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Granite Oil Corp GXOCF

Granite Oil Corp is a Canada-based oil producer based in Calgary, Alberta with lands and operations located in southern Alberta. The company is engaged in the exploration for and exploitation, development, and production of oil and natural gas. Its Alberta Bakken Properties are located in southern Alberta at the south of Lethbridge.


OTCQX:GXOCF - Post by User

Post by dalerules88on Jan 25, 2018 1:09am
163 Views
Post# 27429546

SIGG1

SIGG1folks, don't listen to this fool, he has no clue, 

SIGG1
first of all, sustainability of dividend is not a function of share price, it is a function of cash flow and profitability; just because GXO is yielding 10% it doesn't mean it can't afford the dividend; your comment is one of the stupidest things I've seen in quite a while

second, undervalued and insider buying have no correlation in GXO case; insiders already own just about 25% of the company; they don't need more shares; they use the dividends to live off, I'm guessing;

your comment on oil up, GXO down - have you seen cdn pricing lately? If you have, you must not be very bright; and if you haven't, well, then you should be playing with cdn oil stocks

bottom line is, GXO is flat to down over the last three months because A) WCS is weak, B) market is uncertain how production volumes will look next quarter, given the conversion of produders to injectors thruout 2017, C) cdn dollar is weakening;  that said, Q3-2017 GXO made almost $30 netbacks, so even with weak Q4 pricing and weak cad dollar, the netbacks will likely be in the 25-27 dollar range - that is surely top quartile or better for canadian microcap oils; even with the production volumes lower and the potentially lower netbacks, GXO is still likely to throw off I'm guessing 0.15-0.18/Q4 cash flow, so that makes it trade at some 3-5x cash flow; that's quite cheap, historically;

all IMO
disclosure: slightly long GXO


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