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We will all be millionaires Rodney.
Just like we all became after the last share consolidation. Wake up and smell the coffee, without income a company goes nowhere only down the tubes. Modis Billion has been squandered away and were aye doomed.
You don't really want the share price to rise while the buy-back is taking place (unless your intending selling in the meantime) because the lower the share price the more shares are removed from circulation. This in turns boosts the EPS numbers & the amount of future dividends because the cash amount is being split amongst fewer shares. It also boosts the NAV per share as well. If the company was worth £2.70 a share before, then they'll have saved over £0.70 a share in value on all the bought back shares, that then gets added to those left in existence.
The buy back numbers are distorted somewhat because of them doing part of the buy-back pre the share consolidation. As I said at the time buying them back at £2.25 ish was not a good idea & should have been left until after the consolidation.
The $25M minimum amount of the buy-back, should hopefully reduce the number of shares in issue to under 140M, it may even get it to sub 138.5M
That means the 4th quarter dividend of up to $100M will be shared by just that number of shares ( even less if they extend the buy-back further). So your talking of a dividend that could equate to over £0.575 per share.
LOTM
Even though they have started the 25 million usd share buy back, i thought the stock would up a lot faster?
Get the flags out, Dividend has finally arrived in the account around lunchtime.
No wonder the 2 sets of numbers didn't match up, Barclays have calculated the dividend on the consolidated number of shares & not used the easy method of £1.15 per share held on the ex-div date. I ended up getting paid for over 1 extra share !
LOTM
Hi Dino66,
I spoke to them last week about it & they said they can't do anything until it is 10 business days over due.
It is now 10 days over due.
So I called them again & there corporate actions teams has been in touch with Capricorn to get the right amount send over !
They should both know the exact amount that needs to be payed because they had to do the share consolidation 1 week before the dividend was due to be payed.
It took them (Barclays) nearly 2 days to carry out the 33 for 70 share consolidation. Which doesn't exactly require rocket science, but once they'd done that then both them and the registrars should have been in agreement as to the total number of shares old & new that Barclay's held for its clients (otherwise each individual investors share holding could be wrong!) and were due the dividend.
So really both sides have had 3 full weeks to get this agreed and paid and have failed to do so. Farcical doesn't do it justice.
There will be another complaint going in about it tomorrow.
LOTM
I spoke to them yesterday apparently they have not received the required cash from the agent. Having worked in the industry for many years, they mean that they have not agreed the overall position of the dividend and therefore cannot release it !!
Its a joke especially when they said its only been 8 working days !!!
Its now 1st of June & Barclay's still haven't managed to pay the dividend to there Smart Investor customers!
Nice easy money, a week plus of interest all paid to Barclay's and not the actual share owners who have had to forgo over a weeks' worth of interest.
LOTM
At least the share buy back have started. In theory this is suppose to raise the share price....slowly... 25 million ....
Following the last consolidation of shares, the share price went down.
The process has now been repeated.
To carry out the same operation expecting a different result is one form of madness.
Lo and behold, the share price has dropped. Again. Madness. The market determines the price, not the bean counters.
Still waiting on Barclay's Smart Investor paying out the dividend as at 10:45 on 30/05
LOTM
The old BOD and CEO are gone because of a series of bad decisions. One of them is how they handled the Indian settlement money. (what to do with all of that cash)
CNE return up to US$500m via a Tender Offer. This was horrible, as shareholders did not get any tangible benefit from this. My shares stayed the same and i had no tangible observation of value being returned me.
They should have done a series of quarterly dividend payments. The issue here was how the company would re-distribute the money back to share holders.
The Indian settlement was valued at 1.2 billion. If I am not mistaken the rest of the settlement appears to be included in the most recent dividend payment. This time around
I actually got tangible value. And likely to happen again in Q4.
Mr K thanks for that explanation very informative, but I still ask what has happened to the $billon from the ten year legal fight with the Indian government.
Sorry but I find it difficult to comprehend, it seems to me as if it's just vaporised. Any explanation to enlighten me would be more than welcome.
Not sure about even, it all depends..
lets assume you own 500 shares, paid 225p each, total £1125
So 110p +115p split
But after consolidation you end up with £575(500 x 115). and 235 shares.
So breakeven share price is (1125-575)/235=234p,
Pre-consolidation 500 shares at 207p, would be about even today, at 196p
I will hit this from a high level. Dividend investing comes in 2 forms
no share consolidation or with share consolidation.
1. Dividend & No share consolidation: This happens when a dividend is declared and issued the amount of the dividend (**will not impact significantly** decrease the current price of the share). It seems that you might have been better off with this one.
2. Dividend with Share consolidation: When a dividend is declared and issued and it **will
significantly** decrease the current share price by issuing the dividend. In order to avoid the drop in Share price the company:
- Uses an accounting treatment called share consolidation.
