On July 8th, I pulled the trigger on a whopping 2 shares of TELOZ.  Why only two shares?  Well, I had a little over $40 in my brokerage “cash” account, so I felt like it needed to be spent.  Since I’m a Zecco customer, I get 10 free trades per month - no commission charge.  So I purchased my 2 shares at $16.38 per share - way off from their June high of over $40 per share.

What is TELOZ?

It’s an oil trust.  Basically it’s not quite a company per se.  When you buy a share of TELOZ, you are eligible to recieve a portion of the oil revenues.  With oil are all-time highs, these oil dividends can be quite lucrative.  And with TELOZ at such a low price, I couldn’t resist.  Really I should have scraped together some more cash and made a significant purchase, but I didn’t.  As I write this, TELOZ is sitting at $21.38 per share - 30% higher than my purchase price.  That doesn’t even take into account the insane dividends that this trust will pour out.

Oil isn’t going to drop

We should all think about putting some more cash into oil stocks / trusts.  The demand for oil isn’t going away anytime soon, nor are the oil companies going to sell it for less out of the goodness of our hearts.  Our demand is pretty much inelastic - raise the price a lot, and we reduce consumption just a little.  We’ll take the beating and they know it.  So the best way to fight back ( besides reducing usage ) is to invest, and take some of the profits.  Do your homework, as always, but do it quickly.

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