The past week has had a net negative impact on both my virtual and personal portfolio. I have chosen to expand and elaborate on my positions within Applied Genetics Technologies inc (AGTC) and Apple (AAPL).
AGTC
I initially purchased 6723 shares of AGTC at $12.73. Applied Genetics Technologies inc serves as a crucial player in the genetic modification field. AGTC develops and clinically tests gene therapy products/treatment. These products are designed to benefit those suffering from severe diseases related to ophthalmology. It's current lead candidates are designed to treat X linked retinoschisis, achromatopsia and retinitis pigmentosa. I truly feel that the genetic sub-sector within biotechnology will undergo dramatic growth over the course of the upcoming years. This trade expressed my confidence and view of the industry as a whole. Following developing a basic understanding of the business I began to analyze the financials. Although expenses were increasing at an average rate of 73% year over year the increase in revenue more than made up for this. At year end 2014 this company had brought in $2.35MM where as at year end 2015 it was up to $49MM. This drastic increase dramatically altered the net income as it was up from ($24.38MM) to ($1.38MM). I was not too concerned with the current loss as I new that the industry as a whole was extremely capital intensive. Unfortunately after failing to meet clinical trial targets the share price tanked about 37% within about 30 mins of the markets opening. Although I submitted a stop loss order at $11.50 immediately after purchasing It was only executed at $9.73 impacting my portfolio drastically. This experience has allowed me to fully understand the dangers within this specific sector. Also it has allowed me to experience first hand the major drawback of Stop Loss orders which is the fact that they are not guaranteed. Overall with a 52 week target price of about $22.73 I would personally hold this stock in the hopes of future profits.
AAPL
Apple is a business that In my opinion has been undervalued for quite some time now. In my personal portfolio I was able to establish a position in the mid 90's where as when this challenge ultimately began I felt that it was slightly to expensive for my liking although still undervalued overall. I felt that I would be able to take advantage of certain emotional investors in order to obtain a discount. Due to this I submitted a limit order at 106.30 for 600 shares. Following the underwhelming leaks and rumours of the upcoming iPhone the price finally dipped triggering my order. I was confident at this price as my calculated target price for apple was in the mid 120's. When dealing with a business that has close to 170 billion in cash it is very difficult for me to view it as anything other than a strong long term hold. Following the pre order release of the iPhone share prices soared up to around 115.43 which is when I submitted a market sell order gaining about 8 %. Although I continue to hold apple personally and still feel it is undervalued I believe that the capital could be put to work elsewhere to maximize returns.
Stock to Watch: TSLA
Although tesla motors has experienced heavy criticism regarding its failure to reach profitability I believe that they are dramatically undervalued. Their progress within alternative energy based transportation has far surpassed that of any other auto manufacturer. I will be watching tesla's movement this week and potentially buying as it approaches $200 once again.
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