RE:RE:RE:RE:Should CJ Be Interested In GXE?LOL . You're right the quintupling of the debt is relative but does put it into perspective especially for a company that has been beating the zero debt drum for over a year now. I also agree that zero debt is not necessarily in the company's best interest and I am pretty sure that they stated acquisitions to increase production and reserves over ruled that plan.
Yeah a split up deal costs less up front and if they can find a partner thats wants the parts they don't t it might work better. I still feel the money is better buying the whole enchalada and selling the refried beans after when they look more lucrative with no debt. I believe GXE is undervalued right now and by more than 20% but wth do I know.
GLTY and all
JayBanks wrote: Haha, the "quintupling of the debt" is just relative... if we had less debt that X number is bigger and if they carried more debt your saying it would be less noticeable...
Other than that yes you laid it out quite well... to eat the whole company it extends the length of time expected to get back to where we are now debt wise... but we get bigger, hopefully get synergies, get more FCF for shareholder returns...
Maybe GXE gets a 20% premium on everything, but in a split up deal it only costs us 100M for a package of lands we want. I assume our management will assess it, maybe it's not a fit in anyway and nothing comes out of it.
I don't know if it will happen tho, it's just a fun hypothetical to discuss for now.
I believe it will be much easier for us to eat others than others to consume us...