Diversified Energy Share Discussion Threads

[loganair] 17/1/2024 13:01

Investment and trading firms make fortunes from turbulence in the markets and any single company share.

[tag57] 17/1/2024 12:49

Whites123 - so what is your plan? Buy lower, just comment on the daily price movement, close your short?

[whites123] 17/1/2024 12:33

New lows today.
I foresee new lows tomorrow and likely New lows Friday.

Its dire.

[bluemango] 17/1/2024 12:26

The point is, in an ideal world they'd not be doing buybacks and instead using resources to buy assets. But while the temporary opportunity to save on dividend costs exists, clearly they're going to be taking that.

[nigelpm] 17/1/2024 12:22

I don't understand this point

"They really don't want to spend their liquidity on buy backs at the moment."

Given they spent c.£1m yesterday. They (the mgmt) clearly do unless I've missed something?

[imnotspartacus] 17/1/2024 11:53

If this doesn’t go well the missus will have the suitcase at the door.

[imnotspartacus] 17/1/2024 11:52

Decided to buy my very very very last tranche, that is it I mean it this time…unless it goes to £8 that is!

[johnhemming] 17/1/2024 11:48

The big issue is whether they announce another acquisition funded by the DP Lion liquidity or not. They really don't want to spend their liquidity on buy backs at the moment. If they are not doing a placing (for now) the share price is a short term issue.

[bulltradept] 17/1/2024 11:42

£9.52 (s2) ish is the bottom atm.

[nigelpm] 17/1/2024 11:37

I'd flag my earlier point.

Short positions and buyback combined with confirmation of dividend........

[hernando2] 17/1/2024 11:32

Well i have been buying as the share price falls, something is very odd indeed a dividend of well over 20% and a massive share buy back from the company yesterday.

It will be interesting to see what happens over the next couple of months.

[sbb1x] 17/1/2024 11:29

The market has destroyed most share prices. Just a waiting game for them all to turn.

[lawson27] 17/1/2024 11:26

Jeeez! wheres the bottom?

[fordtin] 17/1/2024 11:19

podgyted - depends how it performs against these other candidates leading up to the March review;



Code
Name
Market cap (m)




 
 
 


JUP
JUPITER FUND MANAGEMENT PLC ORD 2P
422.63


FXPO
FERREXPO PLC ORD 10P
438.43


EBOX
TRITAX EUROBOX PLC ORD EUR0.01 (GBP)
450.2


ESNT
ESSENTRA PLC ORD 25P
454.8


HOC
HOCHSCHILD MINING PLC ORD 1P
458.64


TLW
TULLOW OIL PLC ORD 10P
473.46


MEGP
ME GROUP INTERNATIONAL PLC ORD 0.5P
478.43


FDM
FDM GROUP (HOLDINGS) PLC ORD 1P
479.55


FSG
FORESIGHT GROUP HOLDINGS LIMITED ORD NPV
482.81


PHI
PACIFIC HORIZON INV TST PLC ORD 10P
486.58


DEC
DIVERSIFIED ENERGY COMPANY PLC ORD 20P
491.34

[topazfrenzy] 17/1/2024 11:13

Dividend yield now standing at 28%!!

[podgyted] 17/1/2024 11:08

Presume it'll be kicked out of the FTSE 250 at the next rebalancing.

Down about 7% today MCap @ £458m.

[topazfrenzy] 17/1/2024 11:04

Added a few more to my SIPP lol

[fordtin] 17/1/2024 10:55

So far the current buyback program has used ~£9.8m of the authorised £97.4m and has cut ~£2.1m off the cost of the annual dividend (at current forex and dividend rate).

[topazfrenzy] 17/1/2024 10:51

They pay a huge dividend and are doing a buyback currently, not sure why people are complaining. There is no way the dividend should be increased but if it does then thank you whatever, I'll take it.

Buying back shares is what smart companies do if executed at the right time. Whether you like it or not is neither here nor there, it is always a good strategy to reduce the share count unless debt is out of control.

[mindthestash] 17/1/2024 10:47

we and the oak can rake over the numbers but the problem here is trust.

the numbers, and we'll get more shortly, say to me this runs hot and culturally from the ceo and board like/committed to max divi - ok with me

trust - people dont trust the numbers and dont trust the greenloons (widespead in media/politics and increasingly investment management) and regulators to put the boot in and destroy the model.

Im holding a large slice in my stash and inclined to buy more but i really hope they give max detail and explanation of future liquidity/viability on this divi and the next results report.

Otheriwise you aint seen nothing yet

[fordtin] 17/1/2024 10:46

Farrugia - re; "Dividends should be kept at about 10%."

Sounds like a sure-fire way to drive the share price down toward zero!

Investor A buys into a company offering 10% dividend.
Share price falls 10% due to wider market conditions.
Company cuts dividend to maintain 10% of prevailing share price.
Investor A sells and moves on because other companies offer a more stable return.
Investor B buys into the company offering a dividend equivalent to 10% of prevailing share price.
Share price falls 10% due to wider market conditions and weakened demand caused by dividend uncertainty.
Company cuts dividend to maintain 10% of prevailing share price.
Investor B sells and moves on because other companies offer a more stable return.
Investor C buys into the company attracted by the dividend equal to 10% of prevailing share price.
Share price falls 10% due to weakened demand caused by dividend uncertainty.
Company cuts dividend to maintain 10% of prevailing share price.
Investor C sells and moves on because other companies offer a more stable return.
Investor D .....and so on ...

Anyone still holding from the beginning will have seen their share value deteriorate toward zero as well as their dividend yield diminishing toward zero.

[1knocker] 17/1/2024 10:34

My portfolio is monotone this morning, though DEC is a darker shade of red in a sea of red.

The only good decisions I have made this year so far, are thinking about purchases and deciding o hold off !!

[lab305] 17/1/2024 10:19

fordtin you will know that I have been critical for over a year , since the first buyback abruptly stopped for no reason. I was stupid and should have sold then. It is absolutely incorrect to suggest that I have become more negative since I sold. Just read my posts after November 2022 there are plenty and all disgruntled !

[farrugia] 17/1/2024 10:18

i don't think buybacks help much. I don't even think dividends at 25% help in the long run. Dividends should be kept at about 10%. The rest of the capital should be kept on the balance sheet - that supports a 'minimum' stock price.

[kenmitch] 17/1/2024 10:05

topafrenzy.

Yes. Dividends are much better than buybacks for shareholders because they return real money to us.

You say eps go up. Not correct. eps can go DOWN when a Company buys back. e.g after collapse in profits.

The correct fact on eps is this; buybacks mean eps is higher than it would have been without buybacks.

I agree though that if Companies insist on going for (wasteful imo) buybacks, then it is far better to do them when the share looks to be be too low.