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Bullboard - Stock Discussion Forum 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... see more

TSX:GXE - Post Discussion

Gear Energy Ltd > Interesting panic created in GXE
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Post by Roscoe747 on Jun 07, 2022 12:23pm

Interesting panic created in GXE

The fact that the financial market in oil stocks,ie: the TSX, is not in sync with the physical market is creating panic (or panic created in the interests of those who profit from panic) among those who make investing decisions based on noise, not metrics.

The easiest answer to this dilemma is the fact that generalist investors are still avoiding small cap oil stocks until they have proved themselves cash cows, not just promised the same. This lack of buying power allows for the usual swing trade and consolidation antics to occur. 

This stock is trading sideways because it's management has only committed 30% of free cash flow to shareholder returns and made some vague promises about the other 70%. Oil investors want cash, not promises, after the previous brutal collapse in oil.

Nobody cares about growth. They want flat production to blow down reserves and return the free cash to investors before the entire industry is ruined by green zealots. There is zero interest in management schemes regarding acquisitions or growth when GXE can hold production flat for 20 years on current reserves.

Comment by Luckyeleven on Jun 07, 2022 12:34pm
Other small caps are having a good day and they have the last week as well. Also share buybacks are returning captial to shareholders according to Nuttall. When he says he wants it all he means dividends and buybacks. This funk is GXE specific for whatever reason. Other small caps today up over 5% and this after already going up this last week or so and GXE down 10% in that time frame. I am more ...more  
Comment by navajojoe on Jun 07, 2022 1:12pm
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