February 22, 2019 

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Highlights from the Week

The Mouse House Makes a Comeback!

Disney (DIS) was our biggest winner this week, gaining 2.36% for the week (hey, it’s a slow week – the S&P only gained 0.62%). Maybe investors are finally remembering what made them like Disney in the first place?

Video Games are on the Outs.

Unless your video game company’s got a battle-royale multiplayer shooter (read: Apex Legends from Electronic Arts (EA) or Fortnite from Epic Games majority owned by Tencent (TCEHY)), you’re not faring well, and, unfortunately, Take Two (TTWO) has no battle royale so it got slammed down for another -6.68% this week making it our portfolio’s biggest loser. YOWTCH! For the long-term, TTWO continues to have excellent prospects, however we’re concerned about weakening global economic signals so our buy levels are much – much – lower than even current ~$88 levels.

No Moves are Good Moves.

We almost had zero moves this week until Friday when GW Pharma (GWPH) started to push its upper-boundaries. We’ve freed up enough cash to be prepared for what might be coming our way. If you read our Week in Review, then you know we might be in for some downside action, historically speaking.

This Week’s Moves

GW Pharmaceuticals (GWPH)

GWPH started to double-top at the $152 level on Friday motivating us to take some profits at $151.95 ahead of next week’s earnings release. GWPH has been a huge mover surprising even us as it dropped from a high near $180 last September to $92 in December – that’s a loss of nearly 50%.

Since its December 24 low, GWPH has jumped back up 65%!

Although we have long-term investment plans for GWPH, we still need to take short-term volatility of this magnitude into consideration. Friday’s sale took our cost basis down to $140.98.

Our recommendation is to dramatically increase your Buying in Stages levels if you are interested in picking up GWPH:

We have limit orders to add to our position at $132.59 (down more than 10% from here), $113.42 (a drop in excess of 25% from current levels) and even at $95.59 (a nearly 40% drop).

GWPH closed the week at $151.60, leaving our position up +7.53%.

In Summary

Investing is a Long-Term Plan

Unlike trading, investors need to keep their eyes on the prize – long-term gains. Some weeks may have a lot of moves, however many (if not most) weeks will have no moves at all, and that’s perfectly okay.

Use the down-time to perform research on your positions or investigate new ones.

Make sure your Stock Shopping List is up-to-date, accommodating any sector-specific or stock-specific bad news and adjusting your buying levels accordingly (we’re looking at you, video game sector).

Want further clarification?

If you have questions any of our positions or have positions of your own that you’re curious about –  feel free to leave a comment below!

 

We’ll see you next week!

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Disclaimer: Eric "Irk" Jacobson and all other Get Irked contributors are not investment or financial advisers. All strategies, trading ideas, and other information presented comes from non-professional, amateur investors and traders sharing techniques and ideas for general information purposes.

As always, all individuals should consult their financial advisers to determine if an investing idea is right for them. All investing comes with levels of risk with some ideas and strategies carrying more risk than others.

As an individual investor, you are accountable for assessing all risk to determine if the strategy or idea fits with your investment style. All information on Get Irked is presented for educational and informational purposes only.