Gear Energy (GXE-T)
TSE:GXE
0.48
Financials
Technical Analysis
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Gear Energy (GXE-T) is facing significant challenges as highlighted by various experts. The company's share price appears to suffer from a lack of investor interest in smaller energy firms, leading to suggestions that it may need to explore selling itself to unlock potential value. The recent decision to cut the dividend by 50% has alienated many investors, as a stable dividend is often viewed as a hallmark of financially sound companies. The stock is characterized as a potential value trap, with no clear catalysts for improvement on the horizon. Despite a seemingly healthy balance sheet and attractive cash flow multiples for 2025, uncertainty surrounding changes in leadership and overall market sentiment suggests investors are currently focusing their attention 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.
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.
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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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.
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
Gear Energy(GXE-T) Rating
Ranking : 3 out of 5
Bullish - Buy Signals / Votes : 0
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 3
Total Signals / Votes : 3
Gear Energy(GXE-T) Frequently Asked Questions
What is Gear Energy stock symbol?
Gear Energy is a Canadian stock, trading under the symbol GXE-T on the Toronto Stock Exchange (GXE-CT). It is usually referred to as TSX:GXE or GXE-T
Is Gear Energy a buy or a sell?
In the last year, 3 stock analysts published opinions about GXE-T. 0 analysts recommended to BUY the stock. 3 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Gear Energy.
Is Gear Energy a good investment or a top pick?
Gear Energy was recommended as a Top Pick by on . Read the latest stock experts ratings for Gear Energy.
Why is Gear Energy stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is Gear Energy worth watching?
3 stock analysts on Stockchase covered Gear Energy In the last year. It is a trending stock that is worth watching.
What is Gear Energy stock price?
On 2025-02-07, Gear Energy (GXE-T) stock closed at a price of $0.48.
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.