Why Tellurian Inc could be an opportunity for investor
Even without a product and with big risk, this stock could generate a large reward.
By Guy Avtalyon
Tellurian Inc trades on the NASDAQ under the ticker symbol TELL.
The large rewards always come with risks. So, if you want to make a big profit be prepared to take a big risk. But a smart investor can assume where the potential traps may occur.
Tellurian stock is such potential.
This is the natural gas company but without the product yet. Instead, it has plans to make the Driftwood export terminal and Driftwood pipelines. Tellurian, a natural gas company based in Texas, owns and manages the LNG processing and export facility through its wholly-owned subsidiary Driftwood Holdings.
The U.S. Federal Energy Regulatory Commission issued the final environmental impact statement for the LNG project in January and granted authorization to build and operate the LNG facility along with the pipeline in April this year. Tellurian Inc. is building the terminal that will be able to export up to 27 million, 600.000 tonnes of LNG per year to customers.
This project is still in the early stages of development, but it’s where investors see the final achievement of Tellurian’s potential. For example, India’s Petronet signed a memorandum of understanding with the LNG and took a stake in the project. Its expectation is to get five million metric tons of LNG per year.
On December 13, the stock traded at $6.57.
The analysts’ forecasts range from $6.00 to $20.00 with average expectations for Tellurian’s share price to reach $12.33 in the next twelve months. This implies the potential for the stock price to increase by 87.7% from the current price which is $6.56 today, December 16.
Tellurian Inc stock is likely a very good long-term investment.
Based on analysts’ estimates investors may expect an increase up to $11 over the next 5 years and also, the revenue to be about 70%. If you invest $10.000 today, your investment will be over $17.000 worth at that time.
Where is the risk with Tellurian Inc stock?
Investing in the company without the product is a big risk. Tellurian isn’t an exception. There is a risk but this company can easily be one of the few where the risk pays off.
Tellurian Inc (NASDAQ: TELL) published its quarterly earnings results on Wednesday, November, 6th. The company reported $0.18 earnings per share for the quarter, while analysts’ consensus estimates were $0.13 by $0.05. Tellurian Inc reported revenue of $9.34 million, while analysts expected $13.60 million. Also, the company had a negative return on equity of 57.16% and a negative net margin of 677.62%.
Why buy this stock?
The 50-day moving average for the TELL stock price trend is bearish. Currently, the stock price is decreasing from 50 SMA.
The company showed a return of 10.50% from the beginning of this year. The stock dropped for the last three days after a significant increase.
As we said, there is a lot of drawbacks with this stock but at the same time a lot of possibilities. Risk provides a profit. Maybe you just have to leave the comfort zone. But be careful and trade smart.
You can test as long as you want. The app is easy to use and all data is accurate. You just have to enter your exit strategy (stop-loss and take-profit levels) and the app will show you how it was executed in the last 7 days, 3 months, and one year. The ability to check your exit strategy will help you to significantly decrease the risk and make a profit.
That’s the end of every good trade!
