May 6, 2022
The Week’s Biggest Winner & Loser
Morgan Stanley (MS)
The biggest beneficiaries of higher interest rates are the banks, even the investment banks, and that thesis proved out for Morgan Stanley (MS) which popped +4.52% in the middle of a down market. This easily earned MS the spot of the Week’s Biggest Winner.
IDEXX Labs (IDXX)
IDEXX Laboratories (IDXX) really disappointed investors with their forward guidance when the company reported earnings this week, resulting in a -14.85% drop and definitely locking in the spot of the Week’s Biggest Loser.
Target Position Size
The Investments in Play portfolio contains a number of groups of stocks called “baskets.” I use baskets when I want exposure to a certain sector, but I want to use more than one stock to get that exposure without giving each individual stock an allocation.
In this portfolio, there is the Financials Basket which includes stocks that provide the portfolio with exposure to the financial sector which includes money-center banks, credit card companies, and investment management firms.
Additionally, there are two speculative baskets in the portfolio: Old-Spec and New-Spec.
Companies in the Old-Spec basket are ones with long track records where I want to have some exposure in the portfolio but I’m not confident enough to give each a full allocation.
New-Spec companies are typically stocks either new on the scene or representing a fairly new approach or sector, where, like Old-Spec, I want exposure but I don’t want a full allocation of any individual company.
Current Position Performance
1st Buy 4/18/2013 @ $14.17
Current Per-Share: (-$40.47)*
1st Buy 3/12/2020 @ $111.30
Current Per-Share: (-$78.43)*
1st Buy 9/6/2016 @ $15.77
Current Per-Share: (-$12.60)*
1st Buy 8/5/2016 @ $11.10
Current Per-Share: (-$83.75)*
1st Buy 2/14/2012 @ $79.58
Current Per-Share: (-$160.45)*
1st Buy 11/11/2016 @ $24.20
Current Per-Share: $9.95
1st Buy 2/14/2012 @ $26.71
Current Per-Share: (-$6.10)*
1st Buy 1/31/2020 @ $113.60
Current Per-Share: (-$33.85)*
IDEXX Labs (IDXX)
1st Buy 7/26/2017 @ $167.29
Current Per-Share: (-$39.57)*
1st Buy 2/14/2012 @ $41.70
Current Per-Share: $34.55
Take Two (TTWO)
1st Buy 10/9/2018 @ $128.40
Current Per-Share: $75.60
1st Buy 5/13/2019 @ $53.18
Current Per-Share: $33.75
1st Buy 2/6/2018 @ $1,382.96
Current Per-Share: $1,184.96
1st Buy 9/16/2017 @ $128.58
Current Per-Share: -($295.25)*
1st Buy 8/2/2019 @ $199.96
Current Per-Share: $182.87
JP Morgan (JPM)
1st Buy 10/26/2017 @ $102.30
Current Per-Share: $73.25
1st Buy 6/11/2018 @ $134.05
Current Per-Share: $114.75
Dutch Bros (BROS)
1st Buy 9/20/2021 @ $42.25
Current Per-Share: $40.50
Morgan Stan (MS)
1st Buy 4/25/2022 @ $83.50
Current Per-Share: $83.50
1st Buy 5/24/2018 @ $29.53
Current Per-Share: $6.60
1st Buy 4/18/2022 @ $76.30
Current Per-Share: $74.85
1st Buy 8/8/2019 @ $125.71
Current Per-Share: $122.03
1st Buy 9/29/2021 @ $77.00
Current Per-Share: $48.75
1st Buy 11/12/2021 @ $127.00
Current Per-Share: $70.75
1st Buy 4/14/2021 @ $412.47
Current Per-Share: $270.95
* Indicates a position where the capital investment was sold.
Profit % for * positions = Total Profit / Starting Capital Investment
** Indicates a position calculated based on initial investment due to extremely low per-share price (causes ridiculous and inaccurate “gains”)
A negative share price indicates the dollar amount of profit for each share currently held.
This Week’s Moves
Amazon (AMZN): Added to Position
The bloodbath continued on Friday with Amazon (AMZN) breaking down following its horrible earnings report last week, triggering my next buy order which filled at $2,290.83 and raised my per-share cost +$180.18 from $1,004.78 to $1,184.96.
From here, my next buy target is $2,006.90, slightly above the key psychological support level of $2,000 even, and I have no sell targets at this time as I continue to rebuild the position which I closed in January 2020.
AMZN closed the week at $2,295.45, up +0.20% from where I added Friday.
Dow Chemical (DOW): Profit-Taking
It always feels counter-intuitive to take profits when the market’s are notoriously volatile – feels more like “Buying Season,” not “Selling Season” – but profit-taking is what I did in Dow Chemical (DOW) on Wednesday when the stock popped following the announcement that the Fed would raise the benchmark interest rates 0.5%.
My sell order filled at $69.40, locking in +23.36% of gains on shares I bought for $56.26 back on September 20, 2021 and lowering my per-share cost -1.46% from $34.25 to $33.75, a -36.53% total price reduction from my first buy at $53.18 on May 3, 2019, almost four years earlier to the day.
From here, my next sell target is $71.86, right at DOW’s all-time high, and my next buy target is $55.15, right in the middle of support from DOW’s December 2021 selloff.
DOW closed the week at $67.93, down -2.12% from where I took profits Wednesday.
IDEXX Laboratories (IDXX): Added to Position
IDEXX Laboratories’ (IDXX) stock price fell hard after providing disappointing future guidance during its earnings report Wednesday morning, triggering a buy order I had in place which filled at $386.92. The buy locked in a -44.01% discount replacing the last of the shares I sold for $691.11 on July 28, 2021 and raised my per-share “cost” +$7.86 from -$47.43 to -$39.57 (a negative per-share cost indicates all capital has been taken out of the position in addition to $39.57 of profit per-share which is added to the portfolio’s bottom line).
From here, my next buy target for IDXX is $330.90, above a past point of support, and my next sell target is around $1,000 where IDXX will have outgrown the allocation target size for the portfolio.
IDXX closed the week at $366.64, down -5.24% from where I added Wednesday.
Logitech (LOGI): Added to Position
Given the huge boost in sales in 2020 and 2021 thanks to everyone working from home, Logitech (LOGI) missing its year-over-year comparisons when it reported earnings Monday evening was hardly too surprising, but it did lead to LOGI selling off on Tuesday where it triggered a buy order at $62.34.
The order locked in a -33.50% discount replacing some of the shares I sold for $93.74 back on November 5, 2020 and raised my per-share cost +$1.14 from $8.81 to $9.95, still a -59.22% reduction from where I opened the position at $24.20 on November 11, 2016.
From here, my next buy target is $58.05, above a point of support calculated using the Fibonacci Method, and my next sell target is $120.29 where LOGI will have outgrown the target allocation size for the portfolio.
LOGI closed the week at $60.94, down -2.25% from where I added Tuesday.
Nike (NKE): Added to Position
Nike (NKE) broke down through support hard on Friday with the rest of the market and triggered my next buy order which filled at $112.79. The buy raised my per-share “cost” +$3.49 from -$9.59 to -$6.10 (a negative per-share cost indicates all capital has been taken out of the position in addition to $6.10 of profit per-share which is added to the portfolio’s bottom line).
From here, my next buy target is $96.75, a past point of significant support, and my next sell target is $160.95 where Nike will outgrow the target position allocation size for the portfolio.
NKE closed the week at $114.49, up +1.51% from where I added Friday.
Want Further Clarification?
As always, if you have questions about any of my positions or have positions of your own that you’re curious about – feel free to leave a comment below!
See you next week!
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