Diversified Energy Share Discussion Threads

[stevensupertrader] 09/3/2024 14:53

Dec at that time has a BUYBACK SCHEME . If DEC thinks that share price is undervalued which it always said in the RNS then M & G dumping is an opportunity to buy and cancel shares at dust cheap price unless DEC is unsure and said it’s shares were undervalue 🫤 - I guess DEC has lost the plot and lost all investors’ confidence

[bountyhunter] 09/3/2024 14:43

But also the tender offer is a clever way to stop the likes of M&G dumping shares they wish to sell into the market, assuming they take it up!

[stevensupertrader] 09/3/2024 14:40

Agreed - this Tender Offer is to cancel shares . Therefore with this in mind , this scheme will flop unless a miracle happens between now and 26 March - there is one event Ie the full year result on the 19 March . Currently DEC is facing headwind eg $ weakens again the £, share price in narrow range bound , still unable to move above £10 .

[bountyhunter] 09/3/2024 14:25

Yes for major investors but the shares purchased under the tender offer won't be moved to the US as:

"Shares purchased under the Tender Offer will be cancelled by the Company."

Presumably you meant sold in London and bought back in New York?

For an ISA investor subject to 15% withholding tax (w8-ben completed) for the tender offer to be better than taking the dividend the tender offer price needs to be at least:

((0.68*0.85)/5)*100 = £11.56

So not worth the effort for ISA/SIPP investors unless you are highly optimistic about the results due 19th March, although as has been said no surprises to the downside or upside seem particularly likely with most of the parameters known in advance, imho!

[97peter] 09/3/2024 13:16

SSS- Steven you are mistaken this tender is purely for the big boy investors to get and move, sell DEC shares before year end and re-invest at 5% bonus and is a win win for DEC and investment companies and MM to reduce shares in circulation and move some to US!!!!!!

[bountyhunter] 09/3/2024 12:40

So for the purposes of populating the US market, keeping the price down in London but somewhat higher on the NYSE is certainly quite a lucrative business for those that can move the shares. They might argue there is more demand in New York elevating the price there I suppose.

[bountyhunter] 09/3/2024 12:36

#1514
That's the first I've heard of that but would be interested to hear the views of others. I really don't know for sure how any shares get to the NYSE market but presumed that only MMs could do it.

[stevensupertrader] 09/3/2024 12:32

We private shareholders cannot even sell shares in US NYSE even we have shares held in Uk through UK brokers - such an unfair world we all are living.

[kaos3] 09/3/2024 11:59

It was descridbed above on one of advfn BBs.

Something like transfering from crest to us clearing house.

Someone else can elaborate

[kaos3] 09/3/2024 11:57

Bounty yes, no surprises. That is why i bought. On credit.

All main variables are almost constants. Production known and controlled. Major costs controlled and known. As they do not drill. No capex. Revenue known due to hedging.

Only important variable that is out of control is regulations.

Bit they can control even that to a degree by acting responsible, by educating the public etc

[bountyhunter] 09/3/2024 11:53

How do you move shares to New York?

[kaos3] 09/3/2024 11:49

I listed long ago it is not a simple shorting. What was going on imho

One shorts dec only in london to get lower share price in order to buy.

Then one moves shares to NY and sells them dearer.

If one looks above graph of both exchanges london was always cheaper to a reasonable degree for an arbitrage if one operates high vol and low costs.

So by shorting one can make money on simple shorting, on building a position on the cheap and making an arbitrage - all at the same time.

[bountyhunter] 09/3/2024 11:45

The prior consultation with shareholders is interesting:

"Following consultation with shareholders and after careful consideration of the feedback received, the Company is offering shareholders optionality as to the Return of Capital."

Based on that I'm not expecting anything too negative in the results on 19th March or shareholders consulted re the tender offer may feel duped if they receive a low price for their shares as a consequence of the results. On the other hand if above expectations and there is a significant share price rise the company will be out of pocket buying back shares at a higher level vs now.

[kaos3] 09/3/2024 11:41

Whenever stiefel is involved suggesting i do the oposite. Out of several experiences.

I do not even bother going into reading it all beyond summary.

Just imho

[stevensupertrader] 09/3/2024 10:37

Let’s hope that the result on the 19th March , a week before the deciding Tender Offer Price closes , 26th March 2024 - is the saving grace for DEC by maintaining at least the current dividend otherwise all hell breaks lose imo 😞

[blue square] 09/3/2024 10:24

The one comforting aspect is the
full year results are annonced on
19 March, which surely means the
dividend will continue, otherwise
the share price would collapse,
so setting the Tender at a price
of at least 9.35p they are not
expecting a collapse, so the or more
or less saying the dividend will
continue

[stevensupertrader] 09/3/2024 10:11

Even if I am a private small shareholders and held my shares in SIPP , I won’t opt for the Tender Offer, only if the share price moves up to £12 on the 26 March 2024 .
Why no DEC Board Directors respond or realise this ? Maybe now the Board realises it but is rather too late . This Tender Offer will bound to fail at this current share price unless a miracle happens to the share price now the DEC cannot exercise any more buyback to move the share price up - sad stage of affairs imo

[stevensupertrader] 09/3/2024 10:01

Scrim the look of it , I can surely say the DEC advisors know F. O. in short incompetent just how to make huge fees plus DEC Board hasn’t a clue what Option 2 tender Offer Scheme for private shareholders by cancelling or waiving goodbye to the Q3 div if one opted for the Tender Offer and in return giving 5% more on the share price - only Silly and Gullible fools fall did this 😂 😆

[bountyhunter] 09/3/2024 09:58

Yes designed for major holders and a waste of time for small holders I agree.

[blue square] 09/3/2024 09:52

All this talking about the odd
Pennies, when you can just trade
a few shares, the share is so
predictable, given that this more
or less follows the bid on NYSE.
The TENDER offer was either designed for major holders with their input
or Dec's advisors are incompetent.
because its a waste of time for
small holders.

[bountyhunter] 09/3/2024 09:49

If the tender offer proceeds are subject to tax then I think that we need one of Einstein's descendents to solve this puzzle! Anyway it's not for me. Definitely a better bet to take the dividend for most PI ISA/SIPP holders imho.

[stevensupertrader] 09/3/2024 09:49

Only provided some of the Shares were bought below the tender offer price to be decided on 26 March or.tender offer price around £12 otherwise better to take the div - No brainer imo

[bountyhunter] 09/3/2024 09:45

In a SIPP as the dividend is not subject to the 30% witholding tax surely that makes it most likely that taking the dividend in full is a better option than taking up the tender offer.

[stevensupertrader] 09/3/2024 09:45

Reclaiming back the tax from US is definitely no go , anyone here has tried to reclaim withholding tax from US and successful?????