Member Info for TerryM1

Https://oilprice.com/Energy/Natural-Gas/LNG-Takes-The-Crown-in-Trumps-Energy-Push.html

BillNN

I keep seeing these reports from SimplyWall Street, they always say the same thing, I believe these are written by a BOT and not worth a lot which is reason I do not post them.

"The US gang are quite unhappy. Each day they quickly smash down the SP with a high volume of sells."

This is probably due to the underwriters dumping stock on the market. We are missing the RNS which states the results of the fund raise, wonder why! No doubt underwriters had to pick up a lot of these new shares and now need to get shot of them, another group stung by Trusty Rusty along with those companies that got stock as part of the recent deals.

Did not DEC say there was a lot of interest in the new shares, another lie from the DEC stable.

Https://oilprice.com/Energy/Natural-Gas/Why-Gas-Prices-Have-Doubled-Over-the-Last-Year.html

Https://oilprice.com/Energy/Natural-Gas/Why-Gas-Prices-Have-Doubled-Over-the-Last-Year.html

Dadean

You can transfer Cash ISAs to Stocks and Shares ISAs if your own Stock and Shares ISA does not allow this just take out another Stocks and Shares ISA with someone who does you can have 2 or move one to the other so just have one.

Some considerations, take a look at cash back bonuses for transfer, these appear on a regular basis, HL are doing one for SIPPs at present. Once transferred if you are not ready to put all the cash into shares consider buying sort term money market funds. I buy Lyxor Smart Overnight Return UCITS ETF or Royal London Short Term Money Market, Lyxor has dealing charges and a spread (which is small) but when I sell can use the money without delay to buy shares, Royal London has no spread and some brokers do not charge dealing fees but may have a charge to hold also there is a few days delay if you sell before you can invest elsewhere, in HLs case for Royal London no dealing charges but a 0.45% holding charge. I have been getting around 5.5% on both but no doubt a little less now. Main thing is gap between what these fuds pay and interest brokers pay for cash.

All looking good.

There is a statement about the sale of Tesco's store

"In recycling the proceeds, the Board will consider options to create accretive value for shareholders."

This for me is a no brainer, buy back shares saving 8.5% on dividend payments, 9% if done earlier, best accretive action, far more than repaying debt and more than can be made from buying new stores, this would help the NAV more than anything else. This is very unlikely to happen as it shrinks the company and less money for those who run it.

Culley01

I think you are right, from what we can see since JL took over he looked after the employees quite well but the shareholders appallingly, conning and lying to them, if he had not jumped ship CPI was heading for the rocks and where would that have left the employees. Most of all he looked after himself very well, I suspect his plan was to drag it out as long as possible and leave once found out after all he had all the figures and could clearly see this was not working and would only end one way unless huge changes were made.

Wednesday

As you probably know far more more money was collected in the RI than the company is currently worth, I did not take up all my Rights but more than enough to be seriously negative. The only conclusion I can come to is JL either did not know the state of CPI when he asked for the RI cash in which case he is incompetent or if he did he lied and conned shareholders. Either way this is unforgivable and he had the cheek to take many millions over the years in salary.

If you look at the figures, rights issue raised £701m after costs (so shareholder paid out a bit more), current market cap £228m so shareholders lost £473m if the shares at the time of the rights we valued at £0. In other words if the company had gone bankrupt and shareholders lost everything they would still be £473m better off, says it all about JL

Simples

I just do not buy this JL made no real attempt to cut back and save money, just sold off the family silver to keep going to fund his salary, made a right mess of the 2 data breaches. When very little left to sell he legged it.

"Then came Covid"

And instead of using this as an opportunity to get more work when the government was throwing vast sums of money around he just used this as an excuse to justify his poor performance while other companies were making a fortune. Also covid allowed saving as less office space required as work form home.

"Without John AH would not have been able to rebuild"

Without JL I would not have lost so much money, I am talking about RI.

Add in all his lies.

EyesOfBlue

If you read my post just responding to your points.

