TPS Position Update – May 21, 2013

May 21, 2013

. . . . Syntroleum (NASDAQ: SYNM) – Hold

It’s been an excellent month for SYNM.  Our position is up 30% as of this writing and recently hit a high of $6.21.  That’s was good for a 48% gain.

First off, the company reported a massive $1.15 EPS for the most recent quarter.  Much of the gain was due to a tax credit for alternative fuels.  The rest of the gain was due to the sale of a plant.

However, despite the non-recurring nature of the gains, the future looks bright for Syntroleum.  The economics of the industry are improving, and other companies in the space are showing the business model works.

Investors are piling into SYNM in anticipation of improving operating income in the months ahead. That’s great news for us.

With the share price shooting higher this month, we’re moving SYNM to hold.  Hang on for a chance at even bigger gains.

. . . . Axcelis Technologies (NASDAQ: ACLS) – Hold

ACLS continues to be a top performer for our portfolio.  The stock’s up nearly 30% and climbed as high as $1.60 this week.

Last time, we talked about Axcelis’ mostly positive earnings report.  Since then, the news has only gotten better.

The company recently received a significant order from a leading chip manufacturer in Asia.  The order is for ACLS’ new GSD High Performance End Station upgrade and is valued at over $1.4 million.

More importantly, it’s a great sign the company is on the right track.

With the share price climbing above our buying range, we’re moving the position to hold.

. . . . Mines Management (AMEX: MGN) – Sell

MGN hit a major snag this month and the share price has taken a turn for the worse.

Basically, investors were very disappointed with the most recent earnings report.  The company lost more money than expected and operating costs are going up.

It appears costs are rising faster than the company is able to make progress on their mining projects.  It may take a cash infusion in order to keep the business afloat.  That could mean more debt or a share dilution.

We’re not going to stick around and see what happens.  Let’s exit the position now and conserve the remaining capital.

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 Mines Management (AMEX: MGN)
• Move Syntroleum (NASDAQ: SYNM) from Buy to Hold
• Move Axcelis Technologies (NASDAQ: ACLS) from Buy to Hold

Category: TPS Update