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Don't know what to do.
Any advice ?
Looking for £2 entry here...IMHO
Remember this. The most dangerous sport in The World is Bottom Fishing.
my Shell while this Cov 19 is around instead of splashing my cash. The yield is even better now so bottom fishers will do well here. Shellshocked at how far these companies can fall!
Whats the difference?
as the falls are overdone. Decent divi and when the market is well oiled these should come up from the ground. I expect more volatility but given the long-term prospects these are well worth exploring at under £16.
Opec are set to cut production by a very large degree soon, so a bounce will happen. TXP is also very very cheap at the moment especially with its latest natural gas find.
Shell is the most important dividend share on the UK stock market, with many Pension Funds relying on it to pay its payees.
Shell has yet to reduce or pass on its dividend.
Whilst it is possible that the dividend may be reduced, if last year's dividend of $1.88 per share is maintained, ie £1.47 per share at an exchange rate of $1.28 per £, the dividend yield will be 8.85%.
At this SP I think that the market has factored in a reduced dividend, even though the large buy-backs of shares have reduced the amount of dividend that will need to be paid.
Let us therefore assume that the dividend yield range is 5 to 6% as an average, the implied projected dividend this year is in the 80 pence to £1 range.
If this happens, perversely, many funds would need to acquire Shell shares in order to top up their income coffers.
This is conjecture on my part, but once the oil price starts to recover, I think that we will see a very rapid recovery of the SP to North of £20 per share, which together with the dividend could offer an annual return in the order of 30% which isn't too bad for the largest company in the FTSE.
Alternatively, if the market takes exception to a cut in the dividend, of say £1 per share and adopts a P/E of 12, we could see the SP drop to £12, meaning an overall return of -20% on the year.
So, in essence, you pays your money and you takes your choice.
Historically, Shell has never cut the divi, but we live in extraordinary times, and there is a first time for everything, with Dividend cover continuing to slip, even though in previous years such as 2015 and 2016, the dividend has not been covered.
see https://www.hl.co.uk/shares/shares-search-results/r/royal-dutch-shell-plc-a-shares-eur0.07/dividends
My money is on the dividend being maintained at $1.88 per share, which is why I think that this is a bargain, and time to catch the falling knife, before we all catch Covid 19 and it turns out to be a nasty cold that regrettably will hasten the end of life for some poorly individuals, just the same as the 'Flu virus does every year.
This may already be the bottom for the SP, at £16.61, once investors have had the weekend chance to digest the ludicrous carnage over the last week.
I shall be in on Monday morning, and expect the SP to be North of £18 by the end of the week.
A very bold statement, I know.
I also expect RRE and TXP to make significant gains this week, once sanity has returned.
By way of comparison, the SPs at today's date are
RDSA £16.61
RRE £14.05
TXP £0.345
Let's see which has performed best by the end of 2020, most of my money is on TXP.
There will probably be a dozen or so posts on here in the next 10 months, so it will be easy to scroll back.
Have a great 2020 everybody, I hope that you all survive the covid19 sniffles.
yet another huge share buyback yesterday.... at some point this will reflect on the SP
you gotta laff.....may be not....
I suspect we will see a rise today now Libya is off line.
Well that was another huge share buy back yesterday....but will it help the SP?
That update did not sound too positive I'm afraid.....
Another large share buy back yesterday at some point these buy backs will have a positive affect on the SP and with a great Divi....Shells shares are much cheaper than BP trading at 9.7 X
Get your bids in early Monday, a sizeable uptick is on its way, good news from Ecuador and a higher crude price through an improved US market. If a sniff of a US/China trade deal were to happen also short term demand would increase driving all prices higher especially after opec cut production.
I think we get some clarification on wether world production will be cut again this week.....this will obviously have a major impact on the SP
It is an even better bargain - just a few weeks later.
In fact , is is a steal at this price
Seems lots of doom and gloom here. Why? This is a fine share to hold and Shell are hugely diversifying https://www.ft.com/content/6176ae5a-3d89-11e8-b7e0-52972418fec4 Please look at the Brokers predictions on this page if you do not want to trust me
Corbyn has proposed a 'windfall tax' on oil companies.
The Government currently takes circa 85% of income in taxes.
Not happy with this Corbyn wants to steal money from the oil companies.
Large companies like Shell are mainly owned by Pension Funds, so any 'tax' is taken from pensioners.
Theft. imho.
10m shares bought in 5 lots for £224.5m at 11:53 this morning. A big player is obviously taking advantage of the current downturn.
We need petrol costs reduced by 50% in the UK to get the economy moving again at a decent pace of business.
The yellow vest protests In France stem from the same problem (the cost of petrol/diesel being too high). The yellow vest protests erupted in November 2018 over fuel price hikes and the high cost of living. The demonstrations spiralled into a broader movement against President Emmanuel Macron and his economic reforms.
The protests have lost strength in recent months, going from tens of thousands of participants to just a few thousand, but the movement’s leaders called for people to turn out on Saturday to mark the first anniversary.
At its peak in late 2018, the movement grew to up to 300,000 people.
https://uk.reuters.com/article/uk-france-protests-anniversary/paris-police-use-tear-gas-water-cannon-on-yellow-vest-protests-anniversary-idUKKBN1XQ0BL
Lets not forget the huge Share buy back programme and the divi.....