The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
"Mine are in an ISA with ii and divi there is paid in gbp."
That is because you cannot hold $s in an ISA, do II use the DEC dividend exchange rate? mine are in a SIPP where you can hold $s and II do not give you a choice but you can exchange USD to GBP at 1.5% charge.
With II you have no choice but to be paid in $s (I tried), you may make on the exchange rate but II charge 1.5% conversion charge. I have been keeping the $s and buying US stock, if DEC delist from London I assume we will be able to then buy DECs US stock in $. However I am not interested in adding and may well sell at some point now the dividend has been cut, I know it is good at 10% but can't trust this will not happen again. I prefer Uranium stocks for CG and many other companies, like PHNX (which I already own )and REITS for reliable dividends.
If you have enough $s in II or intend to keep it in $s for a time worth looking at at something like SMTC short term $ fund, was getting 5%+ for my $s.
The reaction now reminds me off numerous interviews done with people playing the lottery with money they can afford. They say if I give up now I will have wasted all the money I have spent on tickets.
This is an understandable human reaction (for CPI shareholders) and by the way I count myself amongst these people (CPI not lottery).
Unless there is a very substantial improvements in the accounts I will not be adding, my last smallish buy after the bad August report thinking things it could not go any lower, how wrong I was.
One thing to remember is that reducing of interest rates will not help CPI much as they took out over £100m notes at around 10+% so they are stuck paying this interest.
However feeling a little more confident now AH is making all the right noises and JL is heading for the door. I think it depends a lot on how the staff handle the cuts, if they have any sense they will know it is the end of the road and there is no choice.
" I take the opportunity to insist on some compo, which helps focus their minds a bit ! These brokers never like a complaint to the Regulator as it costs them more in admin if nothing else !!"
Also they want to avoid complaints to the Financial Ombudsman as each complaint cost £750 to the institution win or lose, in addition when investigating a complaint they have to spend a lot of time to make sure they have followed the correct procedure in case it is referred to the FO.
In II it is not in the current balance yet but it is in pending, not exactly sure what this means, however I can use this to buy shares but I guess it can't be withdrawn (not tried as in SIPP) until in current balance.
Https://www.londonstockexchange.com/news-article/ASLI/sale-of-french-asset/16398133
The €17.5 million disposal price is in line with the 31 December 2023 valuation.
Looks like a good move.
Https://www.reuters.com/world/europe/glencores-ex-head-oil-loses-uk-legal-fight-over-tax-2024-03-26/
HMRC have have won their case so it is ordinary dividend for tax so 8.75% for basic rate taxpayers.
Shorts at 5.18%, up 3.18 in the last month.
Now we have a company with a falling SP both in UK and NY, lost most of the dividends so not much comfort there.
At this rate it won't be long until the dividend yield is up too high for Rusty so he can cut the dividend again and give himself more shares for his great performance. He may even get us to the No 1 company but only in the shorters list.
As far as BBs go, what BBs,
The dividend was cut because of Rustys hubris, he is desperate to be in charge of a bigger company and DEC was no longer able to grow by raising money on the market or more borrowing. All it took was broken promise to shareholders, not hard for Rusty and of course he would not lose out as he just gave himself more shares.
Interesting analysis
“The inept understanding on here is actually outstanding! Relatively small shorts have been opened, and JP Morgan have jumped in, this to me is a positive sign for the medium to long-term for an SP rise.”
DEC is number 13 in the most shorted UK companies did not realise this is small.
So JP Morgen opened a short and decreased its position in order to get the SP to rise.
“Shorts are opening to create the very panic displayed by the PI's on here. They open small shorts as they are actually going long on the share. Shorts are opened to cause SP to remain low, sellers abundant and panic ensues picking up Shares on the cheap.”
This should fall foul of the FSA (not that they do anything), it is called share price manipulation, so JP Morgan are happy to be seen doing this.
So the reason for DEC to have lots of shorts is that the shorters do this to make the SP rise.
“Hang in there - in 6mths to a year this will look very different concerning SP value.”
Unfortunately this could been said 6 months or year ago and it would have been right.
