Member Info for TrekMadone

Remember CSH I mentioned here. Big quarterly divi payer at a huge NAV discount. They got taken out for 44% premium.

Now look at SOHO. Another social housing REIT. It’s just kicked off the bottom. 63% discount to NAV.

Guess what. LGEN just grabbed 3%. They had around 3% of CSH!

I reckon they’re having a little flip into SOHO.

It’s yielding a tad under 10% atm as well. So you get paid to wait.

In for a run through 60 imo.

https://www.hl.co.uk/shares/shares-search-results/t/triple-point-social-housing-reit-plc-ord

Usual caveats

Trek

You did well getting below 90. I still think below 100p will soon seem a bargain.

It has bounced off the 90pish bottom now three times. That often means a bottom is in in TA. Of course nothing is a cert but I’ll take any positives!

Divi max has the 2Q23 divi as being announced with the Q2 dates. I think they mean the Q1 as there is no Q2 announcement yet but I could be wrong.

There is an 8 page research note out today from Dowgate Capital. I don’t use them. But if any posters here do it may be interesting. The headline was the 15% yield.

Having DMOR I am happy to hold esp as it’s a US energy income player and I am getting the income in Stirling. That gives some macro protection from Europe.

IMO the market will catch up soon.

Usual caveats

Trek

Next divi (after May xd) announced via dividend max.

Diversified Energy Company Plc have declared a new dividend:

Company Diversified Energy Company Plc (DEC)

Stock Exchange London Stock Exchange (United Kingdom)

Amount 4.38c

Dividend Type Quarterly

Ex-Dividend Date Thursday August 31 2023

Pay Date Friday September 29 2023

Your Holding 1 share change this

Your Payment: $0.04 (approx £0.03)

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Trek

Trench warfare kill shot! Horrid!

https://youtu.be/Rcii2ICMW_8

Trek

“ Goldman Sachs (NYSE:GS) reckon European gas prices could treble this winter.

Gas prices are currently as low as €36 per megawatt hour, some way off last August’s peak of €321, but analysts at the Wall Street bank believe prices could rise to above €100, a level not seen since December 2022.

Prices have fallen since nations built up reserves to ease reliance on imports from Russia in response to the war in Ukraine.

“The combination of winter weather risk and potentially decline conservation efforts by households can quickly tighten balances, enough to trigger a sharp rise in winter prices above €100,” analysts noted.

“Even if industrial demand remains sluggish this summer, this is not a guarantee that storage will be comfortable throughout this winter,” `Goldman said.

Goldman argues that current low prices have led households to become carefree in their usage which could spark a rebound.

Surging prices would be welcome news to Vladimir Putin and Russia as the war in Ukraine rages on.

Russia supplied 12.9% of all gas imports as of November 2022, although this has fallen drastically from the 50% it provided at the start of 2019, according to the European Council.

An increase in prices would provide further income to fund its war efforts.”

Link from Troajan

https://www.proactiveinvestors.co.uk/companies/news/1014494/european-gas-prices-could-treble-says-goldman-sachs-1014494.html

Trek

“ Yet again DEC deliver a first rate quarterly update with record production and reduced costs which boosted margins, a truly incredible performance under the current industry conditions. The cash margins, now at a stunning 54% were achieved partly due to hedging and also the greater liquids exposure.

The hedging policy which achieved this, hedged over 85% in 2023, approximately 80% in 2024 and approximately 70% in 2025 of natural gas production, and DEC continue to ‘opportunistically add to our hedge portfolio where the price curve is higher’ which is highly satisfactory.

The DEC process continues, the most recent acquisition has, as is always the case, settled in very well and I expect more of the same if not even more and indeed if the CEO’s comments above are to be taken at face value, and I would, there may be more, diverse ways of value enhancement, something DEC has proved to be expert at in the past.

With the increased 1Q dividend the shares remain amongst the best payer’s in the sector and with its yield of 15% as I have said time and again they represent on a capital and total return basis pretty much the best total value in the sector.”

https://www.malcysblog.com/2023/05/oil-price-dec-sle-reabold-sdx-echo-and-finally/

Trek

Yep I saw their t/o RNS Temple. 44% premium and there will be further upside for the purchaser! Shocking really!

I am in DEC big and they also just released decent results with a top ppt and SP goes down!

Still if one is buying for yield then hopefully this will look cheap in a year when looking back!

AGM here tomorrow. Don’t leave time to make travel arrangements- the comedy continues! Lol!

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Trek

Look at CSH was paying high quarterly yield. Even LGEN bought a big chunk. Was 55p now gone for 80p. 44% premium and that’s still cheap. Well the buyer would expect upside in top as well!

Not saying Dec will be taken over. Just illustrating the sht London market!

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Trek

Triple bottom in now. Value doesn’t really seem to count on London. It’s just a buy v sell algo. With the war and macro there just ain’t buyers.

