Additions and Deletions
Q1 2024 interest list update comments
The final piece of this weeks Q1 2024 retrospective ends with a few comments on the names that were both added and deleted from my interest list. Now that I am moving on to newer ideas, I went back and removed any paywalls associated with the names I am removing from my list for free subscribers and put in a link to the original spiels for anyone is interested. Going forward I will try to make that a habit, but have no plans to go through the tedious process for my entire library of ideas. Let’s start with the names that were deleted.
AEHR Test Systems – AEHR – First added to my list on 7/24/2023 at $48.96 and updated several times in between for increasingly bearish outlook and thoughts. While I typically drop names after hitting my 50% decline target, I held onto AEHR for another quarter thinking that there was more bad news to come, and the company did not disappoint. The company cut their own guidance on two occasions, with the most recent last week, and is still looking for one of their other 6 supposed customers to scale up their purchases to the extent ON Semi has done. I remain doubtful that is ever going to happen, though the bulls seem to think it is inevitable.
Cantaloupe Inc. – CTLP – I added this name as a “quick take” on 10/10/2023 at $7.11and just never really found anything that would make me think it’s heading back to $3 anytime soon. This name was on my list maybe a decade ago, so I do have some experience with it, and I continue not being a big fan of their base vending machine business, but have no real feeling for what’s going to make the stock go back down. It’s a bit lower than when I put it on my list so not a complete waste, but I will move on to other names.
FingerMotion Inc. – FNGR – I first added these folks to my list on 9/14/2023 at $7.02 after it had run up on news that they were making the corporate decision to basically sue any and all of their public detractors. The stock is now down close to 70% and I will move on to other names.
Golden Heaven Group Holdings – GDHG – This name was first added on 10/16/2023 at $13.34 and now sits somewhere around 50 cents. If one was able to borrow the shares during that stock’s amazing run, this was a wonderful home run.
Hesai Group – HSAI – This name was added as a “quick take” on 12/19/2023 at $8.87 and sometimes it’s better to be lucky than smart. Having the Defense Department put these guys on a list of CCP-controlled businesses was never part of the thesis, but I suppose I shouldn’t complain. The stock took a 50% nose-dive on that piece of news and never really recovered. When they released their year-ending financial statements, it turns out that there appears to be something of a price war happening in their LIDAR shipments with the price per system declining markedly. With the stock down 50% I will be moving on.
Ispire Technology Inc. – ISPR – I first added this name to my list in a “quick take” on 10/10/2023 at $8.99 and later upgraded it to a full-blown idea on 11/15/2023 at $13.74. The stock had basically bounced around between $9-$12 over the past few months until they announced a 2M share secondary last week, when it broke down to the $6 level where the underwriters were able to sell the shares. This name was supposedly always a hard borrow stock, it picked up some additional bearish coverage, so I will move on to other and fresher names.
Navitas Semiconductor Corp. – NVTS – I first added these folks as a “quick take” on 12/18/2023 at $8.16. While operating in the interesting and hot GaN semiconductor space, with somewhere around 200M diluted shares outstanding and fairly nominal revenues and some pretty fairly non-nominal losses piling up, the stock just seemed overdone at 20x revenues and ripe for a decline. Well, decline it did, and I will move on to other names.