RE:RE:RE:No Love For GXE
bullhorn3 wrote: Roscoe747,I also am long on GXE. I mostly agree with you except for one important point. As interest rates rise, borrowing costs for a debt-free GXE are irrelevant... that is true. But, if GXE's dividend is small, there may be many other opportunities for investors in a high interest rate environment... US $ are risk free, GXE dividends are not risk free as they will disappear if WTI goes negative again, for example. Or if there is a real war with Russia and price controls (including oil) are imposed. Or if there were an NDP government that forcibly bought oil companies for a pittance. Or a Liberal government that imposed carbon capture mandates so stringent than no oil company could survive.... The list goes on, but you get the point.
You are correct, bullhorn, and make good points. 'Debt free' also doesn't cover the effects of high interest on the services and materials GXE needs to purchase or wage inflation due to skills shortages but that's what the sell button is for, n'est ce pas?
Perhaps I should restate: I am long until I'm not. Every investor needs to keep an eye on macro economic signals as well as company metrics and execution. If oil and gas are done for, I'm ok with cash.