RE:Should CJ Be Interested In GXE?NO
CJ doesnt need more "assets" that are short end of life turds
Quintessential1 wrote: I see GXE put themselves up for sale and according to EN they are looking to unlock value at higher commodity prices. Okay but do they desrve it? Like Laurention Bank, just because you want a premium doesn't mean you should get it. I think putting yourself up for sale demonstartes weakness.
They have some operations that overlap with CJ's on a geographic basis so maybe there are synergies and efficiencies to be had and at a decent discount to what GXE could be trading at if WTI pricing stays at $90 and GXE digs themselves out of their debt whole themselves as I expect they will eventually. Honestly they just sort of jumped the gun on their divy cut as it is more than affordable now with some debt reduction room left over.
So how would investors here feel about a 1:7 share exchange offer for GXE? At current share prices it only represents a 20% premium to GXE shareholders but would almost double the existing dividend yield they are getting making it almost like the cut never happened. In return CJ gets more reserves overlapping with their operations and a pick and choose labour pool with some potential upside for CJ shareholders based on 52 week highs. Is it even worth considering for what amounts to 5-10% overall upside?
I don't do flowing barrel calcs and comparisons so if somebody else would like to and add it to the post for consideration it would be appreciated by me and maybe others here.
Also I know there are a few GXE shareholders that either monitor or hold CJ shares here so feel free to weigh in with an opinion or even a GFY Q. LOL I can take it.
GLTA