Topic: How To Invest

Hi Pat: Can you tell me if Gear Energy is a buy? Thank you.

Article Excerpt

Gear Energy, $3.67, symbol GXE on Toronto (Shares outstanding: 54.0 million; Market cap: $196.4 million; www.gearenergy.com), produces and explores for oil. It has heavy oil production in east-central Alberta and west-central Saskatchewan. In December 2013, the company’s output averaged close to 5,000 barrels of oil equivalent a day. Gear began trading on Toronto in November 2013. In the three months ended September 30, 2013, the company’s cash flow rose 46.7%, to $0.22 a share from $0.15, on higher production and oil and gas prices. Its long-term debt of $52.7 million is a reasonable 27% of its $196.4-million market cap. Gear Energy is okay for aggressive investors to hold. …