TPS Position Update – September 29, 2015

. . . . PLATINUM GROUP METALS (AMEX: $PLG) – Sell 

In early August we told you, “Delays, production shortfalls, any significant problems and we’ll lick our wounds and head for the exits.”

The time has come to sell PLG.  There is still no firm indication that production will start in Q4, as we’ve been told, in the Waterberg Project in South Africa’s Bushveld Igneous Complex.

We need to exit this position and put an end to the waiting game.  The time has come to examine other opportunities.

While Platinum Group Metals tries to launch production, the market for platinum continues to deteriorate.  Platinum should be worth more than gold, but it isn’t.  It is 15 times more scarce than gold, but an ounce of platinum now sells for less than an ounce of gold.

The outlook for 2016 is not promising.  Even if there is an uptick in prices, this isn’t an assurance that the price of PLG will rise.

The futures price for platinum has bounced off its August low, but the global commodity glut has clearly taken its toll.

This combination of uncertain production and a soft market for platinum gives us two reasons why its time to move on from Platinum Metals Group.

. . . . FINJAN HOLDINGS INC. (NASD: $FNJN) – HOLD

Things are going well at this cybersecurity company.

The firm won a major patent infringement lawsuit and was awarded $39.5 million in damages.

The stock has rebounded from a June low of $1.23 and is currently trading at $1.66.  We recommended Finjan at $1.64.

We’re keeping an eye on revenue, which needs to grow.  The $700,000 in total revenue for Q2 was an improvement on Q1, but well short of where the company needs to be.  There was a $2.6 million loss for Q2.

We’re also watching the company’s cash situation.  Finjan went into the year with less than $15 million in the bank.  Two years ago it had $91 million.

New projects at Finjan include…

• New global cybersecurity risk advisory services.
• The release of a mobile secure browser for Apple and Android devices.

If the revenue picture doesn’t show signs of improvement over the next quarter, our concerns will grow.  For now, we’ll continue to ride the stock’s upward trend.

Action To Take

• Sell PLATINUM GROUP METALS (AMEX: $PLG)
• Hold FINJAN HOLDINGS INC. (NASD: $FNJN)

Category: TPS Update