Member Info for TerryM1

Notrex

"P.S. That list is quite historic - but just picking up the latest of the examples you list - Theranos. Didn't go too well for Elizabeth Holmes - who is starting an eleven year prison sentence I believe."

Add in Madoff who I think is still in prison.

TheMillipede824

"Things are, arguably, worse in New York."

Have the examples you give suffered the type of attacks DEC has suffered, i.e. short taken out just before Democrats Probe announced based on a dodgy report by a company not taking out shorts for 3 years and one by Snowdrop along with a slamming report which is factually incorrect. I don't think you would get away with this type of behaviour on the NYSE.

"However moving the markets by 12.99% isn't something you can do without some heft."

Or help, I suspect that this has not happened in isolation but part of a large campaign from shorters, we need the FCA to look into this (don't hold your breath) or DEC to take out legal action against fake information being published or at the very least a large BB to burn the shorters so they will not rinse, repeat and do this again and again which they are now doing now with impunity. It is upto Rusty and the BOD to stop this ASAP not go to ground with a few we don't know what is happening emails.

Looks like our old friends from Bloomberg are at it again

https://news.bloomberglaw.com/environment-and-energy/diversified-energy-faces-short-seller-attack-from-snowcap-1

“• Gas producer’s debt load threatens dividend, Snowcap says

• Snowcap faults environmental, asset-retirement practices

Diversified Energy Co., the largest owner of US oil and natural gas wells, is being targeted by a short seller claiming the company may not have enough money to meet obligations to plug inactive wells.

Snowcap Research, a London-based activist investor focused on environmental, social and governance matters, said in a 39-page report released Tuesday that Diversified may struggle to meet plugging obligations as soon as 2036. The company’s debt load may hurt its ability to pay dividends within the next 12 months, Snowcap said. “A dividend cut looks imminent,” it said.

Shares of Diversified fell as much ...”

Then they have the cheek to try to get you to pay to see the rest of it. About time DEC took some action against people spreading fake information.

I would really like to know how the shares get from LSE to NYSE (GG need not reply), I suspect it is the MMs.

I also suspect the shenanigans on the LSE (due to useless FCA) would not be tolerated on the NYSE, therefore on a day like today the MMs end up with a lot of shares from LSE and transfer them to NYSE once it opens. This then suppresses the price on NYSE until LSE closed and then NYSE will trade with the new number of shares until close. This explains the drop on the NYSE until LSE closes and then subsequent rise as we keep seeing. Would be very interested if anyone can shed some light on this except of course GG whose post I generally don’t read.

TheTrotsky

The fact that the Snowflake report is flawed is not the important issue, the issue is they Shorted DEC and put out a report to justify the short, job done the SP falls and they make money. This is on the LSE so is up to the FCA to take action which they will not do as they are only interested in Diversity, Woke issues and ESG and everybody know how useless they are.

This is now totally out of control, since the last cash raise the share price is more than 55% down. Rusty and the rest of the BOD just sit there and do nothing except for a couple of “Nothing to See Here” emails along with an anaemic and sporadic BB program, only buying a small fraction of the shares which could be bought under the current resolution. This is now a shorters paradise due to inaction of the company and the shorters know this, all they have to do is take out a short, post it online and they make a fortune. The great US listing meant to end this nightmare made it worse by focusing the spotlight on DEC which Rusty was ill-prepared.

The best option DEC have is a large and sustained BB program which for some reason they refuse to do even with the fact that is very accretive and will save a fortune in dividends.

To stop this nightmare the shorters need to be burnt not the shareholders, it is up to DEC, don’t hold your breath.

I am Spartacus, sorry oakbloke.

"!It went to bargain territory today"

IMO it has been in bargain territory for some time but overall the SP keeps falling which would imply all the bad news is not yet out. Bargain or Dividend trap, I am on the Bargain side but what do I know as I have lost a lot of money on DEC, was easily my largest holding until recently but rapidly going down the list. Been using dividends to buy Uranium which has helped a bit to offset losses.

Https://quoteddata.com/research/interview-purvi-sapre-sdcl-energy-efficiency-income-trust/

Worth a watch, obviously optimistic but at face value looks good especially the part about reducing the discount.

