In the end, earnings will serve as the driving force behind any stock price. A lot of prospective investors are skeptical and understandably so. This is a penny stock, it's not on the Nasdaq, NYSE or Amex and to this point it has not been cash flow positive. People want to see hard-boiled evidence that this company is on solid footing financially.
I personally believe the company has a good plan in place and it is my determination that the Q3 earnings report will reflect a marked increase in revenues.
I think shareholders who are in under a nickel are safe, because there's a solid margin of safety either way. If the company were not to make it and its assets were liquidated, it's worth the current stock price dead when one takes into account its drilling rigs, leases or concessions and other assets that fall under the Treaty umbrella. I've always looked at what a company is worth dead versus alive to come up with a solid margin of safety and I think Treaty has that at trading levels under a nickel.
If the company hits on merely a fraction of its concessions and production comes in at a fraction of its projections, then shareholders will win in a big way. More investors will get on board and that activity in and of itself will cut into the overall outstanding share count.
The projections are nice, although I give them zero weight. The facebook videos are nice, but living proof and hard-boiled evidence is what actually hits the books, the financials, what's filed. That's what investors will give the most extensive evaluation to when contemplating taking a position in the company. Investors want to see execution and subsequent earnings. If that happens, the stock price will take care of itself ultimately.
So far, personally, I have no regrets taking a position in the company.
