Member Info for ragnarlothbrok

Hi desert1, Totally in agreement with you. Rusty and his team are doing everything right in my book: reducing costs, innovative financing, buying back shares, very healthy dividend, directors with large holdings, switching to main market and rigorous approach to hedging.

There's a nice chart in the presentation showing the return of DGOC compared to the other Appalachian players which tells the story of the 'DGOC way'.

hey Londoner, long time

"we expect the company to de-lever towards 5.0x"?

5.0x?

INCREASED over the last couple of days, since the acquisition news, to over 13%. SP is up over 15% from its lows and through the 100DMA. Nice bullish movement here, a few days closing at this level will be very positive

https://shorttracker.co.uk/company/GB00B15FWH70/

Thanks for the tip! Will take a look

CINE seeing a nice hard bounce now, rewards for all those hanging in there through the tough times over the last few months

Nah but I've been accumulating close to £2 for a few weeks ago so am loaded up for the long term recovery. Looks pretty poised for the bounce now. Can hear the sound of some shorts slithering back into their holes

Hey Obelix can't complain today. I reckon that entry point was a one off but always on the eye out for the drop.

Very bullish open this morning, dropped down to 206 and then swift recovery back into the blue. There are bargain hunters sniffing around. Before the acquisition the maximum downside was 0, now its still 0 but double digit EPS growth has been added to the upside.

Thats the truth. You can see the effectiveness of their hedging program in the below presentation. It's quite a document to wade through. And it seems they are fairly ruthless with costs, as any good natural resource company should be

https://d1io3yog0oux5.cloudfront.net/_692f628988e267b129854699957abdd4/dgoc/db/557/4324/pdf/DGO_Investor_Presentation_November_2019.pdf

Wow that is some chunk! I took mine off the table this afternoon, not a bad days work. Not usually much of a ST trader but I'm pleased with 13% in a day.

I've been accumulating most of the big dips recently and will be holding on to the rest. If the opportunity presents itself I'll oblige the shorters again by taking stock off their hands, these sentiment v fundamental plays can be very lucrative if you keep your nerve.

Hi Gavster, they are unlikely to be mining underground at Barberton with risk of full power loss. Tailings recovery would be able to make up any lost time due to power failure to a certain extent given that it is mostly a chemical process. Emergency systems would be used to keep the lights on (but not the mill) so they could use up any stockpiles.

Its unlikely that the SP has reacted to the Eskom drop, look at companies much more reliant on power in SA like Petra Diamonds, the SP didn't move very much on the news. Sentiment turned sour some time ago and I can only speculate why...

Hey MrG, unfortunately DGOC produces almost no oil..its gas and gas liquids. But maybe the rising oil price can drag up the gas price, which is up 2.5% today so far but not far from a multi multi year low :(

Was just to about to say... anyone out there brave enough to buy that dip? I took some at 188.6 but I will bank this for a change... was licking my lips this morning watching that fall, urging it lower in fact. I know its dangerous but I was never so sure a stock would bounce back later in the day. I think today we could end blue...

...its a double digit EPS enhancing acquisition! If anything the ambition of these guys is truly impressive, taking on cheap debt, scaling up at the bottom of the market, fortune favours the brave!

I confess I don't much about the Canadian cinema market but if its anything like the US, its a perfectly timed acquisition, which will be fully bedded in just in time for the news series of mega releases in 2021.

Taking on more debt to get more exposure to the industry plays into the hands of the shorters so I wouldn't be surprised to see the % outstanding increase today.

So management believe in the long term fundamentals of the industry and so now is the time to strike, it's an off year for releases and the Cineplex price has been depressed recently, like the rest of the companies in the industry, so they are being opportunistic with the timing.

I'll be tuning in at 930 to see what they have to say. I'm interested in the details of the debt they intend to use and in particular the cost.

Can't argue with 75% market share and the growth rates in the Canadian market.

Well I wasn't expecting that. Rather than focusing on paying down debt they've decided to take on more and go even bigger.
Shorters will love this, I'm expecting some fireworks on the open.

Spoke too soon...looks like we could be one of the few stocks to end red today d'oh!

Funny how sentiment can affect a stock....if anything the pound going up hurts the fundamentals of the business ...now that the deal is done will people start going to the cinema again?

Between Woodford and the open ended property funds, redemptions are at a record high from UK based funds so i think there's quite a bit of forced selling going on out there. I guess people with shorter term horizons see this and get a little scared and decide to take some profits before it goes any lower.

I notice that the basket is $70 higher than my last post, with a jump this week due to the load shedding in South Africa causing production curtailments. The Q2 basket is over 20% higher than an already prodigious Q1

Its playing out exactly as it did last year. A slow grind into Christmas during one of the news deserts, and then the PGM basket kicked up just at the right time and combined with H1 anticipation and then news itself and BOOM the price doubled in 3 months.

The exchange rate is USD 1:GBP 0.7995

3.75c/share to be paid on 10th January

https://www.dividenddata.co.uk/ex-dividend-date-search.py?searchTerm=cine

It's not the purpose of a buyback to increase the share price. It can prop it up but never cause a sustained increase due to the purchasing rules (5% last 5 days) and market abuse regulations. You'll see higher EPS and dividends however due to fewer issued shares

They want to buy as low as possible to acquire as many shares as possible to reduce the number of shares, increase EPS and the dividend

Explains the securitisation strategy very well, among other things. Nice deck, very informative (but slightly chaotic in places) slides

https://d1io3yog0oux5.cloudfront.net/_ee961374f15d05a95dfdcbe984289679/dgoc/db/557/4324/pdf/DGO_Investor_Presentation_November_2019.pdf