“O and by the way for those that have not worked it out yet, the whole Tender of Shares effort was also contrived. There is no-way on hell's earth did they not know this was not legal in the states. this was a very, very clever ploy to circumvent the lowering of the Divi and using this as an excuse to do so (or part there-of) to create the SP rise they are looking for. Sneaky yes, protecting the current SP at these levels with a spurious get out as to why divi lowered, equals very clever! Ask yourself did they find out on the morning of the RNS release this was illegal or did they know weeks ago, did II's not inform them of this (of course they would have done)? They knew and used it as a tool to get where we are. If they knew it was illegal why did they not terminate the Tender offer with an updated RNS separately? they just waited to throw it in the information with the lowering of the Divi, clever stuff as gave them a legit get out which did not cause any real panic with a drop in SP (the other way round would have done)”
So again this was a share price manipulation that is illegal. In my view the SP was too low as they put a floor on tender offer and were frightened what would happen with SP collapse so looked for an excuse to pull the tender or perhaps it is what is says on the tin.
I must be totally inept (however I tend to feel that way getting involved with DEC and Rustys lies) for me if it looks like a duck, quacks like a duck it is almost certainly a duck.
Notrex
"One thing is certain - they sure do need to grow the SP"
Can't see why they can just give themselves more shares as the SP and dividends drop to compensate, they obviously don't give a S**t about the shareholders.
As I said when I first saw the report, shorters have been given all their Christmases at once.
To anyone who thinks the SP is doing OK this is against the background of all time highs in the London and NY indexes, with rising indexes and dovish signals from FED and BOE on interest rates and a good report (except for dividends and acquisition) this share should be over £10 now instead all we get is rising shorts, well done Rusty and the BOD you really earnt all those free shares.
Jim800
"Terry, I guess the new 10% ish dividend makes BBs less attractive than they were at 30% ish."
Have to agree but the point I am trying to make it is another broken promise.
As for the freebie shares for the BoD, their income has reduced due to the cut in dividends and their capital in form of their shares what else could they do to maintain their lifestyle otherwise they would have to suffer like to other shareholders and they are too important for that. What next raise in their salary, why not just one of many two finger gestures to shareholders.
As I said this company is now run for the BOD with scant regard for shareholders.
Corrections
"But it is staggering that a business with a household name - turning over £3billion /year of solid revenue was only worth about £220million yesterday morning!"
Not really, does not matter how big the business is if it has not made a profit for over 6 years and pays no dividend. Also add in the useless JL and BOD who lied and milked the company for their own gain with scant regard for the shareholders I am not surprised we are here.
But with AH some light at the end of the tunnel and the best news in 6 years, it will be tough making the required cuts to turn this around as a lot of good staff will leave but what choice is there, cut or bankruptcy, you can't keep losing money for ever. Good luck to us all, we need it.
"But it is staggering that a business with a household name - turning over £3billion /year of solid revenue was only worth about £220million yesterday morning!"
Not really, does not matter how big the business is is if it has made a profit for over 6 years and pays no dividend. Also add in the useless JL and BOD who lied and milked the company for their own gain with scant regard for the shareholders I am not surprised we are here.
But with AH some light at the end of the tunnel and the best news in 6 years, it will be tough making the required cuts to turn this around as a lot of good staff will leave but what choice is there, cut or bankruptcy, you can keep losing money for ever. Good luck to us all, we need it.
Notrex
"MrG123 - I suspect we might be waiting a while (but hope not). Seems to me on past precedent that good ole Rusty will be back to trying to fulfil his seemingly blind ambition to buy every gas well on planet Earth."
I am waiting for Rustys promise of BB but suspect just sporadic and animaica as usual, he talks a good game like on the dividends.
I think Rusty wants to buy loads of wells to grow the company and he got impatient, at present interest rates too high to borrow and no chance of more share rases. The only source left was our now missing dividends but what the hell, just have to break another promise, he is getting used to that. It would be far more accretive to BB shares than more wells especially in a market already flooded with gas but this would not have fulfilled Rustys dream to be in charge of a bigger company. Can't see much in the way of decent dividends for quite a time (basses on SP I bought at) as Rusty will run the company for himself and his own ambitions with scant regard for shareholder value. Just one more company run for the BOD not the shareholders.