SEDG and VIE Move to Hold. AXNX, NOVA and TELA move to Sell
With a portfolio flush with positions and the market having gotten a little choppy lately we’re going to move incrementally more conservative today. Let’s take the following actions:
Axonics Modulation (AXNX) Moves to SELL
We jumped into Axonics back in January and while the stock was hard hit when the market tanked it recovered swiftly from the March lows then topped out near 40 in mid-May, soon after a secondary was announced. After that the stock traded in the 34 to 40 range, but on Friday shares fell below 34 for the first time since the secondary. It’s not clear if that means anything just yet but this will be the third time AXNX has pulled back from around the 40 level since last June. From a fundamental perspective there’s a lot of future growth potential here, however procedures could be curbed compared to analyst expectations if virus cases trend higher around the country. We have a modest gain right now. Let’s take it and put AXNX back on the watch list. SELL
Solaredge Technologies (SEDG) Moves to Hold
Solaredge was trading near all-time highs a week ago and has pulled back roughly 15% since. Shares found support at their 50-day line on Friday and are moving higher this morning. Still, we’ll move to hold for now and see what develops. HOLD
Sunnova Energy (NOVA) Moves to SELL
Sunnova has given us a wild ride. We bought before the virus broke out and had a nice gain going—when the stock crashed 70%. We doubled down and then the stock raced back to its prior high, meaning we had a paper gain of over 50%. With management just announcing a secondary offering (price not yet disclosed) and NOVA trading lower today, let’s step aside with our healthy gain of near 40% and see what develops. These events can often give us a good indication of what the demand is for the stock is. If it’s strong, we can always consider moving back into it. SELL.
Tela Bio (TELA) Moves to SELL
Tela Bio is a microcap stock that was looking great when we added it but soon after the stock faltered, and then management announced a secondary offering priced at 16, which triggered a wave of selling. Shares are now trading below that level. Clearly the market was expecting more from the stock, and from an offering, so Tela will likely be in the penalty box for a bit. I was looking for shares to firm up today after investors had the weekend to consider the action, but that’s not happening (so far). Let’s step aside now and keep an eye on Tela to see if it’s worth adding back in the future. SELL
Viela Bio (VIE) Moves to Hold
Viela is a volatile stock in normal times. When the market gets a little more volatile than normal, as it did last week, Viela becomes even more so. Part of last Friday’s odd move down was likely driven by the stock moving below both its 25 and 50-day lines in the same day, which could have triggered some automated sell orders. Taking it all in I’m moving the stock to hold today. HOLD