We are selling one of our positions today to cut our losses 😭 

Ticker: LFST

• Name: LifeStance Health

• Sell Price Range: $5.32

• Profit/Loss:  12.8% Loss

• Why We are Selling: This was a high risk position that normally wouldn’t fit into our investment criteria. They did a secondary stock offering of 20M shares and the stock fell from $7.50 down to around $6 (where we bought). The dilution was only 3% so we expected the stock to rebound….but it didn’t. And we see no reason to keep waiting on it.

We see potential in 2 new positions. See the details below:

Ticker: NXT

Name: Shift4 Payments Inc

Entry Price Range: under $60 (our entry price was $58.95)

Portfolio Allocation: 7% of our portfolio is allocated to this position

• As a reminder, we allocate our positions evenly. We currently have 13 positions so NXT is 7%. If we add more positions, this will become diluted to a smaller portion of the portfolio

Why we like it:

• Earnings Upside: Last month they beat earnings pretty considerably and the stock responded. It’s up 20% in the past month.

• Momentum Swinging up: The past few days have seen momentum swing up for the stock and we think there is room for it to run.

• Analysts Love It: It is maintained as a ‘Buy’ or ‘Strong Buy’ from virtually every analyst tracking the stock.

Ticker: LEGN

Name: Legend Biotech

Entry Price Range: under $47.50 (our entry price was $45.65)

Portfolio Allocation: 7% of our portfolio is allocated to this position

• As a reminder, we allocate our positions evenly. We currently have 13 positions so LEGN is 7%. If we add more positions, this will become diluted to a smaller portion of the portfolio

Why we like it:

• Momentum Swinging up: It’s down about 40% in the past 2 months but the past week has seen momentum swing up for the stock and we think there is room for it to run.

• Analysts Love It: It is maintained as a ‘Buy’ or ‘Strong Buy’ from virtually every analyst tracking the stock. It has a 1 year price target that is 28%. We see a 10% gain potential quickly with potential room to run

Ticker: MBLY

Name: Mobileye

Management Type: Collar Strategy

Disclaimer: Best to have 100 shares of MBLY to do this. Buy/Sell 1 option for every 100 shares

• Buy a $31 strike Put option for 6/21 expiration

• Sell a $35 strike Call option for 6/21 expiration

What this provides us:

Guaranteed profit. Our max loss on this position is now a 2% gain. Our max profit is 15% gain

Why do this? This gives us a guaranteed gain no matter what happens this week with CPI and the Fed. It also provides us good upside of 15% profit if the stock gets up to $35