Kenneth Sacca Kenneth Sacca

Investment Ideas

It all begins with an idea.

AAAU

April 10th, 2025

AAAU (Goldman Sachs Physical Gold)

Open Position at 31.20

Big short dated and long dated call option buying on gold related instruments.

Call/put dex ratio is as high as 8.5 right now. Calls are extremely loaded on 295.

CVS

April 10th, 2025

CVS

Open Position at 70.19

Medicare Advantage plans to get a 5% increase in 2026, versus the expected

4.3% increase expected. This translates to $25 billion for MA insurers in 2026.

After two years of Medicare Advantage cuts, this payment rate will provide

stability for millions of beneficiaries who have faced plan closures, higher

costs, and reduced benefits. Q4 2024 EPS was $1.30 per share, Earnings

Surprise of 28.5%. 2024 annual earnings of $3.60 per share, with 2025 full

year estimates of $5.90 per share. Earnings between 2022 and 2023,

where CVS increased earnings by 98.5% had the stock at 101 per share.

April 17th, 2025

(MATERIAL CHANGE). Exit position at 66.50. Arkansas law bans state

permits to PBM-owned pharmacies effective 2026. Yesterday,

Gov. Sarah Huckabee Sanders (R) signed into law a groundbreaking

bill, H.B. 1150, to prohibit state permits to pharmacies owned by

pharmacy benefit managers effective Jan. 1, 2026. If Florida and other

Republican states follow suit, problematic for CVS.

META

(Facebook)

April 10th, 2025

META

Open Position at 547.80

There is a trade rule, known as the de minimis exemption, which

currently applies to goods worth less than $800. Such goods

are allowed to enter the United States tariff free. Trump's order,

which takes effect on May 2, 2025 removes the exemption from

packages from China, the largest source of de minimis

shipments, and Hong Kong. Shein, Temu are examples of

Chinese companies who will be greatly affected by removing

the examption. A $50 USD skirt you bought from Shein, is now

$100 USD as of June 2025. Digital ad spend on META is at risk

from pullbacks by Shein, Temu, etc. Part of the reason for the

200 point drop in META from the high on 2/14/25. Piper

Sandler, Oppenheimer, Argus, Baird and Keybank have all

lowed price targets on META. In Q4 2024 results, META

posted EPS of $8.02, sales rose 21% driven by strong

advertising demand and improved pricing. Operating

margin expanded to 48%, up from the 41% margin a

year ago. Opportunity to dollar cost average into META

given growth, with an understanding of the potential risks

to META.

McKesson

April 9th, 2025

MCK

Open Position at 670.74

Reasoning: 1/3 Pharmaceutical Distributors. Truveta Research

study shows 1,162M patients were prescribed a GLP-1 RA

between January 2018 and June 2024, with 4.81M total

prescriptions during this period. McKesson using a M&A

strategy to expand distribution and add technology

capability. McKesson also divested under-performing

European distribution operations. MCK delivered strong

results in fiscal 3Q25, driven by higher prescription

volumes, including demand for GLP-1 weight loss

drugs and oncology and specialty medications.

Adjusted EPS came to $8.03, beating the consensus

estimate by $0.02 and increasing 4%. GAAP net

income was $879 million or $6.95 per share,

compared to $589 million or $4.42 per share a

year ago. Revenue from distribution of GLP-1

medications (Semaglutide, Tirzepatide, Liraglutide,

Dulaglutide) was $10.9 billion, increasing 45%.

Semaglutide, also known as Ozempic is

manufactured by Novo Nordisk a Danish

Pharmaceutical, is the top selling GLP-1 drug at this

timeMCK 3 year return is 104%.

Amazon

March 17th 2025

AMZN

Open Position at 194.71

April 16th, 2025

Double position at 172.00

 

  RobinHood

March 18th, 2025

RobinHood (Hood)

 

Mr. Cooper Group

(17% Gain)

March 27th, 2025

COOP

107.00 Entry Price

Reasoning: Mr. Cooper group is a leading home

loan service provider in the U.S. with nearly seven

million customers. Purchase with anticipation of

two rate cuts in 2025.

