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Production within touching distance for Touchstone

Shares in the Trinidad and Tobago-focused gas company took a hit in March after a disappointing well test. But that means an opportunity to buy in to rising production on the cheap
Production within touching distance for Touchstone
  • Buying opportunity from Touchstone's recent drilling disappointment
  • Strong infrastructure supports projects
Tip style
Speculative
Risk rating
High
Timescale
Medium Term
Bull points

Positive cash flow getting close

Shares down to under five times book value 

Quick ramp up in sales and profits expected

Another well could deliver where Chinook did not

Bear points

Still largely pre-revenue

Chinook knocked share price and confidence in the block

Our globalised world depends on the free and easy trade of commodities. Prices can vary between regions, like the difference between the West Texas Intermediate (WTI) and Brent crude oil prices, or gold in a street market in India and a London boutique. But for most commodities it is big global events that hold sway, whether a hurricane in the Gulf of Mexico or a labour strike in Chile upping the copper price. 

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