“… then DEC will be a more diversified (more liquids) company with around double the current revenues (more if subsequent hedging deals are at higher prices) and even just in Y1, almost doubled profits.”

And far more risky than is was just a few years ago with 85% hedged and liabilities mostly fixed priced loans. In those days DEC could easily afford 3 times the current dividend which was rising on a regular basis and SP was a lot higher, can’t remember a dividend cut before the last one.

“I’ve seen nothing to suggest current dividend levels are even remotely jeopardised for example.”

That’s what Rusty told us when dividends were 3 times the current level also remember they are fixed at this level for 3 years so going backwards against inflation. Investors buy O&G companies for yield so a fixed dividend puts a cap on the SP.

“For me, the SP is a complete mis-price, with no logical reason to reduce down to (now below) the price of the new shares.”

That’s not what the market thinks, one of the things that sets the SP is confidence and given the recent track record of the BOD no one has any confidence in DEC, who can trust a BOD who messed this acquisition up so badly they had to have a panic fire sale of DEC shares and then there are pathological liars. There’s a saying I heard at a Trading club, “It is not what you think that counts it is what they think”.

“Without regurgitating all the old grievances (getting boring now) isn’t that the bigger picture? I remain optimistic.”

The bigger and only relevant picture is dividends trashed by 2/3s and SP trashed, it does not make a jot of difference what you think or me for that matter what is important for investors it is what is total return/loss on my shares.

“That’s what everyone on here said about Lewis (except Terrym from memory).“

I had reservations about JL because he did not seem to address the fundamental issues and kept the company running by selling off assets. I was prepared to give him some time as he was getting good reports in the press and as an outsider what do I know. After a few years it became apparent very little was changing and the books were full of one offs etc to hide the true situation. JL was an expert at lying and making the financials look better than they were. The thing that really convinced me was the £105m of high interest bonds issued while JL telling us we are doing very well and reducing debt, nothing made sense.

AH is different from the start he was making cuts and making unpopular statements/decisions for CPI staff, something JL would never do. The question is how bad was the mess when he took over, can CPI be saved and is he up to the job. The situation has become more difficult perhaps a lot more with this governments polices especially NI increases along with workers rights, high interest rates and inflation for longer, trashing the economy etc. Time will tell if he can turn CPI around but we will only truly know once we see profit not matter how small and dare I say it one day dividends. IMO I think AH will succeed he seems to be trying hard the question is how long.

JC01

You could well be right but I think Rusty just got over excited and wanted to close the deal ASAP at any cost, did not do due diligence and just expected he could get the finance, no wonder the finance director left, perhaps he could see the gung ho nature Rusty treated financiers. Rusty did say this deal was years in the making so the old finance director must have been aware of it when he resigned. We will never know but the one thing we know is 8.5m secondary share sale was not in the plan, caused a panic fire sale of DEC shares at a ridiculously low amount and panicked the markets. You could say it was not that low given the current SP but the drop in the SP was brought about incompetent handling of the finance. The markets do not trust companies where the BOD looks totally incompetent, including having to fight firers they started and is constantly diluting shares making deal after deal before the previous 6 or so have time bed in. As shareholders we are finding it very difficult if not imposable to access the state of DEC finances as it is it lacks any stability and each financial report only shows part of the picture as missing a lot if not all of the latest deals. Also not helped by statements like $200m reduced from existing debt with no mention of how much debt added.

Perhaps all these deals will be very good in the end but a lot depends on external factors, O&G prices including possibility of Russia being able to export to the west again, interest rates, how much increase in LNG export capability, tax etc. The one thing we do know this share will never get to it's true book value unless there is a complete change of strategy from eat as much as you O&G deals as you can but until the deals are bedded in we have no real idea of it's book value.

Jim800

Thanks for the confirmation, that's what I thought was going on but not clear from the RNS's and docs.

Does anyone know what is gong on with these new shares

RNS

"The Shares will also be listed, and commence trading, on the New York Stock Exchange on 21 February 2025."

