6/1 Watch List (Matt Thomas) – Managing 5 Open Positions

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My Open Positions as of Wednesday, 5/31:

I started scaling into both biotech stocks discussed in Last Week’s Watch List – CYTX and ITEK. In addition to that, I still own shares of ROX and LQMT from My 5/15 Watch List. To round out my five open positions, I entered GRPN this past week as well.

Here’s a detailed breakdown of my open positions:

CYTX (Cytori Therapeutics, Inc.)

Thesis: With a solid base forming in the $0.90-1.00 range, I expect the upcoming July catalyst to drive shares up over $1.10 within the next month or so. That catalyst is phase 3 data for Scleroderma. From a technical standpoint, there’s also a nice gap to recover in the $1.20-1.30 region. [Link to Catalyst]

Price at Close 5/31: $1.00
Buy Zone: $.90-1.00
Disclosure: Currently Own 250 Shares at $1.00

ITEK (Inotek Pharmaceuticals Corporation)

Thesis: I see a base forming in the $1.60-1.75 region, so I expect the share price to trend upwards as the mid-2017 catalyst approaches – phase 2 data for Glaucoma. Just like CYTX, I’m anticipating a run-up to occur between now and then. There’s a huge gap to close up to $6.00, but it all starts with a break of $2.00. [Link to Catalyst]

Price at Close 5/31: $1.70
Buy Zone: $1.60-1.75
Disclosure: Currently Own 450 Shares at $1.70

ROX (Castle Brands Inc.)

Thesis: This stock has continued it’s uptrend since appearing on my 5/15 watch list. My buy zone then was in the $1.70’s, but I don’t foresee it retreating back down to that level in the near term. I took some more profits as it broke into the $2.00’s on 5/25. It’s now consolidating in the $1.90’s and hopefully gearing up for another move deeper into the $2.00’s. A recent contract with Walmart and a potential buyout are the main reasons I’m drawn to this stock right now.

Price at Close 5/31: $1.95
Buy Zone: $1.85-1.90
Disclosure: Currently Own 1,250 Shares at $1.67

LQMT (Liquidmetal Technologies Inc.)

Thesis: With solid support at $0.25, I really like the risk/reward ratio on this one. Not only can iPhone rumors send this one flying (which has happened on multiple occassions in the past), but if their technology is actually used on the next iPhone, there’s no guessing how high the share price might go. In addition to that, the CEO appears to be strategically positioning them in the medical device industry and has a solid track record of turning companies into technological leaders.

Price at Close 5/31: $0.29
Buy Zone: $0.25-0.27
Disclosure: Currently Own 682 Shares at $0.27

GRPN (Groupon, Inc.)

Thesis: I think this stock has buyout potential, especially in the eyes of Alibaba. The possibility of this has been brought up multiple times in the past, but haven’t heard much about it lately. Maybe these rumors will start swirling again, or better yet, an actual takeover. I started scaling into this trade, but didn’t necessarily like the price action today. I’d really like to see this hold $3.00 (or close to it) through the end of the week. I’ll be keeping a tight leash on it if it continues to drop.

Price at Close 5/31: $3.01
Buy Zone: $2.95-3.00
Disclosure: Currently Own 150 Shares at $3.15

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