What Did You Buy Today?

[fenders53]

(05-05-2020, 11:26 AM)stockguru Wrote: While you all are selling RDS I just bought it. It's still paying a 4% yield and I can live with that. I see the dividend cut as good news. This is the first time they have cut the dividend since  WW2. That tells you something. The dividend will come back. In the meantime this gives them a chance to pay back debt. Buy it while its at the bottom.

Straight from the CEO mouth

We think the business is fundamentally a much better one following the dividend cut, and expect debt levels to fall rapidly over 2021-22

I am considering the same move with RDS  That's the HUGE advantage of coming in after the bloodbath few predicted.  We can be opportunistic and appear to be making the smarter move.  Selling on the announcement usually isn't a horrible idea.  They can get back in 5-10% lower just days later if they care to.  I've done that on other stocks a few times this month. Usually with a put option so I can steal the next few lost dividends back immediately.  Just did exactly that with my WY position. Missed a near 20% SP decline in two days and the next 2 1/2 dividends are back in my pocket. More Div cuts to come for most of us so have to figure it out as we go. A DGI port with multiple suspended Divs is no longer a DGI port, and that is what most of here hold as our core positions.

[stockguru]

(05-05-2020, 11:31 AM)fenders53 Wrote:

(05-05-2020, 11:26 AM)stockguru Wrote: While you all are selling RDS I just bought it. It's still paying a 4% yield and I can live with that. I see the dividend cut as good news. This is the first time they have cut the dividend since  WW2. That tells you something. The dividend will come back. In the meantime this gives them a chance to pay back debt. Buy it while its at the bottom.

Straight from the CEO mouth

We think the business is fundamentally a much better one following the dividend cut, and expect debt levels to fall rapidly over 2021-22

I am considering the same move with RDS  That's the HUGE advantage of coming in after the bloodbath few predicted.  We can be opportunistic.  Selling on the announcement usually isn't a horrible idea.  They can get back in 5-10% lower just days later if they care to.  I've done that on other stocks a few times this month. Usually with a put option so I can steal the next few lost dividends back immediately.  Just did exactly that with my WY position.

Your a smart man   

Just buy in before the 5/14 ex dividend lol

[fenders53]

(05-05-2020, 11:35 AM)stockguru Wrote:

(05-05-2020, 11:31 AM)fenders53 Wrote:

(05-05-2020, 11:26 AM)stockguru Wrote: While you all are selling RDS I just bought it. It's still paying a 4% yield and I can live with that. I see the dividend cut as good news. This is the first time they have cut the dividend since  WW2. That tells you something. The dividend will come back. In the meantime this gives them a chance to pay back debt. Buy it while its at the bottom.

Straight from the CEO mouth

We think the business is fundamentally a much better one following the dividend cut, and expect debt levels to fall rapidly over 2021-22

I am considering the same move with RDS  That's the HUGE advantage of coming in after the bloodbath few predicted.  We can be opportunistic.  Selling on the announcement usually isn't a horrible idea.  They can get back in 5-10% lower just days later if they care to.  I've done that on other stocks a few times this month. Usually with a put option so I can steal the next few lost dividends back immediately.  Just did exactly that with my WY position.

Your a smart man   

Just buy in before the 5/14 ex dividend lol

No I am just lucky if I happen to show up late lol.  This really sucks getting Divs pulled away after you had exercised some patience and held through a down draft.  We are getting a review lesson on why boring aristocrats are aristocrats.

[Otter]

I am tempted by RDS.B, but thinking I may just go with XLE to round out the energy side of things. No need to pick who the winners/losers will be, just go with the sector as a whole.

[fenders53]

(05-05-2020, 11:46 AM)Otter Wrote: I am tempted by RDS.B, but thinking I may just go with XLE to round out the energy side of things. No need to pick who the winners/losers will be, just go with the sector as a whole.

