Shell Share Discussion Threads

[supermarky] 21/8/2015 13:21

The squeeze continues. .....

[4spiel] 21/8/2015 12:12

11 should stick to foul mouth trolls thread. Dividend sustainability will depend on how long any very low oil prices last. Because of the US shale capability whilst prices will recover they will be constrained by their capacity to raise production so these high prices over 100 dollars will not be so easy to achieve in the future. However at the present time there is also some demand weakness coming from Asia that is probably only cyclical and temporary but demand weakness is a factor in current oil price weakness.In addition there is Speculation including shorting by financial manipulators,seasonal late summer slack and dollar strength because of interest rate expectations so altogether depressing but oil producers have to make a living and whilst they continue pumping to earn cash they cannot do it indefinately nor is it in their interest to do so because most of these countries need much more to fund their domestic economies -producing below their production costs makes no longer term sense.

[muffinhead] 21/8/2015 10:47

Failed breakout above 2100 and back into prior trading range

1300 possible target



free stock charts from uk.advfn.com

[imperial3] 21/8/2015 10:07

Truly Scrumptious.Thanks for your reply.

[trulyscrumptious] 21/8/2015 09:36

Imperial. Here they are, National Grid, Glaxo, Diageo, Unilever, Reckitt Benckiser.





(Check out GLIF and HGM if you want income.)

[xxxxxy] 21/8/2015 09:32

Wonder how Putin is doing.

[muffinhead] 21/8/2015 01:11

$20-$30 oil target

[imperial3] 20/8/2015 15:56

TS. Which ones are they? Thanks in advance.

[trulyscrumptious] 20/8/2015 15:37

MayWillow. What were the '5 Shares You Can Retire On'?

It's Ok, I found them, read it before.

[biglosses] 20/8/2015 12:55

Other parts of the business will benefit from a low oil price so not all negative with a low oil price. IMHO DYOR

[imperial3] 20/8/2015 12:48

Interesting article.However,the share prices,of oil companies are inextricably linked to oil and gas prices.In the short term how much more will oil drop,before recovery? Poor investor sentiment is dragging the whole sector down.The yield though,is enticing.

[maywillow] 20/8/2015 11:40

Shares in Royal Dutch Shell (LSE: RDSA) (LSE: RDSB) have fallen by 30% in the last year and this has left many of the company’s investors wondering if they have made a mistake in purchasing shares in the oil major. After all, there are a number of other stocks and sectors that have posted strong returns during the same time period, meaning that the opportunity cost of investing in Shell has been high.

Looking ahead, though, Shell could prove to be a surprisingly strong performer. Certainly, there is the scope for a rising oil price over the medium to long term, since the current level appears to be somewhat unsustainable. But, even if Shell does not benefit from more positive pricing conditions, it appears to have the potential to rise by 44% to £25 per share.

A key reason behind this is Shell’s strategic advantage over many of its sector peers. For example, Shell has superb cash flow, a very strong balance sheet and the strategy to improve its position on a relative basis. In other words, it looks set to come through the present difficulties in a better position compared to its peers, with Shell taking the opportunity of low asset prices to make acquisitions and also to restructure its business so as to focus on the most profitable and higher growth areas.

This strategy appears to be working well. Shell is forecast to grow its bottom line by an impressive 19% next year, which is around three times the expected growth rate of the wider index. And, with Shell trading on a price to earnings (P/E) ratio of just 13.2, it equates to a price to earnings growth (PEG) ratio of just 0.7. This indicates that Shell offers growth at a very appealing price. In fact, if Shell were to trade at £25 per share, it would have a forward P/E ratio of just 15.9 which, for a dominant oil stock, seems to be a very fair price to pay.

Furthermore, Shell also has excellent income prospects. Due to a combination of its share price fall and a focus on maintaining dividend payments, Shell now yields a whopping 7%. And, best of all for its investors, Shell is expected to increase dividends next year, with them being forecast to be covered 1.3 times by profit. This shows that they are sustainable at their current level and that, over the medium term, there is scope for an increase in Shell’s shareholder payouts.

Moreover, if Shell were to trade at £25 per share, it would still yield an impressive 4.8%. This would keep it towards the top end of the FTSE 100’s income leaderboard and maintain demand for its shares among income-seeking investors. As a result, a share price of £25 really does not appear to be overly generous or difficult to achieve over the medium term. Certainly, investor sentiment may be weak at the present time but, for long term investors, it represents the perfect time to buy a slice of Shell.

Of course, Shell isn't the only company that could be worth buying at the present time. With that in mind, the analysts at The Motley Fool have written a free and without obligation guide called 5 Shares You Can Retire On.

The 5 companies in question offer stunning dividend yields, have fantastic long term potential, and trade at very appealing valuations. As such, they could deliver excellent returns and provide your portfolio with a major boost in 2015 and beyond.

Click here to find out all about them - it's completely free and without obligation to do so.

Peter Stephens owns shares of Royal Dutch Shell B. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

[supermarky] 20/8/2015 09:11

Any bad weather hurricanes coming or middle east flare ups? Lol

[supermarky] 20/8/2015 09:09

What's that saying? The market can stay wrong for longer than you can stay solvent. Or is it fortune favours the brave?

[supermarky] 20/8/2015 09:06

Imo there is no doubt there's a good risk reward here but I'm trying not to get too sucked in.

[redips2] 20/8/2015 09:02

Just remember to filter them guys......s'easy .

[shaggies_view] 20/8/2015 08:53

Added further at 1731 and some PMO.
A lot of bad news is now factored into the oil price. Brent shorts will close sooner than many think.

Good risk reward here imho.

Shaggy

[funtimejonny] 20/8/2015 08:28

Good point

[smith99] 20/8/2015 08:14

If people are getting this emotional they need to question if they have the right emotions for share dealing. This baby is going down but I'm happy to hold. As soon as oil recovers this will start to go back up. Relax people.

[shaggies_view] 20/8/2015 06:58

I think it was Kipling who said "Keep Your Head When All About You Are Losing Theirs" is never truer if you are into Oilers and Miners. If you can't stand the heat then go an invest in something less riskier.

Shaggy

[2hoggy] 19/8/2015 23:21

Why all the bad language,total waste of our education taxes.

[dukedosh] 19/8/2015 21:56

This used to be such a useful, civilised board of sensible discussion. Another bites the dust to disgusting profanity and 2 bob each way spread betters. Such a shame, there's not many boards any where that are worth the reading time any more.

[imperial3] 19/8/2015 20:38

6.94% yield currently.