Treaty Energy Corporation (PINK:TECO) bounced back after a negative first reaction to the results for Q3.
When the 10-Q was filed and the press release about the results was issued, TECO stock lost some of its value. Yesterday, however, the price went up 9.43% for a close at $0.058 on approximately 2.2 million shares.
Despite recording a $1 million operating loss and $421 thousand net loss, Andrew V. Reid, Chairman and Co-CEO of TECO, seemed optimistic in the press release about the results. Mr. Reid said: “We see 2012 as the year that we become a strong, profitable revenue producing company.”[BANNER]
The results themselves aren’t all that impressive, the revenues are actually down on a quarter-over-quarter basis, but the losses are significantly lower than the previous quarter.
It should be noted, though, that TECO has come to the very limit of the authorized shares, and since it’s still losing money, further financing will probably result in an increase in authorized shares and more dilution to the current shareholders.
Still, at this point the potential upside seems to be enough to give shareholders and traders hope TECO could pull it off.
