TPS Position Update – April 16, 2013

April 16, 2013

. . . . First Marblehead (NYSE: FMD) – Hold

FMD has been on a nice run lately.  The credit services company is trading at $1.15… a 31% increase.  That’s a solid 6-week gain for us.

There’s not a whole lot of news out on FMD.  The recent gains are mostly related to the continued recovery of the financial industry.

Moreover, as a specialist in educational loans, FMD could be a very attractive acquisition target.  A larger financial institution looking to diversify into educational loans would have no problem absorbing FMD’s business.

With the recent climb in the share price, we’re moving First Marblehead to Hold.  Hang on for bigger gains ahead.

. . . . Capstone Turbine (NASDAQ: CPST) – Buy up to $1.17

Capstone shares have pulled back somewhat in recent days, but we believe it’s just a short-term move.  You see, the company just announced some very positive news.

The world’s leading clean tech manufacturer of microturbines has just expanded its reach into China with three large sales.  The company is pulling in $1.3 million for the orders, which will be installed at oil and gas sites.

As these are CPST’s first orders into China’s oil and gas market, they represent an extremely important milestone.  Just think how big the oil and gas market is in China, and you can see how big of an opportunity this could be.

If you haven’t yet done so, buy CPST shares up to $1.17.

. . . . Syntroleum (NASDAQ: SYNM) – Buy up to $5.20

As we mentioned last time, SYNM has undergone a 1-for-10 reverse split.  The stock is holding ground just under our buy price as of this writing.

Here’s some good news…

The company just disclosed they’re receiving $9 million from a government tax credit. That’s not a bad chunk of change for a company with a mere $41 million market cap.

We think SYNM could be on the verge of some very good things.  And now they have plenty of cash to keep operations going for the foreseeable future.

Go ahead and buy the shares up to $5.20.

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

• Move First Marblehead (NYSE: FMD) from Buy to Hold

Category: TPS Update