Sell Half Vertiv (VRT). Rivian (RIVN) Moves to Buy
Spotting a “top” in high-flying stocks is impossible but sticking to a system of taking partial profits on a very fast-moving stock is pretty darn easy, if you can manage your emotions.
Let’s try and do just that today and sell half our stake in Vertiv (VRT). The stock, which is an AI infrastructure play, has risen more than 40% in the seven weeks since we’ve owned it and is up 20% since the little dip after earnings just over two weeks ago. I can’t tell you if we’re close to a near-term top for VRT, or if the stock will be up another 100% six months from now (or down 30%), but I do know this is an environment where it’s felt super easy to make money and that typically means taking some profits is a good call. Sell half your VRT stake for a 40%+ gain and hold the rest. SELL HALF, HOLD HALF
Moving onto Rivian (RIVN), this is an exception to the “easy money” reference I just made. It’s been a very tough slog. But management came out yesterday with news that it’s hitting the pause button on the new and expensive Georgia plant and will get the R2 model (midsized SUV) into production in Normal, Illinois (where the R1 is currently made) instead. The R2 pricing begins at $45K which puts it squarely into the mass-market category, where Rivian’s current lineup doesn’t fit at all. Granted, the R2 won’t hit the road until early 2026 but this eventual launch, plus the more conservative CapEx plan, helps the Rivian story. Management also announced the R3 crossover vehicle, which wasn’t expected, with expected launch in 2026-27. If you’re not a fan of Rivian vehicles, the stock probably isn’t for you, and I won’t pretend it doesn’t look like garbage. But if you like the brand and think it’s one of the most viable pure EV manufacturers out there, as I do, then it’s likely worth picking up some shares. Moving to buy. BUY
Below is an updated table of returns, and recently closed positions.
CURRENTLY OPEN
| Company Name | Ticker | Date Covered | Ref Price | 3/8/24 | Current Gain | Notes | Current Rating |
| Cadre Holdings | CDRE | 2/21/24 | 35.7 | 38.3 | 7% | Top Pick | Buy |
| Crocs | CROX | 12/20/23 | 103.7 | 126.1 | 22% | Top Pick | Buy |
| Elastic | ESTC | 10/18/23 | 82.5 | 106.6 | 29% | Hold 1/4 | |
| Leonardo DRS | DRS | 2/21/24 | 20.7 | 23.5 | 13% | Buy | |
| Microsoft | MSFT | 2/15/23 | 268.5 | 408 | 52% | Top Pick | Buy |
| Netflix | NFLX | 2/21/24 | 571.6 | 608.4 | 6% | Buy 1/2 | |
| PINS | 12/20/23 | 37.6 | 35.6 | -5% | Buy 1/2 | ||
| Rivian | RIVN | 10/19/22 & 5/22/23 | 22.5 | 12.8 | -43% | Top Pick | Buy |
| Soleno Therapeutics | SLNO | 1/17/24 | 44.7 | 43.2 | -3% | Top Pick | Buy 1/2 |
| Varonis | VRNS | 11/15/23 | 38.1 | 49.7 | 31% | Top Pick | Hold 1/2 |
| Vertiv Holdings | VRT | 1/17/24 | 49.4 | 70.9 | 44% | Hold 1/2 | |
| WATCH LIST | |||||||
| BellRing Brands | BRBR | 11/15/23 | - | 61.4 | - | Watch | |
| Intuitive Surgical | ISRG | 2/21/24 | - | 395.6 | - | Watch | |
| Joby Aviation | JOBY | 2/21/24 | - | 5.4 | - | Watch | |
| Nutanix | NTNX | 1/17/24 | - | 65.6 | - | Watch | |
RECENTLY SOLD POSITIONS
| Company Name | Ticker | Date Covered | Reference Price^ | Date Sold | Price Sold^ | Gain/loss | Notes |
| Krystal Biotech | KRYS | 9/20/23 | 119.7 | 1/17/24 | 124.38 | 4% | Top Pick |
| Cellebrite | CLBT | 9/20/23 | 7.6 | 1/17/24 | 8.08 | 6% | |
| Alight | ALIT | 12/20/23 | 8.3 | 2/5/24 | 8.97 | 8% | |
| Construction Partners | ROAD | 12/20/23 | 44.3 | 2/5/24 | 47.58 | 7% | |
| Elastic | ESTC | 10/18/23 | 82.5 | 3/5/24 | 107.33 | 30% | Bought 1/2, Sold 1/4 |
| Gen Digital | GEN | 1/17/24 | 22.8 | 3/5/24 | 21.37 | -6% | |
| GitLab | GTLB | 7/19/23 | 53.3 | 3/5/24 | 62.3 | 17% | |
| Shopify | SHOP | 6/21/23 | 63.4 | 3/5/24 | 73.82 | 17% | Top Pick, Bought 1/2, Sold 1/2 |
| Vertiv Holdings | VRT | 1/17/24 | 49.4 | 3/8/24 | 70.9 (est.) | 44% (est.) | Sold 1/2 |
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