Virgin Galactic (SPCE)

A one-two combo smackdown of disappointing earnings and a spaceflight test delayed to May positively crashed Virgin Galactic (SPCE) this week, dropping -27.27% and definitely parachuting in as the Week’s Biggest Loser.

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. 

General Electric (GE): Profit-Taking

General Electric (GE) made a stab for a past high on Wednesday, triggering a sell order I had in place to remove the remaining capital and some profits from the position which filled at $13.21. 

The sale locked in +115.85% in gains on shares I bought during the March 2020 selloff at an average price of $6.12 per share and gives the position a new per-share “cost” of -$1.01 per share (each share in the portfolio cost no capital and actually adds $1.01 in profits to the bottom line).

From here, I’m going to let the remainder of the position run – it’s the house’s money, and with GE in the middle of a long-stretching turnaround, who knows how high it may be able to go? After all, GE’s previous all-time high was in the $60s…

If GE drops back to the $5.50-$5.60 range, I’ll stock up, putting my newfound gains to work as well as some capital, too.

GE closed the week at $12.54, down -5.07% from where I sold Wednesday.

Global X Uranium ETF (URA): *New Position*

I know what you’re thinking – “Irk, have you gone full Doc Brown on us?! Are you building a time machine out of a Miata?!?!”

Hear me out…

In the current market conditions, all commodities – think fossil fuels, steel, copper, wood, and, yes, even uranium – are in a raging bull market. The argument for uranium, however, is even more intriguing based on the fact that the world’s going to need a lot more green energy if we want to get off fossil fuels, and, believe it or not, outside of the renewables, nuclear power is as green as it gets.

In fact, compared to all other sources of energy, fewer people have died from nuclear power plant accidents than any of the other sources, and that’s without a new plant having been built in 50 years.

Add to this thesis that new nuclear power plants are a very big part of President Joe Biden’s Green Energy plan, and you’ve got a hell of a story for uranium.

Why the URA ETF and not Cameco Corp (CCJ), Best-in-Breed in the space?

Uranium is notoriously volatile both as an atomic particle but also as an industry. While Cameco (CCJ) is the most successful refiner of uranium and is likely to see the biggest gains, I want to hedge my bets with the safe way to play the entire space, an Exchange Traded Fund (ETF): Global X Uranium ETF (URA).

While I was a little late to this party, the Global X Uranium ETF (URA) was as low as $6.95 last March, I decided to wait until URA pulled back from its $19.85 all-time high to open a position. That happened with an order that filled at $17.97 when URA dropped on Tuesday.

From here, my next price target to add more is $14.80 and I currently have no sell targets as we wait to see what happens in this space.

URA closed the week at $17.50, down -2.69% from where I opened it Tuesday. 

Palantir Tech (PLT): Added to Position

Palantir Tech (PLT) sold off in a big with the rest of the technology sector this week, dropping through a buy order I had in place which filled at $25.00 on Tuesday, followed by another buy order which filled on Friday at $22.80.

The combined orders gave me an average $23.90 buying price and reduced the per-share cost for my position by -9.49% from $29.50 to $26.80. 

From here, my next price target to add more is $18.20, slightly above a past point of support for the stock. Once again, I intend to hold this stock for a long time as I believe its prospects are excellent for the long-term… $45 is the sell target.

PLT closed the week at $23.90, spot-on at my average buy price.

Plug Power (PLUG): Added to Position

Plug Power (PLUG) continued to sell off this week, triggering a buy order I had in place at $50.90 on Monday before dropping under $50 a share. The purchase raised my per-share cost +21.07% from $31.18 to $37.75.

Unfortunately, PLUG lost out on the Wall Street Fashion Show, collapsing through the $40s and even below my new per-share cost at one point during the week.

From here, I’m going to be a bit more cautious, eyeing $26.75 as my next buy point as the $30 mark provided a lot of prior support. I’m also looking at taking profits around PLUG’s all-time high of $75.49 if it attempts to test it.

PLUG closed the week at $48.38, down -4.95% from where I added Monday.