Texcom Inc. (fka TEXC)

[cleverrox]

KiK,

I don't believe you can use last Q as barometer of future results. There were too many one time costs associated with the acquisition. It is my hunch that they probably threw in the kitchen sink to the expenses of last Q and it will probably result in cleaner than normal SG&A for the next few Q's.

What you can see last Q that is a bit troubling is a downtick in the Eagle Ford revenues from $3M to $2M. Part of that may be a decrease in oil prices and part may be a seasonal fluctuation.

In a "perfect" world Eagle Ford is going to put out EBIDTA of $950K and Arkansas is going to put out EBITDA of $600k and together they will put out EBITDA of $1.55M a Q * 0.65 post tax earnings = $1M a Q / 11M shares $0.088 EPS a Q.

Now if we see Eagle Ford have a bad Q and just break even we might only get the Arkansas post taxed earnings of $400K or $0.04. Even a bad Q should net $0.04 a share. The Arkansas revenue stream should fluctuate very little. It is a long term contract with a very big oil company.

So what will Eagle Ford do?