The market has hit an air pocket over the last few sessions and SPAC IPOs have been particularly soft for a few weeks now. Today we’re taking partial gains in a few positions and cutting losses short in another.
SolarEdge (SEDG) Moves to Sell. We’ve done very well with this stock (partial gains of 140% and current gain of about the same on remaining stake) and, long term, think SEDG will do just fine. The current concern is in the next six months or so. There are both positive and negative trends likely to come into focus in the coming quarters as sales mix evolves coming out of the pandemic. Big picture, we may see higher commercial and international growth, which carries smaller margins, and moderation in U.S. residential growth, which carries higher margins. Storage may outperform, but those trends aren’t yet clear. In short, the picture is a little murky and ho-hum sentiment toward the stock and a chart pattern showing lower highs and lower lows suggests locking in a 140% gain now on our remaining stake is not a half-bad idea. Let’s do it. SELL REMAINING THREE QUARTERS
Virgin Galactic (SPCE) Moves to Sell Remaining Half. We’re going to cut bait with our remaining stake in SPCE today too. The challenge here has been the pushout in commercialization until 2022 combined with the general softness in SPAC IPOs. Rather than risk watching our remaining profits disappear we’ll take the roughly 25% gain on our remaining stake and look to add SPCE back if and when it looks more attractive. SELL REMAINING HALF
DraftKings (DKNG) Moves to Sell. I mentioned last week that DKNG was on a short leash and that if it falls below 56.5 to expect a sell alert. That has occurred today. Even though I think the long-term picture is fine I don’t want to risk standing by and watching our DKNG position turn into a sizeable loss, especially given there are numerous other stocks that look just fine. Let’s cut the position now while the loss is quite modest (in the mid-teens percentage wise) and look to add back when DKNG shapes up, possibly at a lower price. SELL
Finally, we continue to watch Fisker (FSR) closely and will hold for now. We only have a half position here. HOLD.