PPS fall isn't due to non-production. Oil is just a commodity, which fell to $88 per barrel from over $100 per barrel when I started buying TECO many months ago. Europe has major economic problems, slowing business expansion & demand. Asia has its own problems. In US the "economic cliff" and raising the debt ceiling legislative impasse has made the country drift economically. Implementation of ObamaCare has also slowed business demand. However, the world economy and US in particular are coiled for strong rebound led by:
1. Congress will cut a deal with the President either before year end or immediately thereafter and will raise the debt ceiling with full retroactive effect. 2. Christmas buying will soon be over so disposable income can be spent on investments rather than obligatory gift giving. 3. Winter storms and cold weather will increase oil demand. 4. Many billions of insurance money and government assistance starts getting paid to private and corporate claimants for the Hurricane Sandy rebuilding, which will first require building materials being supplied to Lowes, Home Depot etc. 5. New spring contruction taking advantage of record low interest rates will drive home building, new appliance orders etc. All of this takes energy at a time when Palestinian and Iranian interests and Syrian civil war bring the specter of Middle East war, American involvement and oil interruptions to the forefront. Thus the price of oil will soon jump to $100+ per barrel due to demand and supply uncertainty while TECO continues going forward at its own pace and is poised to participate in this energy rush. Like other holders of well over a million TECO shares, my investment is firm & more simply must be added at these bargain basement prices.
