Just had a 30min chat with Rimin (Miss by the way!) - the author of the article at the top of this thread. Very interesting.
Jaxin - you'll be amused to hear that she was keen to know how I got hold of the article. Nothing to worry about = I deflected the question.
Summary = she is a journalist and not a financial analyst and as a result relies heavily on sources that are analysts. In this case she used two sector analysts neither of which are from the three companies that I know have produced public papers covering TXN = (RBS, Pats and Peter Strachan). She couldn't/wouldn't disclose who they were and I don't begrudge that. Journos and their sources...
We had a long chat about the company strategy and my personal opinion is that she simply misinterpreted some of John Armstrong's comments about realising value. ie she thinks they're going to raise money to drill while I think their going to sell a whack of their EFS acerage and use it to buy more prospects. In all fairness to her - if you don't know about the Seitel/Wandoo prospect generation agreement in the background (which she didn't) I can understand how you could come to the conclusion she did.
I showed her the Olmos sale docs so she could get an idea of the size of that, we discussed recent transactions in the EFS that support sale prices >$23k/ac then combined that with their current cash (=$200m+ in total) and she could see where I was coming from.
In any event I gave her all my details and asked her to pass them along to which ever analysts she spoke to and give them the choice of whether they want to speak to me .... or not!
Regardless - I think piqued her interest and she may do a follow up article on it.
To be continued I guess!
TXN Price at posting:
64.0¢ Sentiment: Buy Disclosure: Held
