SunOpta Inc (STKL) Options

STKL has been creeping up lately.

Any news to justify the move ?

Toofuzzy

STKL, new 52 week high

STKL 10Q 11/5

Nice move up today

Probably because they negotiated not paying a dividend on some preferred stock.

I wonder what they had to give up ? Article I read didn't say.

As usual
Toofuzzy

My motto has been "Buy from the Scared, Sell to the Greedy" so my STKL is closer to a selling point than a buy right now.

Thanks for the article,
OAG

https://finance.yahoo.com/news/wall-street-analysts-think-sunopta-133011767.html

A reasonable move upward today. It's still in my "hold zone" however, so no inventory adjustments yet.

OAG

....last purchase was at $3.49...

Hi Toof,
My last buy was around $3.50, I believe. It was a minimum add of 12% more shares even though AIM was begging for a larger buy.
Best wishes, OAG

Did you buy much as it went below $6 or did you use up all your cash devoted to this issue ?
I couldn't bring myself to keep buying more. Certainly not until I build up a bigger cash reserve anyway.

Friday's gain was impressive.
Some follow-through in the coming weeks will make me smile.
Sorry to see the frozen fruit division go, but that should make earnings predictability better in the future.
OAG

OAG

Looks like it got awfully close today.

Toofuzzy

Hi Toof,
I'll be reviewing STKL if/when it drops below $6.

OAG

Anyone buying from the scared down here ?

Toofuzzy

I am in a place that I am afraid to buy more without selling some first.

I did manage to sell some Jan $12.50 calls this past January but not as many as I wanted.

Toofuzzy

Last August I sold some of my STKL position at $10.94 and thought we'd maybe see a bit more. It teased my next sell target but never quite got that next sell trade done.

Today I bought back 12% more shares at $6.58 to rebuild inventory and reset my 'next sell' target. I can't say I'm doing this based upon some great fundamental strength, it's just because the price is discounted so heavily from my last sale.

Best wishes,
OAG

I couldn't bring myself to buy more as it went down but I had sold Jan $10 puts and calls so either I will effectively selling some a few dollars above or below $10. Also have some $7.50 puts that I am pretty sure will expire worthless.

STKL's getting closer to its next sell target for me. It's holding above $11 right now.
OAG

Hi Toof, Re: Next Sell price.......................................

It sure didn't take very long to get the additional boost needed to trigger my Sell price.



It was an inventory reduction of 10% of shares. The Price/Share is very close to when this investment was started in 2014 but it's showing a portfolio profit of 132% at this juncture through opportunistic trading around the core holding. .

Next Sell target isn't that far away now. There's still short interest showing of about 7% of shares, so possibly there's a bit of a squeeze going on.

Best wishes,
OAG Tom

I couldn't bring myself to buy more when it was lower. It is about 10% of my account now.

I sold $10 and $7.50 Jan puts and $10 Jan calls. All in all I think unless it goes above $13 I am making a profit on the options. I can always roll what is in the money.

Toofuzzy

Thanks for the update, Toof. The stock price is up around a double from its low back in February. The trend is pretty nice right now with the price trading above the 130 day moving average since mid-May.

The price/share needs to move up another 15% before I do a share inventory reduction.

Best wishes,
OAG

Nice move on earnings.

https://finance.yahoo.com/news/sunopta-stkl-beats-q2-earnings-215509234.html


SunOpta (STKL) delivered earnings and revenue surprises of 400% and 11.94%, respectively, for the quarter ended June 2022. Do the numbers hold clues to what li...

STKL continues to move in defiance of the overall market recently.

Best wishes,
OAG

Yesterday's breech of the $9 mark was comforting. Let's see if it can keep the upward momentum in a confusing market.

My last buy was at $4.57 which added 20% more shares to the account.

OAG Tom

It's been a while since we've seen STKL above $8/share.

Welcome back STKL! Will this Phoenix rise once again?

Best wishes,
OAG Tom

Any news to justify the 5% jump today?

Toofuzzy

Any news to justify the 5% jump today?

Toofuzzy

Market seems to like the last earning announcement.

Toofuzzy

Well, it's been a month since my last buy of STKL so added shares once more today. At $4.569 I added 20% to the share count.

OAG Tom

Tom

Everything I read is projecting decent growth / earnings but it keeps sinking.

