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Q2 GUIDE The Blue Dot List: Our newest feature for finding top

Stock Guide // 2019 Q2

At MarketSmith, our team is always looking for ways to improve our product and help our members invest better. Our newest featured stock list is quickly becoming a favorite among both long-time members and our in- house team: RS Line Blue Dot, better known around here as “The Blue Dot List.” Check out this issue’s feature article for a full rundown of what Blue Dot stocks are and why you should be checking this new list frequently.

For our featured interview this month, we talked to Joe Fahmy, a profession- al Investment Advisory Representative with nearly two decades of trading experience. Joe has been using MarketSmith for years to find and evaluate new stock trades through a fundamental and technical lens. He shares some of his experiences in the market, as well as his predictions for Q2.

Finally, we’re excited to introduce a new regular feature to our Stock Guide readers. In Good Trade/Bad Trade, we’ll talk to one of our in-house experts about two of their recent trades—one winner and one loser—and see what they did right and wrong. This month’s subject is MarketSmith Product Coach Andrew Rocco, who dives into some revealing of Baozun (BZUN) and talks about his mistakes buying into the volatile Tesla (TSLA).

As always, if you have any questions or comments about your investing research or any MarketSmith features, please call one of our product coaches at (800) 831-2525 or email us at [email protected]. We’re here to help you make more money in the market.

Best Returns, The MarketSmith Team MarketSmith.com // 2019 Q2

S & P 500 INDEX S & P 500 Index CLOSE 2834.4

3050

2940.91 2950 2916.50

2850 2815.15 2791.47 2800.18

2750 2717.49 2722.27 2691.99 200 DAY 2650 MOVING AVERAGE 2594.62 2603.54 50 DAY 2550 2553.80 MOVING AVERAGE

2450

2350 2346.58

2250

DAILY VOLUME AND 50-DAY AVERAGE DAILY VOLUME LINE

2.5 B

1.4 B

850 M

500 M

30 13 27 11 25 8 22 6 20 3 17 31 14 28 12 26 9 23 7 21 4 18 1 15 1 15 29

APR MAY JUN JUL AUG SEP OCT NOV DEC JAN 2019 FEB MAR

NASDAQ COMPOSITE NASDAQ Composite CLOSE 7729.32

8300

8133.30 8107.38 8100 7933.31

7806.60 7900

7700

7604.24 7486.51 7500

7319.58 7419.56 7332.92 7300 200 DAY MOVING 7100 AVERAGE 6900 6922.83 50 DAY 6805.96 6830.76 MOVING AVERAGE 6700

6500

6300

6190.16 6100

5900

DAILY VOLUME AND 50-DAY AVERAGE DAILY VOLUME LINE

4 B

2.5 B

1.6 B

850 M

30 13 27 11 25 8 22 6 20 3 17 31 14 28 12 26 9 23 7 21 4 18 1 15 1 15 29

APR MAY JUN JUL AUG SEP OCT NOV DEC JAN 2019 FEB MAR

2 Table of Contents

Market Charts ...... 2

The MarketSmith Blue Dot ...... 4

Blue Dot Special* ...... 6

Tegna Inc (TGNA) ...... 7

Sinclair Broadcast Group (SBGI) ...... 7

Alexion Pharmaceuticals (ALXN) ...... 8

Gray Television Inc (GTN) ...... 8

S S & C Technologies (SSNC)...... 9

Palo Alto Networks (PANW)...... 9

A Conversation with Joe Fahmy ...... 10

Earnings & Margins*...... 13

Arista Networks Inc (ANET)...... 14

Camtek Ltd (CAMT)...... 14

Cabot Microelectronics (CCMP)...... 15

Fortinet Inc (FTNT)...... 15

Good Trade/Bad Trade: Andrew Rocco ...... 16

Feature Highlight: Stock Ideas Button ...... 20

Resources ...... 22

Connect with Us ...... 23

*All screen results are computer-generated and were run on March 29, 2019.

3 MarketSmith.com // 2019 Q2 l Feature Article

Feature Article: The MarketSmith Blue Dot

MarketSmith’s newest stock list is already one of its most popular among subscribers. It’s called RS Line Blue Dot, and if you’re not checking it for new stock ideas, you could be missing out.

Here’s How It Works

Stocks make the RS Line Blue Dot list when they satisfy two criteria: first, they’ve hit a 52-week high in their Relative Strength line. This is where you’ll notice a translucent blue dot appear on the Relative Strength line of the stock’s chart. Second, the stock is currently building a base. If both of these conditions occur, the stock goes on the list for 90 days. You can access the list by clicking on the “Open Stock Ideas” button in the top-right corner on any MarketSmith chart.

What does that mean? Two things.

The first thing stocks on the Blue Dot list have shown is that they are outperforming the market (specifically, the S&P 500) in the strongest way possible. This is important because the highest-potential stocks will show strength by outperforming the market in any market conditions.

If the market’s down, good stocks will outperform by treading water and setting up for a spike when the market character changes to an uptrend. In good market conditions, the best stocks will offer the biggest gains relative to other high-performance names. Ultimately, it’s all about maximizing opportunity; since you can only buy a finite amount of stocks, it makes sense to prioritize the best ones.

4 MarketSmith.com // 2019 Q2

The second important characteristic of Blue Dot stocks is that they’re building a base, which means you’re not chasing an extended stock that has less potential for short-term growth. After all, even the best stocks take time to retrench after sizeable runs. A stock that’s currently in a base will have a clear buy point in MarketSmith thanks to the Pattern Recognition feature.

Blue Dot Case Study: KEYS

Let’s look at a recent Blue Dot stock. Keysight (KEYS) is a company that stands to benefit from the forthcoming adoption of the 5G standard in wireless data. To bring 5G networks and smart devices to market, wireless service providers and electronics makers use Keysight’s technologies to test and optimize their designs.

The company itself was showing very bullish fundamentals in late 2018: accelerating earnings, steady sales and a strong ROE. KEYS started forming a cup-shaped base in August 2018; as it began to form the right side of the base, its Relative Strength line hit a new high eight times during December 2018 and January 2019! Keep in mind, KEYS was outperforming the S&P during the December market correction that dragged down stocks across the board—a classic sign that a stock is one to watch when a new uptrend starts.

To recap, as KEYS neared its buy point in January 2019, it had very strong fundamentals and eight recent Blue Dot appearances in MarketSmith—a rare combination of superior technical and fundamental strength aligning at the right time.

On January 24, 2019, KEYS broke out in volume 91% above average and rose 4.5% from the day prior. It closed up in price 19 out of the next 21 trading days before entering a +20% profit target zone. Stocks don’t get much easier to hold than that.