I am happy to tuck away and forget. I have read the ppt twice now and happy to take what I see as a solid yield.

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Trek

Never liked em. Their service was awful!!

Buffet says punish the bankers! About time! And they regulators!

Too many people get loads of money and are suddenly not accountable! It’s a joke!

https://www.theguardian.com/business/2023/may/07/us-banking-crisis-warren-buffett-says-bosses-should-face-punishment?utm_term=6459ec7a7586d6b750f280f656207f87&utm_campaign=BusinessToday&utm_source=esp&utm_medium=Email&CMP=bustoday_email

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Trek

I noticed a few copper stocks up today. Should move here towards 30 as funding is anticipated soon.

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Trek

Tro,

CAML may just be turning. Done two intraday pull-ups already today. Looking like 205 close which hopefully means it’s turned it’s back on going below 200.

I have taken some profits across a few trades this morning even at YU. Just enough to pay for my holiday!

Was a bit nervy being 100% in!

I expect YU to got to 800 but I don’t like being a forced seller if market turns so just taken enough out to book hols which makes holding easier. After all that’s one of the reasons for doing this!

Usual caveats

Trek

Ii is in £. I get the divi in £.

I also wrote to them beforehand and they replied saying their default was Stirling.

Allessandro look through the ppt on the link. It also has a slide showing NAV gap.

Usual caveats

Trek

Someone never moved the clock on! Gosh that and the links not been a very good update this one.

I think the emoji’s will send most nuts. Trying to move LSE closer to wallstreetbets I guess!

Still it’s mostly old farts here and we probably don’t get it!

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Trek

💨💨

Sold the recent additions at 632. Grabbed a small profit. Plenty to ride!

Usual caveats

Trek

Don’t forget ‘exploring carbon capture!’

I have just been through the ppt. You will have to cut and paste the link or go to the website. It’s the best Corp ppt I have seen and I have done a few as well as read many! It tells a fantastic story!

I recommend any investor reading them all. There is some new material included not just around the acquisition which clearly shows the cash accretion and development opportunities (10) but also the unit cost slide 24 in back up. I don’t think anyone expected them to reduce costs with an acquisition when tax and inflation went up!

The cloud based real time intel is also really delivering on the ESG front.

There are plenty of slides in there that show the amortisation model and cash deliverables through the commodity cycle. It really isn’t complex. I don’t get why the market misses it!

I note how Dec have also rerouted prod to maximise output reduce costs (11) that’s also new one for me.

The macro story in back up is well set out. That’s important as it gives confidence in the future divi’s and debt repayment. What it doesn’t show but is axiomatic is there will be a pivot point when debt reduction is so significant that divi’s will increase dramatically!

Note how India and China are really not addressing emissions which is another opportunity for gas over coal as a transition.

Anyways enjoy the slides

Usual caveats

Trek

Corp ppt is up…

https://d1io3yog0oux5.cloudfront.net/_c91535f225bb4a1208ee465e4dc743a9/dgoc/db/557/4647/pdf/DEC_Corporate_Presentation_May_2023.pdf

Trek

In line with expectations. And for those that don’t get it I think Rusty sums it up well….

“ We remain focused on generating free cash flow to provide dividends and service our amortising debt while evaluating accretive growth opportunities that provide enhanced scale and synergies. We have built a sizable and resilient Company, and believe our intrinsic value per share significantly exceeds our current share price, offering a compelling value proposition for our current and future shareholders."…”

I note the $6m land sale as well. That’s a nice boost!

Expenses down is also a surprise helping hit 54% cash Gen. That’s above expectations.

Looks like prod was down a bit will have to check but exit in line and numbers in line overall. So yes divi more than safe.

No idea what the market will think by I am holding. Would buy more if I wasn’t extremely overweight here! Just can’t see a better high yield out there!

Usual caveats

Trek

Tro,

“ I cant open links trek...theyre all shown in black ink,istead of blue “

I guess you know that you can cut and paste them into your browser. I split my screen to save time.

“the offensive?...any day now,but why have the russians,evacuated everyone around that nuclear power plant? “

Must say I am concerned about the evacuations….They also have a stack of ammo stored near Z, like they would!

Putin 🖕 may just light the fuse at Z and blame someone else again. Just hope the wind blows his direction!

Usual caveats

Trek

If one doesn’t want to check back through the RNS’s the HL site is pretty good. You can see it says divi declared not yet paid. You can also see on the full divi breakdown tab how DEC has steadily improved or maintained its pay out over the years.

https://www.hl.co.uk/shares/shares-search-results/d/diversified-energy-company-plc-ord-gbp0.01

The links here don’t work so you will have to copy and paste. But at least we have emoji’s now. Unfortunately I can’t find one of a flat tyre! But hopefully things will change soon! 🤞

Usual caveats

Trek