Material Change: Rocket Companies (RKT) has entered into

a deal to purchase Mr. Cooper Group at a deal valued at

$9.4 billion. Because of this acquisition, I've unloaded my

stake after the jump @ $125 a share.

QUANEX

(23% Loss)

Nov 7th 2024,

Quanex (NX)

30.44 Entry Price

Reasoning:  Credit to Value Line Special Situations.  

Fenestration industry (Focus on Windows and Doors). 

North American Cabinets division acquired in 2015

for $246 million continues to be a drag on profits. 

Cost savings opportunity for Quanex as OEM Kitchen

and Bath door products are serial loss makers.  In

August of 2024, Quanex completed the acquisition

of Tyman.  Business lines for both companies are

complimentary, with possible manufacturing synergies.

 

Status - December 11th, 2024 – 31.35 Share Price

               The consensus estimate for Q4 2024 revenue

is $490.96 million, and the earnings are

expected to come in at $0.55 per share.

 

Material Change – December 12th revenue was $492

million.   Earnings were a loss of (.30) per share

 

Status – December 19th, 2024, 23 per share.  (Sell)

 

AppLovin

(Gain 582%)

June 15th 2024

Applovin (APP)

76.54 Entry Price

Reasoning:  Credit to Dow Theory Forecast newsletter which

can be read for free at San Francisco Public Library.  Dow

Theory assigns App a reranked quadrix score of 98 and is

a focus list buy.  Dow Theory Forecasts uses a proprietary

quant system called Quadrix to rank stocks, assigning them

scores from 0 to 100 based on over 100 variables that

predict stock prices, with higher scores indicating better

performance

Updates:

August 15th, 2024, 86 Per share

November 6th 2024, 175 Per Share (Huge Earnings Beat)

December 6th, 2024, 382 Per Share

December 11th, 2024, 327 stop loss activated.

January 21st, 2025, 354 Per Share Entry

February 18th, 2025, 519 stop loss activated.

 

 

March 10th 2025

Applovin (APP)

240 Entry Price

Reasoning:  Feb 13th 2025, reached a high of 525.  1 year

return of 389%.  3 year return of 518%.  Q4 of 2024, APP

captured meaningful holiday shopping ad dollars for

the 1st time.  Adjusted EBITDA margins of 61.8% in Q4

24, with Advertising adjusted EBITDA margins of 77.7%. 

Forecasts call for an adjusted EBITDA margin of 71% in

2025 and 78% in 2026 with margins increasing after the

divestiture of the APPS business.  EPS in 2023 was $1.92. 

EPS in 2026 projected at $8.51

 

Updates:

March 17th, 309.49 per share.

NVIDIA

February 22nd, 2023, Non GAAP EPS estimate of .327 per share

Non GAAP actual .33 per share (+ 2.14% beat)

Revenue 27 billion

Cash Flow = .24

 March 30th, 2023, buy

330 per share

 

May 25th, 2023, buy

382 per share

 

June 20th, 2023, Sell Half position

439 per share

 

June 26th, Sell remaining half position

405 per share

 

July 14th, 2023, buy

473 per share

July 14th, 2023, buy

460 per share

 

8/102023, sell entire position

424 per share

 

8/16/2023, buy

441 per share

 

8/24/2023, sell entire position

484 per share

 

 

 

February 21st, 2024  Non GAAP EPS estimate of 1.241 per share

Non GAAP actual 1.30 per share (+ 4.43% beat)

288% increase from previous year

Revenue 60.9 billion

125.9% increase from previous year

Cash Flow = 1.25

431.6% increase from previous year

 

04/26/2024

Sell to Close

 

NVDA 05/31/2024 850.00 C CALL NVIDIA CORP $850 EXP 05/31/24

1

$77.75

$0.72

$7,774.28

04/19/2024

Buy to Open

 

NVDA 05/31/2024 850.00 C CALL NVIDIA CORP $850 EXP 05/31/24

1

$32.95

$0.66

-$3,295.66

 

04/19/2024 Buy

762 per share

 

