TXN 0.00% 58.0¢ texon petroleum ltd

looking forward to the next agm, page-44

  1. 1,370 Posts.
    lightbulb Created with Sketch. 3
    Folks, Agentm pointed out earlier that the majority of TXN stock is traded through RBS (and tilleydog repeated today that RBS client selling is the problem here). Not sure where that info can be verified, but a large percentage of trades are XT (cross-trades within one broker rather than across brokers). Also, TXN relied exclusively on RBS for various transactions and is the only broker actively covering TXN (I'm not even sure RBS is really "active" anymore covering this stock).

    Which leads to my first point: Companies suffer share price volatility and possibility irrationality when there is really only one broker covering and (initially) recommending the stock. Therefore, TXN should consider encouraging other brokers to cover the stock. Bell, Hartleys, and maybe international brokers would surely take an interest in this company if TXN created a more compelling story.

    Which leads to my second point, repeating what I said last week: TXN needs to keep active -- it needs to create a true story about its growth and development. TXN effectively starved the market from March to August (a long time in stock market calendars!) because of EFS sale negotiations and almost no other activity.

    So, TXN shares have been pounded NOT because of RBS Morgan selling (sorry agentm). RBS selling is the consequence, not the cause. The cause is that TXN has not been feeding the market with nutrients -- creating a true story and effective communicating that story. The wilting effect has been further amplified by reliance on one broker and their recommendations to clients.

    Now to the GOOD NEWS (I hope): TXN seems to be back into developing a true story and possibly even telling that story at timely intervals. Time will tell.

    As always, please do you own research.
 
watchlist Created with Sketch. Add TXN (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.