TPS Position Update – October 29, 2014

October 29, 2014

. . . . Asanko Gold (AMEX: AKG) – Sell

Precious metals (and companies that mine them) are becoming less attractive investments as macro fears start to settle.  There just aren’t that many compelling reasons to go long gold or silver right now.

As such, it’s time to sell out our AKG position.

It’s still a small winner for us, so we might as well capture the gains we have in it.  Once again, the stock is not likely to make a run higher anytime soon – but there’s real downside risk remaining.

Sell AKG here.

. . . . ZBB Energy (AMEX: ZBB) – Buy up to $1.00

If you remember, ZBB dropped sharply after issuing new common stock.  Typically, that’s a short-term situation, and eventually the stock picks up steam.

We also lowered our buy to price to $1 in order to take advantage of this common scenario.  And it looks like everything is going as planned.

The stock climbed over 30% after it released good earnings at the start of October.  Then, the shares moved even higher after the company regained AMEX listing requirements.  Keep in mind, that was the entire point of the stock issuance – to stay listed (as well as raise money).

The stock now looks ready to make a run at the 200-day moving average, just under $1.50.  Buy ZBB up to $1 if you haven’t done so already.

. . . . Uranerz Energy (AMEX: URZ) – Buy up to $1.40

URZ has taken a hit, along with most of the small cap market, but there’s still good reason to remain optimistic on this stock.

In fact, the company recently made its first uranium delivery.  Yes, it’s no longer a resource development company and is now a resource production company.  That’s a big deal.

URZ sold 75,000 pounds of uranium as part of a long-term contract.  As the company continues to meet the production needs of its contracts, the money should really start flowing in.

Go ahead and buy URZ here if you don’t own it already.

Please Note:

We don’t necessarily review every open position in each Position Update.  We focus on the positions experiencing significant news, notable price movement, or a change in recommendation.  Please refer to the Performance page on our website for our current buy, sell, or hold recommendation for any positions not mentioned in the Update.

Action To Take

• Sell Asanko Gold (AMEX: AKG)

Category: TPS Update