I would do that if I thought more majors won't cut their Divs.   I think it's early to buy the index because you get the bad ones too.  They will cut their Divs or gut their balance sheets avoiding it.  Neither is a great outcome.

[crimsonghost747]

(05-05-2020, 11:26 AM)stockguru Wrote: While you all are selling RDS I just bought it. It's still paying a 4% yield and I can live with that. 

Yeah that might not be a horrible move to make. I won't increase the position to it's previous size but I'm open to purchasing some if it dips properly. But I think we are talking about 13.xx euros for the actual share itself (not the ADR) before I get interested.

[Otter]

(05-05-2020, 11:54 AM)fenders53 Wrote:

(05-05-2020, 11:46 AM)Otter Wrote: I am tempted by RDS.B, but thinking I may just go with XLE to round out the energy side of things. No need to pick who the winners/losers will be, just go with the sector as a whole.

I would do that if I thought more majors won't cut their Divs.   I think it's early to buy the index because you get the bad ones too.  They will cut their Divs or gut their balance sheets avoiding it.  Neither is a great outcome.

SEC 30-day yield on XLE is 8.11%, so even if 100% of S&P 500 Energy Sector components cut their dividend 50%, it's not a bad play.

[fenders53]

(05-05-2020, 11:56 AM)crimsonghost747 Wrote:

(05-05-2020, 11:26 AM)stockguru Wrote: While you all are selling RDS I just bought it. It's still paying a 4% yield and I can live with that. 

Yeah that might not be a horrible move to make. I won't increase the position to it's previous size but I'm open to purchasing some if it dips properly. But I think we are talking about 13.xx euros for the actual share itself (not the ADR) before I get interested.

That may be wise.  Oil prices have run up nicely and oil companies following along.  Oil almost halfway to an efficient producer making a tiny profit. This is not over soon. The majors will find a bottom in spite of reality though.

[catnap88]

added a little WFC at 26.50

[fenders53]

(05-05-2020, 11:56 AM)Otter Wrote:

(05-05-2020, 11:54 AM)fenders53 Wrote:

(05-05-2020, 11:46 AM)Otter Wrote: I am tempted by RDS.B, but thinking I may just go with XLE to round out the energy side of things. No need to pick who the winners/losers will be, just go with the sector as a whole.

I would do that if I thought more majors won't cut their Divs.   I think it's early to buy the index because you get the bad ones too.  They will cut their Divs or gut their balance sheets avoiding it.  Neither is a great outcome.

SEC 30-day yield on XLE is 8.11%, so even if 100% of S&P 500 Energy Sector components cut their dividend 50%, it's not a bad play.

True, and if Divs start getting cut in mass you're losing enough share price to make the yield less relevant for now.  I just thought a major that already cut might be safer than average.  I think they are all a bit overpriced for the fundamentals now anyway.  XLE is probaby safe as anything oil at the moment.

[divmenow]

Time to short DIS. Headed to $80 or lower.

What do think Fenders? We can make a ton playing it on the downside lol

Wow that was an ugly report and yet it’s green. They suspended dividend as well.

[fenders53]

(05-05-2020, 03:49 PM)divmenow Wrote: Time to short DIS. Headed to $80 or lower.

What do think Fenders? We can make a ton playing it on the downside lol

Wow that was an ugly report and yet it’s green. They suspended dividend as well.

To be honest I thought about it yesterday but I usually don't target quality.  Roy Disney's grand-daughter was on Twitter making a case the Div had to be suspended after furloughing 40K employees.   I'm glad Kerim got in low.  I think he is in around $90.  DIS is going to have most of their cash burned by the end of the year unless CV somehow doesn't wreck any chance the parks opening by then.  

Anyway, this is getting stale already.  I am going to be very careful where any new money goes, and hopefully won't have to dump many stocks.  I have a feeling it's going to get more and more "acceptable" to suspend your Div the next few months.  Lets face it, 2/3rds of the SPY has a good enough excuse already.