Post by
Rational43 on Sep 23, 2023 3:03pm
People shouldn't invest if they can't read Financials
You are a danger to yourself if you invest in names without being able to read financial statements.
GTE had positive cash from operations in Q2.
They had several mark to market hedge positions and foreign currency MTM adjustments that made the quarter look negative. Those aren't reflective of underlying operations.
Their Q3 number will be incredible at these Brent prices.
Their free cash flow will also greatly improve, as they spent a major part of their capex in the first half.
Unfortunately the unscrupulous or uninformed will use the two factors combined to "prove" GTE isn't making money at H1 oil prices, which is not true.
What is true, is they are priced as if they weren't making money, and will be making huge, huge money going forward.
That makes this the time to buy, when the price per share is less than 1 x CF, and close to 0.6 x CF at current prices, with production growing and debt dropping, with reserve value of multiples of current share price.