Share Investment, Discussion & Tips

[pjclarke]

There is a reason its so cheap! Falling oil prices mean it may not have the cash to cover the dividend

Always a risk, but the fall seems overdone to me. Dividend cover=2.83.

[SimonMac]

Always a risk, but the fall seems overdone to me. Dividend cover=2.83.

They have said they want to maintain dividend, and willing to use credit to cover the shortfall of the price of Oil Stays below $60. On paper it seems a solid buy (I already hold both BP and RDSB but at much higher prices ) but solid buys have come undone before

[pjclarke]

“Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down

Warren Buffet.

[BlasterBates]

Oil and other commodities will come back. The greater the fall the faster and higher the recovery will be.

The thing that creates boom and bust in commodities is the lead time on investments.

Basically all new mining and oil exploration projects have now been binned, that's only happened in the last 6 months.

Glencore is a good buy because of it's position in Copper, so I'm still in there

Copper will recover the fastest. High quality copper is a lot scarcer than ire ore or coal.

Recovery in late 2016 and early 2017 or a year or two later if we slide into a world recession.

[Troll]

BG looks a buy @ 916 and a cheap way into Shell although the 52 week range shows a low of 785 ... decisions decisions

[SimonMac]

BG looks a buy @ 916 and a cheap way into Shell although the 52 week range shows a low of 785 ... decisions decisions

How do you work that one out? Its a cash and share offer and Shell's prices has fallen through the floor since the take over was announced

[AtW]

Fill yer boots!

What about when the price halves and the yield is 14%?

Or the price goes to zero and the yield is infinity?

No, when shares half the yield will probably still be 7%...

[Troll]

How do you work that one out? Its a cash and share offer and Shell's prices has fallen through the floor since the take over was announced

As my shaky maths see's it

1500 BG shares @ 916 = £13794

1500 BG shares gives you 383 pence in cash (£5745) and 0.4454 Shell B Shares = 681 shares = £9743

5745.00
+
9743.00

£15488

Correct?

[BlasterBates]

As my shaky maths see's it

1500 BG shares @ 916 = £13794

1500 BG shares gives you 383 pence in cash (£5745) and 0.4454 Shell B Shares = 681 shares = £9743

5745.00
+
9743.00

£15488

Correct?

A bit more complicated because of the cash bit. If Shell's shares go up between now and the exchange of shares and cash you might end up paying a premium.It's not a straight exchange. If it was then the price difference would be arbitraged out.

[BrilloPad]

RBS cries 'sell everything' as deflationary crisis nears - Telegraph

RBS has advised clients to brace for a “cataclysmic year” and a global deflationary crisis, warning that major stock markets could fall by a fifth and oil may plummet to $16 a barrel.