RE:WHY did Eric sell GXE?I think E Nuttal is an oil bull...it just so happens that he has been right the past 2 years....but 4 years ago he was wrong
sometimes we get it right and sometimes we get it wrong
NO ONE IS ALL KNOWING....
good luck with your new position...I am hoping this stays low a few more weeks so i can buy more
GLTA
pierrelebel wrote:
I like Eric Nuttall, who does not?
Last Friday he explained why he recently sold 25,000,000 GXE shares he previously owned: he made a big profit and felt his money would yield better results elsewhere.
That makes sense. His sale also explains why GXE has not been doing so great lately while other Canadian junior oil producers shares have been climbing non-stop.
On the other hand he may have sold because he does not like the new approach taken by management now that GXE is debt free. From Q1 results release:
"As a result of significantly improved commodity prices, Gear intends to increase the planned 2022 capital and abandonment expenditure investment from $40 million to $55 million. The incremental expenditures are scheduled for late into 2022 and, as a result, will have no impact to 2022 annual production but will have positive impacts to first quarter 2023 production and the base for a 2023 capital program. Forecasted annual production growth remains at approximately three to four per cent however, production growth from the first quarter of 2022 to the first quarter of 2023 is expected to be closer to seven or eight per cent."
This is NOT what Eric wants. He clearly stated his position last Friday on BNN. Once a company is debt free,"he wants it all" - dividend or share backback.
While GXE plans to give free cash flow substantially to shareholders, it also wants to use some of it for expansion and cash acquisitions. Personnally I like that.
So I took an initial position in GXT this morning at $1.55
I expect patience will be rewarded.