Long-time readers should note some significant changes in how I communicate in the public domain. The primary purpose of this forum is now to attract new contacts with professional industry expertise to share research and receive feedback (confirmation / refutation) regarding my investment theses.
Accordingly, this document should not be construed as an endorsement or recommendation of the companies or securities discussed herein. I am not an investment advisor and this is not an investment thesis. It is merely one part of the story, which I present for debate in hopes of determining all risks and upside potential. The disclosure at the end of this piece is critical to understanding the content of this document. Further, I frequently trade my positions and may buy, sell, or short the securities mentioned herein at any time, regardless of the facts or perceived implications of this article.
On March 13, I presented “Quick Update: The Top Ten Stocks I Own“. The article highlighted AAPL, AEHR, AMC, CALM, DIS, FB, GAIA, RDCM, SMSI and WDAY.
Since then, the S&P 500 has fallen by 4%. Despite this, AAPL has risen 2%, AMC is up 10%, DIS has added 5%, GAIA has popped 10%, and SMSI is up a fantastic 35%
The rest of the names (AEHR, FB, RDCM, and WDAY) have all matched or outperformed the S&P 500.
Tonight’s news kept the momentum going. After the bell, Seeking Alpha broke the news that GAIA reported great Q1 results.
GAIA: Gaia beats by $0.14, beats on revenue • 4:13 PM
Niloofer Shaikh, SA News Editor
- Gaia (NASDAQ:GAIA): Q1 EPS of -$0.39 beats by $0.14.
- Revenue of $9.62M (+66.4% Y/Y) beats by $0.34M.
- Press Release
Highlighting the business momentum, GAIA has seen a decrease in its customer acquisition costs. In fact, this metric compares so favorably to its lifetime customer value (LTV) that the company announced plans to accelerate its marketing expenses with the intent of hitting the 1 million subscribers mark by the end of next year.
It all illustrates and validates what I presented in my April 2 article, “GAIA vs. MoviePass: CAC Shows Which One Is A True Mini-NFLX”
I bought more GAIA today and am happy I did. As I’ve said before, this should be a great stock to own until they miss a quarter (which, given management’s conservative nature, is not likely to happen anytime soon).
As with all of my favorite positions, I’ll continue to maintain my large core holding, even as I seek opportunistic trading strategies along the way. Speaking of which, I recently sold the AMC May 17.50 calls as a covered call strategy to hedge my long position in the stock.
AMC didn’t disappoint. In fact, the shares are currently trading right around those levels (which is perfect for that strategy) after reporting the following (as presented by Seeking Alpha):
AMC: AMC Entertainment rallies after earnings • 4:37 PM
Clark Schultz, SA News Editor
CEO Aron’s comment is exactly why I advocated buying AMC and shorting HMNY several months ago. Since that time, investors who followed that strategy have been richly rewarded. HMNY has fallen 85%, while AMC had risen more than 12% (plus another 5.5% in after-hours this evening):
With the summer blockbuster season officially underway (and in a big way!), investors can look forward to a strong Q2 for AMC.
The same can’t be said for MoviePass, which suffers more when blockbusters are in the theater. Neither Disney, nor AMC, nor anyone else needs a lot of help selling tickets to movies like Black Panther or Avengers. Because of this, they are unlikely to receive anything except advertising revenue, while footing the full brunt of $10+ movie tickets.
I continue to root for MoviePass to succeed, but won’t move back to being bullish (as I was back in September) until I see light at the end of the dilution tunnel.
I agree 100% that they have been helping the theater industry. I also believe that they deserve to get a fair piece of the pie. However, in the business world (and life, for that matter) people and companies don’t get what they deserve… they get what they can (and do) grab…
…and for now, MoviePass still doesn’t have the critical mass to grab what they deserve.
In the meantime, parent company Helios is currently printing and selling approximately 70 million shares into the open market! Investors who don’t know (or understand) this should see my recent reports on HMNY.
Bottom Line: After a surreal 2017, we’re off to a great start in 2018… and we’re off to a great start to this busy earnings week! We’ll look for the good tidings to continue when DIS reports (tomorrow evening), followed by SMSI on Wednesday after the bell.
I’ll provide some insight on SMSI in my next post, coming sometime tomorrow morning.
- Smith Micro Raises $7 Million (At A Premium) To Accelerate Its Momentum
- HMNY’s ATM Offering: Where’s The Stock Going Next?
- Sprint FINALLY Ramping Up SMSI’s Product!
- Videocast: AEHR 10-Q, MoviePass Update
- AEHR Grows 175% — Beats On The Top & Bottom Line (Buying More)
- GAIA vs. MoviePass: CAC Shows Which One Is A True Mini-NFLX
- Major Update on SMSI
- SMSI’s Safe & Found App: 100,000 Downloads & Counting
- MoviePass Projected To Burn $600M In 2018
- SMSI: Riding A New Trend & Making Its Latest Comeback
- Mark Gomes Research
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Disclosures / Disclaimers: I am long AAPL, AEHR, AMC, CALM, DIS, FB, GAIA, RDCM, SMSI and WDAY. However, this is not a solicitation to buy, sell, or otherwise transact any stock or its derivatives. Nor should it be construed as an endorsement of any particular investment or opinion of the stock’s current or future price. To be clear, I do not encourage or recommend for anyone to follow my lead on this or any other stocks, since I may enter, exit, or reverse a position at any time without notice, regardless of the facts or perceived implications of this article.
I am not a financial advisor. Nor am I providing any recommendations, price targets, or opinions about valuation regarding the companies discussed herein. Any disclosures regarding my holdings are true as of the time this article is written, but subject change without notice. I frequently trade my positions, often on an intraday basis. Thus, it is possible that I might be buying and/or selling the securities mentioned herein and/or its derivative at any time, regardless of (and possibly contrary to) the content of this article.
I undertake no responsibility to update my disclosures and they may therefore be inaccurate thereafter. Likewise, any opinions are as of the date of publication, and are subject to change without notice and may not be updated. I believe that the sources of information I use are accurate but there can be no assurance that they are. All investments carry the risk of loss and the securities mentioned herein may entail a high level of risk. Investors considering an investment should perform their own research and consult with a qualified investment professional.
I wrote this article myself, and it expresses my own opinions. I am receiving no compensation for it, nor do I have a business relationship with any company whose stock is mentioned in this article. The information in this article is for informational purposes only and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
The primary purpose of this blog/forum is to attract new contacts with professional industry expertise to share research and receive feedback (confirmation / refutation) regarding my investment theses.