Why I’m Not Chasing AMC’s Odyssey
Here’s the latest on our Ocular Therapeutix trading strategy, a planned purchase for today and some additional portfolio news.
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Well, that was a mild surprise.
I honestly expected our $9 Ocular Therapeutix (OCUL) call expiring on Friday afternoon to be called away. Alas, on Friday, that stock gave up $0.19 or 2.13% and closed at $8.97. The call, which we sold for $0.90, expired worthless, so that was a win for the portfolio. We need some of those. We had been looking forward to being called away at $9.00 and creating some cash ($900) to beef up the portfolio’s cash position without selling off anything we really wanted to hang on to.
Ahead of the Monday morning opening bells in New York, OCUL was trading above $9.00. I still intend to sell that 100 shares. With a little luck, we’ll get those shares off above the $9 we were willing to lose them at, on Friday afternoon.
On AMC Entertainment
On Monday morning, AMC Entertainment Holdings (AMC) released its second-quarter financial results. The company posted adjusted EPS of $0.14 (GAAP EPS: $-0.02) on revenue of $1.597 billion. That sales print was good enough for year-over-year growth of 14.2% and bested the consensus view coming in.
While the adjusted EPS print easily beat expectations, the GAAP print did not exceed what Wall Street was looking for. I see that as something of a deterrent to getting this portfolio involved. In addition, less than 6% of the entire float is still held in short positions at this time, so at these levels, there is almost no probability that “meme stock” style run occurs.
The shares are up almost 20% Monday morning, but that’s only a little more than $0.30 per share. if we had been in the name coming into the release, I would probably take some profits this morning.
Friday’s Intentions vs. Friday’s Actual Trades
– Allow, if it happens, the portfolio to be called away on 100 shares of OCUL, at $9
– Call expired worthless.
Monday’s Intentions
– Sell 100 shares of OCUL at or close to the last sale of $9.10.
– Purchase 10 shares of VELO at or close to the last sale of $10.92.
Note: If following these trades exactly, in a cash account, one would need to make the sale of OCUL before buying anything as there is currently only a very small cash position present in this portfolio.
Portfolio News
Evolv Technologies (EVLV)
On Friday, analyst Jeremy Hamblin of Craig-Hallum reiterated his “buy” rating on Evolv Technologies (EVLV) without setting a price target. Hamblin is rated at four stars out of five by TipRanks. Over the past two years, he has a 48% success rate and has generated an average return of 10.9%.
Current Positions
Long 150 shares of ALTO at $5.51. Target Price: $8. Last sale: $5.85.
Long 80 shares of EVLV at $5.8959. Target Price: $8.50. Last sale: $5.74.
Long 40 shares of INSG at $8.2863. Target Price: $11. Last sale: $7.49.
Long 200 shares of OCUL at $8.271. Target Price: $11. Last sale: $9.10.
Short one OCUL $11 Sep 18th call at $1.65, Last sale: $1.14.
Long 300 shares of ONDS at $8.6489. Target Price: $14. Last sale: $6.71.
Long 30 shares of PL at $27.0367. Target Price $46. Last sale: $22.77.
Long 60 shares of RXT at $5.4621. No Target Price. Last sale: $4.20.
Long 145 shares of SOFI at $15.9559. Target Price: $24. Last sale: $17.40.
Short one SOFI August 21st $20 call at $1.02. Last sale: $0.57.
Long 30 shares of SWBI at $15.74. Target Price: $19. Last sale: $15.00.
Long 70 shares of VELO at $13.4723. Target Price: $18. Right Now. Last sale: $10.91.
Cash: $92.67.
Portfolio Value: $10,071.90, +0.7% from inception on March 24th.
At the time of publication, Guilfoyle was long ALTO, EVLV, INSG, OCUL, ONDS, PL, RXT, SOFI, SWBI and VELO.
