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The UK water market is facing the same problems as the UK energy market. An industry half-run by the state, and half-run by freewheeling private corporations. Ofgem controls supply, but not retail. Ofwat controls retail pricing, but not supply. The UK has one foot in communism and one foot in capitalism. It's a complete mess.
A quarter of a century gone, dragging on since the last century, millions and millions in dilution placings, share price for punters has collapsed an astonishing -99.9%, the main "explorer" is ~90yo, years of planning objections remain on the horizon, and there is still not a single gram of commercial gold anywhere to be sold.
Sounds good...
Up +6% today. Yet another very strong intraday reversal! After several previous intraday bounces. Very bullish signs. The market is liking the CEO's new growth strategy. With a PE ratio of just 1, versus a sector average of 7, the upside potential here for DEC is huge. Just catching up with the sector average would take the shareprice north of £50.
Stock awards are part and parcel today of US executive culture. Every company does it. Getting their stock now makes sense. DEC shares are at a PE ratio of 1, against a sector average of 7, which is a powerful incentive for the CEO and others to grow the shareprice from here 👍
Switzerland is the first big central bank to cut rates, today. The era of rising interest rates for the West is over. Rates have finally peaked, and are on the downswing. Lock in those UK savings accounts at 5%+ while you still can... They won't last much longer.
That's the past, mate. Time to look to the future. A future where revenue is up, profit is up, production is up, gas price is up, debt is down, and buybacks are on the horizon. DEC is up +10% in a couple of days. Time to buy the dip and let it rip.
DEC is up +10% from the low point. The intraday reversals are a bullish sign. With revenue up, profit up, and production at a record high, the signs are finally looking upbeat. At a PE ratio of 1, against a sector average of 7, the upside potential here for DEC is huge.
Well done to the CEO, for having the skills to pivot away from the old plan to a new plan.
* Old plan in 2023 = dividends and decay
* New plan in 2024 = investment, buyback, growth
It's important to invest with logic -- not emotion. The share price never looks back. Time to look forward. DEC has a new plan.
How many more times... As others have said, the New York listing in Q4 2023 clearly changed DEC's strategy for 2024 and beyond.
London is a small, decaying market of miserable investors weirdly obsessed with outdated dividends.
New York is a huge, soaring, confident market of sophisticated investors with ultra-deep pockets who want to see investment, growth and buybacks.
DEC has pivoted to a new approach.
The past is over.
New year = new plan.
UK investors need to get over their bizarre and outdated obsession with dividends! Time to move on. We no longer live in the 1970s. We live today in a post-dividend world.
DEC is making £400-600m of profit. DEC marcap right now sits at £425m. At just 1 x PE, it has huge upside potential. The average PE ratio today for a US-led oil and gas company is 7...
Bismarck,
Agree on the £20 target. At just 1 x PE today, and less than 1 x revenue, DEC is wildly undervalued. A quick DCF calc says £30-40 is closer to fair value.
It's great to see the company refocusing on investment and buybacks. Grow production, purchase shares. That's a much more sustainable future path than lazy, mindless dividends.
DEC is up +3% in the aftermarket.
Anybody who thought a 30% dividend was sustainable really needs a check-up from the neck-up.
It's important now to look to the future. Not remain bitter about the past. Share prices never look back.
US investors are much more sophisticated than UK investors... Contrast that upbeat calm US blog with the anxious naive hysteria on here -- it's like night and day.
As posted this morning, it is a good set of results from DEC. Revenue is up, profit is up, daily production is at a record high, it has won an ESG sustainability award, debt is down, the dividend is rightsized, the dividend is still a very impressive 11%, it looks set to join the prestigious Russell 2000 index, and there are buybacks on the horizon. And, for a Brucie bonus, gas prices are trending back up.
Expect the DEC share price to rise tomorrow 👍
Reform is going to win 5-15% of all votes in the next UK nationwide election. It will be the no.3 UK party. But Reform will win 0% of Westminster seats (zero). The system is gerrymandered against new political entrants. Reform have no chance.