5 Blue Dot Special

Find the strongest Blue Dot stocks

This screen builds on the Blue Dot list criteria to screen for stocks in a strong industry group with 90th-percentile fundamentals, strong liquidity and positive demand.

Screen created by Arnie Gutierrez, MarketSmith Product Coach

COMPANY (SYMBOL) INDUSTRY GROUP RS RATING PAGE

Tegna Inc (TGNA) Media-Radio/Tv 99 7

Sinclair Broadcast Group (SBGI) Media-Radio/Tv 99 7

Alexion Pharmaceuticals (ALXN) Medical-Biomed/Biotech 99 8

Gray Television Inc (GTN) Media-Radio/Tv 99 8

S S & C Technologies (SSNC) Computer Sftwr-Financial 99 9

Palo Alto Networks (PANW) Computer Sftwr-Security 99 9

Visit MarketSmith.com/learn/stockguide to load the criteria for this and other Stock Guide screens directly into your MarketSmith screener.

*All screen results are computer-generated and were run on March 29, 2019. This screen can also be found on marketsmith.com in shared screens.

6 Tegna Inc (TGNA) MarketSmith.com // 2019 Q2 TEGNA INC(TGNA) NYSE 216.1 SHRS / 213.9 FLT / AVG VOL 2.32MIL $14.10(OH -9%) MEDIA-RADIO/TV tegna.com OPERATES 49 TELEVISION STATIONS AND AFFILIATED ONLINE SITES 3/19 EXPECTS Q1 2019 REVENUES GROWTH OF LOW-SINGLE DIGITS. COVERING ONE THIRD OF THE U.S. POPULATION. SHORT INT 5.7 DAYS -22% GROWTH RATE -3% DEBT 220% 2.28 X BK VALUE FUNDS 52% OPTIONS ON AM/MS EARNINGS STAB 17 NEW CEO 6/17 INVENTORY TO. BANKS 1% UP/DOWN 1.5 EPS RANK 80 TIMELINESS A R&D N/A MGMT 1% EX-DIV 3/7 PE 8 (0.4XS&P) ACC/DIST B RET ON EQUITY 34% ALPHA 0.08 YIELD 2.0% 5 YR PE 6 - 17 SMR RATING A CASH FLOW $2.24 BETA 0.98 EARNINGS (DEC) HI LO GROUP REL STR 87 RS EPS COMPOSITE RATING 99 13$ 2.02 $ 14 8 GrayTelA GTNA 97 99 QTR 4 QTR 1 PRICE 14 1.22 17 12 GrayTelevi GTN 96 99 SCALE 15 1.44 20 13 NexstarMed NXST 96 99 ScrippsEWA SSP 96 77 16 16 1.69 16 11 15.58 17 1.08 16 11 Sinclair SBGI 94 94 18 1.83 15 10 QTR 3 19 1.31 EST -28% ↓ 20 2.12 EST +62% ↓ QTR 2 14 13.59

12.49 12.16 12

11.10 11.25

10.80 10.53 10.46 10.37 10.24 10 10.00 10.11 92

R S LINE 8 VS SP500 VOLUME 8 M

3 M

1.1 M 13 27 11 25 8 22 6 20 3 17 31 14 28 12 26 9 23 7 21 4 18 1 15 1 15 29 MAY JUN JUL AUG SEP OCT NOV DEC JAN 19 FEB MAR EPS DUE 5/8 QUARTER ENDED MAR 31,18 QUARTER ENDED JUN 30,18 QUARTER ENDED SEP 30,18 QUARTER ENDED DEC 31,18 EARNINGS $ 0.33 VS 0.25 +32% 0.36 VS 0.29 +24% 0.40 VS 0.23 +74% 0.74 VS 0.32 +131% SALES MIL. $ 502.1 VS 459.1 +9% 524.1 VS 489.4 +7% 539.0 VS 464.3 +16% 642.1 VS 490.3 +31% DIVIDEND-PE $0.07 12X -- 10X $0.07 10X -- 9X $0.07 11X -- 8X $0.07 10X -- 7X Sinclair Broadcast Group (SBGI) *SINCLAIR BROADCAST GROUP(SBGI) NASDAQ 65.7 SHRS / 46.7 FLT / AVG VOL 1.09MIL $38.48(OH -3%) MEDIA-RADIO/TV sbgi.net TV BROADCASTER THAT OWNS OR PROVIDES PROGRAMMING, OPERATING 2/19 EXPECTS 2019 CAPITAL EXPENDITURES OF $250 MIL TO $260 MIL. OR SALES SERVICES TO 191 STATIONS IN 89 MARKETS. SHORT INT 3.6 DAYS -1% GROWTH RATE +22% DEBT 235% 2.20 X BK VALUE FUNDS 35% OPTIONS ON PH EARNINGS STAB 17 NEW CEO INVENTORY TO. BANKS 1% UP/DOWN 2.4 EPS RANK 94 TIMELINESS A R&D N/A MGMT 29% EX-DIV 3/8 PE 11 (0.6XS&P) ACC/DIST A RET ON EQUITY 23% ALPHA 0.08 YIELD 2.0% 5 YR PE 8 - 33 SMR RATING A CASH FLOW $7.9 BETA 0.94 EARNINGS (DEC) HI LO GROUP REL STR 87 RS EPS (C) COMPOSITE RATING 99 GrayTelA GTNA 13$ 1.04∆ $ 36 12 97 99 QTR 4 QTR 1 PRICE GrayTelevi GTN SCALE 14 2.17∆ 37 23 96 99 NexstarMed NXST 15 1.79∆ 35 24 96 99 ScrippsEWA SSP 16 2.86∆ 34 24 96 77 Tegna TGNA 92 80 17 2.82∆ 43 26 39.88 40 18 3.59∆ 40 25 QTR 3 19 2.31 EST -36% ↓ 20 4.56 EST +97% ↑ QTR 2

