TPS Position Update – September 11, 2013

September 11, 2013

. . . . Overland Storage (NASDAQ: OVRL) – Buy up to $1.20

We had our first big up move in OVRL since we got into the stock.  The shares jumped to $1.25 before settling back down into their normal trading range.

More importantly, the company recently released earnings and there are several reasons to be optimistic.

For one, sales in OVRL’s primary product, the SnapServer series, grew 63% from last year. What’s more, total gross margin for the quarter jumped 5% from the previous year.

Basically, as the company shifts its focus to its SnapServer products, you can expect more revenues and higher profits moving forward.  Let’s wait and see what the coming weeks bring.

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

Axcelis continues to be one of our top performers.  The shares are trading near their portfolio highs – up 95% as of this writing.

Nothing really new has come out on the company, but it does seem to be gaining some mainstream attention.  As these smaller stocks perform well, they start to catch the eye of value-seeking investors or small funds.

ACLS now looks good both technically and fundamentally, so it’s bound to start pulling in buyers.

Fortunately for us, we got in ahead of the crowd!  Keep holding ACLS for bigger gains ahead.

. . . . Iteris (AMEX: ITI) – Sell

With ITI, I believe we may own the most boring stock on the planet.  The share price hasn’t moved out of five cent range in two months.

Plus, there hasn’t been any interesting news on the company since earnings (which also didn’t move the stock price at all).

Basically, we’re wasting our capital on this lackluster company.  The price is pretty much sitting right where we got in.  So, let’s go ahead and sell our shares.  We’ll allocate the capital to a more exciting 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 Iteris (AMEX: ITI)

Category: TPS Update