TPS Position Update – March 26, 2013

| March 26, 2013

March 26, 2013

. . . . Gleacher & Company (NASDAQ: GLCH) – Sell

We originally bought GLCH because it was a strong acquisition target.  The company had put itself up for sale and seemed to be a good candidate for a buyout.

When the company recently took itself off the market, we thought it might be a good thing.  Maybe the business was heading in the right direction.

Apparently, that wasn’t the case.

After losing important clients and key management personnel, GLCH has now put itself back up for sale.  Clearly, things aren’t going as well as we hoped.

We don’t want to take any more chances.  Let’s sell our GLCH shares while they still have most of their value.

. . . . MCZ Interactive (AMEX: MCZ) – Sell

MCZ is certainly making an effort to improve.  The company is actively launching new products and participating in conferences.  But, investors just don’t seem to care.

Despite shifting its focus towards high-value products, MCZ is seeing declining sales in its key market – North America.  Until North American sales show an uptick, investors are likely to balk at getting back into the stock.

Let’s sell our MCZ shares and conserve capital for now.  We may revisit this company down the line to see if any opportunities exist.

. . . . Syntroleum (NASDAQ: SYNM) – Buy up to $0.52

SYNM just announced that its Board of Directors has approved a 1-for-10 reverse stock split.  This reverse split is planned to go live after the close of trading on April 11th.

As a result of the reverse split, every 10 shares of SYNM will be converted into 1 share, but the share price will be 10 times higher.

Normally, investors view reverse splits as a negative sign.  It could mean management doesn’t expect the stock to climb above $1.00 anytime soon.  So, they have to act so they don’t get delisted by the exchange.

In this case, we’re not worried. We know SYNM is not quite there yet.  The company’s business is still in the development stage.  And, management is doing what it needs to do to buy time.

We still like the direction SYNM is headed.  And, we see no reason to give up on the stock due to a reverse split needed for regulatory purposes.  If you haven’t done so yet, buy your shares up to $0.52.

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 Gleacher & Company (NASDAQ: GLCH)
  • Sell MCZ Interactive (AMEX: MCZ)

Category: TPS Update

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