TrueInvest I am a big JSE investor. There is no need to put that out there here as the risk profile is not suitable for many here seeking growth and income with a higher risk than BP, Shell etc.... JSE does not provide an large income and a relatively short life of producing fields but it does provide a big bang opportunity when things go right and should be looked on as a speculative stock.
Even an income investor like me would like a sale at 35p to invest elsewhere. Corporate debt though risky offers >8% via SMIF and I could buy many of those! CAPAX amongst the majors has increased massively and the chances of M&A are very much higher now even with the decline in oil price. There is an investment case. The European gas situation is set to be bad for next winter and perhaps even to 2025 and this will push up prices more so around the world than ever before due to storage being used to send LNG to Europe. Next winter China may compete for this.
And... with oil prices so low, burning oil for energy is cheaper!
The market decline amongst many of the energy stocks is weighing heavily in particular VET with exposure to both North America and sadly the UK windfall tax. I bought here today and will continue to add in the decline. The fund would benefit from adding I3 Energy into the mix.
robleo, unlike your VOD and LGEN that are showing growing revenues M&G are in that tricky space where revenue has recently tanked (a bit like the VOD share price lol). The world of investment is baffling... I may switch to perpetual underperformer VOD based on earnings growth.
This is an ideal stock for monthly dividends IMHO. Has there ever been talk of this?
I have 0.184p a share dividend this year and that's a 10% yield. I presume this is not suitable hence where we are today and this will have to go down to around 7%
"Next year, the company has indicated plans to distribute £20.4-million ($40.3-million), or $0.034/share on an annualized basis, reflecting a yield of 10.2 per cent on Monday’s close.”
0.034 CAD = 0.021 GBP
0.021/0.019 = 10.47% dividend yield for next year!?
G_G_G Yep, a bit more aligned. In the long run, stocks are a weighing machine and I added again this morning at under 20p (average 23p). We live in a world where we have access to all listed company data and any PR ramping will be an opportunity for sellers. Some large trades going through today. Even increased dividends that do not contribute to long-term value won't help. Share buybacks are possibly good at these levels but certainly continued growth is the big driver.
Jezzoo - Right now it is cold and people don't want to pay high prices for ice cream :-)
Jezzoo - I have never said PR does not work. I have said it is not the reason for the fall. If there are ice cream vans on a sunny day it does not mean the ice cream vans bring out the sunshine.
G_G_G actually applying a "Law" to a situation like I3E remains a hypothesis that needs data to be true. You can't apply a law and state it as fact for a given situation.
To support the lack of PR nonsense take a look at the share price of VET. Its performance is almost the same as I3E yet VET is well known in funds including CYN that I hold.
The lack of PR is nonsense. I found I3E. Anyone agreeing with G_G_G should read up on the efficient market hypothesis (EMH), alternatively known as the efficient market theory. For those looking for growth, we don't want to become a DEC and if you want more dividends go buy DEC was my point. Those looking for quick trade buy inflation-protected US treasury yields or perhaps JSE.
Tony, This will be interesting. They should all be correctly priced but at the same time depending on your investment needs or goals there will always be stocks that are better for you. The market really likes yield at the moment and you should compare this to DEC on that income front and from a growth perspective, I use JSE in the Asia Pacific region.
Apologies ignore my Canadian message!
SpArmarder thanks for info on Canada's TAX. Very useful.
Then it will be interesting to see how Gibson, Vermilion and Diversified compare after Jan. Its all about production growth for these smaller companies. This a stock to tuck away and forget for high growth next year especially Q3 to 4.
"..they would have avoided WTI going negative in 2020..." That wasn't a recession. We all know what it was.
According to experts $60+ dollar region would result in US re-building of the strategic reserve. Thats Bidens plan apparently. Oil is manipulated by both OPEC and the USin a tug-of-war against a backdrop of under-investment. China re-oping will boos oil + metals sometime in 2023.
G_G_G As an income investor, I welcome an increase in income but I would then reduce as I have no need for additional income. Cash on the balance sheet would also reduce volatility.
Everyone knows my ideal is an increase in Gas for the energy transition but it has not done VET any good I admit. Soaring natural gas prices have been the key factor pushing coal demand higher, with coal consumption set to rise by 1.2% this year to record levels is ridiculous. https://oilprice.com/Energy/Energy-General/Global-Coal-Consumption-On-Track-To-Hit-An-All-Time-High.html
Agree CaneToad. For me the main catalyst will be the oil price and this is dependent on China re-opening and the US Strategic Petroleum Reserves to stop dumping... perhaps even start re-filling.