35 33.95

32.30 32.00

30.00 30

94 27.05 26.85 26.50 26.04 25 25.13 25.14 DIV INC R S LINE VS SP500 20 VOLUME

1.2 M

500 K 13 27 11 25 8 22 6 20 3 17 31 14 28 12 26 9 23 7 21 4 18 1 15 1 15 29 MAY JUN JUL AUG SEP OCT NOV DEC JAN 19 FEB MAR EPS DUE 5/9 QUARTER ENDED MAR 31,18 QUARTER ENDED JUN 30,18 QUARTER ENDED SEP 30,18 QUARTER ENDED DEC 31,18 EARNINGS $ 0.42∆ VS 0.32∆ +31% 0.27∆ VS 0.43 -37% 0.86∆ VS 0.37∆ +132% 2.10∆ VS 1.67∆ +26% SALES MIL. $ 665.4 VS 626.9 +6% 730.1 VS 652.2 +12% 766.3 VS 644.5 +19% 893.3 VS 712.5 +25% DIVIDEND-PE $0.18 16X -- 11X $0.18 12X -- 9X $0.18 12X -- 9X $0.20 11X -- 8X 7 Alexion Pharmaceuticals (ALXN) ALEXION PHARMACEUTICALS(ALXN) NASDAQ 223.5 SHRS / 212.3 FLT / AVG VOL 1.59MIL $135.18(OH -3%) MEDICAL-BIOMED/BIOTECH alexion.com DEVELOPS THERAPEUTICS TO TREAT HEMATOLOGIC AND NEUROLOGIC DI 2/19 EXPECTS 2019 NON-GAAP EARNINGS OF $9.10 TO $9.30 PER SHARE SEASES AND METABOLIC AND INFLAMMATORY DISORDERS. ON REVENUES OF $4.625 BIL TO $4.700 BIL. SHORT INT 2.4 DAYS +6% GROWTH RATE +12% DEBT 31% 3.39 X BK VALUE FUNDS 57% OPTIONS ON AM/MS EARNINGS STAB 13 NEW CEO INVENTORY TO. 8.9X BANKS 2% UP/DOWN 1.4 EPS RANK 90 TIMELINESS A R&D 17.7% MGMT 4% EX-DIV PE 17 (1.0XS&P) ACC/DIST B RET ON EQUITY 20% ALPHA 0.05 YIELD 5 YR PE 13 - 60 SMR RATING A CASH FLOW $8.43 BETA 1.41 EARNINGS (DEC) HI LO GROUP REL STR 88 RS EPS (W) COMPOSITE RATING 99 13$ 3.08 $ 133 81 CorMedix CRMD 99 54 QTR 4 QTR 1 PRICE 14 5.21 203 126 Trevana TRVN 99 44 SCALE 15 4.70 208 142 Clementia CMTA 99 41 16 4.62 193 109 Kalvista KALV 99 40 17 5.86 149 96 Cel-Sci CVM 99 40 160 18 7.92 140 92 QTR 3 19 9.29 EST +17% ↓ ↓ 20 10.49 EST +13% 150 QTR 2 140.77 138.77 138.32 140

129.36 130

123.48 120

115.40 114.40 110 109.74

100 102.10 91

92.56 90

80 R S LINE VS SP500 VOLUME 4 M

1.6 M

600 K

13 27 11 25 8 22 6 20 3 17 31 14 28 12 26 9 23 7 21 4 18 1 15 1 15 29 MAY JUN JUL AUG SEP OCT NOV DEC JAN 19 FEB MAR EPS DUE*4/26 QUARTER ENDED MAR 31,18 QUARTER ENDED JUN 30,18 QUARTER ENDED SEP 30,18 QUARTER ENDED DEC 31,18 EARNINGS $ 1.68 VS 1.38 +22% 2.07 VS 1.56 +33% 2.02 VS 1.44 +40% 2.14 VS 1.48 +45% SALES MIL. $ 930.9 VS 869.6 +7% 1045 VS 912.7 +14% 1026 VS 859.1 +19% 1128 VS 909.7 +24% DIVIDEND-PE N/A 24X -- 18X N/A 21X -- 17X N/A 22X -- 17X N/A 21X -- 13X Gray Television Inc (GTN) *GRAY TELEVISION INC(GTN) NYSE 82.0 SHRS / 80.4 FLT / AVG VOL 983080 $21.36(OH -8%) MEDIA-RADIO/TV gray.tv OWNS AND OPERATES TELEVISION STATIONS IN 91 TELEVISION MARKE 2/19 EXPECTS Q1 2019 REVENUES OF $495.0 MIL TO $502.0 MIL. TS BROADCASTING 400 PROGRAMMING STREAMS. SHORT INT 2.6 DAYS -62% GROWTH RATE +45% DEBT 184% 1.95 X BK VALUE FUNDS 41% OPTIONS ON EARNINGS STAB 33 NEW CEO INVENTORY TO. BANKS 0% UP/DOWN 1.6 EPS RANK 99 TIMELINESS A R&D N/A MGMT 2% EX-DIV PE 9 (0.5XS&P) ACC/DIST B RET ON EQUITY 20% ALPHA 0.22 YIELD 5 YR PE 6 - 83 SMR RATING A CASH FLOW $3.55 BETA 1.04 EARNINGS (DEC) HI LO GROUP REL STR 87 RS EPS (W) COMPOSITE RATING 99 GrayTelA GTNA 13$ 0.32∆ $ 15 2 97 99 QTR 4 QTR 1 PRICE NexstarMed NXST SCALE 14 0.82∆ 15 7 96 99 ScrippsEWA SSP 15 0.66∆ 18 9 96 77 Sinclair SBGI 16 1.12∆ 16 7 94 94 Tegna TGNA 23.45 17 1.75∆ 17 9 92 80 18 2.44∆ 20 10 QTR 3 19 1.39 EST -43% ↓ 20 3.44 EST+147% ↓ QTR 2 20.24 20

