Below are the trades I made from 3/22/3014 through 4/4/2014. I have made some small sector plays into small cap health care stocks. These are GARP stocks that I believe are selling at value prices and should be somewhat defensive during any sustained market correction. I also increased my position in AUNFF a jr. silver miner, closed my position in WPX Energy, Inc. (NYSE: WPX) from shares acquired in 2009 & 2010, harvested some losses in KMP and APL selling some high priced shares (will look to re-buy in 31 days) and doubled up my position in fertilizer MLP OCIP.
Buys
Aurcana Corporation (OTC Markets: AUNFF) - increased position by 200% buying back shares sold 11/2013
Acasti Pharma Inc. (NasdaqCM: ACST) - new position R&D lipid supplements alzheimer's prevention
Neptune Technologies & Bioresources, Inc. (NasdaqCM: NEPT) - Owns 50% of ACST; manufactuer & distributes Omega 3 fish oil supplements
Enzymotec Ltd. (NasdaqGS: ENZY) - R&D lipid supplements, manufacture & distribute nutritional baby formula
Achaogen, Inc. (NasdaqGM: AKAO) - new IPO R&D antibacterials to treat multi-drug resistant gram-negative infections
Kinder Morgan, Inc. (NYSE: KMI) - increased IRA position from proceeds of RGP sale.
El Paso Pipeline Partners, L.P. (NYSE: EPB) - Increased position from APL sales
OCI Partners LP (NYSE: OCIP)- doubled up original position 10% yield
Sells
WPX Energy, Inc. (NYSE: WPX) - closed out this E&P (the spin off from WMB 2009) for 100% LT gain
Atlas Pipeline Partners, L.P. (NYSE: APL) - peeled off high priced shares
Kinder Morgan Energy Partners, L.P. (NYSE: KMP)- peeled off high priced shares
Regency Energy Partners LP (NYSE: RGP) - closed position in IRA (PVR merger completed) moved proceeds into KMI
Net 1 Ueps Technologies Inc. (NasdaqGS: UEPS)- Closed position from shares acquired 1/2014 @ $7.88/share and sold @ $10.40/share booking a 32% gain.
Several years ago I followed Spekulatius into NSRGY and have followed Nestles growth into nutritional baby formula distributed around the world. In 2012, Nestles started a Health Care R&D Division to do R&D to study blood lipids and the benefits of using nutritional supplements. One specific area of study was research into an alzheimer nutritional supplement to aid in the prevention of this growing disease. I started a position in an IPO ENZY that was more of a "pure" play in this area. They already manufacture & distribute a nutritional baby formula, own a manufacturing facility in Switzerland, and have a R&D facility located in Israel. The company is profitable but for me the value proposition is double digit growth potential over the next five years. At 50x PE now, that's a bargain if that growth is only achieved during the next 2 years. ENZY recently sold insider's shares (2/28/2014) at $28.00/share w/ huge demand. However, the "lock-up" period expired last week, and as a result many of the early IPO buyers took their profits and sold the stock back down to $19.00/share. I doubled my position bringing up my average cost to $19.75/share.
In 2012 Nestles began a JV R&D study with Acasti Pharma Inc. (NasdaqCM: ACST) to study blood lipids and the treatment and prevention of cardiovascular disorders using nutritional supplements. Part or this research also looked at the prevention of alzheimer disease using one or more of these supplements. ACST is a subsidiary of Neptune Technologies & Bioresources, Inc. (NEPT). NEPT has a stated BV of $0.70/share and should become profitable soon once their new manufacturing facility begins production April 2014. NEPT owns 50% of the outstanding shares in ACST.
I started new position in NEPT & ACST and doubled my position in ENZY creating a 1.5% portfolio position in this sector (health care supplements). I plan to increase NEPT shares if/when they announce that they achieved their production goals and provide their forecast for the 2nd half of 2014. FWIW, there is an ongoing patent dispute between NEPT and ENZY for the infringement on one or more of NEPT's patents. A settlement would see NEPT receiving both a one time payment and a regional per unit royalty payment for supplements sold in the U.S..
My other trades included portfolio house cleaning trimming my E&P exposure closing out WPX, buying more KMI & EPB and selling my high priced shares of RGP and KMP. I also closed out my position in UEPS booking a 32% gain for a 120 day hold.
I did double up on my OCIP position since on 4/1/2014 the "lock-out" IPO shares hit the market providing an excellent entry point for this huge cash flow generator (Ammonia fertilizer producer from NG feed stock). I continue to like the fertilizer companies as we come into the Spring planting season. UAN, CVI (owns 70% CVI units), YARIY, OCIP and IPI are in the portfolio. I plan to peel off my high priced shares booking small profits as this sector benefits from growing worldwide fertilizer demand. Some of this demand is as a result of recent Russian sanctions, so that is my reason for some limited selling of shares as stock prices rise.
EKS |
