Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
The PDG car business sale already completed and I’m assuming PINE (formerly PDG) is currently sitting on the cash awaiting distribution. You will notice a big fall in the share price at ex-dividend date whenever that happens. We will get an advance RNS from PINE with the date. PINE is essentially already trading as a software only business, because the car business is already sold. Hopefully was sold along with any possible liability to mis-sold car loans, should that turn out to be a developing problem.
atb
Hi, Pendragon essentially sold itself to Lithia for £367M but leaving Pinewood behind. The PDG listing became PINE with Lithia taking a stake too and the £367M will be distributed from PINE as a 24.5p special divi at a future date TBD.
So it should all be tidied up soon, but you’re basically buying PINE at about 10p per share when the divi is taken into account.
I recommend the Oak Bloke article in the previous post which gives a much better explanation than I ever could.
atb
Some background info from the Oak Bloke Substack a few weeks ago. Link below.
This is not advice.
https://theoakbloke.substack.com/p/introducing-pinewood-technologies?utm_source=profile&utm_medium=reader2
I bought in here 3 years ago when there were 600M shares in issue and the price was about 15p and heading north. As of now there are 3715M shares, a 6x increase, and the price is about 2.4p or about a 6x decrease, but heading north again.
So, newcomers still paying a similar price for their fraction of the company as I did 3 years ago (but I’ve since been diluted x6).
However newcomers are getting a stake in a proven discovery rather than one in a hopeful drill.
I wish I was a newcomer!
atb
Another LTH here. In about 3 years with a few at 28p. Averaged down and swapped into ISA (for all those profits!), but drill strings, engines and bits kept breaking. Timing! The newbies at 0.25p are having all the fun I hoped to have myself in 2021. And good luck to them. Luckily I’ve discovered I’m strong enough to hold through a 97% drop and start the climb back up. I’m glad to hear of the LTH who have bought more post raise. No island in the sun for me, but certainly now have a chance of coming out evens.
atb
About 25 years ago I read an investment book (The Zulu Principle) with the premise that if I read up about a subject eg. Zulu’s, then I could become informed well beyond the understanding of the average person. Jim Slater, the author, applied this to growth stocks, but the idea could apply to any investment. As I’ve read through the DEC announcements and the multiple contributions from Mr Oak Bloke blogger I find myself feeling a lot more “Zulu”.
I don’t know what the future will actually bring here, but I’m much better informed about the possibilities.
atb
I think one of the arguments for buy backs is the effective cancellation of future dividend payouts on the cancelled BB shares which equates to debt at >20% interest.
atb
Musing on the likely dividend to be announced end March and paid in May.
The last 4 divis per share actually paid after WHtax into my account (nearest penny) have been 73p, 240p, 143p and most recently 33p. So, officially “all over the place” The October divi dropped from 240 to 33, so an 86% drop. If we apply that to last May 143p we arrive at 20p this May, or 53p for year, or 8.5% yield (after WHT) at today’s price.
Is that realistic, or way off?
atb
Re: your reference to Post Office scandal.
(From memory) IDS operates Royal Mail deliveries not Post Office Counters. Different companies. Liability for the scandal will rest with PO Counters owners, which I suspect is some arm of government.
Apologies if my memory is not 100% correct.
The Interactive Investor ISA only does things in Sterling, so things like $$ divis will just appear in your account as a ££ amount after being converted. I think ii also charges a little bit for converting too. Whereas in my ii SIPP the $$ divi stays in $$ and so I could choose to reinvest in $$ without converting both into and out of Sterling unlike in the ISA.
atb
Yes, divi paid into ii SIPP with no tax taken (I did the W8Ben form) BUT it shows as settlement TODAY and system won’t yet let me trade the value. FYI
As I hold DEC in a SIPP, I’m expecting the divi to arrive end of month as USD rather than GBP. So, assuming I decide to buy more, any suggestions on London v New York? There’s the cost of conversion into Sterling if I buy on LSE, but currently London is 11% cheaper per share and I assume no stamp duty in USA. Should I be expecting this 11% disparity to narrow, or is it anybody’s guess? I’m leaning towards LSE as the divi is the same per share wherever I hold it.
atb
With only 190M shares in issue and possibly another 5M+ due via the CLN’s (thanks Cautious for the numbers on Nov9th) I’ve had my calculator out again.
The cost of 0.1% of the company (assuming CLN’s drop) now stands at £8200 for 195000 shares or a 1/1000th ticket of the entire company.
I have bought my ticket. I wonder if it’s Golden!
atb
I’m looking forward to the Simply Wall Street (AI generated ) analysis of the DEC share price action. Something along the lines of “DEC shares are in the top 10% risers in the O&G peer group”.
atb
My conclusion from the discussion about a week ago was that the most dividend efficient way to hold DEC is in a SIPP with W-8BEN tax form completed (full dividend) followed by ISA + W-8BEN (15% withholding tax). Some bank owned brokers and smaller brokers apparently take 30% tax. It might be that a trading account + W-8BEN with a decent broker also loses only 15%. Main point is to know your broker’s policy.
atb
Hi,
The easiest way to understand this share is that at present, for every £1 you invest you are receiving approaching 20p per year back in dividends.
atb
I’ve seen various well structured posts explaining how the cash will steadily roll in and we should soon have a good buffer. That’s nice, but are there any significant risks which could derail the project? I’m assuming probably not, but are there any plausible candidates? Do most wells behave as expected and ramp up nicely, or are they likely to be temperamental?
atb
Yes, shares are consolidated by a factor of 20, so eg. 1000 become 50, but we would then expect the share price to increase by x20 and the dividend to also be increased by x20.
atb
I’ve previously confirmed that Interactive charged stamp duty when I bought DEC for my SIPP. I’ve now looked back and can also confirm the same applied to my ISA purchase (before I sold it again)
I’m becoming more informed as time passes, but I wonder how many small investors (don’t) realise there are these differences between the (withholding) tax treatment of ISA & SIPP, or the fact that stamp duty isn’t charged on AIM or some? international trades, or that sometimes there’s no WHT at all, as I think applies to my BHP divi coming out of Australia.
atb
Hi, I can confirm that Interactive are (as expected) charging stamp duty on DEC share purchases within a SIPP.
I will be interested to see how buying costs stack up for the new USA listing once it’s up and running, as I’m already receiving DEC dividends in dollars within the SIPP.
atb