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I would like to know how much oil could the world produce if all producers were to produce at their maximum ,as long as the oil would not cost any more to get than it would cost to get it ,this IMO would be the absolute bottom for a non manipulated price I assume from what I've read we need about 100 mil barrels a day ,so how much oil do we get on that basis @ $50 a barrel??
jc15, yes you could be correct. Still think OPEC may yet agree to a cut in production, if this slide in oil prices continues (just a hunch). Read an article a few weeks back that the younger members of the Saudi Royal Family were not happy with the current stance and would like to see a production cut. Always thought it a bit strange that OPEC have not cut production. A 10% reduction in output would probably see, in all probability a 10% increase in oil price. Same monetary value and keeping 10% more oil in the ground. Obviously it would not help in reducing American output, which is Saudi Arabia's goal.
I don't think shelll will pull the deal as they don't work on a day to day basis ,but what is very poßible is .a regigging of the terms if we are where we are or lower before the deal completes
You have done well getting out in May. The way the deal is structured even if RDSB dropped to £15 a share the BG deal would still be worth over £10.50. That's about a 12% premium on the share price now. Could be a good time to get back in?. Just have to wait and see what sort of lead we get from the USA this afternoon. The Dow will obviously be well down at opening. It's judging what will happen there after we close. Whether it picks up or not towards the close in New York. Think that's about 10 straight days now the FTSE has been down. Economic figures have been good in the UK and growth forecast up to. May be due a bounce. More hopeful than any conviction though.
Expecting it to go on, I got out at 1173p in May. No real benefit really as the shares I bought have dropped proportionately.
based on RDSB current price of £16.46 the takeover deal now worth £11.31 to BG shareholders. Getting lower and lower.
So, ex-div and no fall - all discounted out. I am minded to sell and take the small loss that I have incurred. Views on mid term?
as it stands today the Shell takeover would be worth £12.26 to BG shareholders.
in fact both BG and Shell ex dividends are on Thursday (13th Aug). So expect both shares to fall around 3%. BG maybe a bit less.
obviously meant BG not BP
essentially you are correct the higher RDSB shares are the better. As I posted a week or so ago BP shares are now following closely the RDSB shares anyway. So if The Shell shares go up so will BP (most times). Remember RDSB will go ex dividend on Thursday so expect around a 3% fall.
If I'm planning on holding onto my BG shares until the Shell deal goes through, then the BG price is of little relevance whereas the Shell price is what I should actually be paying attention to since the deal is for 383p + 4.xxx Shell shares per BG share, yes?
Good to see BG with a solid set of results considering the oil price. With record output to. Important for BG to keep its end up in the Shell takeover. Makes the takeover easier to swallow for the analysts at the price paid. Both BG and Shell doing everything they can to maximise profit during the oil price slump. Should now see a steady rise in the share price between now and the takeover.
BG Group posted a 65% slump in second-quarter net income on the back of declining oil prices. The company, which has agreed to be bought by Royal Dutch Shell, posted net income of $429m, down from £1.21bn, on revenue of $3.98bn, down 28% from $5.50bn.
Be interesting to get BG second quarter results tomorrow. A good set of figures could see the share price up by as much as it did today. It has been following closely the Shell shares of late. A chance tomorrow to move upwards under its own steam for a change. Fingers crossed.
As I said Royal Dutch Shell results have given BG share price a real boost. Can only see Shells share price going upwards now which in turn will lift BG. This is looking like a really solid investment now.
Yes an interesting few weeks ahead which should provide us with more clarity on proceedings .I believe they have had the blessing from Latin America for the merger which is good, now the rest! I agree R3D2, if all the remaining hurdles are met then this is a bargain - All the best
Hi SSB11, Yes your example is pretty close, I make it a few pounds less but I agree with your general summary - All the best.
intraday charts now just follows the Royal Dutch Shell chart. Will be this way until the takeover. Shell's interim results due on 30th July which should include the synergies on the BG takeover should IMO give their share price a boost and give the BG shares a lift to.
Hi, Please can someone confirm these calculations. (Assume you hold just 100 BG shares) Today the value is 100* current Sp (1029p) so your total current value is £ 1029 pounds. With the deal we get paid out 383p per share and 0.4454 Shell B shares (RDSB) so.. 100*383p = £383 pounds. PLUS the value of the shell B, which is: 100 * 0.4454 = 45 shares (rounded up)..at current value of: 1763.5p = £793.6 (pounds) Adding the cash portion = £383 + £793.6 = £1176 £1,176 when the deal occurs vs the current £1,029 is about 13% better. So that's the current premium as of today? and if the shell B shares rise it will get better. Can someone confirm that simple example is correctly done?
BG shares shot up around 40% when the shell deal was announced in April. Now the shares are roughly 22% higher than the April figure. If find the deal goes ahead which I assume it is around January, these shares must be a bargain. Or am I missing something.
Hi guys just wanted to get your thoughts on your drills in Mongolia next year. It seems an exciting prospect and as a shareholder of MATD I am over the moon with BG's JV and cannot wait for the work programme to start in the next few weeks for evaluation of the prospects ready for drilling next year
to take granny's shares off her hands just now. This is an old lady looking for divi income and she might as well sit it out. Just as well she has young relatives to keep an eye on her.
Her paperwork has arrived and she phoned looking for advice. She already has shell and bp among others. I'm going to be rich some day via somebody else's investments if not my own but I deserve it given all the bump I have to wade through for granny. Sold these a couple of years back. Bit of a lull phase.
johncharles15, I note Mike59's reply, which is of course correct - the dividends will run as normal until completion. However, I think what johncharles15 was getting at is that BG. currently yields about 1.7% and RDSB yields about 6.5%. It is anticipated that only one divi of a maximum of 14.38 cents (less than 0.85% at current SP and exchange rate) will be paid by BG before completion whereas RDSB shareholders will likely receive 2 x quarterly payment of 47 cents (more than 3% at current SP and exhange rate). However, whilst this perhaps accounts for some of the difference, it does not justify the c15% discount in and of itself. The merger arbitrage and uncertainty of the deal makes up the majority of this. Interestingly this discount has been running at about 14.5% but today the difference widened to around 16% at one point. I note that at a BG share price of about 1065 or so, if the merger subsequently went ahead you'd get a yield (on your new RDSB shares when converted) of 8%. Crazy - I can't see myself being able to resist a further top up at this level.