- This reduces the amount of shares you hold to compensate for the dividend.
-But your basically back at the original principal amount prior to investing
if you add your current dividend amount + the current share price, it should roughly equal your original principal amount. (granted the stock took a slight hit so far, so technically it would be slightly less).
Basics out of the way:
Either way, when a company issues a dividend, your current holding decreases by the dividend amount. Add your dividend + (the after dividend stock value) and it equals your principal amount.
**This is not investing advice, but I will throw you a couple of bones.
Q: In the current situation, since your stock holding has decreased in numbers,
and value to represent the paid dividend on the surface it looks like a capitol loss
but you were made even.
The basic premise is this: The investor must believe that the company's stock price will
rebound to the break even point (original purchase price + dividend) over a period of time.
How long no one knows, but the best way to look at consolidation plays - is a very long term view - take the dividend, divide by a period of time and this will give you an ROI time line. for example:
I loaned the company X (purchased shares & collected dividend) , over a period of 12 months my ROI is 1600 GBP per month (assuming the stock recovers to the break even point in 12 months time). This is a 52% rate of return ....(asuming the company share price returns to the break even point). Where else can you get this rate of return.
Your question comes down to a tax question. In S&S ISA's your not allowed to declare losses
(as it's all tax free...if i am not mistaken).
If you have a brokerage account, you will need to double check with an accountant, as the stock had a special treatment and given the info above not sure if it is an actual loss if sold? Any accountants out there????
So this is where I get confused….
This isn’t really a dividend is it? In essence they’ve bought back 3137 of my shares and reduced my holding to 2797, when i didn’t want to sell - due to price. So surely this is either a capital gain or capital loss on the original purchase price of the 3137 shares they have taken off me? Can you clarify for me please?
This was a good investment back in 2003 when they were down to their last tank of diesel in Rajastan. That golden period from 2003 - 2007 has long since gone and I doubt it will ever come back. As far as I can tell I am now worse off following consolidation. My shares here are free carry so I can afford to sit back and think "what if" . I still struggle to see what could possibly be better (for a minnow of a PI) than the NewMed offer. Seems as though some activists have gone for 2 birds in a bush rather than 1 in the hand. IMO this will stutter along in doldrums until someone buys up the assets CNE hold as part of a larger plan. CNE's time in sunshine has long past.
But, let's see what happens in Q4 first, eh?
EM202020
It totally depends on your view as to the value of the company.
If you go by the rejected offer of £2.70 per share as the starting point, then this might help you !
They bought in roughly 55% of the company through the special dividend of £1.15 & the 33 for 70 share consolidation straight afterwards. At a price of £2.18 per share approximately.
So 55% of the shares effectively lost out on £0.52 per share (£2.70 - £2.18) there were 315M shares previous that was down to just over 148M post consolidation. So that's @ £85M still retained inside the company 167M (315-148) x £0.52.
The $25M share buy-back is going to end up buying in another 10M shares or so at an even bigger discount to NAV than the share consolidation provided.
There is also the likely hood of a 4th quarter dividend of up to $100M which will be split between 138M shares at most, possibly less depending on if they increase the buy-back amount above $25M which is the minimum amount they said they are going to spend.
Personally I think this could be a really good investment over a 2 year timeframe.
However I wasn't expecting the share price to be this weak & the removal of the shares from the index is only going to make things worse in the short term so I've sold out for the moment & will buy back in right at the time the index funds have bailed out.
LOTM
So this is where I get confused….
This isn’t really a dividend is it? In essence they’ve bought back my shares and reduced my holding when i didn’t want to sell - due to price. So surely this is either a capital gain or capital loss on my original purchase price of the 3137 shares they have taken back ? Can you clarify for me please?
Thank you.
So that is quite a loss for me from last year….I wanted to cash in at £2.45 but had used up my capital gains allowance.😫😫
Anyone got any views on current value at the current market cap of GBP286m or so. The share price has taken a bit of hammering since the collapse of the Tullow and New Med deals, the ejecting of the old board and the shareholder special dividend now completed. Wondering whether or not to reinvest my dividend just received back into these shares at GBP194 per share? Any insights on a sum-of-the-parts valuation?
Dont forge to minus dividend taxes, depending on which account your trading in.
PS get well soon 😘
As long as you held these shares on 16th May
I believe your dividend will be 5934 X 1.15 = £6,824.1
your shares will have already been issued so just log in to your broker platform to check
it should be 5934 / 70 X 33 = 2,797 new shares ( with 0.457 of a share to go to charity )
P.s. have owned this quantity since last year.
Hi,
Can someone simply tell me. On 20th May I owned 5934 Capricorn energy shares. What are the implications of this ?
What am I expected to receive as regards dividend / reimbursement of shares returned by company in monetary terms and the new share quantity? Many thanks.
Having a bad covid and pneumonia brain fog day.