Member Info for TerryM1

Mondex

"if the market thought DEC was in trouble then the institutions would surely be making larger shorts."

I said

“sends a signal to the market we are in serious trouble come and short us.”

Not "there are large amount of shorts out now", it is the signal that is important, perhaps shorts will increase, perhaps not or as it clearly happening investors abandoning the ship.

Clearly the market does think DEC is in trouble and is marking it as a dividend trap, 20% yield is unheard off for a company in good health along with a crashing share price the figures speak for themselves. The yield is multiple times the Gilt and Treasury Bonds yields so really nothing to do with them.

All set against a rising gas price, winter approaching, US LNG exports set to rise and a falling £.

As I said the market is bad but not this bad, this is a US company and the US is not anywhere near as bad a state as the UK. The market in general is nowhere near as bad as DEC especially its peers. Other O&G companies I have like SHELL have big BB programs partly to counteract ESG sell off and it is working very well.

Notrex totally agree.

10% buyback passed, share price crashing, 20%+ yield approaching and only a tiny fraction of the 10% being used, sends a signal to the market we are in serious trouble come and short us. Just on the dividend saving along there is a compelling case for large BB.

Something is seriously not right here, is there something else afoot, bad news? I don't think so why are the BOD happy to see share price crash, the BOD are not stupid so what is going on. Perhaps as mentioned they don't have enough money and Monty Fool is right (have to get something right if only but luck) if they borrow more to protect share price and save a large amount in dividends which is good for DEC shareholders they put the management’s compensation packages at risk. Or looking to take DEC private saying market does not understand us so have not choice, which is why the IIs are not saying anything as they could go with them seen it before but hopefully not the case. The market is bad but not this bad.

Profit Before Tax

Had a reply from DEC after 4 messages

"Appreciate your note and engagement around the share price. We do recognize the importance of share performance and the interests of our shareholders.

We constantly evaluate of our capital allocation strategy and will continue to monitor current market dynamics as balance return to shareholders through dividends with share repurchases, along with strategic accretive acquisitions."

As you can see does not say anything really but but at least they did get back. Sent a message back urging them to up the buybacks and bring in a script dividends, don't think anything will happen but you have to try. If enough shareholders contact them may have some effect, what else can we do except sell or live in hope.

Damofarl

"Holders can take comfort in the accelerated amortisation being undertaken by DEC"

I take no comfort having my pension decimated by the falling DEC SP.

In fact BB are far more accretive saving 19%+pa than the accelerated amortisation by a significant factor.

Yesterday only 150,000 shares bought back after 2 days with no BB and only 400,000 for the whole week so far. They used to BB 350,000 a day when SP below 85p so if it was worth it then why not a lot more when below 75p.

In general I hate BB and not a fan of script shares for dividends but in DECs case it is exceedly important to raise the SP otherwise there is no chance raising money by issuing new shares in the future and deals with borrowing will be dilutive and drop the SP even lower. Therefore the best we can hope for is managed decline with a falling SP.

DEC compares very badly to many others that realise their shares are undervalued especially the ones the wrong side of the ESG mob and have proper BBs. Two I own, Shell and Glencore both have serious issues with the ESG mob but have BB in decent qanaties and the SPs are performing well.

In this new ESG world any company the wrong side of the mob the SP will be hit by Woke funds pulling out so must combat this with BBs or the SP is in danger of collapse and then taken over by a company with more understanding of the current climate and takes steps to combat the ESG financial madness.

Jim800

It is a bit like saying after you house is burnt down don't worry you only lose if you want to sell. We do not hold shares in perpetuity so the SP as well as the dividends are important, in fact it is the overall return we all look for, we are not here to lose money and then make philosophical statements.

I am in total agreement with noterx, the BOD have ignored the falling share price for too long and the only actions are anaemic BBs and “All is OK RNS”. I have a large holding in this company and messaged them 3 times with no reply. The BOD are not running a private company and have a duty of responsibility to the shareholders to maximise the return.

It is important that the SP is not left to drift down to lower and lower depths, the market is bad at present but 19%+ yield means the company is in big trouble or the BOD are not doing part of their job.

The problem with a low/falling SP is

1. It will be put in play by traders who will push it lower causing panic selling which is what they want so they can short it and make money. A saying in trading is The Trend is Your Friend.

2. It will be viewed as a dividend trap so stuck at these levels for a time or go lower.

3. There is no way if a good deal comes along for the company to issue more shares without serious dilution to current shareholders, a lose lose situation for current shareholders.

