TPS Position Update – August 5, 2015

. . . . INUVO (AMEX: $INUV) – Hold 

It’s been a good year for the stock.  We recommended Inuvo in October 2014 at a buy price of $1.43, and right now it’s trading at $2.81.

Is it time to take your money off the table?  

I’m inclined to hold, and here’s why.

In a recent letter to shareholders, Chairman and CEO Richard Howe explained…

“Inuvo makes money by serving both content and advertising across a network of websites and applications, both mobile and desktop. As we look towards the future, we believe stockholder value will continue to be created by 1) expanding our Digital Publishing footprint and 2) successfully launching our new Native Advertising product, SearchLinks.”

Native advertising is the belle of the ball in the digital marketing world right now.  It is an updated version of what used to be called “Advertorial” where the advertising content is full of useful, relevant information.

The Interactive Advertising Bureau projects $21 billion in global revenues for native advertising by 2018.  Right now it’s at $7.9 billion.

Inuvo will need to maintain its focus on advertising technology and digital publishing in an environment that is volatile and competitive.

It will need to continue to demonstrate the financial responsibility of the past year, especially when it comes to paying down debt.

And it will need to continue to grow revenue, which was up 33% in Q1.

A tall order?  Clearly.  Doable?  We believe so.  

. . . . PLATINUM GROUP METALS (AMEX: $PLG) – Hold 

When PLG released its quarterly results last month, we heard what virtually every mining company has told every shareholder since stocks were first traded…

“Hold on.  We’re getting close to production.”

While we’re happy the targeted production date for the company’s project in South Africa is closing in, we’re not at all happy with what the stock’s been doing.

Right after we recommended PLG in January 2015 at $.50, it perked up to $.59.  Since then, it’s been sliding.

Platinum prices overall are starting to edge back up.  It sells for roughly $1,000 an ounce.  Less than two years ago, it sunk to $638.

That’s good for PLG.  And something else to consider… less than five years ago, this was a $2.66 stock.  It doesn’t comfort us that other investors have been harder hit than we have, but we can’t help but think the market undervalues Platinum Metals Group.

We look forward to PLG delivering on its promise… 250,000 ounces a year of platinum, palladium, rhodium and gold from the new facility known as WBJV Project 1 Platinum Mine, or “Project 1”.

Delays, production shortfalls, any significant problems and we’ll lick our wounds and head for the exits.

. . . . URANERZ ENERGY (AMEX: $URZ) – Sell

The acquisition of Uranerz by Energy Fuels Inc. (NYSE: $UUUU) has now closed, and each Uranerz shareholder has received .255 shares of UUUU.

If you own this stock, sell all your shares of UUUU.

We will be removing URZ from the portfolio because trading in shares of common stock of Uranerz has been formally suspended.

Action To Take

• Hold INUVO (AMEX: $INUV)
• Hold PLATINUM GROUP METALS (AMEX: $PLG)
• Sell ENERGY FUELS INC. (NYSE: $UUUU)

Category: TPS Update