Summary of Recent Portfolio Moves:
A few months ago, I started scaling into a position in ROX at $1.50 and it has since become one of my best trades of the year. It reached a high of $2.22 on 6/6 and I was able to capture quite a bit of profits along the way. Since that day, ROX has slipped a bit which forced me to exit my position on 6/9 when it broke below $1.90. I just couldn’t let this trade get away from me, so I decided to lock in profits before it potentially turned into a loser – Check Out My 6/14 Watch List For Details.
This turned out to be a pretty good decision as the stock dropped down to a low of $1.48 on 6/13. I considered adding back my position in this region, but wanted confirmation that the flush was over. Just two days later, shares were back up near $2.00 on strong revenue growth and increased gross margins. I had a feeling the recent deal that put Goslings Stormy Ginger Beer on the shelves of 4,500 Walmart stores would have a significant impact on financials, and it seems like that will be the case moving forward. Overall, it appears that ROX is poised for growth in the months to come. [Link to ROX Earnings Analysis]
My Open Positions as of Friday, 6/16:
| Ticker | Number of Shares | Average Price |
| ROX | 900 | $1.84 |
| LQMT | 682 | $0.27 |
| GRPN | 150 | $3.15 |
| ZGNX | 7 | $14.50 |
| ITEK | 200 | $1.78 |
| CYTX | 300 | $1.04 |
| TZA | 40 | $16.44 |
Here’s a Breakdown of All Open Positions:
ROX (Castle Brands Inc.)
Thesis: I’ve covered much of my thesis in Previous Watch Lists and I still believe ROX has substantial growth-potential. They just signed a deal with Walmart back in March to get their ginger beer on the shelves of 4,500 stores, reported a positive fiscal year net income for the first time in company history, and are seemingly a Strong Takeover Candidate. From a technical standpoint, it looks like support is building in the $1.70-1.80 range, which is the area I’m monitoring for potential adds to my position. I re-entered the trade on 6/15 after the positive earnings release.
Price at Close 6/16: $1.88
Buy Zone: $1.70-1.80
Disclosure: Currently Own 900 Shares at $1.84
LQMT (Liquidmetal Technologies Inc.)
Thesis: Remains the same as discussed in my 5/15 Watch List and 6/1 Watch List. Share price has been bouncing around in the $0.25-0.30 range for the past couple months and I think it’s only a matter of time before this one spikes. I’d like to add to my position in the $0.25-0.27 range in the coming weeks if the share price dips again. Looks like I missed a decent opportunity to do so this past week around $0.26. Apple iPhone rumors and the CEO’s track record are two of the main catalysts I think can drive this stock higher.
Price at Close 6/16: $0.29
Buy Zone: $0.25-0.27
Disclosure: Currently Own 682 Shares at $0.27
GRPN (Groupon Inc.)
Thesis: I was close to stopping out of this one at times throughout the past week, but this has finally established strong support at $3.00 and is starting to rally into the $3.20’s. This stock has been beaten down over the past year and is due for a pop. Maybe the Alibaba buyout rumors will start swirling again – that type of headline can generate quite a bit of buzz. Four straight days of strong price action on the chart is a great sign of a reversal.
Price at Close 6/16: $3.22
Buy Zone: $3.00-3.10
Disclosure: Currently Own 150 Shares at $3.15
ZGNX (Zogenix Inc.)
Thesis: This one jumped back on my radar Last Week when I found a couple upcoming catalysts in the BioPharmCatalysts.com database. From a technical standpoint, I like the consolidation of price action and support above the $14.00 level. This is a ticker I’ve played on multiple catalyst run-ups in the past and had pretty good success with it. I’m hoping for a similar run-up as the phase 3 catalysts approach in the third quarter and second half of 2017. I took a small position this past week just to get some exposure and looking for a pullback near $14.00 for a larger add.
Price at Close 6/16: $14.60
Buy Zone: $13.75-14.25
Disclosure: Currently Own 7 Shares at $14.50
ITEK (Inotek Pharmaceuticals Corporation)
Thesis: With strong support above $1.60, I expect this stock to trend upwards as the mid-2017 Phase 2 Glaucoma catalyst date approaches. I already booked some profits on part of my position in the $1.90’s, but I’m looking for a larger move up on the rest. It’s trading above the 50-day moving average but hasn’t yet been able to crack $2.00. This ticker is part of the SEC 5-Cent Tick Program which seems to be putting a damper on how it’s trading. But if this can somehow work its way into the gap above $2.30, it can potentially run quite a bit.
Price at Close 6/16: $1.88
Buy Zone: $1.60-1.75
Disclosure: Currently Own 200 Shares at $1.78
CYTX (Cytori Therapeutics Inc.)
Thesis: There’s strong support in the low $1.90’s from back in May that I certainly wouldn’t want to see the price break below. The past few trading sessions have been tough on this stock, but I’m looking for a potential add in the $0.90’s if the selling action slows. This is a biotech stock with phase 3 data due early 3Q 2017 for Scleroderma.
Price at Close 6/16: $0.98
Buy Zone: $.90-1.00
Disclosure: Currently Own 300 Shares at $1.04
TZA (Direxion Daily Small Cap Bear 3X Shares)
Thesis: This is a play that goes against the IWM. In other words, if the small-cap index goes up, TZA goes down, and if the small-cap index goes down, TZA goes up. The IWM has been hitting it’s head on resistance in the low $1.40’s, and with so much political and economic uncertainty recently, this can definitely have a negative impact on the market as a whole, especially small caps. I think a correction back down to lower levels could be in order.
Price at Close 6/16: $16.68
Buy Zone: Watching IWM for confirmation of resistance at $140 level
Disclosure: Currently Own 40 Shares at $16.44
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