Prospectus

"The underwriters expect to deliver the ordinary shares to the purchasers on or about February 21, 2025"

I have just received a voting request for Extraordinary General Meeting To be held Monday, March 10, 2025 to vote on

"AUTHORISE ISSUE OF EQUITY IN CONNECTION WITH THE ACQUISITION OF MAVERICK NATURAL RESOURCES, LLC"

The only thing I can assume is that this vote is for shares which is part of the deal to handed to MAVERICK and shareholders did not get a vote on the shares issued in the placing which is all over with now.

IFAze

"And when were any dividends "guaranteed"?

Never guaranteed however Rusty said they were safe and even if not safe it was stated 40% FCF goes to dividends, if dividends had to be dropped 2/3s cut was not needed, we were lied to. In DECs case financials/dividends used to be very safe because of hedging, fixed rate loans, predictable production volumes only changed in the last year because of acquisitions. My investments were made a number of years ago.

As Jim800 said

“You and your 20:20 hindsight trading doesn’t work for most of us - if you want to be clever post your trades in advance (Trek manages it) not months after the event!”

I did this after I got some flake and still do from time to time, my last 2 buys and sells posted in the last week or so and even gave information on my ENOG and TELL purchases when ENOG was being discussed here. Post yours trades as you make them and we will see how clever you really are.

Would also add you need to get lucky trading DEC as there is huge risk if while holding a trading position (I tend not to hold for too long) Rusty comes out with one of his cunning plans, your trade is toast and the best you can hope for is to tuck it away to get out if/when the SP recovers at some unknown time in the future or take a large loss. This is the reason I only trade small amounts relative to my investment position. This time I got lucky as I was at my PC when the news broke and got out my of my trade ASAP at a very small profit and some of my investment pot I bought in the £10s. Only regret I did not sell the lot but as I said I had no idea the placing price at the time and as US closing price $16.80 and UK price £13 there was a possibility placing price would already be factored in around or above UK price. Also whatever I did I needed to do very quickly, by the time I looked properly at the RNS SP was dropping fast.

jc01

you could be right about covering up, it makes sense but i think the sp fall is more to with pure incompetence on rusty's part after paint yourself in a corner with the rest of shareholders policies. the reason i believe this is that rusty saw an opportunity for a huge purchase got over excited and did not get his ducks in a row first, then panic set in as we can see from the fund raise. if run well and for the right reasons the fund raise should have been about 5% below sp or less (as it used to be for dec, last one sp £1.10, fund raise £1.05), it should be properly planned so all the details release in one rns message (as dec has done in the past), a very stupid mistake to release “there is going to be a fund raise at fixed price very soon and we are not going to tell you the price”, of course markets dropped the sp which meant placing price must be set lower. who in the right mind would do this also add in the fiasco of shares for dividends and for these reasons i believe this pure ****up not conspiracy but who knows. to put it another way rusty is a complete self-serving idiot or a very clever crook, i know which one i go for.

Another thing coming out of this is underwriters beware of DEC share issues, if Rusty needs to do this again underwriters will insist on a very low SP and perhaps charge more given the risks.

Rusty seems to have gone through all possible ways to raise money for his obsessive buying program, increasing debt to breaking point (that's why this fiasco took place), trashing dividend, cancelling BBs, selling shares in a fire sale that set the SP on fire, shares for cash so badly run had to cancel it and for me saving money by only retiring 1% more wells than the minimum requirement. Anyone else think Rusty must go or should have gone a long time ago.

Wanted to know when this is completed and the only thing I can find from the RNS

"It is expected that Admission will become effective at 8.00 am (London time) on 24 February 2025. The Shares will also be listed, and commence trading, on the New York Stock Exchange on 21 February 2025."

I assume this mean it is all over in which case where is the results of the placing RNS also looks like the underwriters could have a number of shares stuck on their books (given the current SP) which will be drip feed into the markets for a time.

Another great Rusty achievement, shares had a high of $17.22 before aqucitsions, $16.80 before placing announced, had to give it away at $14.50, probably most shares stuck with underwriters, SP now $14.25 and falling.