Hi everyone, I hope you had a nice weekend. The indexes grinded slightly higher this week and made new all time highs. Valuations are still extremely expensive, but I’m looking to buy some ACAD and INTC. ACAD is a pharmaceutical company that Baker Bros own a lot of, and INTC is trading at a 12 P/E ratio and 3 P/S ratio which are reasonable valuations.
ACAD weekly chart below. I was planning on buying it near 22 and 20, but didn’t buy any. Now it’s trading at just under 17 so I’ll buy it in my Roth IRA. I will enter a 2% of my account sized position because that’s the amount I’m willing to lose if the stock goes to 0.
Since the stock is trading in the lower end of the range near 13-17.5, I’m planning on holding and selling n the upper end of the range near ~40-50.
INTC weekly chart below. I plan to have a position that is up to 15% of my total account size. The stock pays a decent 2.6% dividend per year and is trading at a 12 P/E ratio and 3 P/S ratio which are reasonable. I will buy a 5% of my account sized position next week, and the remaining 10% sometime later near the bottom of the range between 40-45 (highlighted in the chart below). I plan to sell when the stock is 2-3 times higher than my average purchase price, or when the P/E ratio is between 25-30.