00 COMPOSITE RATING 91
Pro Dex In PDEX 99 65 PRICE
12$ -0.48 $ QTR 3 QTR 4
13 -0.32 TandemDiab TNDM 99 46 SCALE
14 0.06 10 5 BovieMed APYX 99 42
15 -1.05 8 3 GenomicHlt GHDX 98 76 30.80
16 -0.84 6 2 Aethlon AEMD 98 39
29.60 30
17 -0.69 7 0
QTR 2
18 -0.18 EST ↑
19 0.16 EST ↑
QTR 1
21.30 20
16.00
99
10
10.31
PPO
5.07 5.51
4.92
PO
0
R S LINE VS VOLUME
SP500
1.4 M
300 K
70 K
5 19 2 16 2 16 30 13 27 11 25 8 22 6 20 3 17 31 14 28 12 26 9 23 7 21
FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
EPS DUE 3/22 QUARTER ENDED DEC 31,17 QUARTER ENDED MAR 31,18 QUARTER ENDED JUN 30,18 QUARTER ENDED SEP 30,18
EARNINGS $ -0.09 VS -0.13 N/A -0.14 VS -0.31 N/A -0.04 VS -0.17 N/A -0.01 VS -0.15 N/A
SALES MIL. $ 12.5 VS 10.9 +15% 14.1 VS 11.6 +21% 17.8 VS 12.1 +48% 21.2 VS 12.2 +74%
DIVIDEND-PE N/A N/A N/A N/A N/A N/A N/A N/A
13
MarketSmith.com // 2019 Q1
Nikkolas Rosales: I really wasn’t that tuned in to the stock market until I
joined IBD® about 3 years ago. Learning about the CAN SLIM® rules and
how the market works, it really opened my eyes up to new possibilities.
NR: I was heavy into Apple (AAPL) in Q4. I had realized a lot of gains from
Apple earlier in the year, so it was probably something of a “pet stock” for
me, looking back on it. I should have sold it earlier and taken the profits,
but I had a lot of conviction in the company. It lost a lot of value and I took
a loss on that one. I learned not to put too many eggs in one basket.
14
SG: You talk to people about investing every day. What’s the one question you
get asked the most?
NR: Why don’t the stocks on MarketSmith’s lists follow all the CAN SLIM®
rules? We don’t preselect stocks based on CAN SLIM® on the platform; it’s
more of an agnostic set of tools for you to do stock research. It works for
every type of investor.
SG: Legal marijuana stocks have been huge this year. What’s your take
on the industry?
NR: I think greed is going to hurt the industry. As the industry grows
following the larger trend of legalization, regulators are going to tax it to
the point where it puts a huge dent in profitability across the board.
SG: There’s an old investing saying, “Invest in what you know.” Is there a stock
you bought because you knew the product and believed in it?
NR: For one of my biggest winners of 2018, I knew the product from going
to the store. American consumers will lead the market in certain directions
with their buying power, so I’ll keep an eye out when I’m shopping for
products that are consistently sold out.
When I’d go to stores like Target and Walmart, I’d see a big SodaStream
(SODA) display, and their products were sold out 90% of the time. I did my
research on the company, found the fundamentals to my liking, and bought
SODA stock in Q3 coming out of a base. I rode it to the top when they got
bought out by Pepsi (PEP). It was one of my most profitable trades of the year.
SG: You don’t just invest in the market; I hear you’ve got quite a sneaker
collection. If your investing style were a sneaker, what would it be?
NR: It would be the Air Jordan 1 Bred. It came out in the 80s and it’s been
consistently popular ever since. Collectors pay between $550 and $1,000 for
a pair. It’s a prime example of timeless style. That’s like my investing—I look for
stocks with big growth potential early on and apply buying and selling rules
that work in any market. I avoid fads and concentrate on good fundamentals.
15
High Growth Potential
characteristics.
*All screen results are computer-generated and were run on December 31, 2018. This screen can also be found on
marketsmith.com in shared screens.
16
Cyberark Software Ltd (CYBR) MarketSmith.com // 2019 Q1
* CYBERARK SOFTWARE LTD(CYBR) NASDAQ 35.0 SHRS / 21.7 FLT / AVG VOL 628158 $74.14(OH -11%)
COMPUTER SFTWR-SECURITY cyberark.com
ISRAELI PROVIDER OF NETWORK SECURITY SOFTWARE FOCUSED ON PRO 11/18 RAISED 2018 NON-GAAP EARNINGS GUIDANCE TO $1.75 TO $1.77 PER DIL SHARE ON REVENUES TO
TECTING PRIVILEGED ACCOUNTS $328.9 MIL TO $330.4 MIL.
