Turner Venture Group Inc (OTCMKTS:TVOG) has begun to prove that it just may be able to hold its own as a major player in the industry. After the rise in its value from $0.012 to $0.04, a jump that occurred in less than a month, it was unclear as to whether or not the firm would be able to sustain such a very high level of performance.
However, the firm has slowly proven itself to perform at a much higher level coming out of recent dips and retaining its value over that period. In this article, we provide details on the firm and its recent announcements that have helped to sustain market interest.
Take a look at the stock’s price movement in the last year:
Turner Valley Oil & Gas, Inc. was founded on April 21, 1999, and its head office is located in Houston, Texas. It is a business holding company which specializes in energy-related holdings. The firm also focuses on the exploration and development of oil and gas assets as well their acquisition. Its acquisition model is built to focus on infrastructure businesses such as integrated businesses, asphalt refineries, and bitumen shipping.
The firm had reported sometime last year that as a result of the positive feedback received concerning its $25 Million preferred stock placement with investment banking firm, Network 1 Financial Securities Inc. (Network 1) it has started its plans to expand its infrastructure investment expansion for the purpose of its initial shipping acquisition.
Estimated revenue calculated due to the firm’s first acquisition of five vessels for shipping bitumen shipping vessels is about $39 million annually and $6 million for EBITDA. When this is completed, the firm in collaboration with Network 1 and its expert team of advisors, will commence the acquisition of additional ships to increase its fleet all while with strategizing the lease or purchase of export and import facilities, distribution equipment, asphalt refineries, and associated businesses. The purpose of this to take advantage of projections that the total income for bitumen producing institutions will exceed $25 billion in 2018 while global bitumen revenue is estimated to get as high as $100 Billion by 2020 as the USA’s expands its infrastructure process.
U.S. President Trump has previously suggested financing improvements using an estimated $200 billion in government funds in roughly a decade which would leverage about $1.0 trillion in waterfall construction dollars. At the same time, investment in infrastructure investment all over the world is still growing hence, the firm and its management are eager to be players in an industry that promises to remain lucrative.
Chief Executive Officer of Turner, Steve Helm outlined that besides going into the distribution and supply part of the bitumen market, the firm is also going into the shipping markets at a time where prices are ridiculously low with plans to implement a serious growth plan to increase from the starting five bitumen tankers to as high as thirty tanker ships within the next twelve to eighteen months by taking advantage of the investment banking relationship with Network 1.
The firm’s leadership had already negotiated the transaction using preference shares, which are expected to give good returns to the investors while helping the firm from further diluting its ownership. It has been Turner’s policy to avoid or at least reduce any share diluting activity. The deal is in line with the already announced purchase of five Bitumen Tanker Ships which were inspected and valued at more than $28 million and run rate much higher than its run rate of well over $14 million in income, which was done using preference shares as well.
According to its statement of comprehensive income, the firm did not record any revenues in the last financial year. This continued the trend of no revenues for at least the last three years, a common feature of firms in the growth stage. There was also no recorded cost of sales or research and development costs in its books. The firm’s sparse statement demonstrates the fact that the firm remains in a phase which does not bring in a lot of income.
The firm is highly leveraged as its liabilities are estimated to be worth no less than 15 times its assets and just as much as its assets. Its very low liquidity of 0.04, made more worrying the absence of any cash means the firm may be incapable of handling its regular operations smoothly over the year.
TVOG has a lot of promise, due to its strategic position in a burgeoning industry. However, the firm must begin to monitor its financial performance more closely to avoid future problems.
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Disclosure: We have no position in TVOG and have not been compensated for this article.