TPS Position Update – May 9, 2014

May 9, 2014

. . . . Lightbridge (NASDAQ: LTBR) – Sell

LTBR has been a strong position for us for almost a year.  The stock even traded over $3.50 for a brief period in March.  However, the recent risk-off trade in US equities is hurting small cap stocks such as this one.

The company’s earnings release this week wasn’t quite what investors had hoped for, and the share price has fallen to the 20-day moving average.  If it breaks through support, the next stop is $2.00 per share.

Given the tough environment for small caps right now, let’s go ahead and take profits on LTBR.  At the current price, we’re looking at 36% gains.  Remember, no one ever lost money from taking profits!

. . . . Global Geophysical Services (OTCBB: GEGSQ) – Sell

Global Geophysical (formerly GGS) is a huge mess of a company.  First, management said it was going to restate financials.  Then, the company declared bankruptcy.  Now, the stock has been delisted and is now on the OTC exchange.

Like I said… a mess.

Our opinion initially was to hold on to this train wreck of a company because the share price had already collapsed and we had essentially nothing left to lose.

However, now that the stock is listed on an OTC exchange, it will be nearly impossible for it to regain the lost ground.  Most people will never know it exists.  You could stash this stock and forget about it – maybe check on it a year from now.  But, our recommendation is to sell GEGSQ here and move on.

When dealing with risky micro caps, very rarely you come across situations like this. Sometimes, it’s best to move on and dedicate your time and resources elsewhere.

. . . . Ceres (NASDAQ: CERE) – Sell

We believe CERE might one day become the company we hoped it would be.  But, that day doesn’t look like it’s coming anytime soon.

Given the risk-off environment we’re seeing in small and micro caps, it’s a good time to cut bait on underperforming companies.  Ceres is one of those companies that just hasn’t lived up to expectations.

Let’s go ahead and sell CERE while we still have some equity remaining.  We’ll reallocate the funds to a more promising opportunity.

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 Lightbridge (NASDAQ: LTBR)
• Sell Global Geophysical Services (OTCBB: GEGSQ)
• Sell Ceres (NASDAQ: CERE)

Category: TPS Update