Looking forward to the day divs are gone First of all I really enjoyed the divs but now is the time to move on from them as it is clearly indicated by other oil companies such as MEG and ATH.
I know that the base dividends will only stay for 2-3 more months and that I will be happy they are gone in 2024 as it is time for a new era of Gear Energy. Once the base dividend is removed I will really enjoy when they will be buying cheap shares with the same $1.5 million they were sending towards dividends. This is how I envision it:
There will be an announcement that the divs are removed the stock will have another 10% decline and Gear will start immediate buyback. It is really hard to predict where the stock is going to be at that. Obviously the lower the price the more cheap shares you can buy with the same amount but I feel that we may be average 63 cents per share when the buyback is on.
Month Number 1 - average price of $0.63 - 2.38 million shares
Month Number 2 - average price of $0.75 - 2 million shares
Month Number 3 - average price of $0.82 - 1.83 million shares
Month Number 4 - average price of $0.87 - 1.72 million shares
Month Number 5 - average price of $0.92 - 1.63 million shares
Month Number 6 - average price of $0.97 - 1.54 million shares
That is 11 million shares removed from float in just 6 months - that will be huge. Another big thing is that it kills the washtrading alltogether which I believe is what is causing this stock to perform so poorly in the last year or so. It will also bring back daytraders and increase the daily volume. There will be just so many more positives out of this - just wait and see.