TPS Position Update – April 9, 2015

. . . . Inuvo (AMEX: INUV) – Hold 

What a start to the month for INUV!  The Internet marketing company has skyrocketed in April.  As of this writing, the share price was up to $2.75, or a 92% winner!

It appears the primary source of good news is the renewal of an agreement with Yahoo (YHOO).  The company’s existing advertising agreement with Yahoo will be extended with the same terms as before.

With as big a client as YHOO is, it’s obviously great news for INUV shareholders.  After the big jump higher, we’re moving INUV from Buy to Hold. 

. . . . Flexible Solutions International (AMEX: FSI) – Hold 

FSI has slowly but steadily made its way higher since we purchased the stock in February.  The position is now roughly a 15% winner.  Not too bad for an under two-month return.

The company is slowly being recognized by investors as undervalued, especially after posting reasonable quarterly results.  Sales and income are up year-over-year.  

Yet, the stock is still trading at a very low earnings ratio.  That bodes well for us since we got in at such a cheap price.  With the recent move higher, we’re moving FSI from Buy to Hold. 

. . . . American Superconductor (NASDAQ: AMSC) – Sell 

I once had very high hopes for AMSC.  However, lack of news – and lack of results – has sent the stock to a slow and steady decline.

What’s more, AMSC has undergone a 1 for 10 reverse stock split.  The boost to the share price was likely needed to keep the company listed on NASDAQ.  That’s generally not a good sign, as it means management didn’t expect the stock price to appreciate to the appropriate level on its own.

We’ve given AMSC a fair chance, but it doesn’t appear to have the upside hoped for.  Let’s go ahead and close this position here if you’re still holding the shares. 

Action To Take

• Move Inuvo (AMEX: INUV) from Buy to Hold
• Move Flexible Solutions International (AMEX: FSI) from Buy to Hold
• Sell American Superconductor (NASDAQ: AMSC)

Category: TPS Update