Q: ..a poorly worded new release, convenient mail strike and a share price that keeps dropping. Would you hold GXE or dump it and never invest with that mgmt again?
5i Research Answer:
The Chairman, Don Gray, has had success before. He was the founder of PEY. Still, GXE has not been a fun ride for shareholders, down more than 50% in the past two years. The company has released a new update on its proposed transaction. We think shares are worth holding at the current level. The cash and newco shares are 'probably' worth more than current levels once tax-loss and 'grumpy' selling fades out. But, we would be fine letting this go if it ticks up a bit, or after the next dividend even (ex December 16). We certainly would not consider it a 'must own' sector small cap.