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Teal Valley T.TV


Primary Symbol: P.TEAL

Teal is a Canadian, pharmaceutical & NHP manufacturer selling to Canada’s national, chain drug stores, presently expanding its portfolio to include cannabinoid-based products utilizing proprietary formulations & extractions for both the global Rx & recreational markets.


P.TEAL - Post by User

Bullboard Posts
Comment by michigan33on Sep 22, 2016 10:45am
138 Views
Post# 25265342

RE:BNN

RE:BNNAnytime a compay is reliant upon a single commodity it is high risk.  We are, and always will be, at the expense of Zinc prices.  Trevali also has added risk because of it's high debt and cash burn to this point.  However, with these companies they can yield high returns if their commoditiy prices remain strong, productions increases, and new/higher grade material is found and developed on their properties.  Trevali is succeeding in all these areas, they can control the latter two, but need to hope that the zinc fundamentals remain strong for its pricing.  

I have accepted these risks long ago as an investor, I am impressed with Mark and the company overall.  The management is controlling what they can and they seem well researched (and rather accurate thus far) on the zinc pricing fundamentals.  As long as they continue to improve production efficiencies and the zinc prices holds at current levels or increases, you can breathe easy.  A significant downturn in Zinc (back in the .70 - .80 cents area) would have serious negative consequences for the company.   I think their debt would be unmanageable in that case and bankruptcy would emerge.  On the other hand, if they can have a year of full production at these prices their financial position will improve significantly.

Just my thoughts 
Bullboard Posts