TPS Position Update – August 6, 2013

August 6, 2013

. . . . Lightbridge (NASDAQ: LTBR) – Hold

Well, it’s been an interesting week or so for LTBR.  To the surprise of everyone, the stock shot up 98% in one day!  Since then, the share price has given back most of its gains – but it’s still a small winner for us, and trading roughly $0.20 higher than it was prior to the spike.

First off, we didn’t sell after the big move because I assumed some big news was coming out and someone was front running it.  There was a possibility the stock was going to keep climbing.  After all, earnings were about to be released.

However, earnings turned out to be relatively tame. And since then, the share price has pulled back.  Nevertheless, there is some very positive news in the earnings release.

Essentially, tests have shown that LTBR’s product is a safer alternative to standard nuclear fuel.  In other words, the company is in position to secure several key contacts by the end of the year.

And we definitely want to own the stock when contract negotiations come to a close.  As such, we’re moving LTBR to Hold. Hang on to the shares for significant upside potential.

. . . . UR-Energy (AMEX: URG) – Hold

URG continues to be a top performer for us.  Our position is currently up over 40% – but climbed as high as a 70% winner recently.

And this could just be the start.

You see, the company has officially begun uranium mining operations at its Lost Creek mine in Wyoming.

That’s what we’ve been waiting for.  Now, the company is in the production stage and can start earnings revenues on long-term contracts already in place.

It’s taken eight years to get this mine going, and the money is finally going to start rolling in.  Let’s hang on to the shares and see what the company can do now that this huge milestone has been reached.

. . . . Cereplast (OTC Markets: CERP) – Sell

CERP has been a disappointment for us.  The stock has never recovered after getting delisted from the NASDAQ.

Basically, we held on to it despite the delisting because the fundamentals of the company didn’t really change.  The selloff had nothing to do with the company itself and all about the market it was trading on.

However, there are just too many investors who won’t invest in a stock trading on an OTC market.  And after more than a year, CERP isn’t anywhere close to its pre-delisting levels.

Sell your shares of CERP now if you haven’t already done so.

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 Lightbridge (NASDAQ: LTBR) from Buy to Hold
• Sell Cereplast (OTC Markets: CERP)

Category: TPS Update