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Gold Reserve’s Bid for Citgo Shares Faces New Developments

Story Highlights
  • Gold Reserve’s bid for Citgo shares was not selected as the stalking horse bid.
  • The final bid is expected to exceed $7.081 billion, impacting Gold Reserve’s industry position.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.

The latest announcement is out from Gold Reserve ( (TSE:GRZ) ).

Gold Reserve Ltd. announced that the U.S. District Court for the District of Delaware has adopted the Special Master’s recommendation to select Red Tree’s bid as the stalking horse bid for the purchase of shares in PDVH, the indirect holding company of Citgo Petroleum. The Court expects the final bid to exceed the $7.081 billion price associated with Gold Reserve and its consortium partners’ bid, which could impact the company’s operations and its position in the industry.

Spark’s Take on TSE:GRZ Stock

According to Spark, TipRanks’ AI Analyst, TSE:GRZ is a Neutral.

Gold Reserve’s overall score is significantly impacted by its weak financial performance, particularly its profitability challenges and negative cash flows. Although technically the stock shows some short-term upward momentum, the valuation is unattractive due to negative earnings. Recent corporate events introduce both potential risks and strategic benefits, but the overall outlook remains cautious.

To see Spark’s full report on TSE:GRZ stock, click here.

More about Gold Reserve

YTD Price Performance: -1.90%

Average Trading Volume: 167,678

Technical Sentiment Signal: Buy

Current Market Cap: $169.9M

For detailed information about GRZ stock, go to TipRanks’ Stock Analysis page.

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