Diversified Energy Share Discussion Threads

[poleaxe] 27/5/2021 13:34

Feel sorry for Gary1966 he bought a shed load just after the placing.

[scrwal] 27/5/2021 13:17

The only thing that concerns me is actually the Oaktree situation where DEC would need to raise $1bn max. Each acquisition made DEC will need to find a minimum of $125m.

Therefore there may well be more placings over the next 30 months which presumably will be made at a discount causing a downward drift in the share price.

Based on my limited knowledge wouldn't a rights issue be a better proposition than a placement as the revised price is effectively the market value at time of the rights plus the value of the rights divided by the new number of shares in issue. This results in a higher closing price as there is no knockdown of the initial market value at the discounted rate of the new issue.

[rhubarbcrumble] 27/5/2021 12:30

Excellent post Cassini

[cassini] 27/5/2021 10:48

lab305,

Well I feel your pain but at the present situation I don't consider the price drop as anything too concerning. Consider:

#DEC telegraphed they would be making acquisitions back in January I think and the share price took a tumble then on account of that, but someone paying close attention would know they were coming in 2021.

#They used a mix of share placement and debt which they have justified, at least on their own terms.

#The placement had to be at a discount as placements always are, otherwise no one would buy enough shares. The share price dropped to the placement price, as it nearly always does.

#Despite the unseemly haste it was done with, private shareholders had the chance to take part in the placement (at least in theory - although many didn't even hear about it until afterwards!) through that app or indeed just by buying in at the market rate the week afterwards. Of course, those without funds to buy at the moment are at a disadvantage. At least the placement is allegedly earnings enhancing from the start.

#The placement was unfortunately very close to the next ex-dividend and that muntered any share price rise beforehand as 112p was like a magnet given how placements work

#The ex-dividend date comes along and the weird dynamics of how the DEC share price works at divi time ensures a bigger drop than the divi - as usual.

I hope that all we have to do here is sit tight and weather this one out. I'm not worried. I bought some more near 112p so hope I'll benefit from all the faff in the long run.

[jong] 27/5/2021 10:05

Usually there hasn't just been a big placing a few days before the XD. It usually takes a good few weeks to digest all the new placing shares. Look at SUPR, THRL and SONG share prices over the last 6 months before and after their respective placings.

[lab305] 27/5/2021 09:45

CASSINI yes you are correct but pre the dividend there is usually an increase in the share price as people buy for the dividend.

[cassini] 27/5/2021 09:27

Isn't the drop always more than the divi amount? I posted about this back before the last divi before this and sold out before it to take advantage of the drop. Shares with large divis seem to get hi
t with this sort of trading pattern ex-dividend. Imperial does the same thing.

[lab305] 27/5/2021 09:07

Anyone care to call the bottom of this rout ?

[neilyb675] 27/5/2021 08:58

cents after 15% withholding tax at current exchange rate is just below 2.4p .

_________________________________________________________________________________

how about after 30% withholding ?


LOLOLOOOOOOOOOOOOOOOOOLOLOOLOL

[scepticalinvestor] 27/5/2021 08:57

good point.

[scepticalinvestor] 27/5/2021 08:57

yes, that is what I am saying.drop is below 4p, no?

[lab305] 27/5/2021 08:56

4 cents after 15% withholding tax at current exchange rate is just below 2.4p .

[fardels bear] 27/5/2021 08:47

Four cents. Three pence.

[scepticalinvestor] 27/5/2021 08:46

Cheers. So the drop is still below the divi amt

[theprovosts] 27/5/2021 08:41

"Shares issued pursuant to the Proposed Fundraising will be eligible for the Q4 2020 dividend of 4.0 cents per share, as well as all future dividends. The ex-dividend date of the Q4 2020 dividend is 27 May 2021 and the Q4 Dividend is expected to be paid on 24 June 2021."

[scepticalinvestor] 27/5/2021 08:40

What is the divi amt?

[w1ndjammer] 27/5/2021 08:17

ex divi

WJ.

[lab305] 27/5/2021 08:15

107p . Disgraceful. Well that's the uptrend broken and completely self inflicted. All those buyers that got in at around 112p at the expense of existing holders won't be so jubilant now !

[sogoesit] 27/5/2021 03:28

A useful guide for withholding tax issues written a couple years ago but still valid.
Also written so that idiots like me can understand it!

[voci] 26/5/2021 15:24

"Yeah. You posted that yesterday. What’s the beef? Put them in a sipp. No tax."

If they are in a SIPP do you still need to fill in a W-8BEN form to avoid the tax?

[doubleorquits] 26/5/2021 12:52

The same here although maybe not as dangerously overweight here thankfully.

[gary1966] 26/5/2021 12:50

Have some in my SIPP but dangerously overweight position is in ISA's and so very relevant to me.