Closing SURG SP Trade
We are closing the Active Portfolio (AP) Side Pocket Short Sale trade on SURG at $0.54. The stock has declined 28% since initiation. While we still believe the company faces a high risk of insolvency, the current environment favors hype-driven moves, making it a potential pump-and-dump candidate. Rather than remain exposed to that volatility, we are taking the gain for the AP here and will look to re-enter opportunistically on a future pump.
Reducing FEIM Exposure
Also, we are reducing exposure to FEIM by 454 shares at a price of $63.61, as it continues to move higher. FEIM is currently 12.66% of the portfolio, and we want to reduce our exposure so that it now comprises only 5% of the portfolio, which would set our current balance to 292 shares.
Although we think the stock has the shot of nearing $100 by 2029 if it meets its 2029 revenue guidance of $150 million, the current valuation is stretched. The stock is currently up 480% since we added it to the AP in July 2024.
This will free up some cash for the AP as we go hunting for stocks to maintain the current CAGR of near 40%, since inception in 2022. If you missed our last AP performance update, highlighting the record performance, you can read that here.
