Selling Rocket Lab After Setting a New Price Target
After trying to sell the aerospace name on Wednesday I will try again.
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Regular readers are probably well aware that Wednesday’s intended trades went the wrong way prior to publication.
I did try to sell 15 shares of (SIDU) and 2 shares of (RKLB) at the levels mentioned in Wednesday morning’s note. Both of those stocks went on to sell off from there. Rocket Lab rallied late and came close to hitting that level. Sidus Space sold off hard and is trading even lower on Thursday morning.
I sold zero shares of either stock for the portfolio. The new target price for RKLB, however, will stand, because if I were trading like a normal trader, without being restricted to informing the public of my moves for this portfolio prior to making them, these sales would have indeed been made. The target price for SIDU will be returned to $6 from the $9 level that we took that target to on Wednesday as the firm has just priced a secondary offering at $5.08.
Recent Portfolio News
Amazon (AMZN)
On Tuesday, analyst Justin Post of Bank of America reiterated a buy rating on AMZN along with his $310 target price. Post is rated at five stars out of five at TipRanks. Over the past two years, he has a 64% success rate, with an average return of 31.2%.
On Wednesday, analyst Stephen Ju of UBS reiterated a buy rating on AMZN along with his $333 target price. Ju is rated at five stars out of five at TipRanks. Over the past two years, he has a 51% success rate, with an average return of 15.7%.
On Thursday morning, Amazon’s AWS announced the new Agentic Shopping Assistant, ASA. This is a new platform that will package the architecture behind Amazon’s Alexa for shopping, enabling any subscribed retailer to launch a conversational AI experience for consumers in roughly 60 days. Kate Spade will be the first retailer to go live.
Evolv Technologies (EVLV)
On Wednesday, analyst Shaul Eyal of TD Cowan reiterated a buy rating on EVLV along with his $10 target price. Eyal is rated at five stars out of five at TipRanks. Over the past two years, he has a 57% success rate, with an average return of 20.4%.
Ondas Inc (ONDS)
On Thursday morning, The Wall Street Journal reported that the Trump administration is pursuing funding deals, to potentially include the taking of equity stakes in drone manufacturers to boost domestic production and reduce costs. The Pentagon’s Office of Strategic Capital is reviewing private firms such as Performance Drone Works and Neros Technologies as part of a broader $1.1 billion Drone Dominance program. The idea is to produce close to 300,000 lower-cost attack drones by the end of next year. Publicly traded companies potentially under consideration (in my opinion) could be Red Cat (RCAT), AeroVironment (AVAV), Kratos Defense (KTOS), Ondas (ONDS) and Draganfly (DPRO).
On Thursday morning, analyst Timothy Horan of Oppenheimer reiterated a buy rating on ONDS along with his $16 target price. Horan is rated at five stars out of five at TipRanks. Over the past two years, he has a 57% success rate, with an average return of 10.6%.
Rocket Lab (RKLB)
On Wednesday, Rocket Lab announced it has passed the System Requirements Review, or SRR, for the Space Development Agency’s Tracking Layer Tranche 3 constellation. This advances the program that will see Rocket Lab deliver satellites equipped with advanced missile warning, tracking, and defense capabilities to the U.S. Space Force and U.S. allied militaries. The SRR achievement confirms that the firm’s proposal meets the SDA’s operational requirements and establishes the technical baseline for the program.
Sidus Space (SIDU)
On Thursday morning, Sidus Space announced the pricing of a best-efforts registered direct offering of 19.685 million shares of Class A common stock at an offering price of $5.08 per share, under Nasdaq rules. Total gross proceeds from the offering, less the placement agent fee and other offering expenses, will come to approximately $100 million. The company intends to use the net proceeds from the offering for working capital and general corporate purposes. This offering will close on May 29, subject to customary closing conditions. This dilution event is the reason behind the stock’s precipitous fall in share price on Thursday morning.
SoFi Technologies (SOFI)
On Wednesday, SoFi Technologies announced that SoFiUSD, which is a bank-issued U.S. dollar stablecoin, is now available for SoFi members to buy, sell, hold and convert directly within the SoFi app.
CEO Anthony Noto commented, “People no longer have to choose between blockchain technology and regulated banking products. With SoFiUSD, we’re giving our members a single place to buy, hold, and pay with digital assets in the same app they already use to save, spend, borrow, and invest.”
Upcoming Portfolio Earnings
Planet Labs (PL): After the closing bell on Thursday, June 4
Wednesday’s Intentions vs Wednesday’s Actual Trades
Intention: Sell 15 shares of SIDU at or close to the last sale of $7.09
Actual trade: Nothing done
Intention: Sell 2 shares of RKLB at or close to the last sale of $152.82
Actual trade: Nothing done
Thursday’s Intentions
Sell 2 shares of RKLB at $152 or better
Current Positions
Long 2 shares of AMZN at $263.71. Target price: $324. Last sale: $270.56.
Long 60 shares of EVLV at $5.9895. Target price: $8.50. Last sale: $6.33.
Long 200 shares of (OCUL) at $8.271. Target price: $11. Last sale: $8.53.
Short one OCUL $11 Sep 18th call at $1.65, Last sale: $1.05.
Short one OCUL $9 July 17th call at $0.90. Last sale: $1.65.
Long 125 shares of ONDS at $9.4749. Target price: $14. Last sale: $11.64.
Long 7 shares of (PL) at $37.18. Target price $55. Last sale: $49.49.
Long 12 shares of PLTR at $140.30. Target price: $194. Last sale: $135.34.
Long 5 shares of RKLB at $59.206. Target price: $185. Last sale: $149.00.
Long 125 shares of (SIDU) at $2.725. Target Price: $9. Last sale: $5.05.
Long 200 shares of (SNAP) at $5.7642. Target price: $7.50. Last sale: $5.80.
Short two SNAP October 16 $6 calls at $0.87. Last sale: $1.00.
Long 175 shares of SOFI at $15.9573. Target price: $24. Last sale: $15.91.
Short one SOFI August 21 $20 call at $1.02. Last sale: $0.80.
Long 35 shares of (VELO) at $12.3231. Target price: $30. Last sale: $25.40.
Cash: $752.12.
Portfolio value: $12,599.03, +26.0% from inception on March 24.
At the time of publication, Guilfoyle was long AMZN, EVLV, OCUL, ONDS, PL, PLTR, RKLB, SIDU, SNAP, SOFI and VELO.
