TPS Position Update – August 29, 2014

August 29, 2014

. . . . STR Holdings (NYSE: STRI) – Hold

Lots of big news out of STRI this month.  The company is selling its controlling interest to a leading Chinese solar power developer, Zhenfa Energy.

The deal will be made at a share price of $1.60, which was a 23% premium to the price at the time of the announcement.  More importantly, those owning STRI shares at the time of the transaction will receive a special cash dividend of $0.85.

We’re moving STRI to Hold – with this transaction coming up, the price may not move all that much.  For those who own the shares, you definitely want to hold on and pick up that robust $0.85 dividend.

. . . . FuelCell Energy (NASDAQ: FCEL) – Hold

We haven’t talked about FCEL in a while, and it’s now our oldest position in the portfolio. As of this writing, we’re up 94% on the stock.

But, there may be even more upside ahead.

The company just announced it’s made progress on a project to separate carbon dioxide from emissions of coal-fired power plants.  With coal being the dirtiest of all fuel sources, this is clearly a big deal.

As the company has just about one more stage to complete before commercialization of this technology, there could be a very bright future ahead for FCEL.  Hang on to your shares if you own them.

. . . . mCig (OTCBB: mCig) – Buy up to $0.45

mCig has obviously been a disappointment so far, but I’m not ready to give up on it just yet.  Normally, we’d sell a stock that’s dropped this far.  However, with mCig being an OTC stock, it could easily move back into profitable range for us in a hurry.

The stock has taken a beating as the public questions the safety of vapor-based products.  What I like is mCig management has been aggressive about defending its products and focusing on their merits.

I believe the action in mCig is going to turn positive as long as we’re patient.  As such, we’re lowering the buy up to price to $0.45.  Feel free to grab the share if you haven’t already.

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 STR Holdings (NYSE: STRI) to Hold
• Move mCig (OTCBB: mCig) buy up to price to $0.45

Category: TPS Update