Shells proposed purchase of BG

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  • cloud_dog
    cloud_dog Posts: 6,068 Forumite
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    Absolutely....some difficult (face saving / sacking) decisions to be made.
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • Apodemus
    Apodemus Posts: 3,384 Forumite
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    EdGasket wrote: »
    I've sold out of Shell completely now.
    For every seller there is a buyer...and this time it may well have been me!
  • EdGasket
    EdGasket Posts: 3,503 Forumite
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    Apodemus wrote: »
    For every seller there is a buyer...and this time it may well have been me!

    Well good luck to you if it was.

    It's kinda puzzling that people were buying the likes of AAL, KAZ etc all the way down from over £30 to £2 now. If Shell follows suit it could end up well under a fiver. I think the only thing sustaining the price at the current £13.50 is the dividend which may have to go, and inertia of current holders. Wait until finals are out in early Feb., then we'll see the write downs and cash bleed.
  • Apodemus
    Apodemus Posts: 3,384 Forumite
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    EdGasket wrote: »
    Well good luck to you if it was.

    It's kinda puzzling that people were buying the likes of AAL, KAZ etc all the way down from over £30 to £2 now. If Shell follows suit it could end up well under a fiver. I think the only thing sustaining the price at the current £13.50 is the dividend which may have to go, and inertia of current holders. Wait until finals are out in early Feb., then we'll see the write downs and cash bleed.


    I won't be surprised if the price has further to fall and I certainly expect the dividend to be cut! But I do expect Shell to be around for the long-term - although I did read-up to remind myself of the Burmah saga, before committing to more Shell shares! :)
  • Glen_Clark
    Glen_Clark Posts: 4,397 Forumite
    edited 19 January 2016 at 9:42AM
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    EdGasket wrote: »
    Well good luck to you if it was.

    It's kinda puzzling that people were buying the likes of AAL, KAZ etc all the way down from over £30 to £2 now.

    I think the difference is that Shell isn't just a producer, it derives a lot of income from 'downstream' activities (like refining, distribution, retailing - with its own strong brand, etc) which is at least as profitable with a low oil price. That is Shell's great strength which has seen it through all the other oil price crashes, although its insulation from oil and gas prices would be weakened by buying BG at the massive premium proposed.
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
  • Glen_Clark
    Glen_Clark Posts: 4,397 Forumite
    edited 19 January 2016 at 9:39AM
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    Apodemus wrote: »
    I won't be surprised if the price has further to fall and I certainly expect the dividend to be cut! But I do expect Shell to be around for the long-term - although I did read-up to remind myself of the Burmah saga, before committing to more Shell shares! :)
    I'm holding about 2% directly in RDSB for the long term, because when I don't know what to do my default position is to do nothing, at least saving the costs of trading.
    I realise the share price might fall further, but at least we are nearer the bottom of the cycle than a few years ago when shares were £25, which gives a better chance from here over the long term.
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
  • Mr_K
    Mr_K Posts: 1,171 Forumite
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    Shell shares back up 3% so far today. Still seem cheap to me, only so low oil can go.

    Tempted to take all Shell shares option. Notice they 'scale' requests so won't necessarily get them all, if lots decide to do the same. Assume if you do take Shell shares the price will be whatever ever it is on the BG takeover day?
  • C_Mababejive
    C_Mababejive Posts: 11,658 Forumite
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    Glen_Clark wrote: »
    I agree with all of that, except I don't know whether its wise to sell Shell now or not.
    You know what they say,,,Never Sell Shell :)
    Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    C_Mababejive wrote: »
    You know what they say,,,Never Sell Shell :)

    Or she sells shell shares by the seashore etc
  • Glen_Clark
    Glen_Clark Posts: 4,397 Forumite
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    Shell shareholders have voted 83% in favour of the deal, 17% against.
    (BG shareholders vote tomorrow.)
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
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