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Checkpoint Therapeutics: The Taste of Success

Dan Leeson buys into Checkpoint Therapeutics (CKPT) after the company sees increased volume and announces virtual conferences.

*Updated 9/17/2020

Checkpoint Therapeutics On My Radar

On 9/11/2020 I noticed a stock that had just set a new 52 week high before pulling back. It was showing volume at about 6 ½ times the average, Checkpoint Therapeutics (CKPT). Google told me the only news was a series of three conference calls scheduled throughout the week. A flag went up in my head.

  1. No specific news.
  2. Big volume.
  3. At or near its highest price.

These are the indicators I look for before moving into a new stock.

On Monday the 14th, I bought in at around 11 AM ET for the market price. It closed on 9/11/2020 at $3.30/share and I managed my first purchase at $3.27 My first move into stock is like stepping into the pool on the first step of the shallow end. I don’t like to dive in with a big amount, I want to test the water. I could have watched through the day to try and time my trade to buy on a dip, but I kept things simple as I like to trust a rising stock to keep rising.

Moving into CKTP

There it was, a small purchase at $3.27/share, just a few hours before the bell. And the first scheduled conference call. A news article I found that day interviewed the CEO of CKTP.  He teased that the company would be announcing good news regarding their latest cancer drug trial. So, now I knew what the news was and it was positive. The market closed and shifted into after-hours trading and the first Checkpoint Therapeutics conference call began. They announced their new cancer drug is showing great results, beating the effectiveness of the current drugs dominating the marketplace. Furthermore, they are poised to price the drug cheaper than the current options. Needless to say, the stock began to move in after-hours trading. 

On the Rise After Hours

Now I don’t have access to after-hours trading, or I would have bought more CKPT on the 14th. Instead, I was relegated to buying the next trading day. This also had some pre-market trading that pushed the price up before I could buy any more. The day opened at $3.56 and I bought a second, larger amount of CKPT on the 15th at $3.90/share.

And yes, I could have been quicker on the trigger. But, I live in the mountain time zone, and waking up at 6 AM to trade stocks isn’t always on my priority list. What a pro, right? On the 15th CKPT closed at $3.91. It went up to $4.12 by the time the bell rang on the 16th. As I type this out, CKPT ended the day of the 16th including after-hours trading up 9.97% at $4.30/share. That means I’ve seen a total return of 18.25% in two days of trading.

What do you like to do when a stock is moving up so well? I like to buy more. And I plan on doing so, as long as it keeps going up. My favorite metaphor is that I’m trying to grab on to a rocket, and I can only guess and deduce the amount of fuel it has in it’s tank. This rocket is moving, and with a company that’s set up to release an industry beating product it could very well have a ton of gas in it’s tank!

When To Sell

In terms of selling Checkpoint Therapeutics, I don’t currently have a stop limit on it. This is thanks to the intricacies of Robin-Hood’s partial share investment program (allowing me to purchase in dollar amounts instead of a certain number of shares). If I did have a stop limit I would try to set it between 5 and 8% below the current price to lock in my 10% gains. Without a limit to set, I will be watching the stock and manually sell if the price drops down to below $4.00/share. As a personal preference, I also usually sell the stock if it stalls and goes sideways for a few days. I know it might not be done going up, but if it does go back to rising in price I will just see it back on my weekly stock screen search and buy-in again.

Checkpoint Therapeutics 9/17 update:

I woke up half an hour after the bell and eagerly checked my stocks only to be greeted with CKPT at $3.51/share, a 17.22% drop from the day before! My heart sank and I had to make a difficult choice: sell out or try and see if it recoups? I’ve been reading the term “dead cat bounce” in a few articles over the past week, so I decided to give it till the middle of the trading day to recoup some of that big fall and check again. It seems most of the market was rocked, 4 out of 5 of my picks for the week were heading down. I watched and sold most of my positions my mid afternoon.

As for CKPT, after heading up and just grazing $4.00/share, it started to head back down. I sold out at $3.75/share, locking in a nice 3% gain. Not as nice as it had looked the day before, but I consider a 3% for the week to be a win. If CKPT heads back up again it will show up in my search and I will certainly buy back in on a good trend as their business position remains solid.

Trade Log (CKPT):

09/14/2020:

Bought @ $3.27

09/15/2020:

Bought @ $3.90 

(Average purchase per share =$3.64/share)

9/17/2020:

Sold @3.75 


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