Gear Energy Ltd T.GXE

Roscoe

[tylerreddick]

Your statement:
" GXE's earnings are $.26 on a $.63 stock. That is a fact. "

So if they are making so much money, why is their debt going up?

[Roscoe747]

Two reasons,tyler, which you well know: First, GXE's capex is loaded in the first and fourth quarters while their cash flow is not and second, the decision to implement a dividend was made premature and unsustainable by the failure of 2022 oil prices to hold over $80. GXE should be prudently hoarding cash flow to maintain a positive cash flow that negates dipping into the credit line. A

[Roscoe747]

In a different context, the $.26 earnings are not unusual in the P/E ratio, the share price is. In a 'blue chip stock' environment, a 10 or 12/1 P/E is considered the norm. If GXE had such a multiple, given its earnings, the ratio dictates a $2.60 to $3.12 share price. That may occur if a structural supply shortage were to develop but in the present period of investor sentimen, it remains

[tylerreddick]

OIl and/or natural gas producers are NEVER valued based on their P/E ratio. Any investor who has been involved in the patch for more than 10 minutes knows that.

[Roscoe747]

Are you saying the P/E metric is untrue or just that it isn't as useful as others, tyler? Rather than finding a problem for every solution, why don't you pick a metric and give the forum your analysis (rather than an unsupported driveby).