Wheels Group Inc GRFJF

Stock Issuance?

[keizaigakusha]

I'm getting a bit worried here by what I am seeing around the gold equity sector.  Lots, lots of equity issuance going on.  You have Jaguar Mining, Newmont, Agnico Eagle, Osisko, Yamana,Minefinders etc. all issuing shares at substantial discounts to their peak values.  I do not desire to see such dilution with WGI and I truly hope that they don't get on board this train.  Considering they were just buying back shares a mere two months ago, a share issuance now wouldn't be great. 

    I'm sure WGI is shopping around for acquisitions, on their financial statements they have charges of $200K per quarter in 'business development' as they consult various investment banks.  I trust in management to not dilute existing shareholders, still WGI is cheap and any stock acquisition could be costly...

[make_rubles]

As I've posted already my bet WGI is being acquired rather than doing the acquiring.  Price looks to be held down for sure.  Likely because the takeout price will be a trailing average price of some number of days at the time of any announcement.  Keep the price down and the premium looks higher on paper since the trailing average price is lower.  I had heard the deal would

[keizaigakusha]

Thnx for the heads up, but I would tend to be highly skeptical that WGI would throw in the towel at such a low price.  Keep in mind management is sitting on a lot of options with a strike price greater than $3.00, it would be foolish to accept a lower takeout price and forfeit the potential upside.My suggestion to WGI would be that it applies for membership into the NYSE Arca gold miners

[SkyeCairns]

I really can't buy that the stock price of WGI is being kept down in order for the purchase to take place.  Over the last month WGI has beaten most gold stocks and the index and even the GLD EFT.   I too would not want WGI to be bought out give it a couple of months and I am sure it will be where it belongs.   We just need a quarter or two of the new mine plan to be up

[freedom100]

If anything is keeping the stock price down its the 35% hedge at a time when they are having trouble meeting their production targets. Blood sucking banks don't have the same problems real business do, because they can just apply for a bailout. Honest business's and the tax payers will always pick up the tab for the banks mismanagement. Sure wish I could find someone to bail me out of

[bbarberayr]

I doubt they are going to be raising money.At the end of Q3, they had $45 million in cash and $16 million in positive cash flow for the quarter, plus the price of gold went up in Q4, so cash flow (even after taking into account the hedged portion) will be up.Might make a good acquisition target, but given they don't have a strong growth profile, they wouldn't be of interest to a major