Our Cold Cutting Edge
We do a bit of warm additive baking here also. We’d learn two new tricks per day for steaming bread from the oven.
-StockJaw portfolio Action-
Chop Chop Who’s Not There?
FRESH PORTFOLIO SHIFTS
What’d they grind up and ram into your buy? “You’re calling that a BUY? No GE bologna–just the Boeing thank you.”
UPDATE: 02-11-18. STOCKjAW trimmed four of our positions prior to the decline. That’s not luck. It’s rules based prudence. We’ve seen this story, versions. We were there in ’08, and 2000. Gains are only gains once realized. We realized profits in all four of our trims and cuts. Here are the numbers:
1. Amazon(AMZN) Sold 10-5-17.
Trim–25%. Realized Gain, +66.49%.
We sold AMZN on 10-5-17, as a response to rising valuations, and subsequent portfolio allocation.
2. GOOG/GOOGL. Sold 1-17-18.
Trim–16.6%. Realized Gain, +85.61%.
3. Facebook(NYSE:FB) Sold 1-30-18.
Cut–41.3%. Realized Gain; long term +51.47%, short term +4.28%. Very short trade.
4. Alibaba(NASDAQ:BABA) Sold 1-4-18.
Cut–50%. Realized Gain 20.23%. Very short trade.
Once again, we had zero idea what was coming. We don’t attempt to predict market direction. We do take action inline with history and market behavior. We never wanted to sell any AMZN. We hated doing it and immediately regretted having done so, even yet. But our position had appreciated by more than 100% and we had realized none of that gain. Gain is only profit once you sell.
Guess what this guys’ scanning? His buy list for next week. Really. Got yours?
What SJ bought this week.
1. AT&T(NYSE; T) Our Cost Basis, $37.24.
Friday; +1.35%, $36.05. PURCHASE 2-5-18, $37.19. Too high. Soon we’ll tell you the 3 ways owning T even now works.
2. Alibaba(NYSE;BABA) Current Cost Basis, $167.74.
Friday; +1.71%, $176.67. PURCHASE additional shares 2-8-18, $174.18. Why yes that is a cost basis violation. With BABA we’re “trading around a long-term position. Check “Our Portfolio” above for details.
3. Take-Two Interactive(NASDAQ;TTWO) Our Cost Basis, $105.66.
Friday; +4.77% $108.45. PURCHASE 2-8-18, $105.50.
UPDATE; 1-29-18: STOCKjAW moves on Huntsman. The “differentiated” or perhaps specialty chemical company has been blowing the doors off everyday and performing right at the top of its’ peers. Stockjaw picked up the HUN 5-18-18/31.00 strike call options. HUN was at $34.70 at call purchase. Our premium is $4.72sh/472.00 per contract. A dividend lies in between and our turnaround point is super reasonable, just over 3% to break even. We have 108 days to do that.
UPDATE; 1-17-18: STOCKjAW BLOWS-UP Huntsman calls. A day from expiration we attempted to exercise our call options in Huntsman International. Things had changed for selling call options on the trading platform. We attempted to buy the shares. Human error sold the calls, rather than exercising the contract.
OUTCOME: Total Return HUN 1-19-18 call options 84.7%, or 0.80%CAGR. Perhaps the Huntsman move dies here, no really we’re back to the option chains. However, the recent share price move may have priced calls too high just now. The technicals have shifted, in that shares are now overbought, and under “distribution.” Distribution is selling and no one knows where that ends.
UPDATE: 1-4-18: (NYSE: BABA) StockJaw takes gains in BABA. Sell; $185.65. The chart of Alibaba is a classic train-wreck. Every SMA(simple moving average) has been violated, the 10d, 50d, and 200d. And then it simply leaped above them all on spiking volume. We took half of our long-term bet off. We’ll be back–we yet hold half.
StockJaw takes profits in Alibaba(BABA). We intend to “Trade around a core position” with Alibaba.
N e w adds to Our Portfolio: Huntsman International call options(HUN 2.10, 1-19, $30.00 strike), Alibaba–BABA,
Even newer cuts–Netflix, Brinks–huh?
Small risk/re-balance shaves–Amazon, Facebook.
