Stocks Of The Week: Holdings

Summary

  • Bluemound Asset Management provides a monthly update on their stock holdings, including Sustainable Growth and Retirement Income Options portfolios.
  • The Sustainable Growth portfolio is shifting towards using ETFs for international exposure, with Stone being sold and replaced with iShares Latin America 40 and Wisdom Tree Emerging Markets SmallCap Dividend.
  • Due to higher interest rates, dividend payers are not as attractive, so options are being sold on most stocks in the Sustainable Growth portfolio.
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This is a monthly update on the stock holdings at my investment firm – Bluemound Asset Management. I will also include notes on my own holdings. Expect this portfolio model update the last week of each month after regular options expiration.

The firm holdings are broken into two categories: 

  • Sustainable Growth portfolios designed for maximum appreciation over the next decade.
  • Retirement Income Options portfolios that have an added emphasize income.

In general, these account types are about 75% individual stocks and about 25% ETFs. The Retirement Income Options portfolios generally carry 20-40% cash for writing cash-secured puts against with that level fluctuating depending on option assignments each month.

Sustainable Growth Holdings

An “all cap” portfolio skewed towards small caps designed for maximum capital appreciation over the next decade. Appropriate for people still in their earning years with risk tolerance and financial stability to handle volatility. 

Company & SymbolSizingNotes
Aemetis(AMTX)TripleLong-term hold for eventual new biofuels refining and RNG buildouts that generate typical business related revenues and offer substantial tax credit income on top.
Ford(F)FullSetting up for large growth in EVs around 2026-7 which everyone knows about, but also 4IR ventures and added revenues from freed up real estate.
Spire Global(SPIR)FullPiling annual recurring revenues for its leading RF based satellite business. Dramatically undervalued in my opinion and simply waiting for a more liquid market.
Unity Software(U)FullA leader in 3D, AR, VR and interactive software increasingly using AI from gaming to film to industry and education. Apple is a key partner and customer. Setting up to be taken over or be a high growth leader.
Warner Brothers Discovery(WBD)FullZaslav’s refocus of the business and brands is working and the company is set up to either become one of the “must have” streamers during industry consolidation or to be acquired by a company that needs both content and subscribers. I anticipate a Comcast or big tech deal in 2024.
Enovix(ENVX)Half+A developing leader in fast growing battery segment due to unique architecture. A natural partner for EV companies. Highly competitive, so, I expect to trade out on a FOMO rally. If $12 puts assigned, then I would have a full position.
AST SpaceMobile(ASTS)Half+Accelerated revenue path by moving up 2024 launches of 5 satellites anticipated to be used by AT&T. The technology has passed every test and could fundamentally change global telecom outside cities. 
Teledoc (TDOC)Half+Data and largest tele-medicine user base gives it a leg up on all other competitors. Highly likely to be acquired.
Heron Therapeutics (HRTX)Half+New management has done a good job of refocusing the company. Any growth will lead to profitability and it seems to be on the horizon. I still expect Zynrelef to be a big grower as the move away from narcotics accelerates. 
Blacksky (BKSY)HalfContinues to add annual recurring revenue and is also closing in on profitability. A clear takeover target or merger candidate in the visual satellite space. In bed with Palantir.
Intel (INTC)HalfTargeting 2026-7 for leap in growth as factories complete and EVs accelerate production. Legitimate competitor to Taiwan Semiconductors (TSM). 
Innovative Industrial (IIPR)HalfRare blend of income and growth. Takes place of ETFs in the cannabis space for me. Little downside left and eventually greater legalization will continue to occur. Margin of Safety includes being able to pivot to food production. 
New Fortress (NFE)HalfUnique liquified natural gas tech, utility base businesses and building out hydrogen infrastructure. Looks like it will be an international energy powerhouse. 
Rocket Lab(RKLB)HalfVertically integrated space company that can build satellites, launch them and operate them. The leading competitor to SpaceX in a nation that really wants a leading competitor to SpaceX. 
Permian Resources(PR)HalfGreat Rock in the Permian Basin. The 5th largest producer after less than a decade in business in the Permian. A clear takeover target. Just waiting for it to happen.
Block/Square(SQ)HalfGreat access to American small business and has a share of the consumer market for money transactions. The kicker is a big Bitcoin (BTC-USD) position. Waiting patiently for the next FOMO rally to sell into. I expect a price around $200.
Paramount(PARA)Half Similar to Warner. Shari Redstone after purging dividend to reduce payout to family, has put in place a “change in control” plan signaling a willingness to sell at the right price. I think they fit well with Apple (AAPL) or Google (GOOG).
Ginko Bioworks(DNA)Starter+The company continues to progress, but until they have a clear window to profitability or takeover, I think they stay range bound. It’s a good base, but I won’t add more until I see a more imminent catalyst.
Palantir (PLTR)Starter+I just took some profits on the recent rally and am looking to sell puts again on a dip. They are doing things right finally on stock based compensation and I expect a series of significant earnings beats beginning soon. 
SunPower(SPWR)StarterNot a big holding in the Invesco Solar ETF (TAN), so I have a position. I expect another big rally eventually and would likely add pre-FOMO if I can make that trade well. 
Planet Labs(PL)StarterSimilar to Blacksky and partnered with Google. I expect them to be taken over or merged into an AI based spinoff of Google. 
  • Stone (STNE) I sold a while back as it reminds me of the competitive headwinds that companies like Paypal (PYPL) have faced. It will be removed from the next Punch Card Stocks. Getting great information on international stocks is difficult and I am mainly moving to using ETFs for international exposure. I am going to use the iShares Latin America 40 (ILF) South American exposure and the Wisdom Tree Emerging Markets SmallCap Dividend (DGS). Stone has risen a bit since I sold and I think now is a good time to make a similar shift to ETFs as I have.

