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Week of 4/30: Vacation Trading

For the week beginning 4/30 and ending on 5/4 my wife and I took a break and headed to Hawaii for a week of relaxing in the sun!  Given that I was not doing anything for my day job, I decided that trading while on vacation was acceptable because I actually enjoy doing it!  The major barrier will be the time difference, markets open at 9:30 AM eastern time, that’s 3:30 AM Hawaii time.  I wasn’t going to actively trade given the time difference, but I did set up some limit orders for buying and selling.

The Trades

I was holding TWTR from the previous week and decided to set a limit order for a 2% profit.  This order executed on 5/1.  I sold 330 shares for $30.97 each, total sale $10,214.87.  A profit of $210.92 about 2.1%!

5/2 was a purchasing day!  I have been eyeing Dave & Busters (PLAY) for a few weeks now.  The price had pulled back and appeared ready for another upward rally.  I bought  235 shares for $42.53 each, total cost $9,998.68.

The same day I was on Twitter doing some reading.  You can follow me @InvesTakeCharge.  I saw a decent amount of chatter about a penny stock, Utilicraft Aerospace Industries Inc. (UITA).  The company primarily provides aircraft engineering, leasing, and maintenance repair and overhaul services, as well as jet charter services.  They released a statement a few months ago saying that the board had accepted the current CEO’s resignation and was putting new leadership in place.  My Twitter friends claimed to have information about a private investor that kicked in $3.5 million in cash for equity.  That means the company has money in the bank, a new strategy and no debt.  I decided this was a company worth taking a shot on.

Penny Stock Purchase!

I purchased 250,000 shares if UITA for $0.011 each, total cost $2,754.95.  I was excited to be back in a penny stock.  At this writing, the price had risen to $0.0135, an increase of over $600, 22%!  I have set a limit order for 1/2 of my shares to sell when the price reaches $0.017.

Telsa & The Elon Musk Rant

On 5/3 billionaire CEO of Tesla was on the quarterly conference call with investors and analysts fielding the typical financial questions that Wall Street insiders like to ask.  About 30 minutes in, Musk, fed up the questions he was being asked, declared the questions to be useless and “bonehead.”  The questions were regarding the timeline in which fully autonomous Tesla vehicles will be available.  Musk ranted about the unfair treatment Tesla receives from the media and that the questions were “boring” and “dry.”

Musk got further irritated, added several expletives and told everyone to just sell the stock if they didn’t like the waiting game.  So, Wall Street did just that, the share price plunged from over $300 to about $275 in a matter of a few minutes.

I woke up around 8 AM local time in Hawaii, around 2 PM eastern.  I saw the news of Tesla’s share price and knew I needed to act quickly.  The price had begun rebounding from the low around noon and was on its way back up.  I bought 35 shares for $282 each, a total cost of $9,874.95.

I sold the same shares the next day for $296 each with a limit order.  The total sale was $10,354.81, a profit of $479.86 about 4.8%.

Tesla has been a tough stock to trade, this move was slightly easier.  The price drop had nothing to do with the fundamentals of the company and was only because Musk acted out.  A normal company might have suffered more and for longer, but Tesla and Musk are not normal.  Tesla has far too large of a fan base to be kept down over Wall Street insiders fighting.

Final Notes:

As the week drew down I was very pleased with all my moves.  I made 2 profitable trades netting about $700 in profits.  I received $295 in side hustle payments that were moved to the E*Trade Brokerage account, plus the normal $50 I contribute each Friday when I get paid from my day job.  At the end of the week, I finished with about $1,000 more than I started.

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