Sell Treace Medical (TMCI) and part of Inspire Medical (INSP)
We’ve only held Treace Medical (TMCI) for about a month, but it’s been a wild ride. The stock initially rose after we added it, then a week later was bludgeoned by a short report that sent shares down 23%. Over the last three weeks, TMCI has climbed back to near 25, the highest levels shares have traded over the last 12 months. We have a modest gain of 8% to 10%, depending on your entry point. While this is nothing to write home about it’s still pretty good in this junk market, and we’ve made it in one month after suffering through a quick and painful “crash” in TMCI. Given the challenges stocks (even good ones) are having busting above resistance and the potential for a “double down” short report thesis to come out on TMCI, I’m advising we lock in the gain today and move on. SELL
Inspire Medical (INSP) is a name we’ve held since late 2019 and it’s been very good to us. We have a current gain of nearly 300%, yet we’ve never sold any shares. With INSP having just gone on a run of roughly 40% over the last four weeks and trading within earshot of its all-time high let’s take a partial profit on a third of our position. To be clear, I like INSP for 2023 and think the stock has a lot more left in the tank over the long term. But the market is looking suspect once again, and I’d like to take a partial profit while it’s right in front of us. SELL A THIRD, HOLD TWO-THIRDS
