AMD (AMD)

While a solid outperformer, AMD’s (AMD) recent announcement of its intention to acquire semiconductor Xilinx (XLNX) has led to mixed results with shareholders – and the stock price – as AMD became the Week’s Biggest Loser by gaining the least: +2.64%.

What is the Recovery Speculation Basket?

The Recovery Speculation Basket (“Recovery Spec”) represents stocks that will thrive if vaccines are released quickly and we return to normal but have the likelihood of collapsing if more lockdowns occur. These positions are too speculative to have their own allocation and share a single allocation.

Currently, my Recovery Spec stocks are as follows: the Airlines Exchange Traded Fund (JETS) and Carnival Cruise Lines (CCL). They are listed as a single allocation in the portfolio breakdown chart each week. 

Twitter (TWTR): *Closed Position: +266.73% Gain*

When Twitter (TWTR) bounced with the rest of the market on Tuesday, I decided it was time to remove it from the portfolio, closing it at $54.32 and capturing a lifetime gain of +266.73% on my starting capital with my first purchase made on October 30, 2019.

I decided to close Twitter because of the negative headwind risk stemming from government regulation and potential backlash from its customers over banning Donald Trump’s account. While I have ethical reasons for fully supporting Twitter’s decision to ban Trump, his popularity on the platform may result in a significant loss of users to Twitter which may negatively impact its business.

In addition, between Twitter and Pinterest (PINS), I have two social media plays in this portfolio, and with PINS reigning the portfolio as its all-time most successful play, I’m adhering to the strict rules of diversification and getting rid of TWTR.

Also, thanks to the addition of DraftKings (DKNG) to the portfolio last week, the removal of TWTR takes the target allocation for each position back up to 9.09% instead of 8.14%.

TWTR closed the week at $56.78, up +4.53% from where I closed it Tuesday.

Virgin Galactic (SPCE): Profit-Taking

Virgin Galactic (SPCE) continued to have a wild ride this week, skyrocketing through its all-time high once again to make a new top at $62.80. Not wanting to waste this volatility, I took profits at $59.20 using limit orders (I never use market orders and only use trailing stop orders on less volatile stocks) on Thursday, lowering my per-share cost to -$100.00 per share.

From here, I’ve been watching SPCE’s pattern and believe I will be able to replace a few of those shares at $40.20, a discount of more than -30% from where I sold. At this time, I have no additional sell targets as I believe we could see SPCE either go much higher or much lower from here.

SPCE closed the week at $54.34, down -8.21% from where I sold Thursday.