DGOC looks to be in for a great 2019 growth in oil output

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16th Jan '19 by lightningtiger

28 comments 4133 reads

DGOC has a good track record of increasing revenues from $7.36M in 2014 to an estimated $421M in 2019. Net profit last year was $40.7M and estimated for 2019 is $99.3M, whoch is more than double.
What really stands out is the sales growth of a massive 452.4%.
Operating margin is shown at 38%.
StockRank is currently 45 with a Momentum 99 with all MA's positive in green.
The dividend is shown at 8.55%.
It joined the AIM market just over a year ago.

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About the Author

Lightningtiger

Premium Member

700 club gold member. Anniversary yesterday 1/10/2013. Recently returned from New York with a wish to see Wall Street for myself as a bit of a satisfying accomplishment. I first got interested in investments when I was a financial advisor for 14 years. I learned a lot & went to quite a few investment seminars. The one I remember particularly was with Fidelity. They visited the companies that they invested in and held them for a long duration in their portfolios. The other thing was with different currencies that they could buy a particular stock with and of course sell it if it was favourable with another currency. This was potentially more risky of course. It was not long before I realised that all the money from the insurance premiums had to be invested and who was doing it. We used to sell investment bonds where 5% was allowed to be taken tax free once a year on the anniversary of the policy which could run for 20 years.There was a choice of Managed, Property, or Equity to invest into. It was at this point of time that the Property fund went up 40% in less than a year. A simple comparison with the Managed and Equity funds showed the difference. I was soon taking a keen interest in unit trusts and shares, looking for things that were going up and the highest that they had been and bought them. I bought a software package with Up-data which enabled me to be much more efficient, putting stop losses in. Drummed into my head was cut your losses and sell when a stock breached the stop loss and let the profits run. Another stepping stone was to buy myself a Rolls Royce silver shadow that was chestnut brown in colour. The reasons were threefold. 1. That I could afford it. 2. The two managers for the insurance company that I was working for were called Douglas & Rolls. 3. I was still single. As well as doing the insurance business I joined an investment club in Basingstoke and became their chairman. We closed it this year sadly because of ill health with some of the members. Now I have a portfolio that I am able to take out (if & when I want to some cash) just like the insurance bonds but much more flexible. I enjoy the technology stocks and have taken profits several times from Arm Holdings which is the only share that I have held for many years now. Having just got this Stockopedia yesterday (first saw it at an investment seminar in London earlier this year) when I noticed Dart Group (DTG) so that is now in my portfolio too. I suppose you could say I am an analyst & a chartist. It was good to see my portfolio already has Globo, , Blinks, Clingen ,Dart, Wanddisco, opay,Easyjet ,LLoyds Arm Telicom Plus(which has doubled and a bit more but then started to drop so I have just sold almost half and re invested the proceeds into ASOS.) In conclusion I hold about 20 shares, and have just INCREASED my holdings in Globo about two weeks ago, and noticed someone has reduced their holding with Globo to 3%.I hope they are not still holding the poor pawnbroker shares (guess who) -40% in one day followed by further catastrophic drop. A good case for a stoploss . Join the 700 club and put some money to work I say. more »

28 comments

lightningtiger

29th Jan '19

Worth noting the major holders in this company. The highest shareholder is HSBC with 11.31%, with Standard Life 5.18&, and Blackrok 5.o0%. Thrive capital fund has also purchased shares on 8/1/19.
Also directors have been buying over the last couple of days:
David Johnson 10k
Martin Thomas 10k
Robert Post 200k
Rusty Hunton JR 250k
Bradley Gray 15k
Add to this a 3.3 cents per share XD 8/3/19 and paid 29/3/19 makes this share worth it. This will be the highest dividend paid out so far.. For the record VectorVest values it at 202p with excellent growth potential..Time will tell.

William K

30th Jan '19

I think DGOC floated on 2nd February 2017 so it's actually 2 years old nearly. Stockopedia labels it a 'momentum trap' - apart from that it looks a good punt. So long as the price of oil holds up.

Albertos

30th Jan '19

The vast majority of what it produces is gas.

Rusty2

30th Jan '19

But aren't gas prices linked to the price of oil?

Carcosa

30th Jan '19

The 'relatively' recent shale revolution has redefined the supply structure of the two fuel sources and has led to the decoupling of oil and gas prices.

Edit: Graph Here showing Oil v Henry Hub

Albertos

30th Jan '19

If you compare the Brent Crude graph to Henry Hub you'll see no correlation. I believe I'm right in saying 80% of Diversified Gas & Oil (LON:DGOC) 's revenue is tied to HH.

Phil

(Usefully they're both on the Beeb's Market Data page)

Rusty2

30th Jan '19

OK thanks for that. Why was there a big spike up at the end of 2017?

Albertos

30th Jan '19

Hi Herbie

I presume you mean at the end of 2018?

The spike was caused by the US going into the "heating season" with very low stocks. This perversely seems to have been partially self-inflicted due to the increase in sales of LNG to the R-o-W - the normal build up of stocks before what was forecast to be a colder than usual winter didn't happen.

Seems to be unwinding now.

Phil

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DGOC looks to be in for a great 2019 growth in oil output

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Lightningtiger

28 comments

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