With our portfolio having swelled to 29 positions it’s time to trim a little around the edges to keep things manageable. As in the past, many of these decisions are based on lackluster recent performance and uncertainty regarding the near-term.
Today, let’s take the following actions:
Smartsheet (SMAR)
Smartsheet (SMAR) moves to SELL. The stock hasn’t done much lately, probably as a result of the significant billings deceleration reported in the last quarter. That quarter was dramatically impacted by COVID-19 and the resulting effects on the company’s small business customers. Note that the decision to sell here isn’t because I think Smartsheet will “fail.” Long term, I still believe this stock is a winner. However, with many other opportunities to choose from and lackluster recent performance, plus potential for turbulence in the coming quarters as investors look for more consistency in the billings numbers, the stock could be dead money. Better to focus on other opportunities and take a modest profit now. SELL
Y-mABs Therapeutics
Y-mABs (YMAB) moves to SELL. The stock was hit hard during the market crash and we’ve held on while the stock has shot back to all-time highs. After the recent pullback we’re still up nearly 20%. The attraction here is the expected potential launch of naxitamab for high-risk neuroblastoma (likely factored into the share price) in the near-term, with further upside coming in the out years if/as label expansion is approved. That will require a good deal of patience, as well as holding through some uncertainty for the next year-plus. With a modest gain now let’s book the profit and move YMAB back to the watch list. SELL