Selling 3 Stocks as the Space Trade Comes Down to Earth
We still like the trade, but when positions trigger our 8% rule, some action was needed.
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This is not a permanent evacuation of what has been one of our themes here at the $10,000 Portfolio, the “Space Trade.” Fortunately, we took what were significant profits in Rocket Lab (RKLB) at higher prices. Still, RKLB is trading down around $82 in pre-opening trading. That’s an 8% haircut from what is currently the position’s net basis. Hence, my 8% rule is triggered.
Looking across the portfolio more broadly, Planet Labs (PL) is trading more than 8% below net basis and that’s after adding at what I thought were discount prices.
Finally, there is the case of Sidus Space (SIDU). This one is exempt from the 8% rule due to its low price per share but is also trading lower than what we paid for it.
I like the space trade. Some of these positions will live on in the Sarge-folio, but in a portfolio where principal was and is limited to $10,000, I cannot allow the book’s value in its entirety to go into the red without at least trying to preserve the “plus” sign and raise some cash on what will almost surely be a tough day. Unless, of course, President Trump reverses course yet again provoking keyword-reading algorithms (that are a lot dumber than a bunch of city kids in colored jackets) to zig when you think they’ll zag.
Wednesday’s Intentions
– Sell 5 shares of RKLB at or close to the last sale of $83.10.
– Sell 175 shares of SIDU at or close to the last sale of $2.25.
– Sell 10 shares of PL at or close to the last sale of $27.95, leaving a position of 20 shares.
– Purchase 10 shares of VELO at or close to the last sale of $13.38
Tuesday’s Intention vs. Tuesday’s Actual Trade
– Purchase 10 shares of SOFI at or close to the last sale of $18.80.
– Bought 10 shares of SOFI at $17.23.
Portfolio News
Ondas Inc.
On Tuesday, analyst Amit Dayal of HC Wainwright reiterated his “buy” rating on Ondas (ONDS) along with his $25 price target. Dayal is rated at four stars out of five by TipRanks. Over the past two years, he has had only a 43% success rate but has generated an average return of 16%.
On Tuesday, analyst Michael Latimore of Northland Securities reiterated his “buy” rating on ONDS along with his $18 price target. Latimore is rated at four stars out of five by TipRanks. Over the past two years, he has had only a 39% success rate but has generated an average return of 19.2%.
Rocket Lab
On Tuesday, analyst Kristine Liwag of Morgan Stanley reiterated her “buy” rating on Rocket Lab (RKLB) along with her $105 price target. Liwag is rated at five stars out of five by TipRanks. Over the past two years, she has had a 68% success rate while generating an average return of 30.8%.
Velo3D
On Tuesday, Velo3D (VELO) announced that Mears Machine Corporation has ordered a new Velo3D Sapphire XC metal additive manufacturing system, with options for two additional Sapphire XC systems. For Mears, this is the fifth such system ordered. In a statement, Velo3D posted, “The investment reflects Mears’ long-term commitment to supporting customers across the aviation, defense, energy, and space industries with engineering expertise, scalable manufacturing capacity, and resilient domestic supply chains.”
Current Positions
Long 150 shares of ALTO at $5.51. Target Price: $8. Last sale: $5.63.
Long 70 shares of EVLV at $5.8746. Target Price: $8.50. Last sale: $6.12.
Long 200 shares of OCUL at $8.271. Target Price: $11. Last sale: $10.20.
Short one OCUL $11 Sep 18th call at $1.65, Last sale: $1.78.
Short one OCUL $9 July 17th call at $0.90. Last sale: $1.35.
Long 250 shares of ONDS at $8.976. Target Price: $14. Last sale: $7.23.
Long 30 shares of PL at $30.6067. Target Price $46. Last sale: $27.95.
Long 5 shares of RKLB at $89.162. Target Price: $131. Last sale: $83.10.
Long 35 shares of RXT at $6.4529. Target Price: $9. Last sale: $6.58.
Long 175 shares of SIDU at $3.0342. Target Price: $6. Last sale: $2.25.
Long 145 shares of SOFI at $15.9559. Target Price: $24. Last sale: $17.36.
Short one SOFI August 21st $20 call at $1.02. Last sale: $0.92.
Long 30 shares of SWBI at $15.74. Target Price: $19. Last sale: $15.44.
Long 50 shares of VELO at $13.6592. No Target Price Right Now. Last sale: $13.38.
Cash: $334.07.
Portfolio Value: $10,588.67, +5.9% from inception on March 24.
At the time of publication, Guilfoyle was long ALTO, EVLV, OCUL, ONDS, PL, RKLB, RXT, SIDU, SOFI, SWBI and VELO.
