Highlights from the Week

Biggest Winner: Cypress Semiconductor (CY)

Our biggest winner this week is making its final appearance in our Investments in Play (it’s not even on our charts because we closed our position) – Cypress Semiconductor (CY) dominated the week after a buyout was announced Monday for a company sale price of $10.1 billion or $23.85 per share.

CY closed the week at $22.12 for a week-over-week gain of +42.99% and a Year-to-Date gain of a whopping +76.96%.

Do not buy this one unless the deal falls through. Sadly, we have to say goodbye and take all profits whenever a buyout deal is announced – ‘dems the rules.

Biggest Loser: Canopy Growth Corp (CGC)

The Great Cannabis Selloff that started last week continued this week, sending Canopy Growth under the $40 mark before it recovered to only lose -9.37% this week.

However, the end-of-week rally was so strong that its -9.37% loss earns Canopy Growth our Weekly Loser Award.

This Week’s Moves

Cypress Semiconductor (CY): *Takeover / Closed Position*

German firm Infineon Technologies announced plans to buy Cypress Semiconductor (CY) for $10.1 billion on Monday, sending CY skyrocketing more than 20%.

We initially opened our position in CY on April 6, 2016 for $8.23 a share after a recommendation and feature piece by Jim Cramer on Mad Money. We closed our position at $22.37 on Monday, capturing a total gain of 258.22% for the life of the position (subsequent buys and sales lowered our overall gains from the potential 271.18%, not including dividends).

Why did we sell at $22.37 instead of holding on to get closer to the $23.85 per-share takeover bid? We’re not arbitragers and the potential of a deal falling through between now and the 2020 target date makes hanging on longer for 6.6% extra a dangerously greedy move.

REMEMBER: Bulls make money, Bears make money, but Hogs get slaughtered.

Given its outstanding track record and substantial 2.5%+ dividend, the sale of Cypress was a huge success for Get Irked, but its takeover leaves a hole we’re hoping to fill with Kohl’s Corporation (KSS) as a long-term turnaround play.

CY closed the week at $22.12, down -1.12% from where we closed our position.

Kohl’s Corporation (KSS): *New Position*

Kohl’s Corporation (KSS) is a discount clothing retailer with stores throughout the United States. Its recent earnings report was a complete disappointment, causing the stock to collapse more than -30% in May from $71.75 to a monthly close of $49.32.

At these levels, Kohl’s sports a 5.4% dividend (each share pays $2.68 annually) and has a track record for great performance (well, until now) as well as an ongoing relationship with Amazon (AMZN) which rumor has it is interesting in opening Amazon retail stores making Kohl’s a potential takeover candidate.

We opened a position with a 1/5 allocation at $50.45. Since the stock is still in freefall, our target buying levels are much lower at: $45.50 (~10% lower), $39.38 (~20% lower) and $36.33 (~30% lower) and $32.94 (~35% lower). Due to Kohl’s dividend, we have allocated an overbuy target at $25.28 (nearly 50% lower from here and nearing Kohl’s 2009 lows during The Great Recession).

WORSE CASE SCENARIO: At a full overbought allocation of 6.4% of our portfolio (at current values), our per-share cost would be $34.75 a share, leaving us down nearly -30% at our final buy price of $25.28, however, our per-share cost would be more than 30% lower than our initial $50.45 buy. In addition, Kohl’s dividend would earn our portfolio 0.5% of our entire portfolio value annually at that allocation while we wait for a turnaround.

With its ever-increasing dividend yield as its price drops and past performance, we don’t believe Kohl’s will get nearly that low; our expectation is we will procure 2/5 to 3/5 of our overall allocation.

Adding a bit more credibility to this thesis, this idea was initially suggested during Jim Cramer’s Mad Money, who has long touted this stock as a long-term investment and believes this is an excellent long-term turnaround play.

KSS closed the week at $48.18, down -4.49% from our initial purchase.

Square (SQ): Profit-Taking

We got a little ahead of ourselves last week when we added more Square (SQ) to our portfolio at $64.43, realizing we added a few more shares than we should have. On Friday, when SQ popped through $67.66, up 5% from where we bought last week, we used a trailing stop order to sell half of the shares we bought.

Square pulled back to trigger the order at $68.55, allowing us to capture 6.4% profits on the shares we sold while also reducing our allocation to more appropriate levels.

Square ended the week at $68.46, down -0.13% from Friday’s sell order.

Take Two Interactive (TTWO): Profit-Taking

Take Two Interactive (TTWO) has roared back to life in recent weeks, crossing over our per-share cost basis and breaking through $110 this week.

In reviewing its historical price action, we decided to take some profits at $112.37 on Thursday when TTWO nearly broke $114.00 and started entering overbought conditions on its Relative Strength Indicators (RSIs).

While we do believe TTWO will consolidate at these levels and head higher from here, the current market conditions and potential for bad news made us lighten up our allocation, lowering our per-share cost to $107.82.

TTWO closed the week at $111.65, down -0.64% from where we sold on Thursday.