Selling 5 Small-Cap Names for a LIFO Profit
We looked to take advantage of some pre-earnings weakness and now we’re ready to profit.
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On Friday, the $10K Portfolio tried to take advantage of the seemingly exacerbated pre-earnings weakness and add to a number of its more troublesome positions ahead of earnings. The portfolio added to long positions in Alto Ingredients (ALTO), Inseego (INSG), Planet Labs (PL), Velo3D (VELO) and Rocket Labs (RKLB). As this portfolio has never been afraid to trade around a core position, we will be laying out offers on these portions of those positions at premiums on Monday morning.
All of those are trading in the pre-opening session on Monday above where we added on Friday. We will offer these shares above where they are trading early on Monday morning. It’s not so much a matter of needing to sell any shares. This is more a matter of offering stock at prices where we would be willing to take a quick short-term LIFO profit.
Portfolio News
Ondas Inc (ONDS)
On Friday, Ondas Inc announced that it co-led a strategic investment with RSE Ventures in FPF Defense, which is a counter-drone technology company. FPF Defense is developing the SmartFlak counter-drone system and Hammerhead autonomous interceptor. FPF Defense will relocate its headquarters to West Palm Beach, Florida, joining Ondas as part of a growing defense technology hub.
Rocket Lab (RKLB)
On Monday morning, Rocket Lab announced that the firm had been awarded its largest launch contract to date, a $266 million multi-launch contract with the U.S. Space Force. Under the contract awarded by the U.S. Space Force Space Systems Command’s Rocket Systems Launch Program, Rocket Lab will execute 12 suborbital launches, with up to six additional launches. The first launch of this contract is expected to take place no earlier than the end of 2026. The launches will primarily take place from a new Rocket Lab location at the Pacific Spaceport Complex-Alaska in Kodiak, Alaska, complementing Rocket Lab’s existing launch sites at Launch Complex 1 in New Zealand, and Launch Complex 2 and Launch Complex 3 in Virginia. This is the announcement related to the award that several news outlets covered last week.
In addition, on Monday, TheFly reported that KGI Securities upgraded Rocket Lab to Outperform (buy-equivalent) from Neutral (hold-equivalent) with a $107 price target. I have been unable to find out who covers RKLB at KGI. Therefore, I have also been unable to dig up that individual’s rating at TipRanks or that person’s performance-related statistics.
Upcoming Portfolio Earnings
SoFi Technologies (SOFI): After the closing bell on Wednesday, July 29. Expected: GAAP EPS of $0.11 on revenue of $1.12 billion. Would compare to the year-ago EPS print of $0.09, reflecting on annual sales growth of 30.4%. The following week, the first week of August, we expect to hear from Inseego (INSG), Evolv Technologies (EVLV), Ocular Therapeutix (OCUL) and Rackspace (RXT).
Friday’s Intentions vs Actual Trades
Intention: Purchase 25 shares of ALTO at or close to the last sale of $4.72
Actual trade: Bought 25 shares of ALTO at $4.72
Intention: Purchase 10 shares of INSG at or close to the last sale of $6.82
Actual trade: Bought 10 shares of INSG at $6.70
Intention: Purchase 10 shares of PL at or close to the last sale of $20.73
Actual trade: Bought 10 shares of PL at $20.48
Intention: Purchase 2 shares of RKLB at or close to the last sale of $65.69
Actual trade: Bought 2 shares of RKLB at $63.89
Intention: Purchase 20 shares of VELO at or close to the last sale of $9.90
Actual trade: Bought 20 shares of VELO at $9.76
Monday’s Intentions
Sell 25 shares of ALTO at $5.10 or better
Sell 10 shares of INSG at $7.15 or better
Sell 10 shares of PL at $21.50 or better
Sell 2 shares of RKLB at $71.00 or better
Sell 20 shares of VELO at $10.50 or better
Current Positions
Long 200 shares of ALTO at $5.3611. Target price: $8. Last sale: $4.75.
Long 80 shares of EVLV at $5.8959. Target price: $8.50. Last sale: $5.34.
Long 50 shares of INSG at $7.969. Target price: $11. Last sale: $6.88.
Long 100 shares of OCUL at $8.3569. Target price: $11. Last sale: $8.63.
Short one OCUL $11 September 18 call at $1.65, Last sale: $0.88.
Long 250 shares of ONDS at $8.4266. Target price: $14. Last sale: $8.03.
Long 40 shares of PL at $25.3973. Target price: $46. Last sale: $20.65.
Long 4 shares of RKLB at $66.505. Target price: $98. Last sale: $66.25.
Long 100 shares of RXT at $4.886. No target price. Last sale: $4.03.
Long 150 shares of SOFI at $15.994. Target price: $24. Last sale: $16.69.
Short one SOFI August 21 $20 call at $1.02. Last sale: $0.27.
Long 30 shares of (SWBI) at $15.74. Target price: $19. Last sale: $14.38.
Long 100 shares of VELO at $12.4561. Target price: $18. Last sale: $10.02.
Cash: $44.39.
Portfolio Value: $9,952.66, -0.5% from inception on March 24.
At the time of publication, Guilfoyle was long ALTO, EVLV, INSG, OCUL, ONDS, PL, RKLB, RXT, SOFI, SWBI and VELO.
