Eric Nuttall Gear Energy GXE-T DON'T BUY Apr 02, 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.

The stock is cheap, and the balance sheet is fine, and it is not without potential. It still pays its (lowered) dividend. It is buying back stock. We would not consider it a disaster, but it is a small company, in a struggling sector, with negative momentum, and annoyed investors (no sale and the dividend cut). The numbers are not hugely reassuring. But a sector rally would likely still move it nicely. It is up 3% YTD despite all the news. We think we would 'target' it for a sale as new ideas show up--i.e. use it a source of cash. But we do not think a sale has to be rushed, immediate, or full. Depending on one's risk profile, a small position could still be kept. 
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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.