wearmanyhats

Last week I mentioned that we were watching Tel Offshore Trust (TELOZ) as Hurricane Gustav came barreling down toward the Land Where All the Refineries Live.  Fortunately, the offshore platforms where TELOZ gets its money were just fine.  Unfortunately, Ike is blasting a wonder path right toward those same platforms.  Like a good Saturday morning serial at the movies, we have to wonder whether this time the category 4 storm is going to knock out the functionality of this oil producing rig.

So what does that have to do with investing?  Well, the last time Katrina hit that =platform, the dividend was cancelled and the stock dropped -KaBoom!  Anyone with a little faith could have picked it up at $4/share and watched it zoom in the next couple of years to $42/share.  Presto!  That’s the way to make money!

Our country isn’t the only one that is having a perfect storm.  So is TELOZ.  First oil is taking a drop, so TELOZ is dropping, too. According to the dividend history, it is pretty well established that the dividend will not be as lucrative as was the last one because the price of oil has dropped.   Plus investors are spooked because of Hurricane Ike.  And there is our opportunity. 

This is not the time to buy TELOZ;  it is the time to watch TELOZ with great focus.  We will need to act soon before the dividend annoucement is made, and that will be fairly soon.  How to tell when it is all going to turn around? No one does, of course.  But there will be a window of opportunity after Ike goes through, maybe even by the hour.  Let’s keep on top of this one.  I’ll be watching and writing about it.

Let’s make some money.

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