I think it's time to consider a GLE buyout (that would happen at a substantially higher price). Here's my thinking on this one.
1) I went through all of Sprott's trades on GLE all the way back to 1996. Prior to the buying during the past month, Sprott picked up only 4k in December and 11,500k last November. That's it. Now in April (the past 30 days), Sprott has bought NET 1,947,163.
Add it up. Sprott is hanging VERY close to the 10% ownership line.
2) For purposes of rough math, let's say there are 20 million shares out there of GLE. Foundation equity has 4.5 million. I don't think for a moment that "some fund" out there would ever purchase 2million shares through Sprott in the open market just because they happened to like the company. Given the float, they would never be able to dispose of the shares if and when the time came.
At one point in the past week or two, it seemed "possible" that it was buying for a fund. Given the magnitude of the buying now though, I don't think it can be. The size of this purchasing also far outstrips the thought that Sprott was buying for his own fund.
3) I ran the "GLE picture" past a couple of fund managers that I know and respect. I gave them the scenario of the available float, and the potential viability of the company. I then asked them for their opinion whether they thought it could be "fund" buying regarding the 2million shares purchased through Sprott. In each case they said "no", and raised the same issues of liquidity and size of the buying.
So the question then has to be asked, "If it is not fund buying, who would ever tell Sprott to go out and buy up almost 10% of the shares of GLE?"
The only answer I can come up with is someone who wants a buyout of GLE and is grabbing as many shares of the company in the open market before they make an offer for the outstanding shares at a much greater price. Imho, the natural buyer would be Delphi.
Now for the timing of all of this:
1) Sprott is not just casually accumulating shares. They are agressively buying them. To me, this says that they have been given a minimal timeframe to work within.
2) Just "by coincidence" Delphi/BMW have said that they "are committed to the quick implementation of this technology"
(See Message 9155105 for this the full release)
3) This week, Foundation Equity gives notice of intent to free up 2 million shares. Again, why, and who would want them? Delphi.
Given that Sprott is now hanging just under the 10% ownership line, I think think the "cards will be put on the table" this coming week. The series of "coincidental events" certainly makes the GLE story intriguing!
Just to recap for those who may be new:
1) GLE announces SOFC breakthrough with a fuel cell that is half the size of Ballards, offers twice the power output, can run on fossil fuels (i.e., no need for a bulky reformer as in Ballard's PEM model), and lowers the operating temp of the fuel cell substantially over other SOFC developers.
2) Delphi signs a purchase order for GLE's SOFC technology.
3) Delphi makes an agreement with BMW to put SOFC in their cars and states that it is committed to the quick implementation of this technology.
4) Sprott purchases almost 10% of the total shares of GLE during the month of April.
5) Foundation equity notifies T.S.E. that it is freeing up 2million shares that they hold.
Does all this point to a possible buyout of GLE? We'll see!!...and much sooner than later i.m.h.o.
Regards,
Kevin |