04/26/2024 Sell

868 per share

05/22/2024 , Buy

949 per share

 

05/23/2024, Sell

1045 per share

 

06/07/2024, Buy (Stock Split incoming 9 to 1)

1215 per share

 

06/13/2024, Sell entire position

128.05 per share

 

 

February 26th, 2025  Non GAAP EPS estimate of 2.948 per share

Non GAAP actual 2.99 per share (+ 1.42% beat)

130.7% increase from previous year

Revenue 130.5. billion

114.2% increase from previous year

Cash Flow = 3.01

140.40% increase from previous year

 

ELI LILLY

(208% Gain)

June 6th 2022,

Eli Lilly (LLY)

310.64 Entry Price

Reasoning:  Credit to Dow Theory Forecast for information related

to two new drugs in development at Eli Lilly.  One for Alzheimers,

and one for weight loss/diabetes.  On June 4th 2022 in New

England Journal of Medicine, Tirzepatide , in a 72-week trial in

participants with obesity, 5 mg, 10 mg, or 15 mg of tirzepatide

once weekly provided substantial and sustained reductions in

body weight.

 

Status - June 10th 2022, 299.33 Per Share.  (No Panic, healthy

action on volume)

Status - November 15th 2022, 356 Per Share.

Status - January 25th 2023, 349.78 Per Share (Pick up more shares)

 

Material Change - In 2023, researchers at Eli Lilly published in JAMA

the results of a phase 3 clinical trial called TRAILBLAZER-ALZ 2. The

results showed donanemab slowed the rates of cognitive and

functional decline in participants who have early symptoms of

Alzheimer's.  Treatment with donanemab reduced amyloid plaque

on average by 84% at 18 months, compared with a 1% decrease for

participants on placebo.

Status - August 3rd, 2023, 457 per share.  (Pick up more shares)

Status - January 17th 2024, 639 per share

Status - April 4th, 2024, 781 per share (Pick up more shares)

 

Material Change - Donanemab, a monoclonal antibody treatment

for early Alzheimer's disease, received approval from the U.S.

Food and Drug Administration (FDA) on July 2, 2024

 

Status - July 16th, 2024 956 per share.  (Unload 75% of position)

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Kenneth Sacca Kenneth Sacca

Blog Post Title Two

It all begins with an idea.

It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more. Or maybe you have a creative project to share with the world. Whatever it is, the way you tell your story online can make all the difference.

Don’t worry about sounding professional. Sound like you. There are over 1.5 billion websites out there, but your story is what’s going to separate this one from the rest. If you read the words back and don’t hear your own voice in your head, that’s a good sign you still have more work to do.

Be clear, be confident and don’t overthink it. The beauty of your story is that it’s going to continue to evolve and your site can evolve with it. Your goal should be to make it feel right for right now. Later will take care of itself. It always does.

Read More
Kenneth Sacca Kenneth Sacca

Blog Post Title Three

It all begins with an idea.

It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more. Or maybe you have a creative project to share with the world. Whatever it is, the way you tell your story online can make all the difference.

Don’t worry about sounding professional. Sound like you. There are over 1.5 billion websites out there, but your story is what’s going to separate this one from the rest. If you read the words back and don’t hear your own voice in your head, that’s a good sign you still have more work to do.

Be clear, be confident and don’t overthink it. The beauty of your story is that it’s going to continue to evolve and your site can evolve with it. Your goal should be to make it feel right for right now. Later will take care of itself. It always does.

Read More
Kenneth Sacca Kenneth Sacca

Blog Post Title Four

It all begins with an idea.

It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more. Or maybe you have a creative project to share with the world. Whatever it is, the way you tell your story online can make all the difference.

Don’t worry about sounding professional. Sound like you. There are over 1.5 billion websites out there, but your story is what’s going to separate this one from the rest. If you read the words back and don’t hear your own voice in your head, that’s a good sign you still have more work to do.

Be clear, be confident and don’t overthink it. The beauty of your story is that it’s going to continue to evolve and your site can evolve with it. Your goal should be to make it feel right for right now. Later will take care of itself. It always does.

Read More