17.00 16.93

16.35 16.22 15

14.60 13.75

10.70 10.70 96 10

5 R S LINE VOLUME VS SP500 2.5 M

800 K

300 K 13 27 11 25 8 22 6 20 3 17 31 14 28 12 26 9 23 7 21 4 18 1 15 1 15 29 MAY JUN JUL AUG SEP OCT NOV DEC JAN 19 FEB MAR EPS DUE 5/8 QUARTER ENDED MAR 31,18 QUARTER ENDED JUN 30,18 QUARTER ENDED SEP 30,18 QUARTER ENDED DEC 31,18 EARNINGS $ 0.22∆ VS 0.17∆ +29% 0.46∆ VS 0.98∆ -53% 0.70∆ VS 0.21∆ +233% 1.06∆ VS 0.40∆ +165% SALES MIL. $ 226.3 VS 203.5 +11% 250.3 VS 226.7 +10% 279.3 VS 219.0 +28% 328.2 VS 233.6 +40% DIVIDEND-PE N/A 10X -- 7X N/A 9X -- 6X N/A 14X -- 8X N/A 15X -- 8X 8 S S & C Technologies (SSNC) MarketSmith.com // 2019 Q2 S S & C TECHNOLOGIES(SSNC) NASDAQ 240.5 SHRS / 197.2 FLT / AVG VOL 1.78MIL $63.69(OH -1%) COMPUTER SFTWR-FINANCIAL ssctech.com PROVIDES SOFTWARE FOR THE FINANCIAL SERVICES INDUSTRY TO SUP 3/19 TO OFFER $2.0 BIL OF 5.500% SENIOR NOTES DUE 2027. PORT INVESTMENT MANAGEMENT AND OTHER FUNCTIONS. SHORT INT 3.9 DAYS -4% GROWTH RATE +20% DEBT 75% 5.80 X BK VALUE FUNDS 47% OPTIONS ON PH EARNINGS STAB 5 NEW CEO INVENTORY TO. BANKS 1% UP/DOWN 2.0 EPS RANK 98 TIMELINESS A R&D 9.2% MGMT 18% EX-DIV 2/28 PE 22 (1.2XS&P) ACC/DIST A RET ON EQUITY 20% ALPHA 0.04 YIELD 0.6% 5 YR PE 17 - 30 SMR RATING A CASH FLOW $3.38 BETA 1.26 EARNINGS (DEC) HI LO GROUP REL STR 88 RS EPS COMPOSITE RATING 99 13$ 0.99 $ 22 11 FairIsaac FICO 95 83 QTR 4 QTR 1 PRICE 14 1.18 29 17 Q2 Holding QTWO 94 70 SCALE 15 1.33 38 26 Intuit INTU 93 91 16 1.64 34 23 ACI Wwde ACIW 92 83 17 1.93 42 28 EllieMae ELLI 90 65 18 2.90 60 40 QTR 3 70 19 3.73 EST +29% ↑ 20 4.15 EST +11% ↑ QTR 2 64.36

60.97 59.52 60

55.25

52.54 54.03 53.15 52.50 50.00 51.02 50

47.51 46.10

42.73 40 40.96 93 DIV SO DIV INC INC PSO

R S LINE 30 VS SP500 VOLUME 5 M 1.7 M

600 K 13 27 11 25 8 22 6 20 3 17 31 14 28 12 26 9 23 7 21 4 18 1 15 1 15 29 MAY JUN JUL AUG SEP OCT NOV DEC JAN 19 FEB MAR EPS DUE 5/1 QUARTER ENDED MAR 31,18 QUARTER ENDED JUN 30,18 QUARTER ENDED SEP 30,18 QUARTER ENDED DEC 31,18 EARNINGS $ 0.53 VS 0.44 +20% 0.62 VS 0.46 +35% 0.79 VS 0.50 +58% 0.95 VS 0.54 +76% SALES MIL. $ 421.9 VS 407.7 +3% 895.8 VS 411.0 +118% 992.4 VS 418.3 +137% 1111 VS 438.4 +153% DIVIDEND-PE $0.07 28X -- 22X $0.07 28X -- 23X $0.08 28X -- 24X $0.08 26X -- 17X Palo Alto Networks (PANW) *PALO ALTO NETWORKS(PANW) NYSE 93.7 SHRS / 90.0 FLT / AVG VOL 1.45MIL $242.88(OH -6%) COMPUTER SFTWR-SECURITY paloaltonetworks.com PROVIDES NETWORK SECURITY INFRASTRUCTURE PRODUCTS FOR ENTERP 3/19 ACQUIRED DEMISTO, A CYBERSECURITY COMPANY SPECIALIZING IN RISES, SERVICE PROVIDERS AND GOVERNMENT ENTITIES. SECURITY ORCHESTRATION, FOR ABOUT $560 MIL IN CASH/STK. SHORT INT 3.9 DAYS -2% GROWTH RATE +77% DEBT 142% 23.30 X BK VALUE FUNDS 34% OPTIONS ON EARNINGS STAB 14 NEW CEO 6/18 INVENTORY TO. BANKS 2% UP/DOWN 1.3 EPS RANK 99 TIMELINESS A R&D 17.6% MGMT 3% EX-DIV PE 49 (2.7XS&P) ACC/DIST B RET ON EQUITY 45% ALPHA 0.08 YIELD 5 YR PE 38 - 311 SMR RATING A CASH FLOW $5.33 BETA 1.11 EARNINGS (JUL) HI LO GROUP REL STR 98 RS EPS IPO 7/20/12 $42.00 COMPOSITE RATING 99 13$ 0.24 $ 62 39 Zscaler ZS 99 73 QTR 4 QTR 1 PRICE 14 0.40 128 54 CybArkSftw CYBR 98 99 SCALE 15 0.86 200 117 Rapid7 RPD 98 38 16 1.89 177 111 Okta A OKTA 97 43 17 2.71 157 107 Securework SCWX 96 73 280 18 4.07 239 145 QTR 3 19 5.48 EST +35% ↑ 20 6.43 EST +17% ↑ 260.63 260 QTR 2

239.50 240

217.40 219.38 220

197.20 200 192.80 195.78 193.61 180 89

168.80 160 160.08 R S LINE VS SP500 140 VOLUME 3 M

1.4 M 700 K

13 27 11 25 8 22 6 20 3 17 31 14 28 12 26 9 23 7 21 4 18 1 15 1 15 29 MAY JUN JUL AUG SEP OCT NOV DEC JAN 19 FEB MAR EPS DUE 6/4 QUARTER ENDED APR 30,18 QUARTER ENDED JUL 31,18 QUARTER ENDED OCT 31,18 QUARTER ENDED JAN 31,19 EARNINGS $ 0.99 VS 0.61 +62% 1.28 VS 0.92 +39% 1.17 VS 0.75 +56% 1.51 VS 1.05 +44% SALES MIL. $ 567.1 VS 431.8 +31% 658.1 VS 509.1 +29% 656.0 VS 501.8 +31% 711.2 VS 545.6 +30% DIVIDEND-PE N/A 59X -- 49X N/A 64X -- 52X N/A 63X -- 43X N/A 48X -- 38X 9 MarketSmith.com // 2019 Q2 l Q&A: Joe Fahmy

A Conversation with Joe Fahmy

Joe Fahmy is an Investment Advisory Representative at Zor Capital, a New York- based investment firm. Joe has over 21 years of trading experience during which he developed his investment strategy and sharpened his skills. He’s also a long-time MarketSmith member who uses the platform to find and evaluate trading ideas. His extensive knowledge of technical analysis, market forecasting and risk management has landed him appearances on Wall Street Week, Fox Business, CNBC, ABC News, CNN Money and Yahoo Finance, where he is a regular contributor.

We recently spoke to Joe about stock analysis and the trends he sees ahead for Q2.

Q: What was your first big winning trade, and what did you learn from it?

