TPS Position Update – March 13, 2013

March 13, 2013

. . . . Rite Aid (NYSE: RAD) – Sell

The country’s third largest drug chain, RAD, has been a solid performer for us.  At the time of this writing, the stock’s up 46%.

Let’s go ahead and cash out here and collect the nice gains.

RAD’s been on a good run, but it’s trading well above all of its major moving averages.  We could see a pullback in the near future, especially with the company’s same store sales declining in February.

We think it’s important to capture our profits while the shares are trading near the highs. Rite Aid has been a nice investment, but now’s the time to sell our shares.

. . . . UQM Technologies (AMEX: UQM) – Sell

UQM hasn’t done much for us in quite some time.  Basically, for the last three months, the shares have done nothing.

When a stock flat lines, it’s a sign that it’s time for us to move on.

What’s more, there hasn’t been any interesting news on the stock in 2013.  There’s really no compelling reason to hold on to UQM any longer.

Let’s sell our shares here and conserve capital for more exciting opportunities.

. . . . Nevada Gold & Casinos (AMEX: UWN) – Hold

What a week for UWN!

The company just released fiscal third quarter earnings… and the results were stellar.

Revenues increased 20% year over year to $16.2 million.  Adjusted EBITEA doubled to $1.6 million.  And, earnings per share from continuing operations reached positive territory at $0.01.

That’s a great quarter across the board.  The gains were driven by strong performances at both the company’s Washington and South Dakota properties.

With the company’s strong cash flow, management can now pay down debt and further strengthen the balance sheet.  That’s a very good sign for investors.

The good news for UWN could just be getting started.  And, with the recent spike in the stock price, we’re moving this position to hold.  Hang on for bigger gains ahead.

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

• Sell Rite Aid (NYSE: RAD)
• Sell UQM Technologies (AMEX: UQM)
• Move Nevada Gold & Casinos (AMEX: UWN) from Buy to Hold

Category: TPS Update