UPDATE; 10-10-17: Last week we sold our remaining piece of a long-term NFLX position. By rule of thumb and volatility, we’d taken profits, ultimately too early. The stock simply continued climbing, leaving us with a strong yet partial piece. Time to punt. We sold out at $191.02sh., netting an 89%, total return. NFLX remains on our watch list, too expensive on merits, and too expensive in this elevated market. Love Reed Hastings, the thesis, but pass for just now.
Netflix–(NASDAQ: NFLX) IT, Internet & Direct Marketing.
Netflix owns by far the largest glowing data ball in streaming and video.
N e t f l i x Is doing apostle’s work. It carries the shocking light of choice out deep and ever deeper into the entertainment darkness. NFLX continues to lead the world in streaming video on demand–SVOD. With founder Reed Hastings driving Netflix has become a household name and gone world-wide. NFLX’s data ball leads the industry–way. Read our extensive coverage of NFLX in “Pirates of Coax. Cannon Fire.”
Flashing global last year, Netflix is building internet coverage and speeds in places such as Sao Palo, Brazil. Build it and we’ll beam it. Now here’s your new credit card so you can subscribe. Changes to net neutrality may undercut the NFLX thesis. That possibility is big. We’re staying, for now. Great conference calls. Clear, direct, and non-promotional.
Our cost basis: $100.99.
StockJaw.com Conference Call Rating: 4 Stars.
NFLX sets the standard for great calls. Netflix’s calls are video yo, and smooth. Stay tuned for CEO Reed Hastings’ follow-up comments, which automatically follow the Q&A. He’s mischievous–“Sorry about the volatility,” Reed once chirped with a grin.
Netflix Investor Relations:
Now 0.0% or our portfolio.
UPDATE: 11-01-17…………………………………..StockJaw Exits Brinks. Shareholder selling gaps shares down nearly 9%, then below a flattened 50-day moving average. This Q3, ’17 earnings price cascade in our opinion clearly displays the unhealthy level of shareholder expectation for BCO. That’s shareholder sentiment. On the fundamental side, Q3 shows Brinks’ stepped-up growth is real and their business is growing in all segments. Brinks’ growth is both global(operating presence in 100 countries) and also balanced, 50/50 organic vs. by acquisition. GAAP revenue up 12%y/y. On the downside, shareholders sold this quarter with crazed abandon and they remain arms-crossed sullen.
We love the mutt, but we’ll let someone else feed him for a while. What happened with BCO? What technical heal might bring us snapping back? Savor all in our “Think Tank. Back From the Bunker Report.”
Brinks–(NYSE: BCO) Industrial, Commercial Services.
“I know what you’re thinking…”
B r i n k s is precisely who you think they are–the 157 year-old security company. Brinks is an international player in secure transportation of cash and other valuables, a cash processor, and other cash management services. Out of three main players, Brinks is the dominant player in three of the ten international categories within which they operate. Brinks is second in the remaining seven.
Read our launch piece on Brinks:
“What to say when a 157 year-old gets serious.”
0% of Total Equities Held.
Our cost basis: $75.51.
Sold at $75.85.
StockJaw Conference Call Rating: 4 Stars.
Great. Super clear. Good slides. Brinks is an easy to understand company/industry and they tell it straight.
Brinks Investor Relations:
“Where’re the headphones?
Thanks for reading. Keep looking.
Images sourced from Pixabay.
Pixabay.com is simply amazing–a sprawling compendium of joy. Thank you Pixabay. If you also know love and use Pixabays’ lavish resource, please take time to donate to them at Pixabay.com. We do, truly.
Investopedia.com. Seriously Wonderful. Fact.
Charles Schwab. In Our Opinion, the best broker going.
STOCKJAW.COM EARNESTLY THANKS YOU FOR YOUR INTEREST AND WISHES YOU THE VERY BEST. THE WORLD BEING WHAT IT IS, WE MUST POST THE FOLLOWING: ALL CONTENT ON STOCKJAW.COM IS PURELY FOR GENERAL EDUCATIONAL AND ENTERTAINMENT PURPOSES ALONE. ANY ACTION TAKEN BY ANY READER IS THE SOLE CHOICE AND RESPONSIBILITY OF SAID ACTOR.
Be careful. Do the work. Have patience, with yourself. Never put your dreams away.