Trade Recap (Feb-Apr 2020): $MNLO, $MCEP, $WWR, $AMRN, $BCRX, $ALDX, QTNT

So here’s what happened since my last blog post. Coronavirus and COVID-19 have become household names, $SPY melted from a high of 335 level on Feb 19 to lows of 218 on Mar 23 - that is a drop of 35.8% in just about a month’s time. Oil futures went negative just this past week. Drop in major indices and big caps brought a lot of volatility and depressed valuations to small caps. This in turn created a lot of opportunities for entering and adding to value swing positions.

To take advantage of the situation, I added an additional $30K in funds to this account. I am considering this as a loan to the account and will take a distribution back out to myself at some point.

7/17 Update: Took out $32K in distribution to myself so this cancels out the $30K in funds that I had loaned out to my IB account.

With this in context, let me get to the trade recap from the last couple of months. I executed several trades - most of them worked and some didn’t. I also did a few very short term swings and day trades which is not my usual style. In summary, I’ve got too many trades to recap here in retrospective but in the spirit of full transparency on this account and the blog, I will post below all the trades from my last blog entry to date.

$CAPR was a monster swing and think this one has still some juice to go so will look for additional opportunities to trade this ticker. $ALDX was a nice gainer too. Pretty solid returns overall on the account and I am pleased with the ramp.

Currently holding swings on $AKTX, $NDRA and about 33% of NAV in cash for new opportunities.

Sold $NDRA, $NETE; Bought $SORL

Below are my trades from today.

$NDRA - Sold around $3.06 level from $2.34 entry. This can go higher but booked gains. 30% gain for me so I cashed out. May get back in if I get a pullback to mid to high $2s. I still hold $NDRA shares in other accounts and continue to like this swing idea.

$NETE - sold flat; tried breaking out above $4 yesterday but could not get past $4.10 and today, it dipped back %5. I got uncomfortable and hence, decided to pull out. Will keep on watch.

$SORL - bought 5,000 shares at $3.83. This is a Chinese auto parts co. which usually has a run going into ER. Co will likely PR earnings date but likely to be in mid Nov timeframe. Trades very cheap from a valuation perspective and chart seemed to have put in a bottom. Daily chart below.

Sold $RKDA; bought $NDRA and $NETE

Traded $RKDA poorly. Thesis laid out in previous post still intact but the stock got a volume spike on no news and when there is no follow up volume, there is usually a sell off that hurts the stock - especially when swinging a thin one like $RKDA. I was up $4-5K easy on the day it had that volume spike but chose to not sell since thesis guided me to wait for news. But when there was no follow up volume the next day, I scaled out for a small gain. $800+ booked. 

I continue to believe that current levels around $5 or just below it present a strong entry. I’ve got exposure to $RKDA in my other trading accounts. So will keep it on watch for a potential re-entry in the IB account.  

Used the funds to start two new swings:

1. $NDRA - bought 7,000 shares @ $2.34 avg. They recently did a raise and catalysts are expected in near term. Will look to add more shares cheaper if possible. This is a @super_trades pick and he is an excellent swing trader to follow. 

2. $NETE chart play for me. Bought 5,000 shares at avg price $3.94. Oversold with price sitting on multi-month support area on the daily. 20% of 3M float is short. Co did $63M in revs (Ttm) with expanding revs announced in 1H 2018. Low float, former runner - with the right PR or volume, could get squeezy. So that’s my thesis on $NETE. 

Below is a daily chart for $NETE.