The non-holders here are not saying TXN is currently on a road to failure or that they are following the same road as AZZ. They are simply pointing out concerns on what was, let's face it, a bad decline from a well which flowed at excellent initial rates. In other words telling the less knowledged investors to be cautious- that's it. And quite frankly that doesn't seem like bad advice (for any stock really).
Yes, this was TXN's first well, and TXN is still very much in a testing phase, although if you don't think questions should be raised over a well which initially flowed 1267 boep/d, to having a first 30 day production average of 655 boep/d (with the current production rate now probably at 300 or so), then clearly you turn a blind eye to bad news concerning this stock.
TXN has alot of potential if the company/fraccing crew can optimise the specifications of the well to decrease the declines, although if I held this stock, I would certainly be interested in insight from both sides of the fence, especially after the first well's declines.
The Eagleford Shale story of TXN is just starting really, and it's a combination of all the wells (not just the first one) which will decide whether this story is a good or bad one, I think we can all agree on this point.
TXN Price at posting:
69.0¢ Sentiment: None Disclosure: Not Held