I did well in many stocks during the 1995-1999 bull market, but my first big winning trade was Hansen’s Natural Corporation in 2004-2006. The symbol used to be HANS but it is now Monster Beverage Corp (MNST). I remember buying a position and immediately being up 20-25% in a few weeks. I normally would sell a nice gain like that, but I remembered how both Jesse Livermore and William O’Neil say that when you buy a stock at the proper entry point and it shows you an immediate profit, be patient and play for a bigger move.

I kept a core position and traded around it from around $20 all the way up to around $135 (split adjusted). Less than a week after I sold it, it had a “blow-off” move and went to $200, but I was more than happy with the gain. 10 MarketSmith.com // 2019 Q2

The biggest lesson I learned from this was patience, especially when you discover a stock with a strong fundamental story and explosive triple-digit growth with expanding profit margins. These stories are difficult to find, but when you discover them and have some patience, all you need is one of them to make your year.

Q: Name a sector or industry you’re bullish on for Q2.

I’ve been pounding the table on Enterprise Software and Software Security stocks for over a year now. Many of these stocks doubled in 2018 when all the major averages were negative for the year, and this group showed amazing relative strength during the Q4 correction. When the market had a follow-through day on January 4th, 2019, I immediately started putting money to work in the strongest stocks I could find, and most of them came from this sector.

Q: What are a few trends you see coming in Q2?

I always say that the moves on two main factors: earnings and interest rates. The rest is just noise in my view. For the rest of the year, interest rates are expected to remain low and this is bullish for stocks. I’m never one to complain about what the Fed is doing. I prefer to take advantage of this equity-friendly environment instead.

While earnings are slowing from the strong pace of the last two years, they are still growing slowly and steadily. I think these two factors will keep us moving higher into the end of the year (with corrections and pullbacks along the way, of course).

Q: Any favorite MarketSmith screens or lists you pay special attention to?

The three main MarketSmith screens I use involve earnings growth, profit margin expansion, and MarketSmith’s proprietary Relative Strength Rating. My process involves screening the market nightly and going through about 500-1,000 stocks. This gives you a really good feel for the market’s health and guides you toward the strongest sectors. In other

11 MarketSmith.com // 2019 Q2 l Q&A: Joe Fahmy

words, while going through your screens, a light bulb should go on when you notice many strong stocks from the same sectors appear over and over.

Q: What’s your market-wide “warning light” for reducing your overall exposure?

I like to use the 10-week moving average on the major indexes. Most people use the S&P 500, but I prefer to look at the Nasdaq Composite and the Russell 2000. I like these averages better because they are where most of the growth stocks come from and it tells me if the big institutions are putting money to work in riskier assets or not. If they are, it is usually a sign the market is healthy.

When the indexes break below the 10-week moving average, it is usually a warning sign to raise cash and get more defensive. There are other factors, of course, but this is a simple one investors can use.

There are thousands of stocks in the market, so why not buy the best you can find when the market is in a strong uptrend?

Q: What’s the best advice you would give investors?

To paraphrase William O’Neil, most investors buy “nothing to write home about” stocks. There are thousands of stocks in the market, so why not buy the best you can find when the market is in a strong uptrend? By the best, I mean companies with 30% or higher earnings and sales growth.

I would also stress the importance of mental toughness and protecting your confidence. An investor’s goal should be to produce consistently strong returns over a long period of time. This is very tough to do unless you have a strong mental state and confidence in what you are doing.

12 Earnings & Margins

Quality stocks that outperform their peers

This screen looks for stocks with classically strong fundamentals, especially in the area of earnings (quarterly and 3-year). Along with strong proprietary ratings like EPS and RS, this screen selects for margins better than a company’s industry group peers.

Screen created by Scott St. Clair, MarketSmith Product Coach

COMPANY (SYMBOL) INDUSTRY GROUP RS RATING PAGE

Arista Networks Inc (ANET) Computer-Networking 99 14

Camtek Ltd (CAMT) Elec-Scientific/Msrng 99 14

Cabot Microelectronics (CCMP) Elec-Semiconductor Equip 99 15

Fortinet Inc (FTNT) Computer Sftwr-Security 99 15

Visit MarketSmith.com/learn/stockguide to load the criteria for this and other Stock Guide screens directly into your MarketSmith screener.

*All screen results are computer-generated and were run on March 29, 2019. This screen can also be found on marketsmith.com in shared screens.

13 Arista Networks Inc (ANET) *ARISTA NETWORKS INC(ANET) NYSE 75.7 SHRS / 50.7 FLT / AVG VOL 912920 $314.46(OH 0%) COMPUTER-NETWORKING arista.com PROVIDES CLOUD NETWORKING SOFTWARE, HARDWARE FOR INTERNET, C 2/19 EXPECTS Q1 2019 REVENUES OF $588 MIL TO $598 MIL. LOUD AND NEXT-GEN DATA CENTERS. SHORT INT 2.2 DAYS -5% GROWTH RATE +56% DEBT 2% 11.25 X BK VALUE FUNDS 35% OPTIONS ON EARNINGS STAB 7 NEW CEO INVENTORY TO. 7.5X BANKS 1% UP/DOWN 3.0 EPS RANK 97 TIMELINESS A R&D 20.6% MGMT 25% EX-DIV PE 40 (2.2XS&P) ACC/DIST A RET ON EQUITY 34% ALPHA 0.05 YIELD 5 YR PE 23 - 87 SMR RATING A CASH FLOW $8.76 BETA 1.7 EARNINGS (DEC) HI LO GROUP REL STR 91 RS EPS IPO 6/06/14 $43.00 COMPOSITE RATING 99 13$ 0.82 $ Cisco CSCO 90 77 QTR 4 QTR 1 PRICE 14 1.54 94 55 Aerohive N HIVE 90 73 SCALE 15 2.44 88 56 Digi DGII 81 77 16 3.30 98 52 ExtremeNtk EXTR 80 54 Radware RDWR 17 5.61 245 87 78 67 360 18 7.96 313 187 QTR 3 19 9.25 EST +16% ↑ 20 10.78 EST +17% ↓ 340 QTR 2 313.37 320

300 287.12 281.20 280 272.54 269.49 260 248.98 252.25 253.51 233.16 240 235.24 220

