TPS Position Update – December 19, 2014
December 19, 2014
Editor’s Note: Due to the upcoming holidays, we won’t have any new trades or updates until after the first of the year. We hope everyone has a great holiday season!
. . . . Gevo (NASDAQ: GEVO) – Buy up to $0.40
If you’re relatively new to this service, you may be somewhat alarmed at what’s happened to some of our recent picks. It’s important to keep in mind, micro cap stocks can be volatile. And they tend to perform well/poorly in stages depending on investors’ risk appetite.
It’s also important to note, micro caps tend to be energy stocks, raw materials producers, and tech stocks. Energy stocks have gotten slammed by the crash in crude oil prices. And, raw materials and tech micro caps have been lagging the overall market. For better or for worse, those companies comprise the vast majority of our portfolio.
GEVO, an energy stock, is getting crushed because of crude oil prices. It has nothing to do with the company itself. We’re going to have to be patient with this company given the market environment. Over time, there’s no reason this stock won’t hit our expected levels.
For now, we’re lowering the buy up to price to $0.40. Let’s just be patient with this stock. It will rebound when the energy market improves.
. . . . Vantage Drilling (AMEX: VTG) – Buy up to $0.70
Of course, VTG, an exploration and drilling company, is exactly the sort of company getting hit hardest by the crude oil crash. However, we’re not giving up on it.
You see, the damage in crude oil has mostly been done. There’s not a whole lot of downside left. And, we hate selling at the bottom.
Let’s give VTG time to recover… because eventually it will. We’re moving the buy up to price down to $0.70.
. . . . Uranerz Energy (AMEX: URZ) – Buy up to $1.40
URZ, as a commodity/raw materials company, is the type of business that should suffer collateral damage from the plunge in oil prices. It’s also an alternative energy business, so that’s a double whammy.
Yet, the stock has mostly held in there. It’s just a bit below our entry price. I think it’s a very good sign that the share price should recover quickly.
You see, China is going to be pushing forward with its massive nuclear plant build out, regardless of the price of oil. In other words, URZ and other uranium companies should be solid long-term winners.
Go ahead and buy URZ up to $1.40 if you haven’t done so 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 Gevo (NASDAQ: GEVO) buy up to price to $0.40
- Move Vantage Drilling (AMEX: VTG) buy up to price to $0.70
Category: TPS Update