Shell Share Discussion Threads

[spawny100] 13/9/2022 10:00

We also had a penalty to pay and paid it. We calculated that all the penalty really is is roughly the interest we would have paid over the next 3 years. As such it's not really a penalty - we agreed to a 5 year fix at 1.48% and the bank understandably wants its interest whether we stay the full 5 years or not.

[trikytree] 13/9/2022 09:51

I can’t pay my mortgage off early as there’s a hefty penalty until the fix ends. So with 3 and a half years until my fix ends that’s a lot of dividends and time in the market to hopefully get a better sell price than now. With the way interest rates are going I’ll need to pay most/all of my mortgage off when the fix ends but I’m happy to gamble that shares like BP and SHEL are the best gamble for now. I am a gambler though and previously invested my entire house deposit on the markets before I bought my current house 18 months ago.

[shellsell] 13/9/2022 09:41

@spawny - congratulations, I can imagine the relief of paying the mortgage off. I agree with your sentiments around the state of the market/economy and the potential for falls and this is driving my decision too. Notably since I started this thread the share price has lowered to £23.27 from near my target price. I believe that this is called 'sods law'.....

[spawny100] 13/9/2022 09:16

I was in a similar position shellsell and trikytree. I borrowed as much as we could for a mortgage back in 2020 and invested all the excess into TXP with the intention of making enough to pay of the mortgage in 5 years time. It came around quicker than I thought and I luckily got out of TXP near the top with more than enough to fulfill my goal. Since then we have been humming and hahing about whether to invest it or pay off the mortgage (we have overpaid the 10% each year to bring it down). But the state of the world and the markets on a knife edge all convinced us just to finish the goal that we set out to do. So we withdrew the money last week and paid it off in full. Yes it could be argued that it was a decision of the heart rather than head as surely we could make more than the 1.48% interest on the mortgage in dividends over the next 3 years which it is fixed for but we were just feeling increasingly uncomfortable about the markets all going topsy turvy. Share with a decent dividend are no good if the capital depreciation exceeds the dividends - look at the housebuilders like PSN lately for a case in point. Anyway good luck whichever you decide. All I can say is that it is a big relief to have it gone and once the money has gone you quickly forget that you ever had it! I won't kick myself if any of the shares I sold to pay off the mortgage suddenly go up at all as they might well have gone down. We just feel we made the right decision for us right now and are happy it's done!

[shellsell] 13/9/2022 08:59

@TrikyTree - all fair comments. However with such a low dividend at the moment the downside risks are higher than the upside. I only have a small position (circa 1,300 shares) and so will only achieve approx £1k per year based on current prices and dividend awards. Therefore for such a low reward it feels safer to cash in. All my other savings are in cash sitting safely and unexcitingly in the bank. Come the beginning of 2024 when the mortgage is due for renewal I can just pay it off. Like you I have a large mortgage and there will be a sense of 'pressure off' if it is gone.

@adg - FOMO is a real thing and I am suffering from this. If the share price rockets to £29 then I will kick myself. However I have no crystal ball and it could fall back to £20 and I will kick myself for not selling. Paramount to me is killing the mortgage, so I may need to be brave and pull the trigger if/when it hits £23.65.

[trikytree] 13/9/2022 08:32

Shellsell, in such inflationary times with oil price still strong I think there’s plenty more growth (and dividends) to come. These and BP are dirt cheap still based on current earnings. Where are you moving the money as if you know a better place to invest Id be interested to take a look!
I see you mention mortgage. I have a big mortgage but only at 1.3% fixed for another 4 years. I have a similar amount mostly in these and BP. I think it will do much better than paying down my mortgage for now.

[shellsell] 13/9/2022 08:30

Thanks Bonnard. To be honest I have no idea whether this is likely to go up £3 or down £3 in the coming quarter. Many have said it is important to stick your original strategy if you want to take your profits and I got greedy when it hit £24.5 (which was over my target price) and I missed the boat as the share price fell rapidly afterwards. £23.65 is when my outstanding mortgage will be covered, so let's hope I have the confidence to pull the trigger if/when it hits this price.

[bonnard] 13/9/2022 08:11

You will get the dividend.