213.11 210.55 200 204.94 94

187.08 180

160 R S LINE VS SP500 140 VOLUME 2.8 M 1 M 350 K 13 27 11 25 8 22 6 20 3 17 31 14 28 12 26 9 23 7 21 4 18 1 15 1 15 29 MAY JUN JUL AUG SEP OCT NOV DEC JAN 19 FEB MAR EPS DUE 5/3 QUARTER ENDED MAR 31,18 QUARTER ENDED JUN 30,18 QUARTER ENDED SEP 30,18 QUARTER ENDED DEC 31,18 EARNINGS $ 1.66 VS 0.93 +78% 1.93 VS 1.34 +44% 2.11 VS 1.62 +30% 2.25 VS 1.71 +32% SALES MIL. $ 472.5 VS 335.5 +41% 519.9 VS 405.2 +28% 563.3 VS 437.6 +29% 595.7 VS 467.9 +27% DIVIDEND-PE N/A 62X -- 42X N/A 49X -- 37X N/A 45X -- 37X N/A 39X -- 25X Camtek Ltd (CAMT) *CAMTEK LTD(CAMT) NASDAQ 36.4 SHRS / 18.9 FLT / AVG VOL 178700 $8.92(OH -19%) ELEC-SCIENTIFIC/MSRNG camtek.com ISRAELI MAKER OF AUTOMATED OPTICAL INSPECTION SYSTEMS FOR TH 2/19 EXPECTS Q1 2019 REVENUES OF $33.5 MIL TO $34.5 MIL. E PRINTED CIRCUIT BOARD/SEMICONDUCTOR INDUSTRIES. SHORT INT .2 DAYS+214% GROWTH RATE +28% DEBT 0% 3.97 X BK VALUE FUNDS 9% OPTIONS ON EARNINGS STAB 73 NEW CEO INVENTORY TO. 4.9X BANKS 0% UP/DOWN 2.2 EPS RANK 96 TIMELINESS C R&D 14.5% MGMT 1% EX-DIV PE 16 (0.9XS&P) ACC/DIST A RET ON EQUITY 23% ALPHA 0.1 YIELD 5 YR PE 11 - 584 SMR RATING B CASH FLOW $0.57 BETA 1.23 EARNINGS (DEC) HI LO GROUP REL STR 94 RS EPS COMPOSITE RATING 99 13$ 0.07 $ 6 1 Keysight T KEYS 96 82 QTR 4 QTR 1 PRICE 14 0.15 5 2 Novanta NOVT 95 95 SCALE 15 0.16 3 2 MettlerTol MTD 92 84 16 0.06 3 1 Bruker BRKR 92 81 17 0.21 7 3 AgilentTec A 90 71 18 0.57 11 5 QTR 3 12 19 0.71 EST +25% ↑ 20 0.84 EST +18% ↓ 11.11 QTR 2

10 9.63 9.34 9.19 8.90 8.74 8.83 8.60

8 7.95

7.20 7.31 6.83

6.29 6 DIV SPEC 92

4 VOLUME R S LINE VS SP500 250 K

70 K

22 K 13 27 11 25 8 22 6 20 3 17 31 14 28 12 26 9 23 7 21 4 18 1 15 1 15 29 MAY JUN JUL AUG SEP OCT NOV DEC JAN 19 FEB MAR EPS DUE 5/2 QUARTER ENDED MAR 31,18 QUARTER ENDED JUN 30,18 QUARTER ENDED SEP 30,18 QUARTER ENDED DEC 31,18 EARNINGS $ 0.12 VS -0.02 #+700% 0.13 VS 0.06 +117% 0.16 VS 0.08 +100% 0.17 VS 0.10 +70% SALES MIL. $ 27.3 VS 21.2 +29% 30.5 VS 22.7 +34% 32.3 VS 23.8 +35% 33.2 VS 25.8 +28% DIVIDEND-PE N/A 51X -- 27X $0.14 34X -- 19X N/A 26X -- 18X N/A 21X -- 12X 14 Cabot Microelectronics (CCMP) MarketSmith.com // 2019 Q2 *CABOT MICROELECTRONICS(CCMP) NASDAQ 28.9 SHRS / 28.1 FLT / AVG VOL 298418 $111.96(OH -9%) ELEC-SEMICONDUCTOR EQUIP cabotcmp.com MANUFACTURES CHEMICAL MECHANICAL PLANARIZATION SLURRIES FOR 2/19 EXPECTS Q2 FY19 REVENUES TO BE DOWN LOW SINGLE DIGITS. POLISHING CONDUCTING/INSULATING MATERIALS SHORT INT 2.7 DAYS -20% GROWTH RATE +22% DEBT 0% 4.96 X BK VALUE FUNDS 57% OPTIONS ON MS/NY EARNINGS STAB 17 NEW CEO INVENTORY TO. 8.2X BANKS 1% UP/DOWN 1.2 EPS RANK 95 TIMELINESS A R&D 8.8% MGMT 2% EX-DIV 3/20 PE 19 (1.1XS&P) ACC/DIST A RET ON EQUITY 22% ALPHA N/A YIELD 1.5% 5 YR PE 16 - 30 SMR RATING A CASH FLOW $6.11 BETA 1.47 EARNINGS (SEP) HI LO GROUP REL STR 81 RS EPS (W) COMPOSITE RATING 99 13$ 2.10 $ 45 31 AcmResrch ACMR 95 34 QTR 4 QTR 1 PRICE 14 2.10 49 38 KLA KLAC 90 92 SCALE 15 2.26 53 37 Ichor Hldn ICHR 88 59 16 2.68 64 34 Entegris ENTG 87 85 17 3.56 102 62 Formfactor FORM 86 79 140 18 5.22 123 82 QTR 3 19 7.07 EST +35% ↑ 20 8.30 EST +17% ↑ QTR 2 130

