Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

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

Post by lovehockeyon Dec 10, 2024 3:39pm
187 Views
Post# 36355282

Transaction cost of about $7 mln?

Transaction cost of about $7 mln?Did you guys see that?

Gear Est. YE 2024 Net Debt (Incl. Transaction Costs) $MM ($10)

So if the debt is $2 mln to $3 mln at the year end then transcation cost id about $7 mln to $8 mln. That is highway robbery. If they are willing to lose that money to a transaction alone - why not just borrow the money and do a buyback instead. They could buy back 16 million shares for that amount and continue paying divs, at the same rate that would have been a reduction of  6% in monthly dividends. 

One need to be a financial masochist to vote yes to this. If Newco has a potential as they say it does then Gear has even more potential. 
<< Previous
Bullboard Posts
Next >>