Gear Energy Ltd T.GXE

Initiation of a strategic repositioning process

[Reachme]

was announced almost 2 months ago.....we should hear something about that soon....

[Roscoe747]

If there was the interest claimed, a deal would already be done. I doubt 'unlocking shareholder value' is at the top of the strategic initiative list of criteria. More likely is a need for a business arrangement of some sort to expedite both growth and cost reduction that a small producer can not achieve. I expect, at best, an arrangement whereby Gear shareholders receive a better

[lovehockey]

Do we need to hear anything? Who really wants a merger or takeover? I don't. The company is fine as it is. Sure, it is small and has its disatvantages, but it also has advantages as it can be making decisions easier. Yes, they were wrong by starting a large base dividend and stopping buybacks, not only that but they announced way before NCIB expiration that they weren't going to be buying

[Roscoe747]

Well I don't disagree with you. Whats your take on why the Strategic Initiative was instigated? Are the insiders trying to dump the co. because it has no future/ no profitable landbase/ too much ARO?

[lovehockey]

I have no idea. All I know is that buyback fixes all of the problems short/medium term. 

[Maxmoe]

Couldn't hurt. Do the debt covenants prohibit even a small buyback I wonder? I don't believe so. Meanwhile, gear is stuck in neutral. I'll buy a little more here. "Strategic process" is fancy bod talk for we got a stinky bid for the company which forces us to evaluate the bid and go through a process that clearly proves the bid is highly opportunistic, way too low, not in the

[Roscoe747]

I have to agree with a forming consensus about S.I. Another reason is that it will give cover for a reset of the business plan that resets the dividend narrative in favour of growth or a stronger balance sheet. Either way, Gear faces higher capex and production costs without a strategic partner with price setting power.

[tylerreddick]

" Whats your take on why the Strategic Initiative was instigated? " Too often these kinds of "initiatives" are announced to distract from the company's failure to add value. Usually a sign things are going quite badly indeed.