We’ve booked our fair share of 50%-plus winners in 2017: Glu Mobile (GLUU) +81%, Camtek (CAMT) +50% and Encana (ECA) +83%. (Myers Industries (MYE) didn’t make the 50% and above cut, but it still landed us a +40% gain.)
Today, let’s add another one to our list …
I recommended AeroVironment (AVAV) in this year’s April issue.
AeroVironment makes small unmanned aircraft systems, advanced development programs, tactical missile systems and electric car charging solutions. I found it by dissecting the Reality Shares Drone Index. AeroVironment gets roughly 90% of its total revenues from drones – more than any other company in the world. It’s the best pure-play way to get exposure to the drone technology space in the stock market.
In my April write-up I said:
Shorter term (in the next six months to a year), a +30% to +60% gain is attainable.
Yesterday, AVAV dropped -7% after some negative press from Spruce Point Capital Management. The stock’s closing price triggered our 15% trailing stop (changed from a 35% hard stop three weeks ago).
Let’s close out our position with an approximate 60% gain in less than seven months.
Action to take:
| Sell to Close AeroVironment (AVAV) at the market. |
Best,
Grant Wasylik