Eagle & Beagle
Our eagle this week isn't flying all that high, but even a mild updraft is pleasing to shareholders.
Shares of ADDvantage Technologies Group Inc. rose 8.2 percent last week, although that price hike amounted to just an 18-cent gain. The stock closed Friday at $2.38.
The Broken Arrow company sells cable TV equipment to other companies and operates a string of repair centers. During its most recent conference call last month, CEO David Humphrey said that rough weather that damaged installed equipment in other parts of the country boosted sales.
The company also reported that its profits doubled in the quarter that ended Dec. 31. That net income grew to about $800,000 from about $400,000 in the same period a year earlier.
That may not sound like much for much larger companies that deal in millions and billions, but a profit is a profit. And AEY is pretty consistent about posting them quarter after quarter.
This week's beagle got slapped down by an Internet report.
Chesapeake Granite Wash Trust fell 20 percent last week, closing Friday at $13.74 after hitting a 52-week low of $13.07 on Wednesday. The CHKR units were heavily traded the last three days of the week.
The price drop and trading surge came after investing website Seeking Alpha published an article early Wednesday highlighting what the author called a sharp decline in the proved reserves held by the trust. The author, Daniel R. Moore, said that although some of the decline was attributable to lower natural gas prices, much of the reduction was due to poor well results.
Moore said he had sold his CHKR units based on his review of the data contained in the company's annual report, but in online comments said he was considering buying back in at the current lower price.
His commentary generated some confusion among commenters, which is a good reminder to read and understand prospectuses and other documentation before you invest.
Eagle & Beagle is a weekly look at the state's high-performing (eagle) and low-performing (beagle) by Business Editor Don Mecoy.