Gear Energy Ltd T.GXE

Divvy in danger

[lashing]

Oil stays here for much longer that dividend is in real danger and this is a 60 cent stock
Thus the selling

[lovehockey]

Just replying to this GXE specialist that 7 months ago told us that the dividend is in danger and Gear is a 60 cent stock! 

[lashing]

you've been wrong every single time you post so .... wouldnt be talking

[lovehockey]

You said in December divy is in danger. I have been receiving divs for 7 straight months in a row with now issues. Who was wrong?

[lashing]

you said this would be a 1.50 ... YOU were wrong. And your tone is that of a kid. Ego isnt worth $$$ so why so much? 

[CountryBoy69]

Hey Hockey , scroll back a few years where your principle detractor attacked a poster named Fantome at every opportunity.Fantomewho voluntarily quit SH forgot more in a day than your idiot stalker ever knew.A while back l posted l bought 25 grand worth of GxE and Mister superior millionaire derided my investment as inconsequential because only having a much smaller portfolio than he claims to have

[Roscoe747]

Yes, the point is not whether GXE can 'afford' the dividend, the point is whether that is the best use of cash flow when maintaining production becomes increasingly difficult. The 'hail Mary' play of waiting out higher prices has almost run its course while structural risks increase.

[tylerreddick]

Roscoe, I see you are finally coming to realise how GXE's second rate assets are a problem for the future, and maybe the not-so-distant future. Have a great weekend.

[Roscoe747]

No, I'm well aware of GXE's looming reserves conundrum. The issue today is that time is ruuning out on a creative solution and the FCF narrative to support a long term dividend on maintenance capital has, as yet, failed to materialise. To me, the SP failing to hold at a loonie is directly caused by the threat of dividend suspension. I do not believe the SP will drop to $.60 rather the SP

[tylerreddick]

Considering GXE's assets, do you really think it is worth $45,000/boed, when so many of their peers are trading at much lower EVs/boed?

[Roscoe747]

I think that speculative fundamentals like 'per barrel' and 'present value of future net earnings' are lost in the euphoria of a quick buck based on the oil bull narrative. It will take exponential demand recovery in industrial oil usage to make that happen. A gradual industrial demand recoovery will choke high beta stocks like GXE and, in a highly volatile market, hold their SPs

[tylerreddick]

That is what I would be concerned about, 100%.