Member Info for TerryM1

The problem with the gas price is partly due to Oil Companies now selling the by product of the Oil wells i.e. gas which has helped flood the market. These Oil companies will sell at any price as it is just a bonus and what else can they do with this gas in this ESG world. So as the Oil price rises more Oil is produced and therefore more gas and future gas exports are restricted due to Bidens ban.

It makes no sense buying more wells until there is a clear path of rising gas prices. DEC has further entered into the list of Gas companies supplying into a oversupplied market but now without the dividend to support the SP. If you are in a hole stop digging.

"I'm cross at the dividend cut so I'm selling now"

Perhaps so but where are the new buyers coming from, no one will trust Rusty on dividends in the future (I certainly won’t) and perhaps not much else, fool me once shame on you fool me twice shame on me. If the shares drop to half does that mean we will get the dividends cut in half again? It was stated that DEC will still deliver a top-quartile FTSE 350 yield, the question is what happens if/when DEC get booted out of the FTSE350, even less buyers. The one thing this will help is the Shorters.

So the company said is going to concentrate on BBs, is that the same company that said this in the past and had a mandate to purchase up to 10% of the shares but only purchased a small fraction of these.

Why buy more wells where there is a large over supply of gas already and the cash could either be used to support the dividend or BBs which will buy far more assets per $1 than buying these wells and help protect the dividend by reducing the overall cost. The situation is that Rusty is desperate to expand the company at any cost and he lost patience, he can’t raise money from more shares and he can’t borrow more so he has taken this away from the dividends and broken his promise to shareholders.

I have noticed the US often rises after London close, I think while London is open shares are being transferred to US flooding the market and it either stops or slows down once London is closed, just a guess.

Looks like the US shareholders are as disgusted with the new strategy as much as the UK ones are. Let see how Rusty can explain this away or will he just go to ground.

MrG123

Total agree, the SP has been trashed for many reasons and then Rusty uses this an an excuse to cut the dividend instead of setting up plans to help the company and SP recover. Any fool can increase the yield by trashing the SP, this is now officially a dividend trap.

From other board

Credit to meanreverter

"It seems that, in the acquisition of the Oaktree assets, DEC is spending ~54% ($386m) of DEC's market capitalization to increase DEC's production (or production per share) by 15%. That is, per unit of production increase per share, the deal costs DEC 3.6 times as much as buying back its own shares.

I haven't worked out the corresponding ratio in terms of reserves, EBITDA, or other measures of value; but I don't expect it to be dramatically different."

As the SP and dividend are down by 2/3 if Rusty had any integrity he should take a 2/3 cut in his salary, it would focus his mind to help fix this situation.

"Frankly some of the negative comments on here seem to have been scripted by the shorters themselves"

Or the long term holders that have lost all faith in the company and its promises.

The one thing I do know now is Rusty is not to be trusted, instead of doing the right thing for shareholders by maintaining as much of the dividend as reasonable and buying back as many shares as possible given the current SP he decides to go on a buying spree partly funded by a total destruction of the dividend reversing he previous promise. The one thing that many long term shareholders were relying on and the main reason for buying DEC shares (not any more).

The tender offer is a complete mess, caused endless debate as almost impossible to understand and then canceled at the last minute because DEC legal team did not understand the law. However if not canceled with a floor price of £9.35 and current SP the uptake would be far more than funds allocated (perhaps close to 100%) so large scale back and more disappointment for the long suffering shareholders.

Rusty has sacrificed the dividend and SP (both down by 2/3) for his desire to grow the company at any price and given the shortens all of their Christmases at once.

What next, SP plummets, shorts make a fortune dividend yield rises and do it all over again.

The simple truth is that profit in the UK has become a dirty word.

PHNX bought these pensions at a price based on the current fee structure then the government in the form of the FCA decide to change this therefore making them less valuable. Perhaps the government should force the companies who sold these to repay some of the money after all they got an increased price based on what he government calls an unfair fee structure.

