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Gear Energy Ltd T.GXE

Alternate Symbol(s):  GENGF

Gear Energy Ltd. is an oil-focused exploration and production company. The Company carries on the business of acquiring, developing and holding interests in petroleum and natural gas properties and assets. Its operations are located in three core areas: Lloydminster Heavy Oil, Central Alberta Light/Medium Oil and Southeast Saskatchewan. The Company is also engaged in focused on improving oil recoveries through the application of water flood technology. The key properties in the Central Alberta Light asset include Wilson Creek, Ferrier, Killam, Drayton Valley, and Chigwell.


TSX:GXE - Post by User

Comment by geezer21on Jun 04, 2022 9:54pm
158 Views
Post# 34732161

RE:RE:GXE

RE:RE:GXEWith Eric's fund at 2 billion now, he has to buy large caps to get more liquidity.  He had to sell Gear and Cardinal.  For the same dollars he only had to buy fewer shares of Orvintiv or any other large cap.

For example, with Orvintiv at $57.47 and Gear at $1.59 as of Friday,  to move 31.8 million dollars, Nuttall would have to buy or sell 20 million shares or 7.7% of Gear outstanding shares, a level Nuttal typically holds in any company.    He would not be able to do this in one day without impacting the share price. He would have to invest a considerable amount of time trading that amount of shares over a considerable number of days.  Along with all his other holdings this becomes a logistical management nightmare.

To move 31.8 million dollars Nuttal would only have to sell or buy 553,332 shares of Orvintiv.  So trading becomes more manageable.

For Nuttal this math matters.  That is why he talks about seeking out more liquidity - i.e.: being able to move shares more easily.

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