Selling Smith & Wesson After Gains
We’re looking to raise some cash for our small-cap portfolio.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
Portfolio News
Ondas Inc (ONDS)
On Wednesday, Ondas Inc announced the launch of Dronebuster REACH, which is the long-range variant of its Dronebuster family of non-kinetic Counter-Unmanned Aircraft Systems. The first REACH system is under contract to be delivered to the Office of Naval Research following testing. That office will use the systems to support C-UAS research, evaluation and test activities.
REACH applies the same electronic attack techniques proven across the Dronebuster line. This includes command-and-control disruption, satellite system denial and optional positioning and timing electronic attack capabilities at longer range and higher power than what had previously been available. This weapon will provide operators with a non-kinetic option for engagement that begins outside of the range of a handheld drone operating adversary.
Rocket Lab (RKLB)
On Wednesday, news broke that portfolio holding Rocket Lab had signed a multi-year agreement with Tokyo-based Earth-observation company Synspective for 20 new dedicated Electron missions. This program will run annually from 2028 through 2031. The launches will put 20 StriX synthetic-aperture-radar satellites into sun-synchronous orbit from Launch Complex 1 in New Zealand. That takes Synspective to 47 contracted Electron missions, the most of any Rocket Lab customer. This is the firm’s largest commercial Electron contract to date.
On Thursday morning, analyst John Godyn of Citigroup initiated RKLB with a “buy” rating and a $105 target price. Godyn is rated at less than half of one star out of five by TipRanks. Over the past two years, he has compiled a success rate of 32% while generating an average return of -8.1%.
Wednesday’s Intentions vs Actual Trades
Intention: Sell one (PL) November 20 $17 call for roughly $1.50 with a $1.40 limit
Actual trade: Sold one PL November 20 $17 call for $1.70
Intention: Purchase 10 shares of (EVLV) at $4.80 (limited) or better
Actual trade: Bought 10 shares of EVLV at $4.75
Intention: Purchase 10 shares of (OCUL) at $7.90 (limited) or better
Actual trade: Bought 10 shares of (OCUL) at $7.90
Intention: Purchase 10 shares of ONDS at $7.60 (limited) or better
Actual trade: Bought 10 shares of ONDS at $7.60
Intention: Purchase 10 shares of (SOFI) at $15.90 (limited) or better
Actual trade: Bought 10 shares of SOFI at $15.90
Trading
All of Wednesday’s trades were executed. That’s probably a positive, but it does leave the portfolio with a shortage of cash. This has been an ongoing issue as the market has worked against our P/L since we kissed the break-even line for about a minute last week. I am going to try to raise some more cash as painlessly as possible.
On Thursday, I intend to sell a couple of shares of RKLB as that stock is trading higher on the day. In addition, now that (SWBI) has paid the dividend, and the portfolio is in the green on that name, I am going to cancel the target price and cut the stock loose.
Thursday’s Intentions
Sell 2 shares of RKLB at or close to the last sale of $71.20
Sell 50 shares of SWBI at or close to the last sale of $14.10 to exit the position
Current Positions
Long 60 shares of (ASPN) at $5.1083. Target price: $10. Last sale: $5.41.
Long 110 shares of (EVLV) at $5.6939. Target price: $8.50. Last sale: $4.63.
Long 140 shares of (OCUL) at $8.4505. Target price: $14. Last sale: $7.56.
Short one OCUL $9 December 18 call at $0.80. Last sale: $0.65.
Long 260 shares of ONDS at $8.0742. Target price: $12. Last sale: $7.28.
Long 100 shares of PL at $20.3367. Target price: $26. Last sale: $16.40.
Short one PL $17 November 19 call at $1.70. Last sale: $1.60.
Long 60 shares of (PTON) at $5.0263. Target price: $9. Last sale: $4.91.
Long 7 shares of RKLB at $73.8629. Target price: $97. Last sale: $71.20.
Long 130 shares of SOFI at $16.0485. Target price: $24. Last sale: $15.61.
Short one SOFI $22 November 19 call at $1.20. Last sale: $0.13.
Long 50 shares of SWBI at $14.0414. Target price: $19. Last sale: $14.10.
Long 50 shares of VELO at $10.265. Target price: $18. Last sale: $10.40.
Cash: $53.81.
Portfolio value: $9,296.72, -7.0% from inception on March 24.
At the time of publication, Guilfoyle was long ASPN, EVLV, OCUL, ONDS, PL, PTON, RKLB, SOFI, SWBI and VELO.
