TPS Position Update – February 11, 2015
. . . . Towerstream (NASDAQ: TWER) – Hold
Microcaps got off to a slow start in 2015, as investors have mostly been risk averse. However, the taste for ultra-affordable stocks has improved in recent days as investors look for bargains.
Take TWER for example. The stock has soared from its low in November. In fact, the share price has gone from below $1.20 to over $2.50 a share in about 3 months.
Our position is now a 36% winner. And, the move higher could just be getting started. At least part of the reason behind the climb is positive earnings news – a very good sign.
With the recent surge, we’re moving TWER to Hold.
. . . . Inuvo (AMEX: INUV) – Buy up to $1.65
INUV is another one of our positions which has recently made a big move higher. After falling to nearly $1 per share in January, the stock has shot up to above $1.45.
The position is now back in positive territory for us. Moreover, the reasoning behind the climb is encouraging. Fourth quarter revenues grew 36% year over year, while net income came in at $645,000. That’s a significant increase over last year’s loss of $253,000.
The company is clearly headed in the right direction. Go ahead and buy up to $1.65 if you haven’t yet done so.
. . . . Gevo (NASDAQ: GEVO) – Sell
While most of our portfolio is headed in the right direction, the same can’t be said for GEVO. The biofuels company got hammered at the end of January after announcing a new public offering of stocks and warrants.
When a microcap offers new stock, it’s generally not taken as a positive sign. Not to mention, it can significantly dilute the current shareholders.
While GEVO may eventually recover, the stock is in bad shape at the moment. We’re going to go ahead and collect what remains of our investment and reallocate it to better opportunities.
Sell your GEVO shares here.
Action To Take
- Move Towerstream (NASDAQ: TWER) from Buy to Hold
- Sell Gevo (NASDAQ: GEVO)
Category: TPS Update
