The Week’s Biggest Winner & Loser
Canopy Growth (CGC)
Canopy Growth Corporation (CGC) made news on Friday when it announced a partnership with singer Drake. Oddly, this news seemed to cause a bounce in the stock with CGC jumping +12.47% on Friday alone to finish out the week +8.88% and snag the Biggest Winner spot.
Revolve Group (RVLV)
Revolve Group (RVLV) actually reported a decent profitable quarter until the CEO mentioned slowing growth in Revolve’s private brands. The stock plummeted making disastrous all-new lows, losing -23.12% for the week to earn the Biggest Loser and is now down -35.10% from where it went public just a few short months ago.
Target Position Size
Current Position Performance
1st Buy: 1/10/2019 @ $19.54
Current Per-Share: $2.32
1st Buy: 3/7/2019 @ $17.68
Current Per-Share: $5.97
1st Buy: 2/26/2019 @ $23.23
Current Per-Share: $15.63
Tencent Music (TME)
1st Buy: 12/14/2018 @ $12.96
Current Per-Share: $10.76
Tradeweb Mkts (TW)
1st Buy: 4/8/2019 @ $39.22
Current Per-Share: $37.14
Canopy Growth (CGC)
1st Buy: 8/21/2018 @ $38.28
Current Per-Share: $20.38
Virgin Galactic (SPCE)
1st Buy: 10/31/2019 @ $9.87
Current Per-Share: $9.57
1st Buy: 10/30/2019 @ $29.79
Current Per-Share: $29.79
Cronos Group (CRON)
1st Buy: 12/3/2018 @ $10.27
Current Per-Share: $10.60
1st Buy: 5/16/2019 @ $25.72
Current Per-Share: $25.12
Revolve Group (RVLV)
1st Buy: 6/13/2019 @ $39.06
Current Per-Share: $26.65
Profit % for * positions = Current Gross Profit / Original Capital Investment
This Week’s Moves
AMD (AMD): Profit-Taking
AMD (AMD) continued to work its way toward its previous highs on Monday, triggering a sell order I had in place to take profits at $35.09.
Since I believe AMD may try to make higher all-time highs, I didn’t pull out all of my capital investment, but the sale did reduce my per-share cost -82.48% from $13.24 to $2.32. The next sale, targeting $37.65, will pull all remaining investment capital as well as some significant profits.
If AMD reverses direction and pulls back from here, I’ll start adding back to the position at $28.85.
AMD closed the week at $36.29, up +3.42% from where I sold on Monday.
BiliBili (BILI): Profit-Taking
With BiliBili’s (BILI) earnings rapidly approaching on November 18 and the stock nearing overbought conditions, I took some profits at $16.51 on Monday. The sale lowered my per-share cost -2.22% from $14.85 to $14.52.
With positive news from the China Trade War on Thursday, I further lightened up on my BILI, selling the majority of my position when price action tested support at $16.65 which lowered the per-share cost on my remaining shares by -58.88% from $14.52 to $5.97.
I’ve decided to take BILI out of the speculative portfolio as its price action isn’t quite as volatile as I would like and I’ve lost faith in high-growth Internet plays, particularly those with strong Chinese exposure. And stocks don’t come with more Chinese exposure than China’s YouTube.
BILI reports earnings a week from Monday (November 18), so I will hold on to the remaining position until that point, and then take whatever profits I have remaining.
BILI closed the week at $16.58, down -0.24% from my $16.62 average selling price.
Revolve Group (RVLV): Added to Position
Revolve Group (RVLV) gave a decent earnings report on Thursday with increasing revenue and sales, however, the CEO made comments about potential slowing in the expansion of some of Revolve’s brands caused the stock to sell off more than -25% on Friday.
Analysts and advisers continue to adore Revolve despite its poor stock performance, leading me to potentially throw good money after bad by buying more when the price seemed to stabilize at $17.37 on Friday. This estimate ended up being wrong as RVLV continued to spiral before finally bottoming out at $16.02.
While the buy lowered my per-share cost by -5.5% from $28.20 to $26.65, I won’t be adding to my position as I’m substantially overweight in this position at this point, holding 33% more than my target cost allocation. In fact, I’ll be waiting for RVLV to bounce and then using stop-limit orders to start cutting my epic losses in this position.
RVLV closed the week at $16.33, down -5.99% from where I added on Friday.
Virgin Galactic (SPCE): Added to Position
Virgin Galactic (SPCE) continued to sell off spectacularly this week, dropping through its previous low of $8.94 on Tuesday.
A few weeks ago, I warned of how market orders are incredibly dangerous with volatile stocks in a negative way, however, this week I’m going to reiterate how while trailing stop orders are incredibly risky, they can also be incredibly beneficial.
I had placed a trailing stop to trigger if SPCE dropped through its $8.94 low with a trail of $0.10 (a “trail” of $0.10 means the order would place a market order when SPCE bounced back up $0.10). I was hoping to at least get a price of $9.04, however, when SPCE oversold to a new low of $8.56, my market order filled at $8.66, giving me a -4.2% discount off my $9.04 target buy price.
That being said, while the market order worked to my advantage this time, it certainly did not with a buy in Gossamer Bio (GOSS) back in episode 42.
Tuesday’s order was very small as SPCE may be the most speculative position I’ve ever played. I added just 3.67% of my overall allocation with the buy lowering my per-share cost -3.04% from $9.87 to $9.57 and my current allocation of just 16.2% of my entire target.
My next buy order will be yet another trailing stop if SPCE tries to test its new all-time low of $8.56. Following its drop, Virgin Galactic bounced significantly from its lows to finish the week at nearly $10.
SPCE closed the week at $9.99, up +15.36% from where I added on Tuesday.
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!
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.