dp must resign, page-34

Pen. an old chart on TXN

RBS was spruiking TXN early 2011 with a SP target of $1.64, when the SP was around $0.70.

Prior to SEA coming into the picture the SP was $0.36. SEA and TXN announced a "merger", but it was a takeover.

On the last day before delisting I sold at $0.58. So much for the $1.64 dream.

However it was in the TXN recommendation to shareholders (from memory) that the dropped this gem.


"The Texon Directors believe that in excess of $90 million will be required over the next 12 months for Texon to deliver on its continuous drilling obligations required to hold its leases in respect of its EFS assets. If Texon
is unable to secure such funding, there is a risk that some of these leases may be terminated".

TXN MC was approx. $90mil/$95mil at the time. How do you raise 100% of your market cap?

Meanwhile Euroz was spruiking RFE in Feb 2013 with a $1.44 SP target when the SP was around $0.73. The similarities between TXN and RFE is quite amazing.


I posted this on the RFE thread back on 09.07.13

WB...

There may be no connection with the issues the plagued the demise of TXN (Texon) where it merged with SEA (in fact it taken over by SEA).

Their issue related to continuous drilling obligations required to hold its leases. Virtually all their leases were coming up to maturity and the TXN management estimated they would need $90mil+ to do the drilling obligations (this news only came out once SEA merger came to like and TXN management giving the reasons for a vote yes to merger).

I am not familiar with RFE obligations, but the SP path is akin to TXN's.


I am looking to place some funds into RFE (punt money only) as I think the same game is being played out on RFE, as it was on TXN.