Market's view on Tomco Energy
Published on April 2024
- Stock watchers have noted that TOM’s board failed to invest in the narrative of the company, which is detrimental for a narrative-based company.
- It is mentioned that the TOM leadership team, including the CEO, lacks relevant experience and this poor leadership has led previous companies to bankruptcy.
- Concerns are raised over a contractor, Valkor, who failed to deliver promises, affecting TOM’s operations and its dependency on Valkor has been detrimental.
- Issues are identified with TOM’s financial stability, highlighting a going concern qualification in their accounts suggesting financial instability.
- Observations are made that the TOM board might have to consider the risks of trading while insolvent due to lack of funding.
- Stock watchers discuss the fallout between TOM’s CEO and Valkor, noting that this has left TOM with no clear strategy or business relationship moving forward.
- The discussions include remarks about TOM owing money to Valkor and potential misleading of shareholders and the board by TOM’s CEO over several years.
- There is speculation about the intent of Vale consultants buying stakes in TOM, whether it’s to acquire a cheap listing or for other undisclosed motives.
- Concerns are also voiced about the environmental and economic viability of a steam injection plan for oil wells by Valkor and its new partner, Trio Petroleum.
- Comments are made regarding the irresponsible financial management by TOM’s leadership, especially in the context of shareholder losses and executive remuneration.
- Lastly, the discussion touches on the broader context of investment in narrative companies and the importance of investor diligence.