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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 Roscoe747on Dec 28, 2023 12:57pm
152 Views
Post# 35802806

RE:At $74

RE:At $74A pessimist will find a problem for every solution.

GXE's earnings are $.26 on a $.63 stock. That is a fact. Your predictions are speculation. GXE's share price will stay mired in doubt until the 'strategic initiative' is resolved, one way or the other. If no deal is made, the share price will depend on the guidance issued by mgmt.

I agree that the dividend is a wasted use of capital in a company with a need to back stop reserves and reduce costs. GXE is very careful about releasing any production data not required by law. Nothing strange about that except the need to reassure investors about the future of the share price.

The hope for a January Effect bump is also speculation. Without it, the share price may continue to weaken as long as the 'strategic initiative' is in limbo. GXE is a little plodder without anything spectacular to offer but still, a good earner. If you expect price multiples and excitement, I suggest you look elsewhere. P/E of 2.5/1 with steady earnings indicates the price will rise with market confidence, barring a supply bonanza like SA reversing course. Its a high risk/low reward environment. Not good optics for pessimists.

Happy New Year and may the mrket gods smile upon poor little Gear and its bloody and tattered investors.
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