How I'm Planning to Add Planet Labs to My Portfolio
The small-cap name has been on an impressive charge for several months now.
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There is another former "Stocks Under $10" name that did very well for the Sarge-folio in the past that I would like to initiate to the "$10K Portfolio." That name is Planet Labs (PL) and that stock has been on a near-relentless charge since this past autumn, which is why I have not yet been able to get a few shares into inventory.
The firm reported its fourth quarter in mid-March and it broke even on an adjusted basis on revenue growth of 41%.
For the current quarter, Planet Labs projected revenue of $87 million to $91 million and for the full year, revenue of $415 million to $440 million. A month later, Wall Street is expected to see revenue of $90.1 million for the quarter, which would be good for growth of 36% and revenue of almost $327 million for the year which would amount to growth of about 39%. Those Q1 earnings are expected in mid-June.
Readers will see that two cup-with-handle patterns that I had shown you in the past that had produced profits for shareholders. Now, we see that a rising-wedge pattern of bearish reversal is under development. Given a chance, I would like to use the 21-day EMA (currently $33.40) as a spot to initiate, potentially scaling down to the 50-day SMA.
I intend to use a bull put spread to try to get paid a little something to wait for my price. The second leg of the spread is for protection. It would be to get the portfolio out at a fair price should the initial trade get me in some trouble.
News Friday
A couple of $10K Portfolio names are in the news on Friday morning. Here's the rundown:
Snap (SNAP) : On Thursday, Citigroup analyst Ronald Josey reiterated his "neutral" (hold-equivalent) rating on SNAP, while increasing his target price from $6 to $7. Josey is rated at four stars out of five by Tip Ranks, has a 50% success rate over two years with an average return of 8.7%.
On Thursday, Truist Financial analyst Youssef Squali reiterated his "old" rating on SNAP, while cutting his target price from $8 to $5.60 Squali is rated at four stars out of five by TipRanks and has a 53% success rate over two years with an average return of 14.9%.
Also On Thursday, Bank of America analyst Justin Post reiterated his "hold" rating on SNAP as well as his $8 target price. Post is rated at five stars out of five by TipRanks, has a 66% success rate over two years with an average return of 31.1%.
Still on Thursday, BMO Capital analyst Brian Pitz reiterated his "outperform" (buy-equivalent) rating on SNAP, while increasing his target price from $13 to $15. Pitz is rated at five stars out of five by TipRanks, has a 64% success rate over two years with an average return of 29%.
Rocket Lab (RKLB) : On Friday morning, Roth MKM analyst Sujeeva De Silva reiterated his "buy" rating on RKLB, while increasing his target price from $90 to $100. De Silva is rated at five stars out of five by TipRanks, has a 54% success rate over two years with an average return of 61.9%.
Thursday's Intention vs Thursday's Actual Trade
Intention: Purchase 50 shares of VELO at or close to the last sale of $11.36
Actual Trade: Bought 50 shares of VELO at $10.93
Friday's Intention
Here is the portfolio's idea for a bull put spread in PL:
- Sell one PL June 19 $34 put for about $4.50
- Buy one PL June 18 $28 put for roughly $2.10
- Net credit: $2.40
Current Positions
Long 150 shares of (SOFI) at $15.988. Last sale: $19.97.
Long 125 shares of (OCUL) at $8.061. Last sale: $9.20.
Long 125 shares of (ONDS) at $9.4749. Last sale: $10.32.
Long 10 shares of (PLTR) at $145.03. Last sale: $148.06.
Long 15 shares of RKLB at $67.1653. Last sale: $84.27.
Long 25 shares of (INFQ) at $9.965. Last sale $21.01.
Long 75 shares of (SIDU) at $2.029. Last sale: $5.77.
Long 50 shares of (EVLV) at $6.0898. Last sale: $6.65.
Long 50 shares of SNAP at $6.03. Last sale: $6.10.
Long 50 shares of (VEL) at $10.93. Last sale: $11.09.
Cash: $1,436.32
Portfolio Value: $11,758.76, +17.6% from inception on March 24.
Related: China’s Surprise Growth Shows Silence on Iran, U.S. Trade Can Be Golden
At the time of publication, Guilfoyle was long SOFI, OCUL, ONDS, PLTR, RKLB, INFQ, SIDU, EVLV, SNAP and VEL.
