TPS Position Update – June 11, 2013

June 11, 2013

. . . . Capstone Turbine (NASDAQ: CPST) – Hold

June has been a great month so far for CPST.  The shares recently popped and are now over 30% winners for us.

Why the big jump?

The company announced a new order from CleanWorld Partners.  The order includes the C800 microturbine and the Clean Cycle 125 kW waste heat-to-electricity generator.

Now, one order isn’t going to make or break the company.  However, it’s a good step in the right direction.  And, if CleanWorld benefits from CPST’s products, then you can bet other companies will also want to capitalize.

With the recent climb in the share price, CPST has moved out of our buying range.  We’re moving the position to hold.

. . . . UR-Energy (AMEX: URG) – Hold

Another big mover in our portfolio has been URG.  The stock’s a 24% winner as of this writing, but has seen gains as high as 45% recently.

UR-Energy’s big news is the company’s securing of a bridge loan for $5 million.  This bridge money will provide working capital for the URG’s flagship Lost Creek project until funds from the State of Wyoming become available.

Basically, the loan ensures the company will be able to continue working until the State funds come in.  In essence, it guarantees the company’s going to be around for the foreseeable future.

And once the Lost Creek mine is in production, this stock could really fly.

With the recent price rise, it’s time to move the position to hold. Hang on for bigger gains ahead.

. . . . Revett Minerals (AMEX: RVM) – Sell

One of the dangers of investing in small miners is the unexpected nature of underground development.  Sometimes, problems pop up which are basically unforeseeable.

In the case of RVM, that’s exactly what happened.

While developing its Troy Mine in Montana, the company discovered unexpected structural damage. This damage is going to slow or stall development of the mine indefinitely.

With no timetable on when or if the Troy Mine reaches production, we’re going to exit the position.  Let’s sell out our RVM shares and preserve our capital for other opportunities.

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 Revett Minerals (AMEX: RVM)
• Move Capstone Turbine (NASDAQ: CPST) from Buy to Hold
• Move UR-Energy (AMEX: URG) from Buy to Hold

Category: TPS Update