[shellsell] 13/9/2022 08:03

Quick question please. The share price is now heading to a number where I am happy to take my winnings off the table. If I sell my shares before dividend payment date on the 19th Sept does this mean I lose that dividend payment. Or do I still get my dividend as I had shares on the ex-dividend date back in August? Thanks in advance.

[xxxxxy] 12/9/2022 18:23

Russia's budget surplus has shrunk significantly in the latest sign that its public finances are feeling the strain from sanctions and the Kremlin shutting off gas supplies to Europe.The budget surplus narrowed to 137bn roubles (£1.9bn) in the first eight months of 2022, a sharp fall from 482bn roubles in year-to-date data the previous month.Russia's public finances have been bolstered by soaring energy prices boosting revenues since it invaded Ukraine.But economists warned Russia's surplus will likely turn to a deficit in September as government revenues are hit by shrinking energy sales to Europe. Revenues from energy could be squeezed further as gas prices continue to slide.Benchmark gas prices in Europe fell a further 9pc to their lowest level in a month today as the EU drew up proposals to avoid a winter energy crisis, including measures to curb power demand. Gas prices slipped to €192 per megawatt hour, down more than 40pc on the highs reached in August.... Daily Telegraph

[xxxxxy] 12/9/2022 07:00

If Florida can ban 'ethical' investing, then Britain should do the sameThe fund industry has been hijacked by woke activists who are prioritising social activism over providing secure retirements... Daily Telegraph

[acsatix] 09/9/2022 19:24

This is to understand the energy crisis now is a financial crisis driven by thugs running the EU that then unload their responsibilities on fossil fuel companies “The European Commission plans to propose a mandatory EU target soon to cut power consumption at peak hours. They are also planning a revenue cap on electricity producers and fossil fuel companies. ”.

[xxxxxy] 09/9/2022 07:58

Https://www.gov.uk/government/speeches/pm-liz-trusss-opening-speech-on-the-energy-policy-debate

[smith99] 09/9/2022 07:43

Edf energy is nuclear. Meaning it is completely isolated from oil and gas prices. However their prices are going up like everyone else's. This is one big scam to take all the money from us and give it to the billionaires. The great reset. Now our beloved queen has gone we have a king who is a member of the WEF along with a WEF prime minister. We are screwed. In the end you will own nothing

[xxxxxy] 09/9/2022 07:15

SIR – Yesterday our wonderful monarch died.My husband and I are in our late 70s and we were in tears as soon as we heard the news. The nation has lost its greatest treasure.Wendy MayHereford... Daily Telegraph

[xxxxxy] 08/9/2022 11:23

Nigel Farage@Nigel_FarageWe must become self-sufficient in energy. You never know what is round the corner.33.5K viewsFrom GB News9:51 pm · 7 Sep 2022·Twitter for iPhone

[oilretire] 08/9/2022 07:45

Ref the subsidies paid on top of electricity sales - its covered from approx 21 minutes in. Greencoat UK Wind is the company highlighted as making huge profits from wholesale prices and subsidies.On iPlayer, 5th Sept, Panorama, The Energy Crisis: Who's Cashing In?

[oilretire] 08/9/2022 06:48

Yes, and some (maybe all?) of the wind farms are getting paid subsidies on top of the market price for electricity - where is the political & media call for windfall taxes on them?

[xxxxxy] 08/9/2022 06:28

John Redwood@johnredwoodToday the government needs to ease the energy squeeze on business and households. It must do everything in its power to increase our domestic energy production. Relying on imports from an energy starved Europe will not work.6:43 am · 8 Sep 2022·Twitter Web App

[lippy4] 07/9/2022 17:10

i gather wind farms are charging the same amount for their electricity as gas produced electricity,surely this is wrong and they are making a fortune out of it..

[geckotheglorious] 07/9/2022 16:59

Iran possibly coming on stream?

Other than that, demand is supposedly dropping, or expected to drop once the recession hits(as it will)

Will it occur in time to save small businesses/pubs this winter?

Doubt it.

[shellsell] 07/9/2022 16:44

Serious question - can someone explain why the oil price has dropped so low in such a short timeframe? I know there is a recession looming/happening, but materially nothing has really changed in the last 3 months to explain the price of crude dropping from $121 to $83. Yes there may be/is a recession but why such a heavy price drop when people are still travelling, people are still working, supply is tight, reserves are being used up, the war wages on, winter is coming?