Value Microcaps Junior Energy

[dr_airtime]

SGY - next one GXE.TO

SGY should be a big winner for me. I should have bought more. Oops!

FYI - I just traded some of my largest cap intermediate Canadian oil producers that have been big winners (CPG - Crescent Point, MEG) today that turned into outsize positions in certain accounts for this little Canadian producer:

Gear Energy GXE.TO.

Just looked and ended up buying 205,000 shares across accounts this morning!

Basically all the small Canadian oil producers went stratospheric last week and today while the larger caps have not as much. Small Cap space playing catch up.

This is a catch up-trade for little 5000 boepd oil producer with low costs and some of lowest relative debt in the Alberta Oil Patch (only ERF.TO/ERF may be lower).

Read the last PR and then flip the presentation below and then look at the chart and my buy should be crystal clear.

Last Press Release

Presentation: see slides 3, 9 & 18

*See Slide 9 for Dec-21 FFO/Net Debt @ WTI $60

*Also see slide 18. I bet at Feb 8 Strip prices Gear will do $CAD .40/share FFO in 2021 (Slide 18 at January 8th strip). It is trading at just north of $CAD 0.30/share ($CAD 61mm market cap) with $CAD 61mm of Net Debt. Quick math and GXE.TO is at 1.6X 2021 FFO/EV today. Stupid Cheap.

Note I did not do the calculation before I bought 200k+ shares but am now glad I did! This is why I like posting here as it forces you to write out your thesis...I would go and buy some! Easy to get filled today.