Geodrill Limited T.GEO

Buyout?

[drewmumaw]

Anyone still think this is a potential buyout target? or am I just deluding myself?

[savyinvestor333]

I mentioned here on Oct 30/23 to take a look at FAR.TO it was $1.80 . Take a look now. In my opinion the run is just getting started.

[drewmumaw]

I've had Foraco on my watchlist for awhile - it's performed very well. But I don't think it's a buyout target. And they have a lot of debt, right? They also don't pay a dividend (but neither does Geodrill anymore, so I guess that's an irrelevant comparison point now). Geodrill's CEO, who holds 40% of the shares outstanding, seemed like he really wanted out a year or two

[colourama]

One would think that Harper must have someone sort of exit strategy at some point, but I don't see a sale at this moment with the depressed stock price. I feel that with the new drilling contracts starting up at end of Q3/beginning of Q4 last year (and the South American rigs back in action in Q4), we will see a reasonably strong Q4 result. I guess we will have to wait and see. The stock seems

[drewmumaw]

One would think so. He sounded like a motivated seller when discussing a potential buyout years ago. I hoped the recent decline in price would renew buyout interest. If Geodrill is starting to go after contracts with the majors then a contender may be better off acquiring Geodrill rather than competing. With regard to the recent share price decline - the market hates uncertainty. The pull

[colourama]

Question is, what would Harper accept as a buyout price, and how far is the gap to the price an acquirer is willing to pay? With 40% ownership, Harper is highly motivated to get the company firing on all cylinders. I think the price here is an excellent entry point.

[triple]

Bought yesterday. Even without buyout, it is a steal at this price. They can make at least 130 million revenue per year with 82 rigs. With very conservative 20% ebitda margin, that is 26 million ebitda per year. And it is USD. Some probably don't realize their reporting currency is USD but the stock is traded in CAD. I am also bullish on the gold upcycle trend. 

[colourama]

Agree - buying opportunity here with Vitru ITG group systematically selling 100/200 lots the past couple of days. Wonder when they run out of shares.