TPS Position Update – February 18, 2014

February 18, 2014

. . . . Asanko Gold (AMEX: AKG) – Hold

Asanko has really taken off since we bought it.  It’s only been about three weeks since our purchase, and the stock’s already up 38%.  That’s not a bad three-week return!

Basically, the acquisition of PMI has really gotten the company some positive (and deserved) attention.  Not to mention, the price of gold has recovered somewhat in recent days.

With gold prices potentially on the rise, and the PMI acquisition a done deal, AKG could really take off.

With the recent move higher, we’re moving AKG from buy to hold.

. . . . TransAtlantic Petroleum (AMEX: TAT) – Buy up to $0.96

TAT is just a couple of cents away from our entry point, but the stock is ripe for a move higher.

First off, oil and natural gas are getting a boost from extreme winter weather all across the US.  Moreover, the price of oil is expected to increase due a drop in inventories.

What’s more, the stock is sitting right at its 50-day moving average and just below the 200-day moving average.  If it breaks through the $0.80 level, there’s plenty of room to run.

If you haven’t yet purchased TAT, it’s a buy all the way up to $0.96.

. . . . Capstone Turbine (NASDAQ: CPST) – Hold

Capstone is one the oldest positions in our portfolio – and it’s been a good one.  As I write this, our gains are on the position are 64%.  Nevertheless, I think there are more profits to be had with CPST.

The company recently posted record revenues of $37 million, record gross margin of 20%, and record backlog.  Plus, the company has $31.6 million in cash.

When CPST turns a profit – which will likely happen this year – it’s going to attract a lot of attention.  And that’s when our gains will really start to add up.

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 Asanko Gold (AMEX: AKG) from Buy to Hold.

Category: TPS Update