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#Gold #Germany .#Grok why do we do hashtags?<\/p>\n
The largest owner of oil\/gas wells in the United States reportedly has a strange business model, reducing the book cost of the liability for future plugging of expired wells. This has created a situation, where the company has made more from accounting gains than its cumulative reported profits on oil and gas extraction. It always provokes a smile, when the most profitable part of a business is the accountancy department as “paper profit” is something we’ve learned to distrust. Once long ago, as part of a family business, my own division was the parts department, exposing me to early efforts to “computerise” part of the company. Being a little pig headed, the paper system of inventory was retained for 6 months but the operation proved a resounding success. At any time, a director could walk in and ask how many of a particular widget we had in stock and the parts bin could be presented, showing the exact number displayed on the green computer screen.<\/p>\n
A further aspect to this computer nonsense came from the fact we also collated the real cost price of products, along with the retail value of sales. To be plain, we knew (to the penny) how profitable the parts department was, revealing a surprise number from our “trade” sales to other garages throughout the UK. The official parts distributor had managed to become a major customer, due to a personal fascination with sourcing where spare parts for cars actually came from. This entailed cutting out Vauxhall, Lada, TVR (yes really), and Chrysler from our company supply chain as it was always cheaper to go directly to the manufacturer of oil filters, brake equipment, electrical bits, steering components etc. This created a situation where we generally had in-demand components in stock, our busy workshops giving an immediate clue as to what was failing across various makes of cars. As can be guessed, with TVR’s, it was always exhaust systems but this success with the Parts Department provoked serious problems with the accountancy department. In a management meeting, they decided to allocate around 50% of the costs for the entire building against my department, ensuring the profit table was topped by car sales (who allocated vehicles to the accountants), by the workshop (who serviced all the company cars) and my Parts Department who refused to provide expensive “top of the range” sound systems for any company vehicles, along with any tuning changes or special wheels and tyres.<\/p>\n
Needless to say, a corporate war broke out, as our in-house accountants were playing with the numbers, expecting my Parts Department would roll over and accept their analysis. The company CEO was on an extended holiday and efforts by the Sales Dept, the Service Dept, to launch an embargo against the Parts Dept failed hilariously, when they discovered nothing could be ordered without the correct order codes from our software. It didn’t help that I was part of the family who owned the company, allocated no real authority except over my own department. When the CEO returned, the Service Department was folded into the Parts Department, my software eating the outdated workshops system and the entire left hand side of the company building being my sudden responsibility. The two accountants left, the workshop manager left, the unpleasant service reception manager jumped off a popular suicide bridge, Sharon in accounts (the book-keeper) turning into an unexpected ally. She was promoted to head up the accounts department and work with our external auditors. What followed was quite unpleasant, a discovery Car Sales were running at a loss, the workshops had overspent on equipment with top heavy management wages, and my little Parts Department had been carrying the entire company. This revelation, while being personally 20 years old, engendered a lifelong distrust of “accountants” who create imaginary profit in companies. Sometimes it can go badly wrong, very quickly, and I ended up managing the retail petrol stations in a mistaken effort to stop getting my hands dirty.<\/p>\n
However, by an impressive 7p, LSE:DEC has managed to create an official “higher high”, giving optimism for the future.<\/p>\n
Currently, above 1406p should trigger movement to an initial 1,456p with our secondary, if bettered, at 1,527p and some very probable hesitation. This is an important number, due to closure above 1,527p calculating with a Long Term visit to 1,943p and almost confident stutters, the price running into share behaviour in 2023. Visually, despite their accountancy gymnastics, it looks like Diversified should be worthy of some attention. A Higher High above a trend is not something we generally ignore.<\/p>\n
If things intend go wrong, below 1060p should justify a raised eyebrow or ten, giving the risk of reversals to an initial 931p with our secondary, if broken, at a comfy bottom of 766p and a very, very, possible rebound. They are, after all, the company who own the most oil wells in America!<\/p>\n
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