Shell Share Discussion Threads

[whiskeyinthejar] 28/1/2016 15:11

I don't think you understand.

They have to pay dividend on Shell short, but receive it on Bg long position. Bg long positions get converted to Shell shares.

[montyhedge] 28/1/2016 15:06

oil up 8% in two days.

[montyhedge] 28/1/2016 15:05

Of course they can wait the Bears, but cost them 9% a year paying back dividend.

[whiskeyinthejar] 28/1/2016 15:03

Sorry Monty, Telegraph yesterday says vast majority of shorting on Shell is on arbitrage.

These shorts on Shell have complementary longs on BG so don't stand to lose a penny.

Five hedge funds have long positions on BG of at least £350 million each. So shorts on Shell cancelled out by BG positions.



They can just wait, no pressure on them to close positions.

[montyhedge] 28/1/2016 15:03

The Russians just waited for this deal, lol.OPEC meeting Feb, looks like 5% cut across the board. Well done Russians they made the first move.$45 oil looks a certainty coming weeks.

[retsius] 28/1/2016 14:55

You could not make up the timing of the cut and theBG deal.
R.😄

[carradj] 28/1/2016 14:49

CNBC:
Russian energy minister says S Arabia proposed oil output cuts by up to 5 pct

[atlantic57] 28/1/2016 14:44

monty have they announced a cut or have they proposed a 5% cut.

[rcturner2] 28/1/2016 14:40

xyz never had any credibility

[montyhedge] 28/1/2016 14:32

Russians just announced 5% production cut. Rest of Opec could follow suit. Wow $45 oil here we come.

[nigthepig] 28/1/2016 14:30

Zyzzyva - I think you have lost all credibility.

[montyhedge] 28/1/2016 14:24

Bears burnt.

[montyhedge] 28/1/2016 14:20

£2.6 billion shorts still to close, plus they will have to pay a 9% dividend back, ouch.Burnt fingers as they panic.

[careful] 28/1/2016 12:41

this bg.deal is large, but not that much of a game changer for Shell.
we forget how large shell is with its massive turnover.($421bn last year.)
BG.turnover last year was $19.2bn.
If the dividend is cut, it will not be because of this deal, but because the very low oil price.

[imperial3] 28/1/2016 12:38

Over many years,and at much higher share prices people have invested here for income.I am not aware that Shell has ever cut its dividend.If this were to happen because of the BG deal,how can you still have faith in van Beurden?

[careful] 28/1/2016 12:29

zyzz etc
the positive cash flows of oil companies is staggering.
not profit, but almost as good as.
some evaluations are based upon cash flow.

the combined positive cash flow of Shell and BG.combined was a staggering $52 bn last year.
the full dividend looks safe for quite a while yet.
as a shareholder I hope that they will reduce it to a sensible level if and when required.

A yield of over 8% based upon todays price looks too high.

[prambigear] 28/1/2016 12:28

#5998 Today -yes, tomorrow? In two years? In ten years?

[imperial3] 28/1/2016 12:27

"lots of upside" Nothing has changed.-the market is flooded out with oil.

[prambigear] 28/1/2016 12:17

Surely, the point is that with every movement upward of the oil price, this deal looks better.
Very little downside on the oil price
Lots of upside.... ergo, terrific long term strategy.

[imperial3] 28/1/2016 12:10

The BOD like to think they know best.The market could give them a reality check.