Stockchase Insights Gear Energy GXE-T PARTIAL BUY Feb 28, 2024

Small player in energy space ($270 MM market cap).
Believes dividend is sustainable (~11% yield).
Not many large funds buying.
China re-opening will increase oil price and lift share price.
Good for retail investor.

It was fashionable to have a flashy dividend, but then energy prices were weaker than people thought. A company should never cut its base dividend.

Small energy company (prefers larger companies).
Stock performance done well the past year.
Strong dividend.
Likes WCP and Headwater Exploration more.

Small energy stock that is "for sale".
Recent cut of dividend not good.
Company hoping to take advantage of higher oil prices in order to sell.
Company cheap, but so are other (better) names in sector.

Seeking strategic alternatives for the second time, aka "looking for a buyer". Dividend is not sustainable. Trading at 2.2x, so a premium on a sale is possible. If no sale, dividend will resize.

He thinks their CEO is resigning and they cut their dividend, though trades at 2x cash flow 2025. Balance sheet is fine. But there's a lot of noise here, and investors are looking elsewhere.

Right-sized the dividend by 50%, which alienated a lot of investors. The base dividend should never be cut, and most quality companies will base that on a very low, defendable oil price. 19% free cashflow yield. Value trap. Can't see a catalyst.

Company share price is reflective of lack in interest in small energy names (market cap too small). Company needs to sell itself in order to generate value. Better options for investors out there.