Retirement Income Options Holdings

An “all cap” portfolio skewed towards mid and large caps designed to beat the S&P 500 by several points on average with risk similar to an 80/20 portfolio, i.e. a bit less than the stock market. Appropriate for retirees who are comfortable with equity investing in general, have appropriate finances and are not taking income from principal.

Note: due to higher interest rates, dividend payers are not as attractive right now. I expect that to change in 2024 and will expand my dividend stock holdings as appropriate. For now, I am selling options on most of the stocks in the Sustainable Growth portfolio.

Company & SymbolSizingNotes
Aemetis(AMTX)TripleLooking to trim back and sell calls on a FOMO rally and sell puts in the place of stock at some point. When I trim, I am likely to buy dividend payers with the proceeds.
Ford(F)Full+A great long-term dividend payer with growth. My favorite industrial stock. Sell puts if you do not have a full position. 
Spire Global(SPIR)FullLooking to trim back and sell calls on a FOMO rally and sell puts in the place of stock at some point. Sell puts if you do not have a full position. 
Unity Software(U)FullLooking to trim back and sell calls on a FOMO rally and sell puts in the place of stock at some point. Sell puts if you do not have a full position.
Warner Brothers Discovery(WBD)FullSell puts aggressively if you do not have a full position. Company opens for takeover in April (takeover tax rules), so have a full position well ahead of that.
Enovix(ENVX)Half+Looking to trim back and sell calls on a FOMO rally and sell puts in the place of stock at some point. Sell puts to get to at least a half position.
Teledoc(TDOC)Half+Looking to trim back and sell calls on a FOMO rally and sell puts in the place of stock at some point. Sell puts to get to at least a half position.
AST SpaceMobile(ASTS)Half+Looking to trim back and sell calls on a FOMO rally and sell puts in the place of stock at some point. Sell puts to get to at least a half position.
Heron Therapeutics (HRTX)HalfJust waiting.
Occidental Petroleum (OXY)HalfLove selling $60 puts on this one due to Berkshire (BRK.B) accumulation under $60.
Blacksky(BKSY)HalfWaiting for lift off. Tough options market, just have to patiently own it.
Intel (INTC)HalfLooking for put selling opportunity to get to a full position. 
Innovative Industrial(IIPR)HalfShould probably just make a full position under $80. 
New Fortress(NFE)HalfWill continue to sell puts until a full position. 
Rocket Lab(RKLB)HalfWill continue to sell puts until a full position.
Block/Square(SQ)HalfWill continue to sell puts until a full position.
Paramount(PARA)HalfPatiently waiting for takeover. Will redeploy proceeds to a dividend payer.
Planet Labs (PL)StarterPatiently waiting for lift off so I can sell covered calls.
Palantir (PLTR)StarterTrimmed and will look to sell puts on a dip.
SunPower (SPWR)StarterWas assigned to me, will wait for FOMO to trim and sell covered calls.
Ginko Bioworks (DNA)StarterWaiting for a reason to sell puts.
Permian Resources (PR)StarterActively looking to sell puts on dips.

See the Retirement Income Options Expiration Update November 2023 for outstanding option positions. Here’s the chart again: 

CompanyOutstanding Option with Premium Rcvd.Current Stock PositionOption Game Plan
Ford (F)Feb $10 puts at 50¢FullHold and let get assigned to me or likely sell more on a dip more if expire.
Teledoc (TDOC)Jan $15 puts at $1.10StarterHold and let get assigned to me or likely sell more on a dip more if expire.
Paramount (PARA)Dec $15 puts at $2.17HalfHold and let get assigned to me or likely sell more on a dip more if expire.
Occidental (OXY)Jan $60 puts at $2.49HalfHold and let get assigned to me or likely sell more on a dip more if expire.
Permian Resources (PR)Jan $14 puts at $1.10StarterHold and let get assigned to me or likely sell more on a dip more if expire.
Block (SQ)Dec $60 puts at $5.04HalfHold and let get assigned to me or likely sell more on a dip more if expire.
Enovix (ENVX)Jan $11 puts at $1.50HalfHold and let get assigned to me or likely sell more on a dip more if expire.

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