Diversified Gas & Oil Share Discussion Threads

[lomand01] 05/6/2019 13:20

The question is whether the dividend is actually from profits or just a disguised return of capital...

[lomand01] 05/6/2019 13:19

The question is whether the dividend is actually from profits or just a disguised return of capital...

[lab305] 05/6/2019 10:17

Lord Gnome "Not calling anyone into question." That's exactly what you are doing having given equal weight to the company with a proven track record against the opinion of who knows. What about the plethora of institutional investors that have piled in , didn't they do any basic research ? And by the way I started investing in shares in 1983 , not that it matters. Bought another 10k shares @ 1.16 so put my money where my mouth is. If they go for a main listing then £1.60 is easily achievable.

[lord gnome] 05/6/2019 09:54

Not calling anyone into question lab305. I am long in the tooth and naturally cautious. I've seen too many events come out of left field in my 35 years in the market. See my post 1089.

Edit: But please don't get me started on auditors ;-))

[lab305] 05/6/2019 09:50

Lord Gnome. We have had detailed financial reports from highly regarded city companies with named researchers against an unsubstantiated anonymous blog and you say the jury is out ! I give up. Anyway if it was all smoke and mirrors then the profits would not be so good and in turn the 7.5% dividend after tax.....or perhaps you are calling into question the auditors also .

[lord gnome] 05/6/2019 09:50

Probably / hopefully, just that fozzie. Just another period of price weakness with the chart visiting the bottom line of the long term uptrend.

[fozzie] 05/6/2019 09:41

Old news imo, this decommissioning story has just been rehashed again and again but added to weaker gas prices and this is what you get. You either believe the company or not, invest or not. I am looking to add.

[rhubarbcrumble] 05/6/2019 09:39

What troubles me is whether this is another Quindell, where I lost a packet. Again the
scribbler was initially discredited, but the company was a disaster.

I also wonder why this is registered here with no Uk connection.

[alotto] 05/6/2019 09:38

I am not sure why in the LSE but other companies headquartered overseas are listed on the LSE.
Has HSBC a stake in it DGOC too?

[lord gnome] 05/6/2019 09:32

This boils down to who believes which story. Is the company a genuine gas company managing declining assets bought at 50 cents on the $, or is it (as per our teenage blogger) a smoke and mirrors company with a few rather large skeletons in its cupboard? Right now, the jury is out, although I do naturally err on the side of caution. I never did understand why this company was floated in London rather than staying stateside.

[alotto] 05/6/2019 09:26

Catsick what is your view on this, what makes you shorting DGOC?

[catsick] 05/6/2019 09:23

Im a one of the sells establishing a new short

[alotto] 05/6/2019 09:17

Look at the large buys around 9 am, I am one of them (one of the buys, but one of the small buys :D)

[rhubarbcrumble] 05/6/2019 09:17

Thank you Croasdalelfc.

Having built up quite a significant holding for me, I am troubled by the report, which seems to have the ring of truth about it.

I am aware that gas prices have fallen, but I find it had to believe that this would account for the sudden weakness.

[alotto] 05/6/2019 09:15

Banks funded DGOC securing the loans on the asset which has been evaluated by DGOC and banks themselves.
The weakness today is a buy opportunity imo
I can see DGOC moving to the main market potentially 3x its share price in the years to come.

[melody9999] 05/6/2019 09:13

If you do not believe the management's view and calcs on decomissioning costs, then you should not be invested.

Having said that, my guess is that holders were aware of the lower oil/ gas prices ...ad then this article acted as a catalyst to sell.

Personally I sold 50% at 129p so can let the other 50 run. Just a question of judging when the article nonsense will blow over and then maybe adding a few back at these lower prices.

[croasdalelfc] 05/6/2019 09:03

Obscure blog or not - the question should be whether any of it is true?

[catsick] 05/6/2019 09:03

I think this kid has some good points , 60,000 wells producing on average just 1 barrel equivalent of ng which sells for not much more than 20usd , they have provided the industry with a dumping ground for old wells, they will milk this and leeave the liabilities to the local governments to clean up, meanwhile the leaking methane is 100 times worse than CO2....

[shanklin] 05/6/2019 09:01

Thank you carcosa

[lab305] 05/6/2019 08:59

Well there have been at least two separate detailed broker reports on this company which both put fair value at over 160p. I would give them much more credence than this . Obviously spooked some investors but with a cash pot available for share buybacks and the probability of some forthcoming good results this may be an absolute bargain. Remember they pay a good dividend that they can easily afford from profits.

[carcosa] 05/6/2019 08:53

An obscure out of work twenty something year old blogger? I doubt it! LOL!

More likely general market sentiment re USA/China and consequential fall in gas prices (see is far more credible along with possible curtailment of gas exports to Mexico and the highest natural gas flaring in America hitting all time highs.

But if you want to believe an obscure blog is the reason then so be it.

[croasdalelfc] 05/6/2019 08:44

This is the cause : decomm liabilities https://oarfishresearch.blogspot.com/2019/05/diversified-gas-oil-decommissioning.html

[shanklin] 05/6/2019 08:16

A good opportunity to make use of the share buyback programme?