TPS Position Update – March 11, 2015

. . . . Vantage Drilling (AMEX: VTG) – Sell

I’ve had a change of heart about drilling companies. Basically, they aren’t worth owning right now. The fact of the matter is oil is going to remain cheap for a considerable amount of time.

Crude oil inventories are as high as they’ve ever been… and continue to rise. There simply is no realistic way small drillers like VTG can compete in this low price environment.

Let’s go ahead and sell VTG and collect what remains of our capital. We’ll reallocate to an opportunity with bigger upside potential.

. . . . ZBB Energy (AMEX: ZBB) – Sell

ZBB isn’t in the oil business, but it is an energy company. As such, it’s struggling along with the entire sector. In general, smaller renewable energy companies can’t compete with such cheap oil at this time.

In a nutshell, ZBB has declining revenues, increasing costs, and increasing net loss. That’s just not a promising combination.

We’re going to sell ZBB as well as we continue to cut our exposure to energy-related companies.

. . . . Golden Minerals (AMEX: AUMN) – Sell

To complete our trio of stock sales today, we’re going to part ways with AUMN. The precious metals miner hasn’t been able to recover lost ground, despite the early year spike.

Precious metals are dealing with significant headwinds with substantial dollar appreciation. The prospect of a coming rate hike is resulting in a soaring USD.

And that’s almost always bad news for commodities. Sell your AUMN shares here.

Action To Take

• Sell Vantage Drilling (AMEX: VTG)
• Sell ZBB Energy (AMEX: ZBB)
• Sell Golden Minerals (AMEX: AUMN)

Category: TPS Update