Gear Energy Ltd T.GXE

Great news for Gear - no acquisition, time to buyback!

[NikoDoughski]

Saw a big RBC buyer these past few days, thinking it's probably Nuttall getting in as he is good friends of HFI Research who sits on the board. Likely a major buyback and SIB is coming in addition to a big fat juicy dividend. Offers didn't meet expectations as Gear has a HIGH bar. I am excited about the go-forward and our firm will be buying more today if we can.

[Iliveinavan]

Agreed. In addition to the NCIB, we may see significant insider buying now that the blackout has lifted....happy the uncertainty is removed and we can move forward.

[tylerreddick]

" Likely a major buyback and SIB is coming in addition to a big fat juicy dividend " Too bad they cannot afford any of that. 

[lovehockey]

I predicted this. I am so good at this. 

[pierrelebel]

Great News? Think again. "the Company expects to provide additional details of the NCIB in its press release... which is expected to be issued on or about February 21, 2024." There is not enough money coming in to cover both a dividend and share buyvack. At that time I expect Gear will announce the suspension of the dividend and use the money allocated to the dividend to buyback

[lovehockey]

So buyback is not great news? You are wrong!

[pierrelebel]

lovehockey wrote "You are wrong!" I hope you are right and I am wrong as my wife and I own 62,000 shares. However recent history on the Canadian markets shows that shares drop when companies suspend the dividend to buyback shares. TWM is another recent example.

[Roscoe747]

Not necessarily, Pierre, this Strategic Initiative has likely given much market insight on unlocking strategic value. Gear may be directing its capex to more production enhancements as opposed to drilling with a reduced capex while directing the residual cash flow to buybacks. There may be a concerted effort between BoD and insiders to raise the SP by providing more bidding and removing the algo

[Roscoe747]

Even if the dividend is eliminated in favour of a buyback, shareholders shound consider the loss of dividends as their contribution to unlocking shareholder value. If the board has taken financial advice and decided this as the best solution, shareholders should consider joining the buying as they can to support this initiative to put a floor under the SP.

[lovehockey]

Divs should be dropped at these WTI prices. They are pretty much useless when it comes to improving SP. I own ATH and they made a decision to stick with buyback and not a penny to dividends and ATH performed really well. The same can be said about MEG as their big shareholders wanted none of dividends. It is clear that if you want your share price improved short and medium term - go for buyback

[w8asec]

Great News - and, Yes buy backs are the best now at this shareprice... Net Asset Value (NAV) by my napkin calculation is $0.94 per share, and should be higher after the next financial release.... Finally some good news

[itsalie]

can't see Nuttal getting back in, he's been slaming it for the last couple of years and there is not eough volume for him to get in and out