Fletch0718 Nov 2009 00:47
Disappointed originally to see these new shares, but it should be good mid to long term, so I can see the logic. Besides, old JR was probably getting the hump, because every time he bought a few 100k lately, the SP was shooting up! This way, he and his other rich shareholders get a bigger lump of the cake for 10p a share, sort the finances out, fast-track plans to get the company profitable (and ready for the economic recovery next year presumably?) and best of all, reduce those pesky PI's and their holding in TXR to about 5% (albeit 5% of a much larger company now with a few million quid on hip). So as I say, its not all bad, but two things are for sure:- 1) the cash input will bring stability and 2) the 10p shares won't be offered to us two!!
As oilbarron says, its not dilution and it will fast track TXR to a better position quicker than just waiting for the insurance money to filter through. This drop will be a short term hit, but ultimately, the 10p share option should put a floor on where this can grow from. TXR's results will only improve from here on in, and with the insurance likely to be settled early next year, along with all this investment, TXR should start moving north soon enough as others see the upside and production increases.
Even with the recent dip, I'm still almost double my outlay so I can't grumble here, but in 12-18 months, I can't see why TXR won't be a multi-bagger even from these levels (unless they have another dredger fall over of course!!).