This month, we are recommending the sale of Tengasco Inc (TGC). Tengasco has been in the newsletter since 2008, and has had trouble finding a footing lately.
On page 6, we discuss the company’s recent decision to sell the majority of its Tennessee assets. However, the company’s results were adversely affected by a decrease in Kansas oil sales volume.
What’s more, over the past year, TGC has slid almost 50%. For those reasons, we think it’s time to part with Tengasco.
As is usual, the reported earnings resulted in a few category changes. Moving up this month is Intelligent Systems (INS)--Cat 3 to Cat 2. INS reported an increase in revenues along with a $312,000 income compared to a $265,000 loss in the same period last year. According to J. Leland Strange, INS’s CEO: “We continue to invest substantial resources to develop the processing services business and enhance financial transaction software solutions for prepaid, fleet and private label cards. We believe these investments will build long-term value despite a negative impact on current financial results.”
Also moving up is Newtek Business Services (NEWT)--Cat 2 to Cat 1. Newtek reported much improved financial results. Plus, management noted that the second half is typically stronger, alluding to expected growth this year.
Moving down this month are:
-ADDvantage Tech (AEY): two straight quarters of lower revenues and down earnings last quarter (Cat 1 to Cat 2);
-Goldfield Corp (GV): two straight quarters of down revenues and net income, resulting in a net loss of $706,247 this past quarter (Cat 2 to Cat 3).
Sell Recommendation/Category Changes (Sep. '13)