TPS Position Update – November 20, 2013

November 20, 2013

. . . . Hudson Technologies (NASDAQ: HDSN) – Hold

HDSN is moving higher and is just under a 20% winner for us.  That’s not bad for a roughly 1-month return.

The company’s most recent earnings results were reasonable, highlighted by a 5% year over year increase in revenues.  More importantly, the company amended a loan agreement with its lender to make it easier for it to comply with the loan covenants.  This should ease most default concerns moving forward.

Hudson’s business was hurt by an EPA ruling in April causing the company to take a major write-off.  Now that the negative impact has been fully built in, the stock should continue its march higher.

With the recent increase in the share price, we’re moving HDSN to hold.

. . . . First Marblehead (NYSE: FMD) – Sell

Well, we had a nice run in FMD during the year before the lawsuit killed the shares.  But now, we believe it’s time to move on from this company.

The stock price hasn’t recovered from the lawsuit at all.  And in fact, it’s moving even lower.  What’s more, the company just announced a 1 for 10 reverse split.  That tends to be perceived as a bearish action by investors.

Let’s go ahead and sell out our FMD position while we’re able to conserve a majority of our capital.  There are plenty of opportunities out there with better upside potential.

. . . . Unwired Planet (NASDAQ: UPIP) – Sell

UPIP is our oldest position and I had high hopes for this company over the long-run. Unfortunately, the shares have stagnated and recently begun to move to new lows.

Essentially, the company hasn’t been winning or settling any of its patent lawsuits – which is how it earns revenues.  If the intellectual property the company holds isn’t paying off, then there’s really no reason to stay invested.

It’s time to sell out our shares in UPIP and move on.

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 First Marblehead (NYSE: FMD)
• Sell Unwired Planet (NASDAQ: UPIP)
• Move Hudson Technologies (NASDAQ: HDSN) from Buy to Hold

Category: TPS Update