RE: NY Below $14.5010 Jul 2025 09:15
terry, once again your valid points are somewhat lost in your subjective, non factual ranting! i haven’t read eeyore’s “great analysis” as he’s filtered and it probably just repeats “dump, dog****, jr etc etc” and so not worth the time.
your valid points:
shareholder return over last few years - abysmal to date. but might improve with stability.
debt holding back share price - very likely.
dec unloved - definitely, but perhaps partly due to opaque accounts, lack of understanding and rubbish headline figures (profit /loss, fcf, debt, handling of hedging values etc etc).
your inaccuracies:
debt is not holding back the dividend policy. the dividend was set for 3 years a year ago during the strategy change. this was clearly communicated (unlike lots of other stuff).
the bbs (which you have been shouting for for years) are not purely funded by the 300mn loan. we don’t know how they are funded at present - h1 results should tell us. even if they were, bbs have to take place at market prices, those who bought / were given shares at below this price will make a profit - capitalism at work. i’d assume lots of bbs have got shares from people who paid more - what’s the difference?
even if you borrow at 9.75% for a year or 2 and save 8% dividend for the rest of eternity is that bad or good?
to replace resources acquisitions were necessary. these can be funded by debt or equity - dec have used both. how else would you like them to fund acquisitions? i’d assume if dec could get loans at 4% they’d take those in preference to 9.75% - they obviously couldn’t!
4 weeks or so til h1 results and we can compare q1to q2- that’ll be done factual evidence of progress or not rather than subjective ranting!
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