Diversified Energy Share Discussion Threads

[topazfrenzy] 17/1/2024 10:00

As a shareholder you end up owning more of the company after a buyback when shares are cancelled, which is the case here. It's simple mathematics!

[parob] 17/1/2024 09:59

2nd batch in for me too :)

[loganair] 17/1/2024 09:58

DEC yesterday closed in the U.S. at around the equivalent of 1030p.

[topazfrenzy] 17/1/2024 09:56

The benefit of buybacks is that shares are reduced and dividend payouts are less for the company over time. If you do the buybacks when the share price is low it is the best thing you can do as earnings per share go up.

Dividends are good and of course they pay them here but once that money is gone it is gone.

[kenmitch] 17/1/2024 09:53

But (this question always goes unanswered) what’s is the benefit for shareholders. Buybacks do not overall benefit them imo. And it’s not just opinion. Time and again the facts show that.e.g for just one of hundreds of similar examples, what about ABDN who started buying back at £5 several years ago with relentless buying back ever since, and share now half that £5 price?

Here’s the DEC pre Christmas info on their biybacks. Average price of them was over £13. Share price now nearly 30% lower still at under £9.

2023

18 December 2023



Diversified Energy Company PLC

("Diversified" or the "Company")



Transaction in Own Shares



Diversified Energy Company PLC (LSE:DEC) announces that, in accordance with
the terms of its share buyback programme announced on 27 June 2023, the
Company has purchased 7,500 ordinary shares of 20 pence each in the capital of
the Company (the "Shares") in the market at a volume weighted average price of
1330.06 pence per Share through Stifel Nicolaus Europe Limited ("Stifel"). The
Shares acquired will, in due course, be cancelled.


So. What IS the benefit for shareholders?

[bountyhunter] 17/1/2024 09:43

Cancellation of the buy back shares is a positive - which is what they are doing - rather than handing out to directors from treasury at some future date which is what some companies do.

[bulltradept] 17/1/2024 09:42

"It’s a misconception that buybacks = higher share price."

Yes, certainly makes metrics look better, but as you state why should that help holders of the stock?

Surely better to give money back to those owners of the company?

[lawson27] 17/1/2024 09:40

Taken some @975, oversold imo, GLA

looks like the mm's did a smash and grab and took out a stop for those 3540 @968, we shall see

[scepticalinvestor] 17/1/2024 09:39

I agree - excellent quality but the mkt is currently against DEC.When it turns it will be an easy 50% upside imo - target in the regions of abt 1300p

[imnotspartacus] 17/1/2024 09:36

It’s hard not to pull the trigger but may be £9 is on the cards!

[scepticalinvestor] 17/1/2024 09:31

Less than 50p in old money. . .Looking to buy back in when its hits the low 9s.

[t 34] 17/1/2024 09:20

What is happening today is the effect to what happened on NYSE yesterday .

[fordtin] 17/1/2024 09:13

Lab – have you considered that you may be part of the problem?
You've said you sold a considerable holding, then campaigned for others to join you in selling into the share price weakness you helped create.
Perhaps you have influenced some shareholders and they've also contributed to the persistent dripping of shares into the market.

[kenmitch] 17/1/2024 09:12

Buybacks favour those who want to sell as there’s that willing buyer of their shares in DEC themselves. It’s a misconception that buybacks = higher share price. They don’t mean that. They do mean higher eps because there are fewer shares in issue, and if as is often the case, Director bonus pay is based on eps performance, then it benefits directors too. But what benefit is there from buybacks for the loyal shareholders?

[lab305] 17/1/2024 09:02

The only thing that made them rise yesterday was that for once they put their hand in their pocket and executed a reasonable buyback. Mark yes I was right but that is not the reason that I posted. I was/am trying to get posters to see that the company does not do what it says anymore and that the departure of the CFO was a serious event. Perhaps if you had listened to me instead of criticizing you would have saved some money.

[bulltradept] 17/1/2024 09:02

Given the wider market, holding up well on current support for now.

[lab305] 17/1/2024 08:50

The only thing that made them rise yesterday was that for once they put their hand in their pocket and executed a reasonable buyback.

[kaos3] 17/1/2024 08:32

an ATM when needed

[bulltradept] 17/1/2024 08:19

Looking to buy soon...

[topazfrenzy] 17/1/2024 08:13

We should hopefully have another big buyback today

[bountyhunter] 17/1/2024 07:47

The latest Oak Bloke link is now in the header, thanks for posting the link Leon.

[oneillshaun] 17/1/2024 07:36

Love that the company are taking advantage of the drop in price to buyback this has to give the market some confidence all is ok.

[stevensupertrader] 17/1/2024 07:33

This is the largest buyback of shares by DEC yesterday (100000) by far .
DEC will definitely motor up over £10.59 easily today

[laurence llewelyn binliner] 17/1/2024 07:32

100,000 bought back yesterday, a strong buy there eqv of 2M before the Xmas consolidation..Inflation up for Q4, it could be an ugly day on the wider FTSE market for us all..

[topazfrenzy] 17/1/2024 07:22

That’s 2m shares bought back yesterday in old money