Gear Energy Ltd T.GXE

53 cent ceiling?

[tylerreddick]

My calculations on the value of Lotus indicated that 53 cents for GXE shares might reflect a high ceiling valuation for the spinoff, and it appears the market agrees with me.

[rustyblades]

My own take is that the spin off will be in strong hands. The weaker hands will have elected for the cash. So when Lotus begins trading it should do well share price wise after the last of the weak hands are washed out during the first few weeks of trading. I personally like the deal and will vote yes.

[tylerreddick]

When it begins trading, Lotus will already be priced at a premium.

[tallpaul]

Hello Rusty Blades You are forgetting that many of the share holders who are against this deal will be forced to take some of Lotus shares because there will not be enough cash to pay out all the share holders who are want their 60.7 cents per share. Mostly likely, most of those share holders who will pissed off that they got stuck with some Louts creek shares and they will try and dump them and

[tallpaul]

Heh Rusty I don't really understand this strong hands/weak hands analogy. I think their will be a lot of pissed of GXE share holders who are pissed because they had to take some Lotus creek shares since there was not enough money for everyone to get 60.7 cents for ALL of their shares. These will be weak hands. But where will the strong hands, the buyers and holders come from? Lotus creek will

[freedom-1970]

This proxy vote and terms is totally crazy with terms I have never seen before..  I am very curious to see this proxy cause the terms are really a head scratcher...

[rustyblades]

Here's my reasoning. To pass, the resolution needs 2/3 of the attemdees or proxies to vote yes. If the resoltuion does not pass it means less than 2/3's voted yes, the status quo remains and all of this was a waste of time and money.. If the resolution passes, more than 2/3 of the attemdees or proxies voted yes. In this scenario I am supposing that most of the no voters are pissed off

[tylerreddick]

rusty, not so sure about your reasoning. The "deal" values Lotus shares at about 30 cents, while the market says they aren't worth anywhere near that valuation. So I don't see anyone anxious to take any more Lotus shares than they are forced to.

[tallpaul]

Hello rusty I see what you are getting at.. But we might have lots of people not vote, which will be counted as yes,because they are not paying attention or they don't understand what is going on. I have not confidence that most retail share holders of Gear really understand what is going on. I they get stuck with some Lotus Creek they might just say the heck with this, sell and move on to