I had rather planned to reduce my hyperpostiing activity, but–well–you know… UPST.
The quarterly was simply awful. The early response was quite muted. So what happened? Two things, apparently. One, the short interest was in the neighborhood of 35% as I recall. Two, in the conference call, UPST revealed that they were close to an agreement, or agreements to obtain a secure source of funding. Unfortunately for me, I woke up 45 minutes late so did not hear the live call (started about 5:10 or 5:15 a.m. here). Then, I could not find the recorded call and of course no transcription. So, I missed that bit of news. Apparently, the market missed it after hours, too, or missed the significance of it.
That funding source is the light at the end of the tunnel. I did not learn of it until I read Bert Hochfeld’s post during Wednesday’s session.
In the week before earnings I had those $12.50 puts so did not want to buy
shares and end up over invested if I should have shares put to me. What I did as a substitute was to buy AFRM on its dip. Made a sort of basket of fintech. That brought me to a 60% position. Then on Tuesday, as the price fluctuated, I made a tiny purchase of UPST. It was sort of a marker and a psycho-crutch so that if there was a post earnings pop I would have a small benefit and board to whack myself up side the head for not having bought more.
That purchase is now up 37%. [How does that head feel, KC?] Those AFRM shares appreciated 12+% yesterday also, so that is a little aspirin therapy.
What now? Yesterday’s volume was about 35% of outstanding shares so I think much of the short covering has already occurred. I sold 25% of the UPST position towards he end of the session (yes, in the wee hours of the morning here). I expect (or perhaps only hope) that the share price will retreat in the next 5 to 10 days. I have not placed a limit order. So far, just an alert at around $16.50–can’t remember exactly.
I keep adding bits and pieces of various positions. The price action is in the dogs and cats:
Then finally an old hypergrower shows up: BILL 6%
ZI was #8 on the daily gain list
For one day, I was on the right side with the right stocks
I am now 29% cash, 2% Treasuries, and up 12.0% YTD. Still looking up at my YTD high of 14.3%.
I recommend your reading this if you have interest in UPST: