Cash flow and dividend - thats why. And ... I told you soSeveral people knew before what all know now for certain via Dec report published by GXE.
Cash flow does NOT cover dividend. People can argue, and rearrage 3 nickels trying to call it a quarter all day .... but facts are facts. Cash flow is not sustaining costs and the div is a cost.
So something has to give. Oil falls back below 80 the debt will pile up and of course, the creditor isnt going to agree to finance the div. Once wind of that breaks they will strongly influence the board.
Its all just math and it was apparant months ago. But here we are. Facts are in and market is reacting.
GXE is a gamble. Probably why the biggest swing traders in GXE are management themselves.
Funny part is how basic this company really is to forecast. Probably the most basic of all oil co's. If you cant forecast GXE cashflows then ... WOW. But those same people will scream and argue some more as usual and thats fine. I just wish they had more money. I'm not getting rich off Chefboys $500 portfolio