|Day Low/High||2.92 / 2.97|
|52 Wk Low/High||2.14 / 4.65|
We booked hefty wins last week exiting Blue Apron and GE and trimming our position in Fitbit.
While the overall stock market finished last week essentially unchanged, the portfolio had several outperformers.
Investors in GNC Holdings Inc saw new options begin trading this week, for the September 20th expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 240 days until expiration the newly trading contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration.
We added one new position and doubled down on another during a very good week for the portfolio.
The facts are this. There are some opportunities here.
The best retailers are still Amazon, and probably Walmart.
We exited two positions last week as the portfolio and the market started off the year in the green.
Investors in GNC Holdings Inc saw new options begin trading this week, for the February 15th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the GNC options chain for the new February 15th contracts and identified the following call contract of particular interest.
We added a position in Fitbit, scaled deeper into AcelRx Pharmaceuticals and improved our cost basis in Pitney Bowes.
We're using pronounced price declines in GNC Holdings and AXT Inc. to lower our average cost basis in both companies, which we believe still hold promise.
Despite steep declines in the broader market last week, the portfolio had several winners and was helped by our large cash position.
In recent trading, shares of GNC Holdings Inc have crossed above the average analyst 12-month target price of $2.88, changing hands for $2.91/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level.
We added to two positions last week, as positive action in the market led the Russell 2000 to climb.
ZANTHOSYN® #1 AT GNC STORES IN HAWAII FOR PAST 12 MONTHS
The bottom line is we will remain hopeful for forward progress but realize it will take some time until a deal is hammered out.
GNC and AXT Inc. are in the midst of big changes, and we are growing our positions to take advantage and drive down our cost basis.
Given the market pressures of last week, there was little room to hide as the gut punches continued to hit small-cap and technology stocks.
We will buy more shares of Del Frisco's and GNC and improve our cost basis in the process.
We have to remember there are several headwinds blowing on the overall stock market.
Despite swimming against the recent tide with small-cap stocks, we have several positions that are more than holding their own.
We believe in the China growth story at GNC and may add to the position on this weakness.
I suspect somewhat better but I doubt there would be a total change of heart unless the Fed changes its path of higher rates.
We saw a number of our positions rebound along with the market last week.
GNC Holdings has postponed its third-quarter report until Nov. 9.
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