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Gear Energy Ltd T.GXE

Alternate Symbol(s):  GENGF

Gear Energy Ltd. is an oil-focused exploration and production company. The Company carries on the business of acquiring, developing and holding interests in petroleum and natural gas properties and assets. Its operations are located in three core areas: Lloydminster Heavy Oil, Central Alberta Light/Medium Oil and Southeast Saskatchewan. The Company is also engaged in focused on improving oil recoveries through the application of water flood technology. The key properties in the Central Alberta Light asset include Wilson Creek, Ferrier, Killam, Drayton Valley, and Chigwell.


TSX:GXE - Post by User

Comment by rustybladeson Dec 05, 2024 1:00pm
208 Views
Post# 36347500

RE:Market doesn't believe in the approval of this deal

RE:Market doesn't believe in the approval of this dealWell after ruminating on this for a few days, I bought a whack more this morning at 0.54. I will be voting for the deal and will take shares in Newco.  In a situation like this where we most of us have little factual knowledge of the deal, two adages help to show the way forward. Cherchez la femme and follow the money. The first doesn't really apply here but the second is a propos. Insiders own a good chunk of this comapny and the INK insiders report shows a lot of buys by insiders, most recently on October 1 and 2 at 0.60 and very few sales and no high volume sales. There were also quite a few options expiring out of the money.

So my thinking is that a lot of management's future compensation is tied to Newco share performance. After studying their assets for six months the new management have come up with a strategy of selling off lower return assets to pay for the development of higher return assets. No different than a rancher improving the herd. I don't know why a Newco is required but there's probably a reason for that even though it maybe has thrown some confusion into the deal.

We'll see in 30 days if tax loss sellers buy back in. Different opinions is what makes a market.



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