123.76

119.32 120 115.61 113.47 111.30 110 104.95

104.03 103.46 100

97.42 90 89.19 DIV 82.24 INC 80 80

R S LINE VS SP500 70 VOLUME 300 K 138 K

66 K 13 27 11 25 8 22 6 20 3 17 31 14 28 12 26 9 23 7 21 4 18 1 15 1 15 29 MAY JUN JUL AUG SEP OCT NOV DEC JAN 19 FEB MAR EPS DUE*4/26 QUARTER ENDED MAR 31,18 QUARTER ENDED JUN 30,18 QUARTER ENDED SEP 30,18 QUARTER ENDED DEC 31,18 EARNINGS $ 1.19 VS 0.76 +57% 1.37 VS 0.81 +69% 1.48 VS 1.07 +38% 1.90 VS 1.19 +60% SALES MIL. $ 143.0 VS 119.2 +20% 150.4 VS 128.0 +18% 156.7 VS 136.8 +15% 221.8 VS 140.0 +58% DIVIDEND-PE $0.40 30X -- 24X $0.40 30X -- 23X N/A 28X -- 21X $0.80 22X -- 16X Fortinet Inc (FTNT) *FORTINET INC(FTNT) NASDAQ 170.6 SHRS / 139.9 FLT / AVG VOL 1.82MIL $83.97(OH -11%) COMPUTER SFTWR-SECURITY fortinet.com DEVELOPS UNIFIED THREAT MANAGEMENT SYSTEMS TO PROVIDE SECURI 2/19 EXPECTS 2019 ADJUSTED EARNINGS OF $2.05 TO $2.10 PER DILUTED TY AND NETWORKING FUNCTIONS SHARE ON REVENUES OF $2.06 BIL TO $2.10 BIL. SHORT INT 4.5 DAYS +7% GROWTH RATE +31% DEBT 0% 14.46 X BK VALUE FUNDS 35% OPTIONS ON AM/MS EARNINGS STAB 18 NEW CEO INVENTORY TO. 21.5X BANKS 2% UP/DOWN 1.2 EPS RANK 98 TIMELINESS A R&D 13.6% MGMT 18% EX-DIV PE 47 (2.6XS&P) ACC/DIST C RET ON EQUITY 40% ALPHA 0.15 YIELD 5 YR PE 36 - 112 SMR RATING A CASH FLOW $2.69 BETA 1.31 EARNINGS (DEC) HI LO GROUP REL STR 98 RS EPS IPO 11/18/09 $6.25 (W) COMPOSITE RATING 99 13$ 0.49 $ 25 16 Zscaler ZS 99 73 QTR 4 QTR 1 PRICE 14 0.48 31 18 CybArkSftw CYBR 98 99 SCALE 15 0.51 50 28 Rapid7 RPD 98 38 16 0.73 37 23 Okta A OKTA 97 43 17 1.04 45 29 Securework SCWX 96 73 110 18 1.84 94 43 QTR 3 19 2.08 EST +13% ↑ 20 2.36 EST +13% ↑ 100 QTR 2 94.37

88.60 90

84.00

80 77.18 79.68

70 66.32

64.65 64.41 60 57.98 62.27 91

53.40 50

R S LINE 40 VS SP500 VOLUME 8 M

2.5 M

800 K 13 27 11 25 8 22 6 20 3 17 31 14 28 12 26 9 23 7 21 4 18 1 15 1 15 29 MAY JUN JUL AUG SEP OCT NOV DEC JAN 19 FEB MAR EPS DUE 5/3 QUARTER ENDED MAR 31,18 QUARTER ENDED JUN 30,18 QUARTER ENDED SEP 30,18 QUARTER ENDED DEC 31,18 EARNINGS $ 0.33 VS 0.17 +94% 0.41 VS 0.27 +52% 0.49 VS 0.28 +75% 0.59 VS 0.32 +84% SALES MIL. $ 399.0 VS 340.6 +17% 441.3 VS 363.5 +21% 453.9 VS 374.2 +21% 507.0 VS 416.7 +22% DIVIDEND-PE N/A 53X -- 43X N/A 56X -- 45X N/A 69X -- 47X N/A 70X -- 42X 15 MarketSmith.com // 2019 Q2

Good Trade/Bad Trade The Trader: Andrew Rocco, MarketSmith Product Coach

In this edition of Good Trade / Bad Trade, Andrew Rocco shared a couple of his trades from last year—one winner and one loser—and told us what he learned from each.

TIP: pull up daily charts for BZUN and TSLA in MarketSmith and see how you would have handled these trades!

GOOD TRADE: BAOZUN (BZUN)

The Timeframe: May 2018 – June 2018

Stock Background: This trade came at a time when Chinese stocks were very strong performers, so I felt like this stock might have good tailwinds. Add to that the fact that it’s an enterprise software stock, one of the best- performing industry groups from 2018, and I was intrigued. I really liked BZUN’s consistently strong earnings and sales growth.

I’ve heard Baozun described as “the Shopify of China,” meaning the company’s products and services are innovative and serve a huge need in a market with enormous potential. E-commerce is exploding in China, and this service helps optimize e-commerce websites, so it’s a great second- order recipient of a larger trend.

Technical Picture: When I was watching Baozun in May 2018, it was in the middle of a consolidation-type base after a big gap up on its Q4 earnings report. The next earnings report was coming up on May 17; just before that, there was a little shakeout and most of the weak hands were cleared out. I was ready to pounce if the stock gapped up on earnings.

16 MarketSmith.com // 2019 Q2

My Buy Point: May 17, 2018 at 48. The stock gapped up on a really strong earnings report and broke out of the consolidation during the day. I bought in when it broke through the 50-day line, and the stock cleared a 52.43 buy point that same day. BZUN displayed some traits I really like to see in a breakout: volume was 435% above average, it closed high in the range and it held the pivot point.

How I Held It: BZUN went up from the get-go. I was tempted to add on at points, but I don’t like to drive up my average cost per share on volatile stocks. For this one, I just rode it and waited to either hit my profit target or sell defensively if it broke the 50-day line.

My Sell Point: June 12, 2018 at 65. I had my standard 20-25% profit target on this trade, and it crossed that threshold at 60. It was around this time that the market was starting to act shaky, so I decided to sell offensively around 65. That proved to be fortunate—it topped at 67.41 and then dove into a base. BZUN was at 51.50 just 15 days later; I would have nearly roundtripped it if I ignored my profit target to chase a top.

My 4 Takeaways:

• Keep an eye on promising new growth areas. In this case, BZUN was a hot type of stock (a Chinese ADR) in a hot industry group (Enterprise Software).

• Be prepared to jump in quickly when earnings reports come out.

• Signs that point to a successful breakout: big volume plus a close at the high end of the range and above the pivot.

• If a trade hits your profit target, it’s more than okay to sell offensively and not worry about catching the very top.

17 MarketSmith.com // 2019 Q2

BAD TRADE: TESLA (TSLA)

The Timeframe: October 2018 – December 2018

Stock Background: I thought Tesla was going to be the next Apple. I still think it might. The fundamental story of this stock is what really excited me: an innovative new product (advanced electric cars) that’s a cut above everything else in the market. They have a big first-mover advantage in a field that will grow exponentially in the next decade.

The fundamental numbers, on the other hand, had some warning signs I overlooked because I was so bullish on the story. The company carries a high debt ratio. Production problems with the cars meant that sales growth had a hard ceiling. The company had years of negative earnings per share. I overlooked these signs because I had a lot of conviction

in the company. Added On

Technical Picture: Sold There were plenty of warning signs in the First Buy technical picture. The Cup-with-Handle base that TSLA was forming when I bought it was very wide and loose, with the right side of the cup being really steep. The base just had a lot of technical flaws. But maybe the biggest mistake was not waiting for a strong prior uptrend preceding the base. CAN SLIM® relies on trends, so if there’s no prior uptrend in the stock, it’s really an iffy bet.

