TPS Position Update – April 16, 2014

April 16, 2014

. . . . Wave Systems (NASDAQ: WAVX) – Hold

Despite the volatility in small and microcap companies recently, our portfolio still boasts several big winners.  One of those very recent winners is WAVX.

After announcing a collaboration with Micron Technology (MU), WAVX shares soared higher.  The stock’s currently up about 60% from our entry point and has been as high as a 107% winner.

Basically, WAVX and MU are going to work together to develop solutions to strengthen user protection against current and emerging threats related to digital security.  Because MU is a huge company, this could provide a significant revenue opportunity for WAVX.

With the jump higher, we’re moving WAVX from Buy to Hold.  Hang on to the shares for even bigger gains ahead.

. . . . mCig (OTCBB: MCIG) – Buy up to $0.70

Being an OTCBB stock, MCIG has had to deal with greater volatility than stocks listed on more established exchanges.  This isn’t unusual.

In fact, MCIG has just come out with some very positive news.  The company’s launching its VitaCig product, a $2 eCig.  This eCig is novel because it’s nicotine-free and instead emits a flavorful vapor plus vitamins.

This new type of eCig could open up the product type to a whole new market.  Plus, it’s a great way for those wanting to quit smoking to have a relatively healthy alternative to the act of smoking.

We still believe mCig has plenty of upside.  And, with the recent selloff, we’re going to lower our buy up to price to $0.70.  Grab the shares now if you haven’t yet done so.

. . . . Metalico (AMEX: MEA) – Sell

MEA has been a decent position for us for almost a year.  It’s been a winner for roughly the last six months, including a short-term spike where it climbed as high as 87% above our entry point.

However, the stock hasn’t had a good up-day since February.  And, last earnings were nothing special.  Moreover, I believe we have some opportunities elsewhere in the industrial goods space.

Let’s go ahead and sell our MEA shares here while they’re up about 15%.  We’ll take our gains and reinvest them in more exciting 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 Metalico (AMEX: MEA)
• Move Wave Systems (NASDAQ: WAVX) from Buy to Hold
• Move mCig (OTCBB: MCIG) buy up to price to $0.70

Category: TPS Update