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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 SecondhandGnuson Jul 19, 2022 11:27am
165 Views
Post# 34834414

RE:RE:Gear in the twilight zone

RE:RE:Gear in the twilight zone

I've been a happy buy-and hold retail stock investor investor since the late 90s, CB--if you're indeed a pro that's great, but as Huey Lewis said back in the day, I'm working for a living. There's nothing personal in my take, and I'm happy to be wrong and have the medium-term Gear investors quickly make lots more money.  The fact remains that GXE has traded poorly (even compared to other producers) since Ninepoint started selling their stake, despite their now enviable debt-free status.

Most here understand that an ATM stock gives back the majority of its free cash flow via dividends (and sometimes >FCF retail bait like the previous CPG leadership).  I actually think that Gear is doing OK to start at 30%.  My largest holding in O&G is Peyto, with which both Don Gray and Scott Robinson are shared, which is pushing for 7% annualized growth into the future--I'm just saying that it wouldn't be unlikely for Gear to choose a similar path.

I'm not bashing Gear at all, but I'm looking for a disconnect between an improving company and a unhappy shareholder base.  If/when they announce an acquisition I'm there to provide a small amount of liquidity.  Let the disgruntled sell in which case I'll be a new, fully-gruntled Gear shareholder--peace...

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