Frontera Energy Corp T.FEC

So …..

[Frank007]

I can buy shares tomorrow at say $8.20.    And tender them into the special ncib and get $15.48.   lol ....by Oct 17 th ...does any one think there is something fishy here ?

[Jimmmy666]

12.00

[Frank007]

$12 us ....$15.48 can$

[Jimmmy666]

Article says 12CAD

[Jimmmy666]

Frontera Energy Corporation (TSX: FEC) ("Frontera" or the "Company") announces that its board of directors (the "Board") has approved the commencement of a substantial issuer bid (the "Offer") pursuant to which the Company will offer to purchase from holders ("Shareholders") of common shares of the Company (the "Shares") up to 3,375,000

[Frank007]

Something is sure fishy here .....they have up to three milion shares that could be purchased under the current ncib ..at the matket ...$8.10 or there about s yet ...here is a special ncib being offer at $12 ...?

[Jimmmy666]

Yes very confusing way of doing business, pretty sure they reported a loss last Q, now they are paying a 50% premium on shares they could have purchased at market value 

[Frank007]

$.03 cent loss ...read between the lines ....not a loss at all ...payed back debt ...payed out dividend ...invested capital.  Returned 51 milion$ in first half ....so not a loss at all 

[Jimmmy666]

True but had they manipulated their numbers to represent a gain, I don't think they would need to pay a 50% premium on their shares to get us to 12.00. Id imgaine it would be there already if the company was represented as profitable 

[chulo123]

It is a good way to get a big pocket of money whitout paying taxes. This deal is a simple share selling, not dividends 

[a2bman]

How does that avoid taxes?

[Jimmmy666]

It doesn't bit the tax rate would be lower on capital gain vs divy

[a2bman]

Arent capital gains and dividends taxed the same - both are basically capital gains taxed?