SHORT INT .6 DAYS +5% GROWTH RATE +43% DEBT 0% 6.91 X BK VALUE FUNDS 34%
OPTIONS ON EARNINGS STAB 28 NEW CEO INVENTORY TO. BANKS 1%
UP/DOWN 1.4 EPS RANK 98 TIMELINESS A R&D 16.2% MGMT 38%
EX-DIV PE 47 (2.8XS&P) ACC/DIST D RET ON EQUITY 13% ALPHA 0.26
YIELD 5 YR PE 31 - 144 SMR RATING A CASH FLOW $1.27 BETA 1.02
EARNINGS (DEC) HI LO GROUP REL STR 75 RS EPS IPO 9/24/14 $16.00 COMPOSITE RATING 99
Securework SCWX 99 61 PRICE
12$ 0.27 $ QTR 3 QTR 4
13 0.28 Okta A OKTA 98 32 SCALE
14 0.49 47 22 Imperva IMPV 97 38
15 1.00 76 33 Zix ZIXI 95 83
16 1.26 59 31 Rapid7 RPD 94 36 84.21
17 1.16 55 39 81.24
QTR 2
18 1.76 EST +52% ↑ 79.16 80
19 1.94 EST +10% ↑
QTR 1
69.97
70
67.65
65.85
64.66
61.60 60
59.02
52.90
97 50
48.60
41.55 40
40.63
30
R S LINE VS
VOLUME
SP500 1.1 M
400 K
142 K
5 19 2 16 2 16 30 13 27 11 25 8 22 6 20 3 17 31 14 28 12 26 9 23 7 21
FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
EPS DUE 2/15 QUARTER ENDED DEC 31,17 QUARTER ENDED MAR 31,18 QUARTER ENDED JUN 30,18 QUARTER ENDED SEP 30,18
EARNINGS $ 0.41 VS 0.41 0% 0.32 VS 0.28 +14% 0.36 VS 0.21 +71% 0.48 VS 0.25 +92%
SALES MIL. $ 80.4 VS 64.4 +25% 71.8 VS 59.0 +22% 77.7 VS 57.5 +35% 84.7 VS 64.8 +31%
DIVIDEND-PE N/A 42X -- 33X N/A 46X -- 35X N/A 57X -- 42X N/A 60X -- 46X
70
66.32
64.65
57.98 62.27 60
53.40 50
51.97
92
43.48
40
30
VOLUME
R S LINE VS
SP500 8M
2.5 M
800 K
5 19 2 16 2 16 30 13 27 11 25 8 22 6 20 3 17 31 14 28 12 26 9 23 7 21
FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
EPS DUE 2/6 QUARTER ENDED DEC 31,17 QUARTER ENDED MAR 31,18 QUARTER ENDED JUN 30,18 QUARTER ENDED SEP 30,18
EARNINGS $ 0.32 VS 0.30 +7% 0.33 VS 0.17 +94% 0.41 VS 0.27 +52% 0.49 VS 0.28 +75%
SALES MIL. $ 416.7 VS 362.8 +15% 399.0 VS 340.6 +17% 441.3 VS 363.5 +21% 453.9 VS 374.2 +21%
DIVIDEND-PE N/A 45X -- 36X N/A 53X -- 43X N/A 56X -- 45X N/A 69X -- 47X
17
Medpace Holdings Inc (MEDP)
MEDPACE HOLDINGS INC(MEDP) NASDAQ 35.6 SHRS / 24.9 FLT / AVG VOL 722974 $52.93(OH -18%)
MEDICAL-RESEARCH EQP/SVC medpace.com
PROVIDES OUTSOURCED CLINICAL DEVELOPMENT SERVICES TO BIOTECH
NOLOGY, PHARMACEUTICAL/MEDICAL DEVICE INDUSTRIES 10/18 EXPECTS 2018 ADJUSTED EARNINGS OF $2.76 TO $2.82 PER DILUTED SHARE.
