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Betting on natural gas has been a tricky puzzle in recent years. While the consumption of the energy resource has generally been on the rise since the Great Recession, multiple factors, including geopolitics, can force dramatic changes. If you have been a long-time holder of Earthling (NASDAQ:TELL), you don’t need an explanation. Viewing a general TELL stock chart gives you all the information you need.
However, the circumstances are looking much better lately for the specialist in liquefied natural gas (LNG). Since the start of the year, TELL shares are up nearly 200%. Under normal circumstances, it is neither here nor there. But when dealing with Tellurian, even the most trivial details could be a hidden argument for acquiring more stock.
That’s right. For those who aren’t familiar, TELL’s stock has become a meme. And no one is happier than Charif Souki, the longtime entrepreneur who, according to a Wall Street Journal article, built America’s first natural gas export terminal. Here’s what Collin Eaton from The Journal had to say about his latest adventure with Tellurian:
“Mr. Souki, the company’s 68-year-old executive chairman, records monologues about the global gas market and the company’s latest offerings on his iPad, and rarely takes second takes. line investors with its public relations and investor officials to determine what they want to hear.
“’We have found so far that they are extremely loyal. They do their homework. They understand exactly where we’re trying to go, ”Mr. Souki said of his new fans. “We find the retail market to be much more long-term oriented than the hedge fund market. “
For the most part, it seems that the love is mutual. Even for the dilutive actions Tellurian made, Souki is quick to provide a reasonable account.
Take advantage of TELL Stock, but beware of backfire
As it happens, I put TELL on my list of natural gas fields to consider due to soaring energy prices. Moreover, one of my arguments for supporting Tellurian – at least in this phase of the market – is its first class management team. Eaton pointed out that Souki not only knows the LNG business, but also has a proven track record in business turnarounds.
Obviously, those who believe in the TELL stock are hoping for another performance. Maybe he will, maybe he won’t. Personally, while this is a great side story, the main catalyst is the various reasons why natural gas fields are soaring.
As The Old Farmer’s Almanac warned of 2022, prepare for a “chill season.” According to Janice Stillman, editor-in-chief of The Old Farmer’s Almanac, “This winter just might be one of the longest and coldest we have seen in years.” Other descriptions include phrases such as “positively freezing and below average temperatures” which run through most of the country.
As long as these projections are reasonably on target, TELL’s stock should benefit, albeit cynically. Then again, with people betting big to pay off their mortgages and student loans, the cynicism doesn’t matter, as long as you can cash out.
But that’s also part of the problem with the TELL stock. Towards the end of his article, Eaton made a seemingly fleeting point that is actually quite significant. “Several of Tellurian’s passionate individual investors have said in interviews that they have bet on the LNG developer, selling all or almost all of their positions in other companies.”
This last point is essential. As I have always asked about the wider economic and market recovery after the pandemic, where is the money coming from? In Tellurian’s case, this comes from sales of other memes stocks.
Be ready to go out
As much as I think the natural gas narrative is incredibly powerful right now and the TELL action has potential, we have to be realistic. If the community as a whole decides to get rid of the underlying LNG business, the sale could be quick and furious.
Yeah, tell me about diamond hands – but then talk to me about diamond hands when they’re hanging on to something tangible or meaningful, a mortgage, student loans, a dream wedding, whatever.
Not to inject myself into the story, but there is a reason I largely cashed in cryptocurrency and bought my house. With cryptos, I had a digital promise. By making the dream come true, I obtained a free and clear house. In this market, I could do a lot of good with it. In a declining market, I could do some good with this.
But you can’t say the same when you’re just keeping promises, digital or fair. Of course, if those promises are worth a few hundred dollars, diamond hands. But when the cash flow earns you, say, $ 3,000 a month in cash flow for your working life (and maybe your retirement), it will be difficult to convince others to sink with a sinking ship.
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As of the publication date, Josh Enomoto does not have (directly or indirectly) any position in any of the stocks mentioned in this article. The opinions expressed in this article are those of the author, subject to the publication guidelines of InvestorPlace.com.
Former senior business analyst for Sony Electronics, Josh Enomoto has helped negotiate major contracts with Fortune Global 500 companies. Over the past few years, he has provided unique and essential insight for the investment markets, as well as various other sectors, including law, construction management and health.
The Under This Market Paradigm post, Don’t Fight Tellurian’s Charisma first appeared on InvestorPlace.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.