Gear Energy Ltd T.GXE

Incompetent CEO and Board

[worknomore]

When I first invested in this company, I was buying shares in a TSX listed company that paid a decent dividend in a sector that I felt had room to move.
 
While I was perfectly content to hold the shares for the dividend, I also believed that if the price of oil advanced, there was the possibility this small producer could eventually be privatized or bought by one of the majors at a premium to the share price.

Under the leadership of Kevin Jonston and the Board it seems there will be little left of the company I first invested in.

This proposed deal will move the newly formed company to the Venture Exchange and the budget in the 2025 guidance for Lotus makes no mention of a dividend whatsoever.

I would remind Kevin Johnson that his first Quarterly results released after he became CEO indicated that Gear was committed to paying a dividend. 

Those results released on May 1^st, 2024 had a message to shareholders that read, “Gear intends to reward long-term shareholders with a reliable and sustainable monthly dividend while maintaining a strong balance sheet.”

I won’t go in to the numbers that support why I think this is a bad deal because the truth is we will never really know the truth.  Financial numbers and production can be manipulated to support a bad deal for shareholders in the same way that challenging numbers can be presented in a way to make a bad deal look good.

At the end on the day, as an investor you need to trust the management team.

I have no confidence in Kevin Johnson and this Board to make decisions that best serves the Gear shareholders. 

I have no doubt this proposed transaction serves the CEO and Board quite handsomely but would suggest that a current share price that represents a 20% discount to the possible cash payout is proof the market doesn’t have much confidence in this team either.

The press release on December 18, 2024 indicates the Board of Directors has scheduled a special meeting on February 3^rd, 2025 and Gear’s circular and proxy statement will be out in early January 2025.

It is now January 18, 2025 and I have not seen or received such a circular nor is there anything posted on Gear's website. 

Early January to me is the first week of January but it seems this CEO’s perception of time is just as distorted as his opinion of what a good deal for ratepayers looks like.

That same press release goes on to urge all Gear shareholders to read the circular as it will contain additional important information concerning the transaction.

Apparently, they do not believe it is important enough to get this valuable information out in the time frame promised and allow investors time to review it before making a final decision.

I like to have time to review all the information before I cast my vote but as of now, I still have many unanswered questions.

The inability of this management team to deliver on something as basic as providing shareholders with important information gives some insight on how they run this company.  Not only is this incompetent, it is disrespectful to shareholders.

If management is presenting this deal as good for shareholders when really it is a big bowl of s**t, at least give me all the information in a timely manner so I can figure out best how to eat it.

[tylerreddick]

You whine and complain, but don't think to look at SEDAR? It is all there. Some people should just buy GICs.

[worknomore]

As usual, you are unable to express an opinion or relay information without doing so in a simplistic and belittling manner. If you feel your opinion is that important to share with others, perhaps you should relay it in a manner that would be socially acceptable in a face to face conversation rather than a keyboard post made from your parents basement. I generally do not engage in a battle of

[tylerreddick]

Try reading the Management Information Circular posted on SEDAR on Jan 8th. I have no idea what you are looking at.

[worknomore]

Again, the point I am making is that I do not trust this management team to do what is right for the existing shareholders. I think the fact they do not accompany the SEDAR posting with a press release shows that they are not really motivated to keep shareholders informed. The press release on Dec 18, 2024  from Gear Energy stated "to be mailed to Gear shareholders in early January

[worknomore]

However, to your point about referring to the SEDAR post of Jan 8th,  that information was helpful so thank you for that. Had that originally been relayed in a more productive, less condecending manner I would not  have wasted 15 minutes of my time responding to your reply. The information that was sent to me by another person was a snippet of what was actually contained on the SEDAR

[tylerreddick]

worknomore, if you had bothered to check SEDAR yourself, you would have never started this thread. As for your complaint about management not doing what you think they should, welcome to the Canadian stock market. You just got your first lesson on how it works.