Gear Energy (GXE-T)

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.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Generally likes the stock. Has done well, yet remains relatively cheap on most metrics. Offers growth and decent dividend. Balance sheet is strong and debt is less than 0.5x current cash flow. Unlock Premium - Try 5i Free

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.