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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Allen Furlan who wrote (9541)	1/6/2000 6:39:00 PM
From: Paul Senior	Respond to of 78519

Allen Furlan: re. TEXP. Should work out for you, I'd say. Might work as a straight deal also for someone who wants a position in this business. From your linked Marketwatch article, there will be $800-900 million in assets for the new company (which is net---before the 90 million of expected debt is added) of which TEXP gets a claim to 35%, resulting in TEXP having an asset claim of $280M (on the lower $800M figure). That for TEXP which has a market cap now of $179M. Looks like a pretty good deal to me (based on the numbers-- but who knows if Marketwatch is correct). Also many of these oil companies often sell below their asset value so I'm not confident in my conclusion that TEXP would be a good buy at current 4 7/8. Your writing of calls would seem to be the best way to add some margin of safety to it. Paul