Any thoughts ?

Toofuzzy

I again added a bit more STKL shares to inventory. I bot 12% more shares at $5.35 yesterday. That helped lower my "next sell" target price a bit.

Best wishes,
OAG Tom

......and current price/share is again teasingly close to where Mr. Lichello might consider adding to his position.

OAG

From Zacks

"SunOpta’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings for STKL has improved 25% over the past 60 days. SunOpta has a Zacks Rank #2."

Was the news really THAT bad ?

Toofuzzy

Hi Toof, Re: Buy into Weakness, Sell into Strength.........

Here's the view from above:



https://finance.yahoo.com/news/loss-making-sunopta-inc-tse-143118829.html

This Fruit processor has struggled over time to consistently turn profits but looks to be doing better. AIM has done this holding a lot of good over time. Buy & Hold wouldn't be as happy. I guess that's the difference between Stock Selection and Investment Management.

That was a 12% share addition that triggered yesterday at $9.13.

Best wishes,
OAG

Hi Tom

I thought they had a loss this past quarter ? But sales were up.

Toofuzzy

Hi Toof,
Yes, I added another 12% to my position at $9.87. It dropped briefly thereafter and I was tempted to shell out a bit more cash. However, the market moved away from my next Buy price so it wasn't to be (today!).

Next target buy is at $9.13 - Sell target is now $16.52. Both will be incremental trades according to Mr. Lichello's model (with minor adjustments).

They showed break-even on Earnings this latest quarter compared to some of the whoppers over the last couple of years. Revenues beat estimates.

https://finance.yahoo.com/news/sunopta-stkl-reports-break-even-125512972.html

Best wishes,
OAG

Hi Tom

Are you picking up more shares today ?

Toofuzzy

I added back 12% more shares of STKL yesterday. It will take around another 10% drop in share price to see any more purchasing activity. The holding sits at roughly 50% cash right now.

OAG

Hi HD, Re: STKL and recent history.............

SunOpta fell asleep around 2014 and only just started coming out of its coma in the last year. So, you didn't miss much, unless you like to buy into deep discounts during declines.

Here's what I've been doing with it since 2014:



Best wishes,
OAG

I bought this company so long ago i forgot i owned it until i heard it mention on Cramer. Now i need to find that account and see how many shares i own.

I went and sold a bunch of call options at $10, $12.50 and a few $15 calls So all my shares are tied up till a few start expiring called/ or I roll them.

Toofuzzy

Hi Toof, Re: odd stock price movement..............

I don't find anything relevant to justify the drop from $17, but then again I didn't find anything to suggest the run-up from $1.33 to $17!

I called and Mr. Lichello said not to get too excited until we see the price/share fall below around $11.50. I may even wait longer. My cash held in reserve at today's price/share is over 50% of AIM position. My best selling price was at $15.65 near the beginning of February. That was the end of eleven sells in a row starting at $5.41. Previous buy was at $2.67.

There's not much of a short position in the stock at the current moment.

My holding's P&L seems to indicate I'm now playing with the "House's" money.

Best wishes,
OAG

Was there any bad news in the earnings report to justify the 10% drop ?

Most of the report looked pretty good to me. Certainly better than the last few years. Wonder what I am missing.

Toofuzzy

Hi Toof,
I shed another 6% of remaining shares today at $15.65. Cash reserve is now at 47%.

OAG

Last time this high the company actually had earnings.

How night will this go if they actually show a profit ?

When might that be ?

STKL hasn't visited this altitude in a very long time.

OAG

Zero to 45% cash in just 6 months! This has been a nice run.

10% of my remaining shares left the Equity Warehouse this AM at $13.36 as a buyer showed up demanding we let him have some of our inventory.

Best wishes,
OAG Tom

Hi Tom

I sold Dec 2021 $12.50 calls for $3.15 today after not being able to get $2.80 last week.

I should have sold the $7.50 puts last week but wanted to sell the calls first after not being able to do them as a spread.

Toofuzzy

I sold another 10% of the position today at $11.05. That's just $0.05 less than when I started my most recent STKL position back in 2014.

With judicious trading since then I've managed to bring the portfolio to a +96% gain at this point. The cash reserve percentage is currently 37% after today's trade.

It's been a long struggle to make this investment "look good." Here's to 2021.



OAG Tom