Last stock in the clip. GLTA
https://www.bnnbloomberg.ca/video/eric-nuttall-s-top-picks~2192589
Gear Energy (GXE TSX)
Gear Energy is a deeply discounted small cap oil stock that is well-run, shareholder friendly, and potentially debt free by next year. With 20 years of “stay flat” inventory, Gear Energy will free cashflow its entire market cap every three years at $65WTI, meaning they could privatize themselves over six times before depleting their drilling prospects. With a current EV/CF trading multiple of 1.8X at $65WTI using a target multiple of 4x we see more than a potential double in the share price. We own 9.9 per cent of the company.
TOP PICK
Gear Energy
(GXE-T)
April 30, 2021
A microcap. Getting a shrewd operator. Had to operate during the worst bare market in oil. Has 20 years of drilling inventory with 23% free cashflow yield now. 2.1x cashflow at $60 and under 2x at $65. Could privatize themselves 6x before extinguishing inventory. Tons of free cashflow. 4x multiple would mean a double. A very big pricing leverage to a rising oil price. Will be debt free before the end of the year. (Analysts’ price target is $0.71)
OIL/GAS
Eric Nuttall
Price
$0.510
Owned
Yes