Gear Energy (GXE.TO)

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A strong management team should be able to grow a company faster and thus the stock will get expensive. GXE shares were $1.01 in June so a price target of $1.10 is not unreasonable. Unlock Premium - Try 5i Free

Leverage was a past problem, not now. It's a smallcap. They have decommissioning (of oil wells) liabilities. They produce lower-quality barrels, not as good as, say, WCP. This never made the cut for him, and the smallcap is unattractive.

They have done some good acquisitions and they have heavy oil exposure, but the liquidity is just too slight.

They have been around a few years. They have some light oil now. They are trading quite cheaply. She does not own it because of the heavy oil price differential.

It is a small position for him. It is heavier oil and has not kept up with other names. It is under the radar. He is quite impressed with their production ramp up and netbacks. People are hesitant to move down to these microcap names. It looks cheap. The oil price has moved up but this stock has not. He would buy.

A small oil company. He is on the board. Producing about 6000 barrels a day. Great balance sheet and it has done a good job of repairing and surviving this market. Trades at one of the lowest valuations in the junior space. Management has done an excellent job and have drilled some really, really good wells. It is lighter oil and has a very promising future.

(Market Call Minute.) A heavy oil producer and cheap valuation, so he is not looking to buy this.

A good little company. They made an acquisition that was kind of like a deleveraging story. The cash flowing asset was very limited in running room, in terms of inventory. Also, their market cap is too small for many professional investors to care. Until you can get the market cap up considerably higher, he doesn’t know if people will get very excited about the name.

(A Top Pick Oct 23/14. Down 86.29%.) At $100 oil, it made money to $60. As soon as oil began to flip and heading towards $60, he cut and ran.

(A Top Pick Aug 6/14. Down 81.87%.) A very solid company in Western Canada. Have great assets. It has been afflicted by the Western Canadian energy sector and the global energy gloom and disease. The best thing you can say about this is that there are about 10 analysts on it and they all have target prices 100%-200% above the current price.