Summary
- TheStreet Pro’s Stephen Guilfoyle recently launched a new portfolio geared toward newer investors.
- He’s added Planet Labs because of positive chart action and a fundamental story that he thinks could drive shares higher.
- His investment in Snap is a play on AI. He thinks the company will generate huge cost savings that could keep shares on the move.
Introduction
How’s your portfolio doing so far this year? It’s been a rocky one, for sure, with highs and lows. The S&P 500 is up around 3%, which is great, considering that it was off as much as 8%. At this rate, the market could have a decent year.
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But that performance is nothing compared to TheStreet Pro’s own Stephen “Sarge” Guilfoyle’s new $10,000 portfolio, which is up around 17% since its start in March.
Some of that performance is simply due to starting the portfolio at the right time. But the rest is from good old-fashioned stock picking.
Yeah, Sarge!
Sarge started this portfolio for newer investors who may have $10,000 to invest. But it’s just as valuable for the seasoned investor with $100,000 or even $1 million. You see, there are many ways you can use this portfolio. You can mimic Sarge’s every move with your own money. Or you pick and choose among Sarge’s ideas, using him as your personal research analyst. He responds to pretty much every comment he gets, too.
So, if this sounds interesting to you, please join us at TheStreet Pro. It’s currently on sale!
Today, I wanted to share two moves that Sarge has made in the $10,000 Portfolio recently. Perhaps you’ll find that these trades are right for you, too.
Planet Labs Rockets to the Moon. Is Now the Time to Buy?
Late last week, Sarge wrote that he was planning to add Planet Labs (PL) to the 10K Portfolio. He’s owned the stock in his prior portfolio but hasn’t been able to find a good entry point for this new one.
Planet Labs is a satellite company. When you look up at the night sky, that constellation you see might just be from Planet Labs. The company has strong demand from the U.S. government currently, while its commercial demand, largely on the agricultural side, has been weak, according to TipRanks.
The company isn’t yet profitable on a full-year basis; however, it broke even in the fourth quarter, and Sarge reports that revenue growth is expected to be a hearty 39%.
Why buy it now? Sarge liked the chart action but felt that a bull put spread would be the safest way to get some exposure to this hot stock. Unfortunately, he wasn’t able to execute the two legs of that trade at prices that he was willing to pay.
Instead, Sarge started nibbling at the stock, buying 10 shares at $37.18 on Monday.
We’ll be watching this one, and I’m sure Sarge will be back to take another bite when the price makes sense.
Snapping Up Shares of SNAP On Analyst Chatter
Last week, Sarge announced that he would be buying shares in social media company Snap (SNAP) after a harsh layoff notice. Snap’s CEO released a letter to his employees that the company would be letting go 16% of its full-time staff so that the company could work on reducing costs by $500 million annualized. Productivity wouldn’t even suffer, since the company would employ AI to make the remaining employees’ jobs easier. Is this a good thing? For investors, yes. For the workforce, well, not so good.
Fundamentally, Sarge tells us that SNAP trades at 12x forward earnings and the balance sheet is “OK.”
It’s like Wall Street was listening to Sarge, because several of the big analysts have written favorably about SNAP. In the aforementioned “How I’m Planning to Add Planet Labs to My Portfolio,” Sarge notes four analyst actions. While all were reiterations of their prior ratings, two analysts upped their target prices, and one lowered his.
Overall, analysts are mixed on SNAP, but the consensus is looking for 40% upside, to nearly $8.
On Monday, Sarge bought another 25 shares at $5.93, raising his stake to 50 shares. He plans to buy more, too.
Final Thoughts
Sarge’s $10,000 portfolio won’t be right for everyone. It’s not an index fund and will have years that it beats the market and years that it doesn’t. But, as an example of how a great trader builds and manages a portfolio, it’s hard to beat.
Planet Labs and Snap are just two examples of the stocks in this portfolio. There are eight others, and Sarge reports on them constantly over on TheStreet Pro. Come join us over there to read more!