Boeing (BA): Added to Position

Boeing (BA) retested its recent low on Friday, triggering a buy order I had in place that filled at $188.98. The order locks in a -48.88% discount on some of the shares I sold throughout 2018-2019 for an average price of $369.67. The buy raised my per-share cost +$20.09 from -$212.89 to -$192.80 (a negative share price indicates no capital in the position and each share instead adds $192.80 to the portfolio’s bottom line in addition to the share’s current value).

From here, my next buy target is $166.40, slightly below the 150-Month Moving Average and right in the middle of a key support range. My next sell target is $344.05, a key area of resistance and also a point where BA will substantially exceeded its target allocation for the portfolio. 

BA closed the week at $192.63, up +1.93% from where I added Friday.

Skyworks Solutions (SWKS): **Negative News Event**

On Thursday, Skyworks Solutions’ (SWKS) biggest client, Apple (AAPL), announced that it would continue to evolve from developing its own Central Processing Units (CPUs) to also developing modems and wireless chipsets, as well. Apple is Skyworks’ biggest customer and Skyworks develops… modems and wireless chipsets.

Sure, Apple has a mixed track record when it comes to experimenting with new approaches, however, given I had a more than +80% profit in Skyworks going into the news event, I don’t want to risk Apple’s success and potential devastation of Skyworks’ stock.

Accordingly, I sold enough SWKS on Friday to remove all of the capital from the position with a buy order that filled at $144.59. The buy locked in +72.74% in gains on the shares I sold which had an average price of $83.70.

The sale lowered my per-share cost -$150.67% from my initial buy at $113.60 on January 13, 2020 to -$57.56 (a negative per-share price indicates all capital has been removed from the position and each share now adds +$57.56 to the portfolio’s bottom line in addition to the share’s current value).

By taking this somewhat defensive tactic, if Apple doesn’t succeed or if Skyworks pivots, I won’t miss the upside, but if Apple does succeed and Skyworks’ stock price plummets, only my profits are at risk. Also, for the moment, I have no buy target for Skyworks. Until we hear more from the company about its future plans, I have absolutely no reason to add to SWKS given its future uncertainty.

I do have a sell target, however, for if Skyworks exceeds its reduced allocation size as part of the Speculative Basket, at $228.80, above its all-time high.

How this affects the Investments in Play portfolio…

Skyworks will no longer occupy its own allocation in the portfolio, instead being rolled into the speculative basket see above. Because of this change, the target allocation increases from 6.67% to 7.14% which also adjusts the profit-taking targets for the portfolio’s largest positions, allowing them to run “hotter” than they have lately.

I have also now adjusted all of the profit-taking price targets for the portfolio’s largest positions: Apple (AAPL), Nvidia (NVDA), Nike (NKE), Block/Square (SQ), and Tesla (TSLA).

SWKS closed the week at $151.70, up +4.92% from where I sold Friday.