💼 Inside the Portfolio: Updates from our Swing Trading Desk

26 Nov 2024 - Insights, adjustments, and forecasts about our latest swing trades 💹

Position Updates:

Kingsoft Cloud Holdings (KC) is experiencing a downturn today, influenced by the broader weakness in blockchain-related stocks. Despite this association, Kingsoft's stop-loss is currently at break-even. The focus remains on whether the stock can maintain its position above today's low, which is crucial for future performance.

Walt Disney Co. (DIS) remains unchanged, with a full position maintained. The strategy continues to hold steady, reflecting confidence in the stock's current trajectory.

Lemonade Inc. (LMND) has seen a strategic reduction in position size, with an additional 25% of the holdings sold, realizing a 40% profit within a week. The stop-loss has been adjusted to secure profits, now set just below the $42 mark, ensuring gains are protected while allowing for potential upside.

Eli Lilly & Co. (LLY) has surged following significant news, causing the stock to gap up and approach the $800 level. This movement represents an impressive 8% gain, highlighting the stock's strong performance and positive market sentiment.

New Positions and Subscriber Insights:

We are currently exercising a high level of selectivity. Our private subscribers received our recommendation yesterday, and we are now in the process of drafting the article. Recognizing the company's strong potential, we prioritized efficiency by sharing the information via chat to ensure timely delivery.

1. Eli Lilly and Company (LLY)

Eli Lilly & Co. engages in the discovery, development, manufacture, and sale of pharmaceutical products. The firm's products consist of diabetes, oncology, immunology, neuroscience, and other products and therapies. The company was founded by Eli Lilly in May 1876 and is headquartered in Indianapolis, IN.

Fundamental Analysis

• Financial Health: Lemonade Inc.'s Q3 2024 earnings report demonstrated strong performance with a 24% increase in In Force Premium and improved loss ratios. The company achieved a 71% increase in gross profit to $38 million, with gross profit margin reaching 27%. While reporting an adjusted EBITDA loss of $49 million, the company maintained a positive net cash flow of $48 million and stable operating expenses. Management remains optimistic, projecting continued positive cash flow through year-end and targeting adjusted EBITDA profitability by 2026, supported by their strategic focus on profitable growth and technological innovation.

• Growth Prospects:

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Technical Analysis

• Entry Point: Notable breakout execution above the critical $441 pre-market level, supported by significant volume confirmation. Despite a sharp 30% retracement from peak levels on the daily chart, price action demonstrated robust support at $719, triggering a technical bounce in conjunction with the healthcare sector's relative strength, notably one of only three sectors maintaining positive territory today.

• Support and Resistance Levels: Support is now 719, and the first resistance is 770.00

• Additional Notes: Eli Lilly presents compelling fundamental metrics, positioning it as a core defensive holding in our diversified portfolio construction (until Mr. Market proves otherwise)

Entry Day: 20 November

Price: $743.37

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