SHORT INT 2.6 DAYS +32% GROWTH RATE +18% DEBT 41% 3.49 X BK VALUE FUNDS 28%
OPTIONS ON EARNINGS STAB 12 NEW CEO INVENTORY TO. BANKS 0%
UP/DOWN 1.4 EPS RANK 96 TIMELINESS A R&D N/A MGMT 4%
EX-DIV PE 24 (1.4XS&P) ACC/DIST B RET ON EQUITY 11% ALPHA 0.21
YIELD 5 YR PE 15 - 33 SMR RATING A CASH FLOW $1.72 BETA 1.31
EARNINGS (DEC) HI LO GROUP REL STR 83 RS EPS IPO 8/11/16 $23.00 COMPOSITE RATING 99
Veracyte VCYT 99 33 PRICE
12$ QTR 3 QTR 4
13 1.02 $ NanoStrgTe NSTG 98 6 SCALE
14 0.89 Illumina ILMN 92 95
Iqvia IQV 91 90 65.09 64.94
15 0.99 63.97
16 1.36 38 26 ThermoFish TMO 89 81
17 1.51 39 21
QTR 2
18 2.51 EST +66% ↑ 60
19 2.89 EST +15% ↑
QTR 1
55.02
50
45.94
45.88
39.63 39.29 40
35.00 94
33.52
31.75 30
PSO PSO SO
SO SO PSO
20
R S LINE VS
SP500
VOLUME
1.1 M
300 K
82 K
5 19 2 16 2 16 30 13 27 11 25 8 22 6 20 3 17 31 14 28 12 26 9 23 7 21
FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
EPS DUE 2/26 QUARTER ENDED DEC 31,17 QUARTER ENDED MAR 31,18 QUARTER ENDED JUN 30,18 QUARTER ENDED SEP 30,18
EARNINGS $ 0.39 VS 0.35 +11% 0.55 VS 0.34 +62% 0.61 VS 0.38 +61% 0.67 VS 0.40 +68%
SALES MIL. $ 112.7 VS 108.2 +4% 163.1 VS 106.6 +53% 170.1 VS 106.2 +60% 179.3 VS 110.6 +62%
DIVIDEND-PE N/A 27X -- 22X N/A 27X -- 21X N/A 27X -- 20X N/A 33X -- 24X
SHORT INT 6.4 DAYS +6% GROWTH RATE +30% DEBT 128% 1.54 X BK VALUE FUNDS 48%
OPTIONS ON NY/PH EARNINGS STAB 41 NEW CEO INVENTORY TO. BANKS 1%
UP/DOWN 1.2 EPS RANK 96 TIMELINESS A R&D N/A MGMT 1%
EX-DIV 12/12 PE (0.7XS&P) ACC/DIST C RET ON EQUITY 8% ALPHA 0.07
YIELD 6.2% 5 YR PE 8 - 15 SMR RATING A CASH FLOW $1.15 BETA 0.59
FFO (DEC) HI LO GROUP REL STR 69 RS EPS COMPOSITE RATING 99
ClipperRea CLPR 97 50 PRICE
12$ 0.90 $ 11 8 QTR 3 QTR 4
13 0.98 17 11 InnovatvIn IIPR 96 80 SCALE
14 1.07∆ 14 11 AmericoldR COLD 96 76
OmegaHlthc OHI 95 61 18
15 1.25∆ 15 10
16 1.28 15 9 NexPointRe NXRT 95 19 17.52
17 1.35∆ 14 11
QTR 2
18 1.37 EST +1% ↓
19 1.43 EST +4% ↑
QTR 1
16
15.24
14.52
14
13.98
13.40
94
12.38 12
12.25
11.82
R S LINE VS VOLUME
SP500
2.5 M
1M
5 19 2 16 2 16 30 13 27 11 25 8 22 6 20 3 17 31 14 28 12 26 9 23 7 21
FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
FFO DUE 2/8 QUARTER ENDED DEC 31,17 QUARTER ENDED MAR 31,18 QUARTER ENDED JUN 30,18 QUARTER ENDED SEP 30,18
FFO $ 0.37 VS 0.31 +19% 0.36∆ VS 0.33∆ +9% 0.36 VS 0.32 +12% 0.35 VS 0.33 +6%
REVENUE MI $ 205.0 VS 153.3 +34% 205.1 VS 156.4 +31% 201.9 VS 166.8 +21% 197.0 VS 176.6 +12%
DIVIDEND-PF $0.24 11X -- 10X $0.25 11X -- 9X $0.25 10X -- 9X $0.25 11X -- 10X
18
Servicenow Inc (NOW) MarketSmith.com // 2019 Q1
* SERVICENOW INC(NOW) NYSE 179.3 SHRS / 175.7 FLT / AVG VOL 2.32MIL $178.05(OH -13%)
COMPUTER SFTWR-ENTERPRSE servicenow.com
DEVELOPS CLOUD-BASED IT SOFTWARE FOR WORKFLOW AUTOMATION, DA
TA CONSOLIDATION, BUSINESS ADMINISTRATION. 10/18 EXPECTS Q4 2018 REVENUES OF $660 MIL TO $665 MIL.