18 MarketSmith.com // 2019 Q2

My Buy Point: October 25, 2018 at 310. I bought the stock when it broke the 200-day line on nearly double average volume. It was still far away from the 366.85 proper buy point of the base, so it was maybe an aggressive alternative entry point.

How I Held It: Since it was going up, I was optimistic! I added to the position in the handle of the Cup-with-Handle at around 350. Which, of course, drove up my average cost per share. Pretty soon TSLA hit the proper buy point, but the breakout failed. There was low volume, mostly sideways price action and waning relative strength. Plus the market was really running into that bad December correction! TSLA started plunging on December 14 and I held on to see if it would rebound.

My Sell Point: December 20, 2018 at 328. Having already given back my profits, I sold my whole position when it crashed through the 50-day line as part of its dive to a December low of 294. I roundtripped this one badly. The sting of the trade was magnified because I had a relatively large position size after I added to it, something you normally don’t want to do with more volatile stocks because the big swings can crush your account.

My 4 Takeaways:

• Good fundamentals aren’t enough—you need to be patient and wait for good technical setups.

• Sometimes your strong conviction in a stock can work against you.

• Tight, symmetrical bases and a 30% prior uptrend are really important technical indicators.

• Smaller position sizes for volatile stocks help prevent big swings from inflicting major damage on your portfolio.

19 Features Highlight: Stock Ideas Button

The MarketSmith product team recently redesigned the interface to make it easier to find new stock ideas. Above every MarketSmith chart in the top-right, you’ll find the new orange “Open Stock Ideas” button. Click it and you’ll see the top lists to check for your daily or weekly stock research.

Start Here for Trade Ideas The Open Stock Ideas button is a great first step in your investing routine. The window displays the current market trend at the top and has three tabs to choose from: Uptrend, Correction and Earnings.

If the market is in an Uptrend, you’ll want to search those lists for potential buys; many of the stock lists here are focused on stocks in the vicinity of a buy point. If the market is in a Correction, those lists will feature the strongest names to keep an eye on for when a new uptrend starts. The Earnings tabs features lists of stocks that have reported earnings or will soon do so. This is worth paying attention to, as earnings reports can greatly affect the prices of stocks on the day they are released.

20 Daily Routines Whether you selected the Uptrend or Downtrend tab, the Stock Ideas window has the option for either a Daily Routine or a Weekly Routine. The Daily Routine contains lists helpful for finding and monitoring stocks throughout the week during and after trading hours. Daily lists and screens are generally tighter and more focused on timely potential trades; Breaking Out Today, Recent Breakouts and Near Pivot are the top 3 lists.

Weekly Routines The Weekly Routine lists, on the other hand, represent a broader universe of stocks, with some of these lists having over 100 names. During the weekend when the market is closed, it’s an ideal time to cast a wide net and look for new trading ideas you may not have come across during more focused daily screens. These lists are filled with fundamentally strong stocks that might not necessarily be near a buy point, but nonetheless could be worth putting on your watchlist.

21 Resources

MarketSmith® Mobile Apps

MarketSmith has a full suite of tablet and phone apps—and they’re included with your subscription! Download them today from the Apple App Store and the Google Play Store, then log in with the same email and password you use to access MarketSmith from your desktop. See how to get the most out of the mobile apps in our Video Tutorials section by going to the MarketSmith home page and hovering over the “Learn” section, then selecting “Video Tutorials.”

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High-Powered Stock Lists

Pattern Recognition and the Growth 250 list are two of MarketSmith’s most powerful features, and when you combine the two it creates timely and highly selective stock lists. These G250 Pattern Recognition lists make it easy to find all of today’s breakouts, plus recent breakouts, stocks near a buy point, stocks in tight areas and stocks showing strong power from their pivot point. Find them all in the lists window at the bottom of MarketSmith by going to Reports > MarketSmith Growth 250 > G250 Pattern Recognition.

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Stay in Step with the Market

MarketSmith’s monthly “Stay in Step with the Market” webinar is a must- STAY watch for timely market analysis and evergreen investing strategies to help you trade better. Our Senior Product Coaches dive into the current market and analyze the trends, leading stocks and potential breakouts that investors need to know. Watch the latest episode at: Investors.com/mswebinars

22 Connect with Us

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Get real-time updates on the stock market throughout the day on Twitter. Tweet us @MarketSmith with your thoughts on the market.

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IBD’s StockTwits allows you to connect with other stock traders to get tips on growing your portfolio.

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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 market action in the week that was. Plus, you’ll find timely tips for your stock research routine.

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Our Instagram gives you a behind-the-scenes look at how the IBD® and MarketSmith® teams work to help you succeed in the market.

23 STAY ON TOP OF THE MARKET

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That’s why you need IBD Digital: one subscription gives you access to all of our actionable market analysis and original research. It’s like having a personal stock research team available 24 / 7 on your desktop, tablet and phone.

MarketSmith® Members: Try IBD® Digital for 5 weeks for only $5!

Investors.com/5for5 Copyright © 2019 Investor’s Business Daily, Inc., Investor’s Business Daily, IBD, CAN SLIM, and corresponding logos are registered trademarks owned by Investor’s Business Daily, Inc. MarketSmith is a registered trademark of MarketSmith, Incorporated.

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Data provided under license agreement by William O’Neil + Co. Incorporated. All material presented here has been obtained or derived from sources believed to be accurate, but Investor’s Business Daily, Inc., MarketSmith Inc., and William O’Neil + Company, Inc. do not guarantee its accuracy and it may possibly be incomplete and/or condensed. The contents are based on the study and interpretation of available data as it relates to our historical models of the best performing stocks. This is not a prospectus; no effort on our part with respect to sale or purchase of any securities is intended or implied. Any chart appearing in this material is for educational purposes and is not, and should not be construed as a recommendation or rating to buy or sell any security. It is possible that at this date or some subsequent date the officers, directors and/or shareholders of William O’Neil + Company, Inc., MarketSmith Inc. and Investor’s Business Daily, Inc. and their affiliates own securities or buy or sell securities listed in the following pages or those not mentioned.

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Copyright © 2019, Standard & Poor’s Financial Services LLC (“S&P”). Reproduction of S&P US Index Data in any form is prohibited except with the prior written permission of S&P. Because of the possibility of human or mechanical error by S&P’s sources, S&P or others, S&P does not guarantee the accuracy, adequacy, completeness, timeliness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. S&P GIVES NO EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P or its affiliates be liable for any indirect, special or consequential damages in connection with subscriber’s or others’ use of S&P US Index Data. (2012) 12655 Beatrice Street Los Angeles, CA 90066

The Blue Dot List : Our newest feature for finding top stocks

STOCK GUIDE // 2019 Q2

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