Member Info for marcus-aurelius

I don't believe their breakeven price is $35 either. It wouldn't make sense considering their position and large amount of borrowing. I suspect they are not factoring costs in their entirety- (we will find out soon enough).

Tullow Oil also has the problem of their long term capex cutting and the massive debt pile. Their position is secured now from the Uganda sale, however with lower production and potentially oil lower prices still for some time to come, how Tullow will pay back this debt remains to be seen.

I agree, RDS have fallen the most out of all oil majors, but in my opinion, all their bad news is out in the open. They are playing a prudent game, which they will benefit from once the pandemic is over.

The oil price is only one factor in the equation. The portfolios, debt levels, dividend cut are some of the other areas. Shell is probably operating a higher percentage of gas than Chevron. In Q2 Chevron posted net operating income of $-3.1 billion, Shell posted a net operating income of $1.5 billion.

Chevron has a lower debt level than Shell, and has maintained it's dividend. It hasn't written down as much of it's oil reserves and currently has no plans for renewable investing in the future. It is probably seen as a more desirable stock from the investor point of view. Plus the European oil majors are under more pressure over climate change than their American counter parts.

The person who mentioned rights issue was posting in the wrong board?

Listen, oil exploration is maybes at a recent all time low. US shale is destroyed- even if prices come back, banks will be less willing to give loans. Multiple oil companies have gone bankrupt, and more still to come.
There is a big time lag in the oil supply chain, so when this pandemic ends there will not be enough oil to meet demand. In my opinion a massive price rise in oil is set in stone for 2021-2022.

Shell has taken tough decisions in order to stabilise their position. They will reap the benefits in the post covid-19 world.

Debt is nowhere near 4 times the market cap. It's about 80 billion, minus cash, the dividend saved, and operational savings, it's more like net 45 billion now.

It's only akin to betting if you have not spread your risk optimally. Investing in 1 share, or 3 or 4, and then complaining how they went down won't help you. You know what, some shares do actually go down, it happens. Put your money into an index fund and save yourself some heartache.

In terms of risk vs potential benefit, it would be difficult to find a better priced company than Shell atm.

There are buyers and sellers in the market, no one forced you to buy shares.

Char333 the market correctly prices shares based on the level of perceived risk.

This was broadcast some time ago on arabic aljazeera, it has just been given english subtitles for the interviews. There is a strong suggestion high ranking officials in the UAE were involved in fraud.

https://www.aljazeera.com/programmes/aljazeeraworld/2020/08/br-shetty-missing-millions-200801152710067.html

Listen, the price of oil has came back from the lows not because of demand, but because of the biggest coordinated OPEC cut in it's history. Earnings season hasn't even begun yet, there will be a vast swathe of companies who still have to report their biggest quarterly loss on record. The entire stock market is down today, not just all oil shares- Lloyds is down almost 9%. That tells you the state of what is going on.

Shell beat expectations today with their earnings and even they are down around 5%. Like I said before, Tullow is a high risk gamble which is most likely going broke in 1 years time. The stock is being fairly priced for the high level of risk attached to it. There is no market manipulation .

https://t.co/MODtQXpbNr?amp=1

This is the explanation everyone expected Shetty to make; deny all knowledge and blame his executives. It's a little bit more difficult for him to explain the rational for selling 2.4 million shares 2 weeks before suspension and not informing the market.
The only words that matter, are those written in the courts and legal proceedings.

What annoys me the most is that they played out a pantomime of; everything is fine, we are sueing muddy waters and hiring Freech to exonerate NMC, whilst behind the scenes Shetty+co were secretly offloading their shares and not reporting to the market. Now everyone has fled the country, the remaining shareholders trapped by suspension are left with the burden of this unreported $6.6 billion off balance sheet debt. There is no realistic scenario now except 100% wipeout for all equity holders.

Can the shareholders expect any justice? I suspect the best that can be hoped for is Shetty gets coronavirus and the Buttis are assassinated. The potential recourse of legal action will be limited because of the nature of the crime and the individuals involved.

NMC is in administration but at least ****ty managed to sell the bulk of his holdings prior to suspension. He offloaded 2.4 million at the start of February. The Butti's sold everyday during the week prior to suspension- they even sold 240,000 the day before...... Strange they finally managed to locate their "missing" shares.....and of course they knew nothing of the now $8.8 billion debt......

Guys, by all means do whatever you need to do to get over this, for some your entire savings are gone and you have my sympathy; but don't put too much effort into FB group or legal enquiries. The truth is, this money is gone, there is no hope of getting any of it back. Better to write it off and move on, don't let these scammers take anything else away from you. Your health and family are more important than money.

You have to seriously ask what credible options are really available for NMC? Trust here is absolutely broken, no one is going to participate in a D4E solution. The money here is gone, and any hope NMC has of recovering it will take years.

Even when the debt was only 2.1 billion, imo a takeover was really the only option for NMC. Now with debt at 6.6 billion, it will be a takeover (nationalisation) by the UAE and complete wipeout for shareholders. The UAE state now wants this administration.

It's better to face reality now that live with false hope. Equity is worth zero, and shareholders will get nothing back. The UAE will probably still go after Shetty/Buttis for criminal charges, but shareholders will receive non of their money back. Sorry guys.

Abu Dhabi Commercial Bank PJSC, who are seeking administration, is part of Mubadala- UAE sovereign fund.

Either they dont trust the new chair, or they have fraudulently loaned to NMC and have more to gain from administration than going concern. Its one or the other here.

Taken from article

"A new twist in the tragic yarn of stricken hospital operator NMC Health. Bloomberg says, citing sources, that Abu Dhabi Commercial Bank has more than $1bn of exposure to the group – meaning it could face big losses. It reports:

The state-owned lender is currently seen as one of the biggest creditors to NMC, according to the people, who asked not to be identified because the information is private. HSBC, JP Morgan Chase. and Standard Chartered also have large outstanding loans to the Abu Dhabi-based company, [sources] said.

Some of the lenders are in talks to set up a committee to discuss ways to recover funds from NMC, according to the people. The company’s known debt pile has more than tripled in recent weeks to $6.6 billion, up from the $2.1bn reported at the end of June, after it successively uncovered borrowings that hadn’t been disclosed to the board.

NMC said this month it found evidence of suspected fraud and debt that had been used for unknown purposes. The company’s chief financial officer and chairman have resigned."

Hopefully one the strategies being discussed is going after Shetty+co for their assets. In a sole restructure, shareholders get wiped out but the banks still take a massive hit atleast 60% loss or greater.

In virtually all scenarios, shareholders are going to take a massive hit.

For anyone who has been stung, and has the liquidity, I suggest buying some oil commodities right now as the price is at an historical low. It may well go lower, but it's not sustainable at current levels. The price is likely to double by the end of the year. Just remember do not use leveraged ETFs or and only use those linked to indexs (not futures contracts).

There is enough money involved in this case for him to be pursued.

Sums it up pretty well.
https://www.pinsentmasons.com/out-law/guides/remedies-where-there-is-a-breach-of-directors-duties

TotalQuant- If the directors have breached their duties, then damages and/or compensation can be sought. There is also the possibility of criminal fines/penalties (prison) in situations where directors do not fully disclose interests in transactions/arrangements.

Freech, by the RNS, has clearly detected fraudulent activities within NMC. We know Shetty and the butthole boys are the ones most likely to have benefited. I can see them being taken to court by several parties including, the current NMC board, iis, and the UAE.... It is worth bearing in mind their liability is potentially unlimited.