SHORT INT 5 DAYS +7% GROWTH RATE +174% DEBT 108% 51.91 X BK VALUE FUNDS 54%
OPTIONS ON EARNINGS STAB 99 NEW CEO 4/17 INVENTORY TO. BANKS 1%
UP/DOWN 1.4 EPS RANK 99 TIMELINESS A R&D 19.5% MGMT 2%
EX-DIV PE 86 (5.1XS&P) ACC/DIST B RET ON EQUITY 47% ALPHA 0.18
YIELD 5 YR PE 96 - 8345 SMR RATING A CASH FLOW $2.45 BETA 1.49
EARNINGS (DEC) HI LO GROUP REL STR 84 RS EPS IPO 6/29/12 $18.00 (C) COMPOSITE RATING 99
TwilioInc TWLO 99 76 PRICE
12$ -0.14 $ 41 22 QTR 3 QTR 4
13 -0.07 58 25 Sharpsprin SHSP 99 4 SCALE
14 -0.07 71 44 RubiconPrj RUBI 98 5
Everbridge EVBG 98 2 220
15 0.40 91 62
16 0.70 89 45 Five9 FIVN 97 76
17 1.33 131 73 210
QTR 2 206.29
18 2.36 EST +77% ↑
19 3.13 EST +33% ↓
QTR 1
200
194.81 194.04
192.16
188.59 190
182.59
176.56 180
174.35 170
167.36
160
156.00 156.18
150
147.63
90 140
137.60
130
120
110
R S LINE VS VOLUME
SP500
1.4 M
700 K
5 19 2 16 2 16 30 13 27 11 25 8 22 6 20 3 17 31 14 28 12 26 9 23 7 21
FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
EPS DUE 1/31 QUARTER ENDED DEC 31,17 QUARTER ENDED MAR 31,18 QUARTER ENDED JUN 30,18 QUARTER ENDED SEP 30,18
EARNINGS $ 0.35 VS 0.24 +46% 0.56 VS 0.31 +81% 0.49 VS 0.22 +123% 0.68 VS 0.38 +79%
SALES MIL. $ 546.4 VS 385.7 +42% 589.2 VS 428.8 +37% 631.1 VS 448.3 +41% 673.1 VS 492.4 +37%
DIVIDEND-PE N/A 130X -- 98X N/A 140X -- 109X N/A 139X -- 103X N/A 129X -- 98X
72.15 70
70.09 70.51
65.20
91
60
60.30
R S LINE VS
SP500
50
VOLUME
1.6 M
700 K
300 K
5 19 2 16 2 16 30 13 27 11 25 8 22 6 20 3 17 31 14 28 12 26 9 23 7 21
FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
EPS DUE 2/27 QUARTER ENDED DEC 31,17 QUARTER ENDED MAR 31,18 QUARTER ENDED JUN 30,18 QUARTER ENDED SEP 30,18
EARNINGS $ 1.18∆ VS 0.64∆ +84% 1.01∆ VS 0.13∆ +677% 1.86∆ VS 0.91∆ +104% 2.12∆ VS 0.98∆ +116%
SALES MIL. $ 653.7 VS 309.9 +111% 615.3 VS 540.3 +14% 660.3 VS 626.1 +5% 693.0 VS 611.9 +13%
DIVIDEND-PE $0.30 30X -- 23X $0.38 31X -- 20X $0.38 21X -- 15X $0.38 22X -- 15X
19
Features Highlight: The New Markup Tool
20
Enhanced Features
The new markup tool now includes the ability to go back and edit your
annotations at any time. You can add your thoughts on MarketSmith’s
automatically drawn patterns by drawing a box and typing in your
observations, or draw your own chart patterns with the arc and line tools.
You can note areas of support and resistance so you can easily recognize
when a stock has broken through.
Post-Analysis
Post-analysis is simpler and faster when you mark your past buy and sell
points on the chart; that way, you can see if you bought and sold at proper
points, as well as how you can keep improving your process with every
trade. Here’s a tip from the MarketSmith Coaches: use the circle tool to
circle bullish signals in blue and sell signals in red; that way, you know what
to keep an eye out for in future trades.
21
Resources
22
Connect with Us
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Reach out and network with the IBD® and MarketSmith® teams
on LinkedIn to get in-depth investing knowledge.
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Check out Friday’s video market update for our take on the
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23
What can 2018’s best stocks
tell you about 2019?
Successful investors know that picking stock market winners starts with
studying leaders of the past. TOP STOCKS 2018 is a comprehensive review
of the biggest market winners of 2018.
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