Diversified Gas & Oil Share Discussion Threads

[johnrxx99] 20/8/2019 05:59

Those are the official numbers, not mine. Full year not half year.

[lab305] 18/8/2019 00:28

johnrxx if that is correct how come the 2019 half year figures were good and significantly ahead of 2018 ? Also EPS will be boosted by the share buy backs.

[johnrxx99] 17/8/2019 04:11

The market is looking at the figures. According to Sharescope based on y/e 18 and 19: EPS reducing from 63.55c to 19.07 and pre-tax profit from 261m to 169m. All US$

Given the gas price and reserve life, it is bound to be very volatile/risky.

[alotto] 16/8/2019 03:58

A reason to hold onto this stock is the following
The Company expects to make a further announcement on or before 29 August 2019.
That's about the conditional Asset Purchase Agreement with EdgeMarc Energy Holdings to acquire assets in the State of Ohio

[alotto] 15/8/2019 11:43

Lab agree. I still can get my head around the low PE. well below industry average. Should be twice as much, meaning share price 2x current price.

[podgyted] 15/8/2019 11:29

Stocko has at 5.4 in 2018 after allowing for the bargain purchase fair value adjustments, and 5.8 going forward in 2019 and 2020.

[lab305] 15/8/2019 09:45

Nobody really mentions the fundamentals much here . I know the yield is now 10% even after the 15% withholding tax but what is the true PE ? HL have it at 2.31 and shares magazine 1.89. That's ridiculous , a stable commodity priced for catastrophe.

[lord gnome] 14/8/2019 14:34

Basically, IC likes it and moves from hold to buy.

[alotto] 14/8/2019 08:02

Thought the same.
What else can we ask from the management?

[alotto] 13/8/2019 20:46

Share prophet sounds very professional as a website

[melody9999] 13/8/2019 20:36

AISHAH - could you share the article or at least what the stink is about?!

Meanwhile, nice Director buy

[kenmitch] 13/8/2019 15:51

gisjob2

Buybacks do NOT always support the share price There are many examples where Companies bought back their shares and the share price fell a lot all the while they were buying back.

e.g check out Hammerson and Standard Lfe/Aberdeen to see how their share prices collapsed after buybacks. After wasting over £100 million pointlessly buying back,Hammerson abandoned their £300 million buyback when at last it must have dawned on them that their buybacks were a waste of money.The share from memory, fell £several by the time they abandoned them.

Buying back DOES mean eps goes higher than it would have been without buybacks, and Company Managers often get bonus pay based on eps, so that’s one reason they go for buying back!

But buybacks often reward shareholders who SELL ahead of the buybacks and who sell ahead of subsequent share price falls, and NOT those who stay with the Company, and who are supposedly being rewarded with the buybacks. Instead they stay in while the share price falls. As is happening with DGOC right now! So the comment in the post above this one that everyone ends up rewarded/benefits, is also wrong.

IF buybacks are done at a bargain price (as is always the case with Next) then more often than not shareholders are rewarded. But many Companies, just like the posters who blindly assume they are always good, haven’t a clue how best to go about them.

[alotto] 13/8/2019 15:23

What you want by a company you are invested in is a buy back implemented whilst the shares are on sale. The timing has been good. For how unpopular this can be, a depressed SP, till the end of the buyback, can only be beneficial to us all

[andyj] 13/8/2019 13:24

And collapsing by the second!

[simplemilltownboy] 13/8/2019 13:21

End on 11 June shows that they may purchase up to 54m shares by the 11th September. I got out a couple of months ago when it looked to be hitting the fan. I'm still keen on the company but given the gas market prices and the us/sino trade war I'm sitting on the sidelines. Great divi however oil and gas are in bear markets right now DYOR

[alotto] 13/8/2019 11:47

Gisjob marginally. consider that the buy back is about 500k per day. The market cap is 700M. The buy back equals about the 0.07% of the market cap.

[alotto] 13/8/2019 11:41

Nimbo I get your point, it is not easy to sell on the downside, I would rather do the opposite. At this point in time is matter of whether we trust the management on future acquisitions, whether the asset can still be valuable for cash generation.
I hope we soon find a floor to this downtrend.

[gisjob2] 13/8/2019 11:38

The point is the buying supports the price.

[alotto] 13/8/2019 11:06

They are not buying to support the price. They have the option to use cash to pay back debt or to buy back shares. They went for the latter as they pay 8% dividend whereas they pay 5% interest on debt.

[gisjob2] 13/8/2019 11:00

DGOC are still buying shares to support the price, how long can this carry on for ?