TPS Position Update – October 27, 2015

| October 27, 2015

TPS Position Update

. . . . Towerstream (NASD: $TWER) – Hold 

We are looking forward to reviewing Towerstream’s Q3 2015 earnings report scheduled for release the second week in November.

Towerstream is a “Fixed Wireless Fiber Alternative” company.  It sells high-speed internet access to businesses in 12 cities including New York City, Boston, Los Angeles, Chicago, Philadelphia, and San Francisco.

We’ll be paying particular attention to see how well the company is monetizing its recent installation activity.

Over the past few months, Towerstream added 55 building installations and 44 customers.  At the end of September, it had a total of 155 building installations and 142 customer connections.

Is this enough activity?  If so, is it sustainable, and scalable?  

Or is Towerstream another one of those companies with great technology it can’t turn into a profitable business?

The Q3 results will give us a better understanding.  And we will keep you updated.

For now, the stock is not performing well.  On August 13th, it traded at $2.02.  Today it’s at $0.75.  

But we don’t want to make a move too soon and miss what could be a nice uptick when quarterly results are reported.  For now, let’s hold. 

 . . . . Nevada Gold  (NYSE: $UWN) – Hold 

When Nevada Gold released its fiscal Q1 results last month, we saw the company holding steady in some areas, making good progress in others, and planning for future earnings growth.

Net revenues for the first fiscal quarter of 2016 came in at $15.9 million, the same as Q1 for fiscal 2015. Operating expenses were $15.2 million, down from $15.3 million the prior year. 

Operating income was up 33% to $0.8 million from $0.6 million.  Income before taxes was up to $0.7 million from $0.5 million from the prior year.

We are watching the firm’s acquisition of Club Fortune Casino in the Las Vegas suburb of Henderson Nevada, scheduled to close before the end of 2015.

Meantime, the stock is doing well.  It has made up just about all of its September losses, after peaking at $1.83 on September 14th.  Nevada Gold is trading at $1.77 and we expect steady increases ahead. 

Action To Take

  • Hold Towerstream (NASD: $TWER)
  • Hold Nevada Gold (NYSE: $UWN)

Category: TPS Update

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