I dont understand why the raising was done as a SPP. This means someone with 1 share is entitled to 15,000 shares at 65c just as much as someone with 100,000 shares. So it effectively dilutes the larger holders. Whats worse is the smaller holders are likely to profit take (sell their shares on issuance), whereas the larger holders would have been more likely to hold them for the long term.
But having said this, if TXN's intention was to raise as much cash as possible (which can be the only explanation for doing this type of a CR) then I think that it is not fair to judge the performance of our management based on the current SP...
There was always going to be some overhang from any capital rasing. The quality of management will be shown by HOW they utilise this cash that has come at the cost of dilution.
If they stick to their plan - acquire more land, accelerate drilling or exploration and USE this cash to add value, then i think our patience and persistence will be rewarded exponentially - cos quicker drilling of wells = more cash flow - leads to even quicker drilling of further wells etc etc.
Lets just hope management use this cash and dont leave it sitting in the kitty.
TXN Price at posting:
70.5¢ Sentiment: LT Buy Disclosure: Held
