Exiting 2 Positions as We Mitigate Risk for the $10K Portfolio
We’re enforcing our 8% rule again.
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The $10,000 portfolio is facing a number of positions that are now down 8% or more from not only their highs, but from our net basis. As readers well know, I do exempt lower-priced stocks from this rule. Amazon (AMZN) and Palantir (PLTR) are not exempt and present too much risk at this time to the portfolio.
I would rather liquidate those positions at losses and increase the portfolio’s cash position while the overall portfolio is still in the green than see these positions drag our performance any lower. We can always revisit these names later.
PLTR has been in free-fall since losing its 50-day simple moving average (SMA) as professional managers take their leave. AMZN has now lost its 200-day SMA.
Thursday’s Intentions
– Sell 3 shares of AMZN at or close to the last sale of $228.75.
– Sell 6 shares of PLTR at or close to the last sale of $108.03.
Wednesday’s Intentions vs. Wednesday’s Actual Trades
– Purchase 25 shares of SIDU at or close to the last sale of $2.72.
– Bought 25 shares of SIDU at $2.69.
– Purchase 25 shares of ONDS at or close to the last sale of $8.03.
– Bought 25 shares of ONDS at $7.75.
– Purchase 10 shares of PL at or close to the last sale of $27.05.
– Bought 10 shares of PL at $26.09.
– Purchase 25 shares of ALTO at or close to the last sale of $4.98.
– Bought 25 shares of ALTO at $4.88.
Recent Portfolio News
Amazon
On Thursday morning, analyst Doug Anmuth of JP Morgan reiterated a “buy” rating on Amazon (AMZN) as well as his $330 target price. Anmuth is rated at five stars out of five by TipRanks. Over the past two years, he has had a 56% success rate with an average return of 21.2%.
On Thursday, the European Commission informed both Amazon and Microsoft (MSFT) of its preliminary view that they should be designated as gatekeepers under the Digital Markets Act, for their cloud computing services, that would be Amazon Web Services (known as AWS) and Microsoft Azure respectively. The Commission preliminarily finds that AWS and Azure, the largest and second largest cloud computing services in the EU respectively, are an important gateway between businesses and their customers. If the Commission’s preliminary findings are confirmed, Amazon and Microsoft would have six months to ensure full compliance of their designated cloud computing services with the DMA’s prescribed obligations.
Additionally, also on Thursday, Amazon announced plans to build India’s largest “delivery in minutes” network by scaling Amazon Now, the firm’s “ultra-fast” delivery service, to customers in over 300 cities across that nation. Amazon Now has become the fastest-growing ecommerce business unit in Amazon India’s history. Orders have doubled every quarter since its launch.
Ocular Therapeutix
On Thursday, analyst Daniil Gataulin of Chardan Capital reiterated a “buy” rating on Ocular Therapeutix (OCUL) while increasing his target price from $21 to $23. Gataulin is rated at four stars out of five by TipRanks. Over the past two years, he has had a 39% success rate with an average return of 17.3%.
SoFi Technologies
On Thursday, analyst Andrew Jeffrey of William Blair reiterated a “buy” rating on SoFi (SOFI) without setting a target price. Jeffrey is rated at five stars out of five by TipRanks. Over the past two years, he has had a 52% success rate with an average return of 12.1%.
Velo3D
On Thursday, analyst Austin Bohlig of Needham initiated a “buy” rating on Velo3D (VELO) along with a $33 target price. Bohlig is rated at one star out of five by TipRanks. Over the past two years, he has had a 29% success rate with an average return of -8.2%.
Current $10,000 Portfolio Positions
Long 150 shares of ALTO at $5.51. Target Price: $9. Last sale: $4.93.
Long 3 shares of AMZN at $258.0567. Target Price: $324. Last sale: $228.75.
Long 60 shares of EVLV at $5.9895. Target Price: $8.50. Last sale: $5.44.
Long 200 shares of OCUL at $8.271. Target Price: $11. Last sale: $10.11.
Short one OCUL $11 Sep 18th call at $1.65, Last sale: $1.48.
Short one OCUL $9 July 17th call at $0.90. Last sale: $1.30.
Long 175 shares of ONDS at $9.4749. Target Price: $14. Last sale: $7.43.
Long 30 shares of PL at $30.6067. Target Price $55. Last sale: $26.31.
Long 6 shares of PLTR at $131.8533. Target Price: $194. Last sale: $108.03.
Long 5 shares of RKLB at $89.162. Target Price: $185. Last sale: $80.69.
Long 35 shares of RXT at $6.4529. Target Price: $9. Last sale: $6.56.
Long 175 shares of SIDU at $3.0342. Target Price: $6. Last sale: $2.55.
Long 135 shares of SOFI at $15.8617. Target Price: $24. Last sale: $17.23.
Short one SOFI August 21st $20 call at $1.02. Last sale: $0.92.
Long 20 shares of SWBI at $16.125. Target Price: $19. Last sale: $15.87.
Long 35 shares of VELO at $12.3231. Target Price: $36. Last sale: $17.91.
Cash: $208.06.
Portfolio Value: $10,721.01, +7.2% from inception on March 24th.
At the time of publication Guilfoyle had positions in ALTO, AMZN, EVLV, OCUL, ONDS, PL, PLTR, RKLB, RXT, SIDU, SOFI and VELO; and MSFT outside of the portfolio.
