The $10K Portfolio’s Fueling Up on Rocket Lab (And Another Stock)
Here’s the plan for Rocket Lab; also, another stock we’re stocking up on today.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
I wrote a piece for TheStreet Pro on Wednesday titled, “Time to Get Back Into Rocket Lab?” This morning, I am taking action for this portfolio. Ahead of earnings. Rocket Lab (RKLB) is all but set to release its second-quarter financial results late the first week of August. We don’t have an official date announcement yet. For the quarter, Wall Street consensus view is for an adjusted loss per share of -$0.05 on revenue of about $231 million. If realized, those results would compare nicely to the -$0.13 that the company posted for the year-ago period, while sporting annual sales growth of about 60%. As mentioned in yesterday’s piece, that would be the fastest year over year pace of growth reported by Rocket Lab since fiscal fourth quarter of 2024.
This stock had always been a core member of this $10K Portfolio and its predecessor, the “Stocks Under $10” portfolio. We sold our final shares (for both this portfolio and for my family office “Sarge-folio” in early July at $84 and some change. The stock bottomed with a $64 handle last week, rallied on Wednesday and is selling off a little today. That’s why we’re re-initiating today and not yesterday.
This chart is an update from yesterday. From late May into the present, RKLB had developed a falling wedge pattern of bullish reversal. I like that we see that this stock found support at the lower trendline of that wedge last week.
I would place my pivot at the 200-day simple moving average (almost $78). Off of this set-up, I would put my target price at $98. This allows for profit taking without having to survive a test of the 50-day SMA should this breakout occur.
In addition, I see potential for a head & shoulders pattern of bullish reversal to develop out of that wedge. That would provide the basis for a much higher target price.
Evolv-ing Portfolio News
Evolv Technologies (EVLV) management will meet with Lake Street in Denver on July 27. Eric Martinuzzi (5 stars at TipRanks) has a “Buy” rating on EVLV with a $10 target price. Martinuzzi has a 51% success rate over two years and has generated an average return of 17.2%.
Upcoming Portfolio Earnings
- SoFi Technologies (SOFI) – After the closing bell on Wednesday. Expected: GAAP EPS of $0.11 on revenue of $1.12B. Would compare to the year ago EPS print of $0.09, reflecting on annual sales growth of 30.4%.
Wednesday’s Intention vs. Actual Trade
- Purchase 5 shares of SOFI at or close to the last sale of $17.09.
– Bought 5 shares of SOFI at $17.10.
Thursday’s Intention
- Purchase 5 shares of RKLB at or close to the last sale of $68.00.
- Purchase 40 shares of RXT (RXT) at or close to the last sale of $4.09.
Current Positions
Long 175 shares of ALTO at $5.4527. Target Price: $8. Last sale: $5.11.
Long 80 shares of EVLV at $5.8959. Target Price: $8.50. Last sale: $5.35.
long 40 shares of INSG at $8.2863. Target Price: $11. Last sale: $7.60.
Long 100 shares of OCUL at $8.3569. Target Price: $11. Last sale: $8.55.
Short one OCUL $11 Sep 18th call at $1.65, Last sale: $0.70.
Long 250 shares of ONDS at $8.4266. Target Price: $14. Last sale: $7.81.
Long 30 shares of PL at $27.0367. Target Price $46. Last sale: $21.95.
Long 60 shares of RXT at $5.4621. No Target Price. Last sale: $4.09.
Long 150 shares of SOFI at $15.994. Target Price: $24. Last sale: $16.93.
Short one SOFI August 21st $20 call at $1.02. Last sale: $0.43.
Long 30 shares of SWBI at $15.74. Target Price: $19. Last sale: $14.60.
Long 80 shares of VELO at $13.1308. Target Price: $18. Right Now. Last sale: $10.25.
Cash: $1,056.49.
Portfolio Value: $10,028.10, +0.3% from inception on March 24.
At the time of publication, the $10K Portfolio was long ALTO, EVLV, INSG, OCUL, ONDS, PL, RXT, SOFI, SWBI, VELO; Short SOFI.
