April and May Trading

As actual work ramps up with the re-opening of our practice, I find myself with significantly less time to keep track of things outside of work. Moreover I made some pretty large aggressive and risky moves in the beginning of April that didn’t quite pan out. As the summer months approach and all this talk of threat of a major pullback and correction, I have begun moving money back into cash assets rather than leaving them in high risk stocks or stock that I feel have lost their upside potential. This gives me some breathing room as far as time and energy to manage everything else going on.

Notable Trades:

BBY: Best Buy didn’t bounce back or recover as I had hoped so I took a $20 loss on the lot to spend elsewhere.

SPWR: I love this company. Sunpower is my powerhouse. My only problem is that I don’t put enough in when I do. Unloaded my shares from March the first week of April for a 4% one week gain. Bought in again the following week at $30.25 and sold it 2 and a half weeks later for a 13% gain. Just looking for the next opportunity to get back in.

DDD: Not going to lie. I lost my ass on DDD and I’m still trying to climb out of the hole i dug for myself. I did manage to pick up another 100 shares at $50.5 and finally decided to depart ways at 55.25 closing out my position in the company. All in all DDD and the rest of the 3D printer sector took a good 15% chuck of my portfolio down the drain with them. Do I still think DDD is an $80/share stock? Of course I do, it’s just going to take a long time to get there and I’m not looking to wait that long.

BP, COP: The backbone of my spring investments have run their course and I have decided to let them go ahead of the summer season. Both company’s share rates seem to have peaked for the time being. I revised my PT on COP back in April for $80 on a strong Q1 outlook and late in May closed my positions in both after the Ex-Div date with each paying out an estimated 1%/qtr. Again, I didn’t quite wait to reach my PT and sold BP and COP at $50.5 and $79 for an 8% and 17.5% gain respectively.

Current Positions:

Cash: Cash is king and with slow summer months ahead and threat of a bear run I’m holding about 50% in cash for the time being.

HALO: Halozyme… could this be another DDD round 2? Bought at 13 then a voluntary suspension of clinical trials due to third party reports of possible dangers. Doubled down at $8.20. Announcement of resuming enrollment and positive earnings apparently are still not enough news for it to bounce back yet as it still waits on FDA approval for another product line. So, In the mean time, I’ll just sit on 700 shares of what I hope is rock bottom price.

RGSE: Real Goods has received a lot of flack recently for its M&A strategy in the solar market with Q1 earnings coming 19 cents short of expectations. I’m currently sitting on 5000 shares with an AP of 2.8/share. I do believe that it will get back to $4 by the end of fall fingers crossed. Worst case, Real Goods will get bought out or merge with someone else.

SCTY: Throw money at something and hoping for it to bounce. Note to self: Money doesn’t bounce. Seriously, the modulus of elasticity for paper is pretty close to zero. Toss this into another one of Justin’s bad plays. Just holding on to the few shares I have waiting for it to come back up close to break even. SCTY’s move with Groupon definitely isn’t helping my cause though.

Outlook:

Summer months are typically slow and bearish but that doesn’t mean I wont jump on something if it looks good enough. I’ll be mostly looking for an exit strategy for my current positions and looking to start putting money into more stable funds and finally start doing option shorting if time permits. New and exciting things await on the horizon and, for me, having a large position in cash is to my advantage.

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