When researching these suspect stocks, at least check out their 10K and read their public statements. They can tell you all you need to know. Steer clear of a company that is doing a re-capitalization.
[quote:c006ba8a88="HappyHarry"]"KNOXVILLE, Tenn., October 20, 2003 — Tengasco, Inc. (Amex: TGC) announced today that on October 17, 2003, it filed a registration statement with the Securities and Exchange Commission with respect to a proposed rights offering to existing shareholders as of the record date, which has not been determined. The rights offering will provide that the holders of the Company's approximately 12 million outstanding shares of common stock may purchase two shares of common stock for each share held. The offer includes an over-subscription privilege whereby participating shareholders may purchase shares that were offered but not purchased by other shareholders." What the heck? They are re-capitalizing.[/quote:c006ba8a88] is that good or bad??
Most likely it's not good. They are drumming up more money to pay off their bank debt, but any time new stock is issued it dilutes the value of the existing stock for the existing share holders. This company lost an awful lot of money, there stock is at .50 cents or so and they are re-capitalizing. Not a good entry point, IMHO.
yeh i guess it does make sense. i also came accross this penny stock IZZI what do u guys think on the potential of this stock.
Income Statement Get Income Statement for: View: Quarterly Data | Annual Data All numbers in thousands PERIOD ENDING 30-Jun-03 31-Mar-03 31-Dec-02 30-Sep-02 Total Revenue 859 1,231 1,526 1,413 Cost of Revenue 549 821 1,022 828 Gross Profit 310 410 503 585 Operating Expenses Research Development 155 151 60 35 Selling General and Administrative 854 614 535 590 Non Recurring 225 - - - Others - - - - Total Operating Expenses - - - - Operating Income or Loss (924) (355) (92) (41) Income from Continuing Operations Total Other Income/Expenses Net - - - - Earnings Before Interest And Taxes (924) (355) (92) (41) Interest Expense 314 99 75 53 Income Before Tax (1,238) (454) (166) (94) Income Tax Expense - - - - Minority Interest - - - - Net Income From Continuing Ops (1,238) (454) (166) (94) Non-recurring Events Discontinued Operations - - - - Extraordinary Items - - - - Effect Of Accounting Changes - - - - Other Items - - - - Net Income (1,238) (454) (166) (94) Preferred Stock And Other Adjustments (153) (152) (155) (155) Net Income Applicable To Common Shares ($1,390) ($606) ($321) ($249
Man, the sales figures are plummeting and the losses are mounting. What the heck is going on with these guys?
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