Gear Energy (GXE-T)

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.

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

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 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.