4. There is little or no chance of any deal taking place which is accretive even with borrowed money given the low SP.

5. Sooner or later it will be taken over, probably taken private at a knock down price. This year I had 2 companies go that way, shareholders got well below what was fair, nobody wanted to sell but had no choice or left with shares in a private company. I have 2 other companies which will be gone by the end of the year, one a half decent takeover and the other is a REIT forced by large shareholder to sell the assets 10% below NAV as SP is well below NAV and another under takeover threat. All caused by low SPs.

Unless the SP increases we can at best look forward to shrinking assets backed up with a good dividends or dilutive deals. The best deal DEC can get now is to buy its own shares not only buying assets cheap but saving 19%pa on the dividends well above its cost of borrowing. The shares can be held in treasury and sold back in the market in better times if required to raise money for a new deal, doing nothing is the worst option.

RNS 19-Oct-2023

Asteriscos Patrimonial SLU

% of voting rights

Resulting situation on the date on which 29.002167

threshold was crossed or reached

Position of previous notification (if applicable) 28.002632

Getting close to takeover threshold but don't know if this means anything.

Alessandro

Already have and I hope more investors will do the same which is part of the reason for the post.

If DEC will not do BB at anything more than a sporadic and anaemic levels then IMO they should at least offer script shares for dividends options and use the dividend savings to buy shares in the market to cover the script shares. This will at least give some extra support to the share price which it desperately needs especially if it is to avoid a takeover.

Even taking into account dividends this this is my worst performing share and is very disappointing.

GG will appear whenever there is weakness in the share price, this is just schadenfreude with no proper facts to back up his argument. He purpose is the wind up genuine investors who are already feeling under pressure which gives him some perverse pleasure.

Insurance conglomerate Phoenix Group Holdings (LSE: PHNX) now yields a stunning 10.96%. That’s the highest yield on the entire FTSE 100, unsurprisingly. Equally unsurprisingly, it has attracted the attention of many investors.

https://www.fool.co.uk/2023/10/15/10-96-yield-no-wonder-this-is-now-the-most-bought-stock-on-the-ftse-100/

This is what most of uas already know but still of interest.

Interesting, I asked IG about this and they said it was paid in £s thought I did see a post that stated they got a bit better rate than the one from DEC from IG which makes sense if paid in $s as the $ has been going up. However IG currency conversion charge is 0.5%, 3 times better than II at 1.5%.

Tichtich

"Have you tried using the currency election option on DEC's web site? They say you can elect to have your dividends paid in GBP:"

Yes tried that, it seem It is upto every broker to decide for all holding the currency of the dividend payments so the choice is made by the broker for all shares they hold.

The explanation from II is that the shares are in held nominee form so there is one big holding and the election for payment currency is for all the holdings. I checked this with the registrars and they confirmed this is the case. II say as they are multi currency and the default currency for dividends is $ they elect for this. The fact that it is listed in UK and traded in £ makes no difference to them. I have also seen posts on the GLEN board complain about the same issue with II.

Alessandro, Slikoil

Thanks for the info on stamp duty, will probably move my SIPP to IG from II once the claw back period for cash back ends, got £3,000 for the transfer. I am happy with II except they elect to have all DEC dividends in $ and charge 1.5% to convert to £, will be paying £600+pa on CCY conversion charges. Did not know this when I transfer to them but chose II because of the interest payments for cash, however if I keep cash for anything but a short time I buy LYXOR SMART CASH which pays 5%+.

The dividend is up a tiny amount and paid as PID which means at least this one is covered so a little bit of good news.

Alessandro

"Is it normal that a broker suspends your ISA because it was not funded in the current tax year? Is it lawful for IG to suspend my account and force me to sign an application form to open a stocks and shares ISA to reactivate my account?"

Never heard of this before, I have 2 Stocks and Shares ISA for various reasons, HL and IWEB, you can only fund one in a tax year and never had an issue with the unfunded account. I have considered moving my SIPP and company accounts to IG as they pay DEC dividends in £ not $ unlike II and people I know give them a good recommendations. I have seen posts that state there is no stamp duty on buying DEC with IG, not sure if this is true.

Looks like the claiming BAU RNS has done the trick and bringing out some good recommendations.

Gwm121

CGT will apply if the takeover is for cash or part cash, if a share swap will coming in when you sell the new shares.

Sorry mistyped

Off topic but whoever said Aviva must have a crystal ball, it's flying.