RE:New Strategy Maybe??Gear is at fair value now in the circumstances of the present day. That said, Gear also has tremendous torque to a positive resolution of the macro issues affecting oil pricing. Resolving the issues of inflation, recession, monetary policy and demand expansion will create the conditions necessary for a rerating of smallest oil caps.
Since GXE is likely under the market cap for investment by most funds, GXE will require the participation of the generalist investor in any rerating. Generalist capital inflows are most responsive to the biggest and best, lowering their investment criteria only when forced by market conditions. The little Gears and such are, due to their size, the last to attract rerating.
Considering the implications of supply constraints and demand expectations on the existing bull, my opinion is that there is lots of time for rerating. The historical evidence and present supply/demand balance both point to a renewed demand increase in 2023. The instant gratification environment of the present day does not align well with requirement of allowing corporate strategies time to mature. This impatience plays well into the wash trading and swing trading tactics to incite fear and capitalise on the volatility.