TPS Position Update – August 13, 2014

August 13, 2014

. . . . UR-Energy (AMEX: URG) – Sell

It’s hard to believe, but we’ve had URG in our portfolio since December of 2012!  For much of that time, the position has been in the black.

However, outside of a brief spike earlier this year, the share price has been in a fairly narrow trading range.  Moreover, we recently added another uranium company to our portfolio (URZ), which I believe has more upside.

As such, we’re going to close our URG position here.  At the current price, we’re looking at 39% gains.

. . . . General Moly (AMEX: GMO) – Sell

I don’t talk about GMO that much, because frankly, there hasn’t been much to talk about. The stock hasn’t been particular good or bad since it’s been in our portfolio.

In general, I’ll give a company that doesn’t move all that much about six months to prove its worth keeping.  We’ve given GMO about 8 months, and it’s just not that exciting of a position.

With the stock price just a bit under our original buy price, now’s the time to sell GMO. Let’s reallocate the capital to a more exciting opportunity.

. . . . Bluelinx Holdings (NYSE: BXC) – Hold

Our most recent position is off to a strong start.  We’ve had this position for not even two weeks, and it’s already been as high as a 19% winner.  Not a bad two-week return!

The company recently released strong earnings, which put a charge into the share price. Adjusted EBITDA came in at $10.6 million, which represents a huge $14.1 million increase from the same period last year.

Given the strong quarter, BXC could just be getting started moving higher.  With the recent surge, we’re moving the position from Buy to Hold.  Hang on for bigger gains ahead.

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 UR-Energy (AMEX: URG)
• Sell General Moly (AMEX: GMO)
• Move Bluelinx Holdings (NYSE: BXC) from Buy to Hold

Category: TPS Update