Sell Freshpet (FRPT)
Freshpet (FRPT) reported yesterday afternoon and the stock has been under pressure today. This is a shame as FRPT had been recovering nicely from a late-summer selloff, but the mixed report is causing impatient investors to move on to greener pastures. The main issues aren’t overly surprising. It comes down to labor, pricing and supply-chain challenges that, in aggregate, make for a somewhat messy outlook that doesn’t leave a lot of room for a “best-case” scenario to play out for several quarters. I think if you wanted to keep FRPT in your portfolio and could ignore it for a year or so you’d find that the stock is materially higher at that point. However, if you aren’t capable of putting the blinders on, the stock’s probably choppy trajectory in the coming months might have you wishing the capital were invested elsewhere. We’ve done well with FRPT—even with a decent pullback our gain stands at around 136% right now. Given all the factors, I’m happy to book the profit and move on to the next opportunity. FRPT will go back on the watch list for possible inclusion in the future. SELL
Also, just a heads up that we have more earnings reports this evening as Upstart (UPST), rated hold, and Global-E Online (GLBE), rated buy, will deliver results after the close.