TPS Position Update – September 19, 2014

| September 19, 2014

September 19, 2014

. . . . ZBB Energy (AMEX: ZBB) – Buy up to $1.00

ZBB got hit hard at the end of the week, dropping 15% out of the blue.  There’s not a whole lot of reason behind the selling.  It could be technical selling, risk-averse traders dumping before the weekend, or just a general risk-off mode in the market.

Because there’s nothing definitive to cause this selloff, I don’t believe there’s any reason for us to take action.  The company’s energy storage products are still top-notch.  And, the market for the products is very promising.

In fact, this decline could present an opportunity if you haven’t purchased the shares yet. We’re going to move the buy up to price to $1.00.

. . . . Golden Minerals (AMEX: AUMN) – Hold

AUMN is another company with a promising future that’s getting hit hard due to short-term events.  In this case, the company sold off sharply after announcing an equity fundraising round.

Essentially, the shares were sold for a price of $0.86.  It makes sense for the share price to fall to that level… but the continued selloff is a mystery.  I suppose investors just wanted out after the fundraising round.

Personally, I think it’s ridiculous.  The company just reopened one of its major mines and will start seeing a major bump in production.  Once the stigma of the funding round wears off, the stock should rebound back to a more reasonable price.

Given everything going on with this company, we’re going to move it from Buy to Hold for now.

. . . . LifeVantage (NASDAQ: LFVN) – Sell

LFVN hasn’t moved very far from our entry point, but we believe it’s time to pull the plug on this nutraceutical company.

Not only has volume dipped, but price action has not been favorable.  Plus, there just hasn’t been any positive news to speak of in the last couple months.

We either like to see better price action or more encouraging news from a company to remain in our portfolio.  Let’s go ahead and sell LFVN while we can conserve the majority of our capital (and redeploy it to something more exciting).

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 Golden Minerals (AMEX: AUMN) to Hold
  • Move ZBB Energy (AMEX: ZBB) buy up to price to $1.00
  • Sell LifeVantage (NASDAQ: LFVN)

Category: TPS Update

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