March 29, 2019 

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Highlights from the Week

Biggest Winner: BiliBili (BILI)

U.S. stocks aren’t the only ones to benefit from positive U.S.-China trade rumors, as BiliBili (BILI), China’s YouTube, goes to show with a gain in excess of 10% this week.

BILI, like most Chinese stocks, is extremely high-risk but seems to have significant growth potential.

Biggest Loser: EventBrite (EB)

Our newest position, EventBrite (EB), is this week’s biggest loser, but that’s also the reason we opened a position.

Despite a disappointing earnings report that continues to slam the stock, EB is actually profitable and has interesting growth forecasts. 

That being said, EventBrite is now trading in unknown territory, seeing lows nearly 50% less than its initial IPO price of $36.00. Proceed with caution if you decide to follow us into this one as it will be difficult to determine how much lower it will go.

This Week’s Trades

Canopy Growth Corp (CGC)

The cannabis sell-off led to us adding to our Canopy (CGC) position when it touched $40.88, raising our per-share position price to $15.15 per share.

CGC closed the week higher at $43.49 with our position up +187.06%.

Cronos Group (CRON)

The cannabis sector sell-off left no stock untouched, including Cronos (CRON) which was already under pressure from last week. We added to our position at $17.62, raising our per-share position price to $14.21 per share.

CRON closed the week higher but under pressure at $18.43 with our position up +29.77%.

EventBrite (EB) *New Position*

EventBrite (EB) is a technology startup offering the service of setting up an event and selling tickets for the event. Primarily targeting smaller musical performers and that kind of clientele, EB has its sights set on bigger fish for the future.

A recent disappointing earnings report slammed the stock – sending it down more than 40% to the low $19 range from its recent high of $32.82.  At these oversold levels, we decided to open a position at $20.68 and added to it at $19.32 for a per-share cost of $20.23.

EB closed the week lower at $19.17 with our position down -5.22%. We have additional buy orders at lower levels starting at $19.06 and headed lower. We think this one may to be a rough ride.

Iridium Communications (IRDM) *New Position*

Iridium Communications (IRDM) provides communications support to mobile phone companies and recently announced a partnership to begin offering real-time airline tracking using significantly better technology than existing land-based radar.

IRDM’s performance has been outstanding in the past three years – up nearly 300% – plus its minimal capital outflow projections suggest a dividend may be in the works.

Still an incredibly volatile stock, IRDM belongs in our Trades in Play portfolio – not our Investments in Play – so we opened a position at $26.28 when the market sell-off pushed it down from recent highs.

IRDM closed the week about even at $26.44 with our position up barely at +0.61%.

New Age Beverages (NBEV)

New Age Beverages (NBEV) has always been a risky cannabis play, a stock with extremely high valuations but only indirect connections to the cannabis sector as it is looking into producing CBD-infused drinks, an unproven (CBD is an oil, after all) yet potentially incredibly lucrative concept.

NBEV has been getting slammed and this week’s cannabis selloff didn’t leave NBEV unscathed, allowing us to add to our position at $5.10 and lower our per-share to $5.93.

NBEV closed the week slightly higher at $5.23 with our position down -11.67%.

Nio (NIO)

NIO (NIO), the Chinese electric car company, continues to struggle, getting smacked early in the week. We added to our position at $5.51 and $5.16 as NIO headed lower, lowering our per-share cost to $5.75, an 11% reduction from our initial buy.

NIO closed the week even lower at $5.10 with our position down -11.27%.

Tencent Music (TME)

Tencent Music (TME) saw a pop on Friday along with the rest of the market, tripping a limit sell order we had in place at $17.88, lowering our per-share cost to $8.42.

TME closed the week at $18.00 on-the-nose with our position up +113.78%.

TransEnterix (TRXC)

The midweek selloff wasn’t good to TransEnterix (TRXC), further pushing the stock closer to $2.00. Once again, we added to our position – this time at $2.07 – lowering our per-share cost to $2.41.

TRXC closed the week much higher at $2.38 – up 18.41% from its $2.01 weekly low with our position now down only -1.24%.

Yeti (YETI)

When trading, it’s important to admit when you’re wrong and fix your mistake. Last week, we sold some of our Yeti (YETI) position at $27.57, thinking its overbought conditions would cause it to pullback. Contrary to our gameplan, YETI shot skyward to make a new high at $34.43, nearly 20% higher than where we sold.

Rather than cry about missed profits, we adjusted our gameplan, adding to our Yeti position when it pulled back at $31.71 and $29.28, causing our per-share price to raise from $19.64 to $26.88 a share, however we’ve also added to our sizing by doing so.

Although investors should always Buy in Stages, adding to their positions at lower levels, traders need to take a different perspective and eye stocks like Yeti which may have the strength to earn higher-highs and build profits without pulling back significantly (certainly a much higher-risk strategy).

YETI closed the week back over $30 at $30.25 with our position up +12.55%.

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!