Notrex agreed

DEC BB are a shambles, bought shares back at around 130p and then placed shares not that long after at 105p. Passed a resolution to BB up to 10% of the shares when they were are lot higher than now and bought just a fraction while the SP plummets. Sorters love this, the one thing they know is DEC will not defend its own SP.

I don’t buy the argument that they don’t have the cash or are waiting to get hold of it at random times in small amounts. They have an RCF which charges far less interest than the yield on the dividends and they have just added 200m to the balance sheet. If BBs are done properly they will be very accretive and will add huge value for shareholders and also interest rates on floating borrowed money will no doubt fall adding even more bang for your bucks. It should be noted that BB decrease the divided cost for as long as DEC pays dividends far after the loans for BBs are paid off from the dividend savings.

DEC fiddles with BB while SP burns.

Very disappointed to see no BB yesterday at this crazy low SP, gives a signal we are not that serious so go off and short and you will not get burnt by a proper BB program, all we will do is to stop the SP falling further so at best limited the shorters profits.

Also missing out on huge saving to the dividend payments, if using borrowed money the dividend saving will pay off the interest and capital in a relatively short time leaving more cash in the future for higher dividends/acquisitions. Unless the SP can be increased to a decent level any acquisitions are off the table unless financed by debt but DEC cannot buy assets anywhere near as cheap as its own shares so we will be in managed decline which is sort of OK as this still works to give a decent overall return. Also IMO not a good idea to buy more assets until this ESG attack has subsided. If something sticks we may well find a different model where DEC is paid to take on wells from large O&G companies, get what if can out of them and close them down, bit like a commercial rubbish collector, gets paid to take it away and makes what it can from recycling.

Https://oilprice.com/Energy/Energy-General/New-Methane-Emission-Laws-Could-Transform-US-Energy-Sector.html

This is something that most of us are aware of but may well be the biggest factor hanging over the SP. However this will change if Trump get in.

"One of my worries was that increasingly labour dominated councils would take back work ‘in house’"

This is the danger that politics determine where the work is done. Although Councils may be able to do work cheaper in house (I do not think this is the case) it only takes into account the short term costs, add in the cost of local government pension and you can probably add 30% to the long term costs. Unfortunately no politicians think more than a few years in advance are are more concerned with the politics than reality.

GG does have a point but Rusty along with other directors do have large holdings in DEC so skin in the game, may not have been buying for a time but have not been selling.

"If its that good a proposition why arnt they implementing the BB maybe another acquisition is on the cards"

I really hope they are not looking for another acquisition at this point, the last one along with raising more money helped to trash the SP and there is far more value in BB your own shares, you cannot buy assets cheaper than DEC shares so would be dilutive. I also think we will need to wait to see the outcome of the court case and hopefully the investigation either ended or kicked into the long grass. Just image the headlines if DEC bought more wells requiring decommission at some point, something like "DEC adds to the long term cost that it can't afford which will fall on the States to get short term gain"

I am not optimistic it will come to an end anytime soon as this is a politically motivated attack and I think it will hang around like a bad smell while the democrats can see some political gain and will not want to just drop it and have egg on their faces. May well be all over after the US elections, time will tell.

"The difference is they can afford it they are stashed with cash DEC would in effect be using borrowed money"

First DEC have just sold a lot of wells giving more cash, second borrowing the money for BB is around 1/3 of the cost (8% at a guess which is likely to fall in the coming months and years) of the saving on dividends and this borrowing can be paid back from the dividend saving in a few years. DEC cannot buy assets anywhere near as cheap as it own shares, it makes no sense not to do this.

"Its only a token gesture anyway who needs BBs"

We do, O&G companies like Shell and BP have large BB programs to counteract the ESG sell offs. In DECs case much more important with the ESG attacks and falling SP leading to shorting, DEC should go on a large BB program and burn the shorters not let the shorters burn the holders. Then of course there are the huge dividend saving so acredative, all in all a win win. Unless the SP recovers no chance of raising money on the markets and DEC is in managed decline.

GG

"I'm quite enjoying this."

"So much fun to be had here."

This sums up what is happening, if you engage with GG you give him what he is after, attention. He will fill up this board with controversial statements in order to get responses and will not stop if he sees he is winding people up. Just ignore and he will go elsewhere for attention.

GoCPI

Agreed, Adolfo is our best hope and from his history he is an achiever unlike JL, hopefully this will be the year when this is properly turned around.