April 26, 2019 

Current Position Performance

Highlights from the Week

Biggest Winner: Canopy Growth Corp (CGC)

After buying U.S.-based Acerage Holdings (or the option to, at least), Canopy Growth (CGC) and the rest of the cannabis sector saw quite the pop this week with CGC gaining +11.89% and even Cronos Group (CRON) seeing a +8.95% in sympathy.

Note: We use after-hours pricing for our end-of-week prices G/L in Trades in Play just to add to the speculative nature of the portfolio.

Biggest Loser: Tencent Music (TME)

Tencent Music (TME), the Chinese music streaming company, is a historically volatile stock and saw a pullback of -4.39% this week. There were no apparent news events responsible for this move that we could find as it appears the move was a result of cyclical trading in the stock. TME’s earnings are scheduled for May 13 so we’ll learn more about the company’s status at that point.

This Week’s Trades

BiliBili (BILI): Position Reduction

We sold a small part of our position in BiliBili (BILI) at $17.72 when it rallied on Tuesday.

Although we still like the long-term prospects of this Chinese YouTube, the stock has spent a great deal of time bouncing around these levels and we wanted to lighten up just in case it decides to break the low of support where we will add more.

BiliBili (BILI) closed the week at $17.78 with our position up +0.62%.

Canopy Growth Corp (CGC): Profit-Taking

Choppy price action in Canopy (CGC) on Wednesday triggered a stop-loss order we had on too tight, selling our capital investment at $46.72 before CGC reversed direction to head higher.

Taking profits never hurt anyone, but it definitely stings when a stock’s price action triggers a stop immediately before reversing course and heading higher. That being said, trading discipline is key, and we’d rather take profits than get hit for downside losses.

Canopy (CGC) closed the week at $49.63 with our position up +189.86%.

EventBrite (EB): Profit-Taking

EventBrite (EB) has been holding steady, however we decided to take profits using a stop-loss, which filled at $22.82 when EB pulled back a bit during Thursday’s sell-off, reducing our per-share cost to $18.35.

We have buy orders at key lower levels: $19.11, $18.38, $17.56 and $15.14

EventBrite (EB) closed the week at $23.00 with our position up +25.37%.

Gossamer Bio (GOSS): Adding to Position

Gossamer Bio’s (GOSS) death spiral from its all-time high of $25.06 continued as it broke through its all-time low on Friday, creating a new low at $15.66 and triggering a buy order we had in place at $15.88 and lowering our per-share cost to $18.62.

With earnings not expected until June 24 and mediocre-to-bad news in the healthcare sector, we’re going to continue riding GOSS lower, adding to our position at key levels. Should GOSS come out with company-specific bad news, we will sell our position and bail out ASAP.

GOSS closed the week at $16.12 with our position down -13.40%.

TransEnterix (TRXC): Adding To Position

TransEnterix broke through its key $2.00 support on Thursday, likely due to competitor Intuitive Surgical, Inc.’s (ISRG) earnings which some analysts found disappointing.

Rather than take the loss due to the breaking of a key price level, we have decided to take a significantly more risky strategy, adding to our position when TRXC appeared to find support at $1.90, as we believe the drawdown is overdone and TRXC is also seeing weakness from both the market sell-off and sector-specific issues affecting healthcare.

As far as sizing, TRXC is slightly less than 75% of a full position allocation for Get Irked, and with earnings coming up May 9, we intend to take advantage of any market or sector sell-off between then and now to accumulate to the position, playing TRXC’s earnings report as a binary event.

However, any company-specific negative news will not represent a buying opportunity.

If TRXC reports a disappointing quarter not in line with ISRG’s, we will close the trade and take the loss. Otherwise, we should have the opportunity for a decent profit as our per-share cost is now $2.21. Short-term, we believe we may see a pop above our per-share cost in the next few days which will offer us the opportunity to take profits and/or exit the trade entirely.

TRXC saw quite the bounce on Friday, breaking back through the $2.00 level to hit a daily high of $2.10 before retreating slightly.

TRXC closed the week at $2.05 with our position down -7.49%.

Yeti (YETI): Profit-Taking

Yeti (YETI) saw a nice pop over $33.00 early in the week so we used a stop-loss to protect our profits, our order filling at $32.97 and reducing our per-share cost to $23.83 as Yeti continued quite a bit higher.

Hey, no one ever got hurt taking a profit, eh?

Yeti (YETI) closed the week at $35.04 with our position up +47.04%.

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!