March 15, 2019 

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Highlights from the Week

Biggest Winners: Yeti (YETI) & Aurora Cannabis (ACB)

Yeti (YETI), the premium outdoor equipment play, came into its own this week to become our biggest winner, outpacing Aurora Cannabis (ACB) by 0.38% to gain +24.38% for the week.

ACB hired Nelson Peltz – famed investor – as a strategic adviser, causing the stock to pop +24.00% for the week which we believe we can call a tie.

Biggest Loser: Insys Therapeutics (INSY)

Insys (INSY) is notoriously volatile – this is a stock whose high was $660.05 in 1999 and is now $4.14 – and being a biopharma stock means any bad news will cause death dives and biopharma is a sector with lots of bad news.

An auditor’s report released this week revealed that INSY might have insufficient funds to continue operations, causing the stock to drop a heart-stopping -26.47%. We have a very small position in the stock with a per-share cost basis of $1.84, so we’ve canceled all standing buy orders and are willing to risk some of our profits to see how this one plays out.

We’ll pull our cost basis – at minimum – if INSY doesn’t hold its recent $3.35 low from last week which will only leave our profits in the stock to see how it plays out.

This Week’s Trades

Aurora Cannabis (ACB) *Cost Basis Removed*

We pulled our investment capital from our Aurora (ACB) position when it gapped higher on Wednesday morning following news that activist investor Nelson Peltz would be taking a strategic advisor role in the company.

We took profits to remove our entire cost basis when the stock crossed $8.80. Given the growth of the cannabis structure and potential of ACB, we plan to let the rest of the position run, and even have limit buy orders to add to the position if the price falls below $7.50.

ACB closed the week at $9.61 with our position up +186.24%.

NIO (NIO) *New Position*

NIO (NIO) is the speculative electric car maker based out of China looking to go head-to-head against Tesla (TSLA), the incredibly speculative American electric car and battery maker.

Let’s be really clear on this – NIO is incredibly speculative even for Trades in Play which is our speculative portfolio.

NIO recently skyrocketed to $10 a share after the broadcast of an extremely positive piece on the U.S. news television show 60 Minutes only to crash back down to Earth after giving a poor showing in its earnings report.

We opened a small position when NIO dropped to $6.46, then added at $6.26, $6.06 and $5.86. NIO closed the week at $5.71 with our position down -7.31%

Yeti (YETI)

We took some profits in outdoor-supply maker, Yeti (YETI), when it started becoming dramatically overbought on Thursday at $27.57, reducing our per-share cost to $19.64.

However, we do have limit-buy orders to start picking up shares if YETI pulls back from its new high to $25 and below. YETI closed the week at $29.79 with our position up +51.68%.

Questions?

As always, If you have questions about how we’re playing different positions or anything at all, really, feel free to leave a comment below!