The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
The only people generating a windfall are those who have had a wave of capital deployed in the markets since covid. These, of course, tend to be older voters which skew to the Tory right. Yet there’s no talk of a windfall tax for those folks.
I recommend people watch Gary Stevenson on YouTube, former trader at citi. He explains it so succinctly and paints a pretty grim picture for the world economy as inequality is set to increase
Nice bit of analysis below, good to see the analysts wakening up to the opportunity here based on the sheer amount of cash we are generating
Jefferies also pointed to potential for a further buyback acceleration in the second half.
"Under both our macro assumptions and strip prices, BP should be able to step up its buyback in 2H24 to $3bn/quarter (from $1.75bn/quarter), which would result in total yield growing to 14.5% (from 11.6%), by far the highest in the sector after Equinor (which is unsustainable)," it said.
Oooft, thanks meoryou. There you have it folks. Saudi need to maintain these margins to fund MBS’s spicy mushroom dreams. OPEC broadly in line. SPR will dwindle in an already tight market. What a bullish indicator heading into the new week.
We all feel your pain Gingy! I think we're all pretty comfortable that we'll get a fairer valuation at some point soon, however who knows when this is.
You also have to realise this is an income stock, you can get this income at no risk in a savings account currently. I suspect when we see base rate decreases we'll see an inflow of cash back to income stocks, at which point we'll have less shares, a sustainable dividend and a P/E thats ridiculous for an oil major. hang tight
Cross forum ramping. I was in HE1 from early days. Absolute shambles of a board and c suite. Turned the early retail investors into bag carriers with ludicrously low share placings and diluted everyone into oblivion after terrible mgmt decisions on drilling. Only ones benefiting now are the boards mates who bought at the recent placing. Lesson learnt on AIM for sure, as a private investor, don't touch it.
I think its a matter of process, they buyback and cancel shares as in their RNS, then instead of "keeping them back" they issue new shares. Always best to track absolute share count and not take buyback figures as the absolute reduction.
I posted a few months ago that I think the power of sentiment drives 15-20% of the bp share price. When sentiment was good re:$100 oil or when the 2030 O&G production target reduction was downsized to 25% we touched £5.60+,
15% from today (466) is: 535p
20% from today (466) is: 559p
I'd say we are more vulnerable to general attitudes about POO than anything else (ongoing Takeover talk etc.)
Q1 20 divi = 8.34p /share
3Q 23 divi = 5.73 / share
Roughly 4 years at 10% p.a. increase to get back to this Q1 20 dividend. At the moment it seems we are funding divi increases through buybacks so assuming this cancels out the numbers of shares in play.
Reader link should work for all: read:
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