TPS Position Update – October 16, 2013

October 16, 2013

. . . . Ceres (NASDAQ: CERE) – Hold

CERE saw a big jump in share price this past week and is now a roughly 20% winner for us.

The agricultural biotech company could be on the move for a couple reasons.  For one,Forbes called out CERE as a significantly undervalued company.

Moreover, the company could be gaining traction on its use of sweet sorghum to produce renewable biomass energy.  Sweet sorghum has advantages over sugarcane and corn and could be the next big energy crop.

With the recent move higher, I’m moving CERE to Hold.  Hang on for bigger gains ahead.

. . . . Quicksilver Resources (NYSE: KWK) – Hold

KWK continues to roll. The natural gas producer is now up nearly 50% from our entry point.

There’s not a lot of additional news on KWK, but the shares are following the price of natural gas – which has gone nearly straight up in recent days.

If the unusual weather holds, KWK could very well keep climbing.  Let’s hang on to our shares for bigger profit potential.

. . . . Metalico (AMEX: MEA) – Hold

What a week for MEA.  The stock has been sitting at its 50-day moving average for a quite a while.  But, it finally burst higher and even broke through the important 200-day moving average resistance level.

Our position is now up 22% after being stagnant for months.

The big driver of the move is the positive news from industrial metal powerhouse Alcoa(AA).  AA management is seeing the industrial metals industry improving – and they have a solid track record of being correct.

Things could just be getting started for MEA.  Let’s move the position to Hold.  Keep holding for a chance at big gains.

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

• Move Ceres (NASDAQ: CERE) from Buy to Hold
• Move Metalico (AMEX: MEA) from Buy to Hold

Category: TPS Update