PSB Portfolio Update March 2013

| March 21, 2013

March 21, 2013

Will The Small Cap Rally Continue?

For stock investors, March has been a strong month.  The S&P 500 is up 2% since this time last month.  And small caps have done slightly better, up 2.3% over the same period.

Despite the volatility brought on by Europe (does anyone even know where Cyprus is?), investors have mostly shrugged off concerns.  As economic data continues to come in generally better than expected, stocks have climbed.

Even better, the Fed is showing no signs of taking its foot off the gas pedal.  Bernanke and friends are continuing their current bond buying program for the time being.

It’s true, the economy is not out of the woods yet.  Unemployment is still high on an historical level.  GDP is still growing at a tepid pace.  And, Europe still has the potential for disaster.

Still, there’s a lot to be positive about.

Small caps and penny stocks should continue to be hot as long as overall risk remains bearable.  Small cap buying is clearly en vogue based on how many new highs we’re achieving in our portfolio.

And again, we’re seeing some very big winners.  We’re going to once more take some profits off the table this month while we trim down our portfolio to a more manageable level.

Meanwhile, let’s enjoy this nice small cap rally and take advantage of it while it lasts.

Now, on to the position updates…

Position Updates

Please Note:  We don’t necessarily update every open position each month.  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.

. . . . TravelCenters of America (AMEX: TA) – SELL

What a run for TA!

The soaring stock is now a 126% winner – as of last night’s close.  That’s an incredible gain in just three months.

While we like where TA is headed (strong earnings), this stock has gone parabolic in recent days.  It’s trading way over its moving averages.

We feel something of a pullback is in the cards, so let’s go ahead and lock in our impressive gains.

Congratulations on another great trade!

. . . . Nautilus (NYSE: NLS) – SELL

NLS has been another huge winner for us.

The shares hit a high of $7.45, an impressive 134% gain.  And, at last night’s closing price, we can lock in 124% gains.  That’s a nice chunk of change no matter how you slice it.

Moreover, the stock has spiked higher.  And, it’s trading well above its key moving averages.  If the market sells off, the shares could pull back in a hurry.

Let’s sell our shares here and collect well over 100% in profits.

. . . . AmeriServ Financial (NASDAQ: ASRV) – SELL

As of this writing, ASRV is a little over a 10% winner for us.

Although those aren’t big gains, we’re going to go ahead and take our profits off the table.

There’s nothing particularly wrong with this regional bank.  We just think there are better opportunities elsewhere.  There hasn’t been any meaningful news on the company in months.  And, the stock barely trades.

Let’s sell here and capture our gains in ASRV.

Action To Take

  • Sell TravelCenters of America (AMEX: TA)
  • Sell Nautilus (NYSE: NLS)
  • Sell AmeriServ Financial (NASDAQ: ASRV)

Category: PSB Portfolio Updates

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