TELLURIAN (TELL) CAN BE A MULTI-BAGGER BUT HIGH RISK

By?Nigam Arora?& Dr. Natasha Arora

Signal Limited is a Signal(s) with a great record in similar situations but does not meet all of the stringent criteria for a Signal.?Typically Signal Limited has higher risk-reward compared to a Signal over the short term.?

The Opportunity

Due to the Russia Ukraine conflict, Europe is looking for new sources of gas.?The?U.S. has an excess supply of natural gas.

The way to export natural gas to Europe from the?U.S. is to liquefy it and then ship it on specialized ships.?Liquefying natural gas in large quantities is a complex and expensive process.

Tellurian (TELL) wants to capture the opportunity and is building a production and export terminal in Louisiana. When completed, the terminal will be able to export 27 million tonnes of liquefied natural gas per year.

Multi-Bagger Stock

Tellurian is a speculative stock with the potential to be a multi-bagger stock. Please read the section titled Speculative Positions in the?Trade Management Guidelines?to learn more. Speculative positions can be very lucrative when managed correctly.?For details, see the Trade Management Guidelines.

The Problem

It takes billions of dollars to build a liquefied natural gas terminal. Tellurian is having trouble financing the project.

Since the deals between Tellurian and Shell (SHEL) and Vitol fell apart last fall, it was unclear if Tellurian would be able to secure the necessary financing.

Optimism

There are two reasons for optimism.

• It appears that Tellurian has continued to build the terminal while searching for additional financing.
• Tellurian has advanced the project funding through leaseback letter of intent and execution of a $1 billion land sale.

The Question

If Tellurian is able to raise the necessary financing, the stock will go higher.?How much higher will depend on the terms of the financing.

On the other hand, if Tellurian is not able to raise a sufficient amount and more time passes, the value of the project will diminish, and the value of the stock could go to zero.

What To Do Now

For those who are holding?TELL?as a very small portion of a well diversified portfolio and understand that the stock can go to zero, there is merit to holding.

For those who are not in the stock and wish to?add a highly speculative position with the understanding that the stock could go to zero, consider scaling in the buy zone of ?? (To see the locked content, please take a 30 day free trial).?The maximum recommended quantity is ??.?Please read the Speculative Positions section of the?Trade Management Guidelines.

Targets will depend on the terms and will be given when more information is available.?If financing is secured with positive terms, it would not be a surprise to see the stock go to ?? as the first target zone.?If the company survives with a good balance sheet, in the very long term, the stock can go to ?? under an optimistic scenario.

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