TPS Position Update – October 25, 2016

***A Special Message To Our Subscribers***

This is the final issue of The Penny Speculator.

As we told you last week, we are making this decision based on the behavior of the market.  Over the past few months, you have seen us selling, not buying.

We now have three stocks remaining in the portfolio.  Here is our thinking on each.

. . . . Vista Gold Corp (VGZ) – HOLD

We believe an appropriate amount of gold in your portfolio is always prudent.

Your definition of prudent will depend on your objectives and your outlook.  But what’s not open for discussion is the fact that the past few months have been tough for gold, and this trend has dragged down Vista Gold.

The company is no different today than when we recommended it in early September at $1.07.

Your patience will allow you to profit.

What’s the outlook for gold prices right now? A number of technical analysts are forecasting a pullback before the resumption of an upward trend.

. . . . Central Federal Corp. (CFBK) – HOLD

There are good reasons to keep Central Federal in your penny stock portfolio… solid management and a favorable interest rate outlook.

For the most recent quarter, which was reported June 30, net income was $422,000, down $45,000 or 9.6% compared to the same quarter in 2015.

The brunt of this was because of tax expenses.  The financial footing of the bank remains solid.  We expect Central Federal to perform well in the months ahead, and to do well in 2017.

Community banks will be able to increase revenues when interest rates go up.  Central Federal will benefit from this.  In the meantime, it is focused on managing expenses and expanding its loan pipeline.

. . . . Sino Global Shipping (SINO) – HOLD

Looking forward, it’s all about China.  When imports and exports are strong, so is Sino Global Shipping.

The combination of uncertainties about supply and demand of global shipping, and the direction of China’s economy, has served up a costly combination punch for Sino Global.

For fiscal 2016, total revenues were $7.3 million, down from $11.3 million the previous year.

This is the result of less shipping agency service business triggered by an economic slow-down, rising Chinese labor costs, and growing competition in the shipping industry.

We would suggest that you ride this storm out.  Hold your position in SINO. 

Action To Take

• HOLD Vista Gold Corp (VGZ)
• HOLD Central Federal Corp. (CFBK)
• HOLD Sino Global Shipping (SINO)

 

Final Thought:  Once again, we would like to thank you for your loyalty.

Your trust in us is appreciated.  We hope you have profited from our recommendations, that your experience has been a rewarding one.

Thank you for your support.  It has been our privilege to serve you.

Category: TPS Update