Granite Oil Corp GXOCF

RE:RE:RE:RE:Hard to invest in GXO

[dabrewcrew]

My bard is that the directors probably are now invested into the private company. Something the rest of the shareholders don't have an opportunity to do. So from the directors standpoint it didn't matter if they sold BXO at the bottom, their money was going to be rolled over into the same asset. While the rest of us were forced to sell at the bottom and didn't have the luxury of reinvesting in the same asset. What leads me to believe this even more is the proxy vote to sell was upheld even after oil rebounded from the time the initial offer was made. I am sure there was an agreement in place ahead of the sale for the directors to reinvest back in at a locked price. 

The other benefit to them in reinvesting back into the private company is avoiding a "wash sale" in the same asset. They took a tax loss on the asset when it was sold, but because it went private they were able to buy the asset back while avoiding the 30 day wash sale penalty. A potentially huge savings for them come tax time.

If the rumor you heard was true about lending being tightened then the board should have made that public. Most of Deethree's capital raising was done via equity based lending. So the banks were also shareholders of D3 (assuming they didn't sell them off). Which makes it hard for me to believe the banks were shareholders of D3 would try and sabotage BXO by raising rates and cutting their line. On top of that, BXO's debt to equity ratio was far better than most companies in the industry, so why would all these other companies with worse balance sheets be getting respectable lending but not BXO..

Bottom line, the sale of BXO doesn't add up.