IMPORTANT READ..... A message from the board is welcomed, no matter how little it offers as a plan for solvency for the company. However, keeping in mind that TECO is an E&P company, oil price is certainly an important part of the total plan for the company. Here's a thoughtful reason I have that oil may indeed go lower, but the low is close, if not already made. Why? As of today, some of the Middle East countries are taking actions deemed unfathomable just two years ago. What are they doing? They are having to liquidate their stock and bond holdings for foreign companies through their brokerage houses in London. WHOA! Really? Yes, really. And they are having to do that to keep the resulting sales of securities proceeds available to continue to meet their budget needs. You see, just as US E&P companies have experienced high deteriorating revenue streams, so have the Saudis and others in OPEC. And instead of cutting production, which would be the normal consideration to do and thus have a result of higher oil prices, no, instead they wanted to continue to hold their market share, or increase it. For sure you MBA's out there will wonder where these guys went to school, much less how they got that business experience. Haven't they learned a lesson from IBM and Xerox who wanted to do the same in that technology arena? At any rate, with the subsequent selling of securities, they could be a bomb dropping in the market valuations, and HOPEFULLY a subsequent rethinking of maintaining market share versus market revenue for OPEC. And that is why I predict that by mid year 2016 we will see a turnaround for oil and I think we will be back to the 50's and potentially high 50's by this time next year. In the meantime, what does that do for TECO? Perhaps it might be wise to consider options other than oil. How about SOLAR? Even a small company like TECO could become a player by becoming a regional supplier for one of the major solar powers. Then when oil recovers and offers a better opportunity for the company, they would be in both energy positions. Just my thinking. Happy New Year to all. Cheers!
(0)
(0)
Treaty Energy Corporation (TECO) Stock Research Links