Thermal Energy International Inc V.TMG

Is recession good for TEI?

[ckwong]

Today, I would like to share a thught about the possibility of recession. The banks are increasing their provision for loan lost. This is not a pretty sign. For big enterprise using a lot of engergy, the revenue will be lower during recession. The way to keep the bottom line up is to reduce the cost. One of the obvious way is to capture heat and reuse. It is total independent of the carbon reduction. If TEI can exploit this opportunity, we may not see TEI rocket to the sky but at least keep the business flowing through the recession.

It is also tricky because company cut budget during recession. So TEI has to convince how the capital investment in heat recovery can help the bottom line before the recession.

[Mostlyserious]

TEI's main business defense against a recession is that their key clients are operating recession-proof businesses:  food and beverage, and pharmaceuticals. Unfortunately those that don't prioritize cost reduction projects today are unlikely to change their views during a recession, and will rather curtail their capital spending.  But every recession passes and TEI is strong

[prone]

Cost recovery is inherent with energy efficiency and all TEI products. On-going cost savings,  tax avoidance, and maintenance saving is a for or revenue from operations. All Good .!