No wounder so many companies are leaving the London Stock Exchange with this lot in charge moving the goal posts to ensure no companies make much profit (EPL, Corp tax increase, ESG regs etc) and the next lot who will be even worse. Both of our 2 main political parties will not be happy until all companies in the UK are loss making.

Numerco 8400/8650

Personally I would rather see the money used for dividends or debt reduction than Buybacks, if you want to use your dividend money to buy more shares that is you choice.

Numerco 8200/8500

Ask creeping up.

Nofear

"Back in those late 80s and early 90s days, London was submerged with so many stock brokers yuppies kind ones with phones 📞 in their cars selling shares like hot cakes. Just about everything that was sold that wasn't aim shares made you loads of money."

Those we good days, Margaret Thatcher boosted the city, big band, low tax etc. I applied for lots of IPOs in multiple names, mum, dad etc consolidated to one holding and quickly sold at usually good profit, we were called STAGS in those days. It also helped to have one of the big brokers, by a stroke of luck I got an account with Lang & Cruickshank which meant I could get some placing like Capita and ARM at good discount to first day trading and they seemed to have a lot of inside information (some of which they shared) which meant almost all recommendations made money. It certainly was who you know not what you know.

After some requests I did post a War and Peace version of my time with Capita last year.

"Numerco 8200/8475 (previously 8200/8400)"

Yes a tiny upturn but also Cameco up 1.5%, one swallow doesn't make a summer but perhaps, just perhaps the start of a turn around. This does feel like a pump and dump, no matter what there is a structural problem with not enough Uranium and although the spot price is a very small amount of the market if it stays down the shortage will only get worse leading to a bigger rebound upwards.

"I seem to recall Terry has been in since IPO (only one i know of)"

Yep, I first got the shares in the IPO, 1991 and added a number of times since with one sale at time of the RI, I recall Paul Pindar played a leading role and took charge in 2006 and left in 2014, in all he was at CPI for 26 years. His leaving was a warning sign but upto then CPI could do no wrong so I stayed in. For 10 years it was in the best performing shares in the FTSE, how times have changed.

"I think it just needs to be remembered, that serious numbers of people are losing their jobs"

I think it needs to be remembered, that serious numbers of shareholders have lost serious amounts of money because no one at CPI had the B@lls to do this a long time ago. It is the shareholders losses that have propped up these jobs for far too long.

If serious saving are not made this company will go under, can't keep losing £100m+ per year, if not dealt with then a lot more jobs will go.

Https://petition.parliament.uk/petitions/657294/

Not sure this lot will take any notice of the people but costs nothing to sign.

JG68

Agreed, the new guy looks like he understands the dire state of the company and is prepared to take appropriate action unlike JL who just strung it out until he retired.

"We know all the one offs which contributed to cash outflows resulting in debt increase for 23 and 24 will drop off from 25 onwards."

CPI has a warehouse full of "one offs" which it wheels out as excuses for losing money on every occasion.

If this is not life support for a company I do not know what is, constantly losing money, used up everything it can to fund it's excesses, RI, sell of family silver, loan notes and still after 6 years of turn around still not profit let alone dividends.

Nofear

"I don't either enjoy watching others lose their money"

I too take no comfort in other people losing money but for JL I will make an exception, he really deserved a taste of his own medicine as so many people were sucked unto this share as result of his lies.

RichPickings24

Total agree CPI has used up all the assets it can sell, maxed out it's credit card (over £100m bonds 6 moths ago at high interest rate) and used up all the good will with it's shareholders. JL did all he could to put off the inevitable cuts at a huge cost to the shareholders and risk of company failure.

The only other (non) option would be another equity raise but this would raise so little at current SP and destroy what little value share holders currently have.

This company must cut hard and fast there is nothing else left, it is out of time and money, JL stayed as long as possible to max out his bank account but knew his time was up.