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From: ms.smartest.person	2/8/2006 12:53:01 AM
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Tengasco(AMEX: TGC) Tengasco is an oil and gas exploration and production company based in Knoxville, Tennessee. It leases producing and non-producing properties with a view towards exploration and development. The company has interests in 129 producing oil wells and 51 producing gas wells in the vicinity of Hays, Kansas; and 22 producing gas wells and 5 producing oil wells in the Swan Creek Field, Tennessee. Tengasco markets its crude oil to local refining companies, local utilities, and private industry end-users; and natural gas to local utilities, private industry end-users, and natural gas marketing companies. TGC is in a hot sector in the energy market. The S&P Oil and Gas Index advanced 61% in 2005 versus a 3.8% gain in the S&P 500 and is continuing to run hard this year. Oil and energy prices are firming and appear poised to break to new 52-week highs over the next few months. Our energy positions on the recommendation list are performing extremely well. TGC suffered from falling energy prices between 2000 and 2004 which affected company margins. In fact the company operated at a loss until last year. 2005 was a turn around year for the company that saw its net income increase by 42% and its EPS grow by 103%. Shares of the company are still relatively cheap when compared to other energy stocks. TGC is trading at a book value of 1.47 when most energy stocks trade with a book value of 4.18 and the average stock in the S&P 500 trades at a book value of 4.07. TGC has seen quarterly earnings and revenue growth in each of its last six quarters, a trend that should continue throughout 2006. Shares of TGC fell between 2001 and the first quarter of 2005. They bottomed just as the company's earnings swung into the black. The stock popped hard at the end of the year and has been basing so far in 2006. The stock is now above its 150-day moving average, which is now bottoming out after declining for years. The stock was in a stage one base between the middle of 2004 and the end of 2005 and is now in a stage two advance. Insiders have bought up 6.5% of the stock's float in the past six months in prices ranging from 20 cents to 49 cents a share. On a daily chart TGC has support at 55 cents and resistance at 65 cents. The stock closed Friday at 63 cents. I am adding it to the recommendation list at today's opening price and placing a stop below 50 cents a share. Once the stock closed above 65 cents I believe it will make a run to its 52-week high resistance level of $1.00. Ultimately I think TGC can go to $1.50 - $2.00 this year if the energy sector continues to go up the way I think it will. Trader Mike

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