Buying 2 More Names for the $10,000 Portfolio

As we move along, I'd like to continue increasing the breadth of exposure for our new portfolio. Today, we'll get to "O" in the alphabet (dumb dad joke) and add both Ocular Therapeutix  (OCUL)  and Ondas Inc (ONDS)  to the portfolio.

For readers who have not been followers of the "Stocks Under $10" column, Ondas is the small-cap unmanned craft/drone designer/manufacturer that does business with the U.S. Department of Defense and recently received a $15.8 million contract award from the Israeli Defense Forces. 

Ondas had also recently acquired BIRD Aerosystems, which is a developer and provider of airborne missile protection systems as well airborne surveillance and reconnaissance capabilities for military and homeland security purposes. BIRD counts the U.S. Army, several NATO member nation forces, several APAC air forces and the United Nations among its customers.

Ondas has also entered into a merger agreement with Bethesda, Maryland based Mistral Inc. Mistral operates a manufacturing, assembly, integration and infrastructure support program. This firm is a prime contractor for the U.S. Army and for Special Operations Command (SOCOM), also in the uncrewed autonomous vehicle field.

On to Ocular Therapeutix. This is the firm that had experienced encouraging results from its Phase 3 study of Axpaxil. Readers will recall that this study compared a single dose of Axpaxil (0.45 mg) to a single dose of aflibercept (2 mg) in patients afflicted with wet age-related macular degeneration (AMD). According to that trial, superiority endpoints met with 74.1% of patients dosed with Axpaxil versus just 56.6% for patients dosed with aflibercept. In addition, 65.9% of patients maintained vision at week 52 with Axpaxil versus just 44.8% with patients dosed with aflibercept. Axpaxil was well-tolerated throughout the period.

Ondas Inc (ONDS)​

As mentioned more than two weeks ago, ​I see a closing pennant pattern that often enough will lead to an explosive move. This pattern itself is non-directional in nature, it just often precedes a significant move. The indicators such as relative strength and the daily MACD are currently about as non-committal in terms of signaling a direction as the pattern itself is.

I will purchase 100 shares of ONDS at or close to the last sale of $9.94.

Target price: $14 (down from $17)

Pivot: 21-day EMA (currently $10.40)

Add: Down to February low of $8.32

Panic: New post February 5th low

Ocular Therapeutix (OCUL) ​

​Readers can see that as we pointed out two weeks ago, OCUL had lost its 200-day SMA, 50-day SMA and 21-day EMA after having retaken all of those lines in late February/early March. We noted that the 21-day EMA is probably more important than those other lines to this stock technically as there is likely more swing trader participation in this name than there is institutional participation. The daily MACD and relative strength are both postured rather bearishly, but both are showing signs of potential improvement this week.

I will purchase 100 shares of OCUL at or close to the last sale of $8.30.

Target Price: $12 (down from $18)

Pivot: 21-day EMA (currently $8.90)

Add: Down to February low of $6.19

Panic: New post February 17 low

Trading notes: Unfortunately, or maybe fortunately, after believing I had purchased the original lot of 100 shares of  (SOFI)  at a net basis or $16.98, and relaying that information here, I was informed by my trading platform (broker) that my trade (due to an unsettled trade from my liquidation event related to my divorce) had not been executed and that I could not trade freely until March 26 (Thursday). Hence, I executed all of my "catch-up" trades on Thursday morning.

Current Positions and Costs

Purchased 100 shares of SOFI at $16.28

Purchased 10 shares of  (RKLB)  at $71.145

Purchased 5 shares of  (PLTR)  at $152.27

Sold one SOFI May 15 $18 Call for $1.01 (bringing the net basis for SOFI down to $15.27).

Related: Emerging Market Selloff Shows Flashes of 2008 Financial Crisis

At the time of publication, Guilfoyle was long SOFI, RKLB and PLTR.