Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Agree holding might have been a good strategy prior to 2020 but that doesn’t seem to be the case now.
FTSE hasn’t increased in 5 years, income shares have prices not much different to 5 years ago.
Lots of reasons: obsession with tech for growth, higher interest rates, funds selling off shares to fund withdrawals etc etc.
Think evidence is that well timed sells and buys and averaging down (with or without dividends) is the route to maximum profit. Though of course timing is everything (as my wife says).
Some good news from the Directors' Talk website interview.
Dividend hasn't been reduced, slashed or cut - according to the CEO it has been recalibrated.
But ....... it's still meaningful!
It'll be interesting to see what happens when dividends land in accounts later this month - at 10% ish at this SP I guess some will reinvest.
Wander what happens now 10% is recalibrated dividend (rather than 40% of FCF) if SP should double over next few months it'll only be 5% - what'll they do then?
For those who wonder why we question integrity. Take a look at 2021 Capital Markets presentation (on DEC IR website).
They highlight reliable, meaningful dividends over and over again.
Lots of graphs / bar charts insinuating dividends forecast to increase into the future.
A figure of $2.5 billion in total dividends by year 20 (so 2041).
Long term dividend sustainability....
Moderate responsible dividend growth...
Protects investor returns with prudent hedge strategy
PRIORITIZES STAKEHOLDER RETURNS (DEC's use of capitals in summary, not mine).
Now perhaps changing market conditions have forced a prudent change of policy but lots of investors (I guess the older ones) were hoping for a decent return and preservation of capital (it was an income share after all) rather than slashed dividends and potential SP growth at some point in the future.
An explanation of the need to change track, a proposal for the AGM and a vote might have been a better way of proceeding - latest acquisition was only wells they were already operating from a current partner so doubt there was much competition at play.
Second time Notrex and I have agreed in a month!
Perhaps it’s just the longer term holders who have seen Rusty act in a different way to what he repeatedly promised (or at worst very strongly hinted at).
Slightly uncomfortable to carry on holding when you no longer believe what you’re told in investor presentations.
Yesterday may well be a brilliant new strategy and good long term but it is a major change of direction.
Malcy is not a clever analyst.
He’s a fat muppet who cuts and pastes RNS words to give the impression he thinks.
He recommended Genel at £14 and DEC at £1.20 plus pre consolidation.
He s just after a free lunch with any company who are paying.
He’s about in the same class as Motley Fool
Having scrubbed the tender offer they presumably have the additional 5% over and above planned 42million dividend payments to spend on buybacks today whilst SP has dropped.
Have to agree with sentiments already expressed that change to divi policy and bungled tender offer due to not understanding the rules in the US both reflect badly on management. Not sure Rusty's credibility has ever recovered from his last equity raise after hinting strongly he wouldn't so one again.
As per other comments he needs to stick to promulgated plan for 3 years now - not much credibility left....
Some whacking great big after hours trades today.
Something afoot - going to be interesting tomorrow.
Finger hovered over sell button early this morning - glad I didn’t press it 😀😀
Spelling Bee - No, my fact was the details quoted by the company making the offer. Chances are the RNS is more factually accurate than your random interpretation.
Of course you made a 7% profit - join the club of market geniuses gloating about how clever they are in hindsight - never posting live trade details 😀😀😀😀
Spelling bee - indeed the forum should be about opinions and discussions. But it should be based on facts.
I’m afraid facts are more important than your opinions based on your failure to understand the facts.
Facts trump opinions every time.
Can we please stop the village idiot contest now? It’s clear Gavster has won, narrowly pipping Spelling Bee. I do worry that some of you are allowed to buy shares when you clearly can’t read.
If you don’t understand don’t tender.
If you do tender you may get some tax breaks and avoid dealing costs.
How about the numpties try to explain how DEC’s hedging is treated in the accounts - that should be a laugh!
will people who haven’t a clue what they’re talking about please stop writing absolute ******?
as the sensible posters have reiterated time and time again there is $42m of potential dividend money to be used to pay individuals dividends or buy a small number of shares from them at 5% over market rate. off course you can’t sell your share and get the dividend for it, nor can you sell your share and keep it!
david spellacy if you could get your clever cousin david numeracy to post whilst you up and do something else it would be much appreciated.
come back gg - i’d rather talk about dec not actually having any gas and buying it all at spot price on a daily basis to match hedge desks. ffs stop!!!
Tazed - if you could write that in understandable English you’ll hit a wider audience.
AoC - perhaps the asset sale was just getting rid of an asset they never planned to develop at a price they liked.
If we assume constant producing assets with normal decline rate then production will fall. But if they bring other non-producing assets online it may not. Though doubt it’s worth doing that in a low price environment.
Dividend hasn’t changed since Nov 22 (probably announced Sep 22) so I don’t think increased dividends have had a negative impact on SP.
However a decrease would have a significant negative impact as lots of us are here for the dividend not capital growth (though both would be nice).
Years ago the gas from BB fields was the reason for investing. The oil was merely a sideshow to fund gas field development.
Doubt Genel could afford to develop BB until pipeline is reopened and decent reliable sales payments are back and regular.
Has anyone got any thoughts on when the outcome of the tender offer might be made public?
Settlement date at end of March or prior to that in an attempt to influence / infirm the wider market?
Or does it depend on the take up? Lots of take up early news, feeble take up delay til last moment.