Editors Note:

The small cap Russell gained 16 points or 1% but remains below resistance. Monday was a good day in the market but while the S&P closed at a 5-month high, the Russell closed 10 points under critical resistance. It would take another day like Monday to push through that 1,566 level and hopefully trigger some short covering. I don't want to put down the Russell gains but we have a long way to go to match the big cap indexes and the Russell is supposed to be the market leader.



Current Portfolio


Stop Loss Updates

Check the graphic below for any new stop losses in bright yellow. We need to always be prepared for an unexpected decline.


Profit Targets

Check the graphic below for any profit stops in green. We need to always be prepared for a profit exit at resistance.





Current Position Changes


HAIN - Hain Celestial
The long stock position was stopped at $22.85.

IMMU - Immunomedics
The long position was stopped at $17.50.



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Full updates on all plays on Wednesday and Saturday. Only closed plays are updated on other days.


BULLISH Play Updates

HAIN - Hain Celestial - Company Profile

Comments:

Shares fell -2% after JP Morgan downgraded the stock from overweight to neutral. Hain had a good run but good things don't last forever without hiccups. We were stopped out of the stock position, but the option position is still over.

Original Trade Description: March 2nd.

The Hain Celestial Group, Inc. manufactures, markets, distributes, and sells organic and natural products. The company operates in seven segments: the United States, United Kingdom, Tilda, Ella's Kitchen UK, Canada, Europe, and Cultivate. It offers infant formula; infant, toddler, and kids foods; diapers and wipes; rice and grain-based products; plant-based beverages and frozen desserts, such as soy, rice, oat, almond, and coconut; flour and baking mixes; breads, hot and cold cereals, pasta, condiments, cooking and culinary oils, granolas, and cereal bars; canned, chilled fresh, aseptic, and instant soups; yogurts; chilies; chocolates; and nut butters. The company also provides juices, hot-eating products, desserts, cookies, crackers, frozen fruits and vegetables, pre-cut fresh fruits, refrigerated and frozen plant-based meat-alternative products, tofu, seitan and tempeh products, jams, fruit spreads, jellies, honey, marmalade products, and other food products. In addition, it offers snack products, such as potato, root vegetable, and other vegetable chips, as well as straws, tortilla and whole grain chips, pita chips, and puffs; personal care products consisting of skin, hair, and oral care products, as well as deodorants, baby care items, body washes, sunscreens, and lotions; and herbal, green, black, wellness, rooibos, and chai tea. The company sells its products through specialty and natural food distributors, supermarkets, natural food stores, mass-market and e-commerce retailers, food service channels and clubs, and drug and convenience stores in approximately 80 countries worldwide. The Hain Celestial Group, Inc. was founded in 1993 and is headquartered in Lake Success, New York. Company description from FinViz.com.

In early February Hain posted earnings of 14 cents that missed estimates for 25 cents. Sales declined -5% to $584.2 million and missed estimates for $611 million. All of the guidance was terrible. Shares fell 20% on the news.

Shares began to rebound almost immediately. The company announced an investor day for February 28th and it was well received. Two analysts posted positive notes about the company the following day.

The most bullish event was a four million share purchase in the open market but the biggest shareholder, Engaged Capital. Director Glenn Welling has purchased five million shares since the analyst meeting and both entities were still buying on Thursday. I see a potential takeover play ahead or at the least and activist shareholder play. Shares are exploding higher on the active buying.

Earnings May 9th.

Update 3/15: Shares are still rising but there has not been any additional insider buying since March 7th when Glenn Welling bought 1.8 million shares and Engaged Capital also bought 1.8 million. Those two entities bought 7,949,822 shares in the week ended on Mar-8th at an average price of $20.25. That is $160 million in new purchases Engaged now owns about 15%.

Position 3/11/19:
Closed 4/1: Long HAIN shares @ $21.44, exit $22.85, +1.41 gain.
Optional: Long May $23 call @ $1.00, see portfolio graphic for stop loss.



IMMU - Immunomedics - Company Profile

Comments:

No specific news. Shares spiked to a 3-month high at the open then fell more than 8% to stop us out.

Original Trade Description: March 16th.

Immunomedics, Inc., a clinical-stage biopharmaceutical company, develops monoclonal antibody-based products for the targeted treatment of cancer. Its advanced antibody-drug conjugates are sacituzumab govitecan and labetuzumab govitecan, which are in advanced trials for various solid tumors and metastatic colorectal cancer, respectively. The company focuses on commercializing sacituzumab govitecan as a third-line therapy for patients with metastatic triple-negative breast cancer in the United States. The company also develops IMMU-140, a humanized antibody directed against an immune response target. Its other product candidates include products for the treatment of cancer and autoimmune diseases, including epratuzumab, an anti-CD22 antibody; veltuzumab, an anti-CD20 antibody; milatuzumab, an anti-CD74 antibody; and IMMU-114, a humanized anti-HLA-DR antibody. Immunomedics, Inc. has clinical collaboration with AstraZeneca and MedImmune, to evaluate Imfinzi, a human monoclonal antibody against PD-L1, with sacituzumab govitecan as a frontline treatment of patients with TNBC and urothelial cancer; collaboration agreement with The Bayer Group for the development of epratuzumab; clinical and preclinical collaborations with academic cancer institutions, identifying new cancer indications for sacituzumab govitecan and the biology of the Trop-2 antigen; and research collaboration with the Memorial Sloan Kettering Cancer Center to investigate Sacituzumab Govitecan and Labetuzumab Govitecan in preclinical cancer models. Immunomedics, Inc. has a partnership agreement with the Samsung BioLogics Co., Ltd. to manufacture hRS7, an Immunomedics proprietary humanized antibody. The company was founded in 1982 and is headquartered in Morris Plains, New Jersey. Company description from FinViz.com.

Immunomedics has had a rocky year but they are starting to pull out of their funk. On February 26th they reported earnings but more importantly announced a complete changing of the guard with new board members, new CFO and the exit of the CEO. Shares spiked on the news.

On March 11th they presented at the Cowen and Company 39th Annual Health Care Conference. Shares spiked again. Investors apparently liked what they heard.

They have multiple drugs in the FDA approval process and several more in the research stage. Sacituzumab govitecan has demonstrated a significant clinical benefit in multiple hard-to-treat cancer settings including breast cancer. The company is currently preparing a new Biologics License Application (BLA) in response to the recent CRL from the FDA. They recently published in the new England Journal of Medicine regarding that drug in the treatment of a variety of epithelial cancers.

The company had $497 million cash on hand and enough for an additional two years of research and operations.

Earnings May 27th.

Shares have accelerated to the upside after the earnings and investor presentation.

Position 3/18/19:
Closed 4/1: Long IMMU shares @ $18.56, exit $17.50, -1.06 loss.
Optional: Closed 4/1: Long May $21 call @ 75 cents, exit $1.00, +.25 gain.



BEARISH Play Updates

No Updates on Current Positions