Small-Cap 3D-Printer Name Breaches Price Target
We’re taking prudent action after Velo3D sees a surge.
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Portfolio holding Velo3D (VELO) breached our $20 target price again on Thursday.
This also occurred last week while I was away. As familiar readers well know, we have a long-standing code of discipline that demands action of some kind when target prices and panic points are breached. The actions do not need to be monumental, and a repositioning of the portfolio’s stake may occur based on what the charts tell us and what the news flow says. Make no mistake though, some kind of action must be taken.
Readers may have seen what happened earlier this week when we missed Rocket Lab’s (RKLB) Monday surge above our $132 target. I don’t like making rookie mistakes after almost 50 years of trading and almost 40 years of trading professionally.
Readers will see that VELO continues to break out of a double-bottom pattern of reversal that developed earlier this spring. The shares did need to test support at their 50-day SMA in early May but now seem much healthier. Both relative strength and the stock’s daily MACD are postured quite bullishly, while neither reflects a technically overbought condition. The portfolio will make a small sale and take our target price up to $22.50 from $20.
Portfolio News
Palantir Technologies (PLTR)
On Thursday, analyst Thomas Blakey of Cantor Fitzgerald reiterated a hold rating on PLTR along with his $138 target price. Blakey is rated at four stars out of five at TipRanks. Over the past two years, he has a 50% success rate, with an average return of 14.8%.
Rocket Lab
On Thursday, Rocket Lab announced that the firm had been awarded a $90 million contract by the U.S. Space Force’s Space Systems Command to design, manufacture, integrate and operate two geostationary satellites to host the Heimdall space domain awareness payload.
This award is Rocket Lab’s first satellite production program for geostationary orbit and extends the firm’s vertically integrated mission model into a new orbital regime. Rocket Lab will serve this program as the prime contractor and end-to-end mission provider. The firm will be responsible for spacecraft design, manufacture and integration of the optical payload, launch integration onto a government-furnished launch vehicle, and on-orbit operations for up to five years.
On Friday Morning, Rocket Lab announced the firm’s successful deployment of the latest satellite for Synspective. This marks the ninth dedicated mission that Rocket Lab has completed for the Japan-based Earth observation constellation. This launch extends one of the most consistent commercial launch partnerships in the small satellite sector. This also highlights Electron’s industry-leading dedicated launch service.
Snap (SNAP)
On Friday morning, the Office of Communications for the U.K. announced that Snap, Meta (META) and Roblox (RBLX) have confirmed that they will implement new safety measures designed to better protect children from online strangers who wish them harm. Changes will include tighter default settings for children’s contacts and friendship groups, and AI detection tools as well as direct chat controls.
Additionally, on Friday morning, news broke that Meta had reached a settlement with a Kentucky school district over accusations the company purposely designed their platforms to addict youth, according to The Wall Street Journal. This spares the company from handling the first trial among over 1,200 lawsuits brought by school districts alleging student mental-health harms caused by social media platforms from Meta, TikTok, Snap and Alphabet’s (GOOGL) YouTube. TikTok, Snap and YouTube all settled last week.
Upcoming Portfolio Earnings
Planet Labs (PL): After the closing bell on Thursday, June 4
Thursday’s Intentions vs Thursday’s Actual Trades
Intention: Buy another 50 shares of (OCUL) at or close to the last sale of $8.14
Actual trade: Bought 50 shares of OCUL at $8.17
Intention: Sell (write) one OCUL July 17 $9 call at $0.75 or better
Actual trade: Sold one OCUL July 17 $9 call at $0.90.
Friday’s Intentions
Sell 5 shares of VELO at or close to the last sake of $20.64
Sell 2 shares of RKLB at $132 or better. This sell order is limited to that price.
Current Positions
Long 2 shares of (AMZN) at $263.71. Target price: $324. Last sale: $268.42.
Long 60 shares of (EVLV) at $5.9895. Target price: $8.50. Last sale: $6.09.
Long 200 shares of OCUL at $8.271. Target price: $11. Last sale: $8.32.
Short one OCUL $11 September 18 call at $1.65, Last sale: $0.90.
Short one OCUL $9 July 17 call at $0.90. Last sale: $0.97.
Long 125 shares of (ONDS) at $9.4749. Target price: $14. Last sale: $9.24.
Long 10 shares of (PL) at $37.18. Target price $47. Last sale: $42.82.
Long 12 shares of (PLTR) at $140.30. Target price: $194. Last sale: $137.82.
Long 7 shares of RKLB at $62.6157. Target price: $132. Last sale: $129.60.
Long 125 shares of (SIDU) at $2.725. Target price: $6. Last sale: $4.22.
Long 200 shares of SNAP at $5.7642. Target price: $7.50. Last sale: $5.72.
Short two SNAP October 16 $6 calls at $0.87. Last sale: $0.92.
Long 175 shares of (SOFI) at $15.9573. Target price: $24. Last sale: $15.69.
Short one SOFI August 21 $20 call at $1.02. Last sale: $0.71.
Long 45 shares of VELO at $12.0136. Target Price: $20. Last sale: $20.68.
Cash: $96.71
Portfolio value: $11,671.78, +16.7% from inception on March 24.
At the time of publication, Guilfoyle was long AMZN, EVLV, OCUL, ONDS, PL, PLTR, RKLB, SIDU, SNAP, SOFI and VELO.
