Pyxis Tankers Inc. (PXS-Q)

Our PAST TOP PICK with PXS has triggered its stop at $4.75.  To remain disciplined, we recommend covering the position at this time.  Combined with our other guidance, this will result in a net investment loss of 7%.

We reiterate this tanker operator as a TOP PICK.  Management announced a higher 91% capacity utilization rate at charter costs 78% higher than a year ago.  We like that quarterly cash reserves are growing, while the company continues its share buyback program.  It trades at 3x earnings, under book value and supports a ROE of 38%.  We recommend trailing up the stop (from $4.25) to $4.75, looking to achieve $6.50 -- upside potential of 28%.  Yield 0%

The Greece based tanker operator owns six refined petroleum products and dry bulk mid-sized cargo ships in Europe.  It trades at 3x earnings, under book value and supports a 36% ROE.  They are prudently drawing some cash reserves to aggressively retire debt and buy back shares.  We recommend setting a stop at $4.25, looking to achieve $6.75 -- upside potential of 28%.  Yield 0%