Cmc Markets Share Discussion Threads

[solo4yous] 15/11/2021 08:42

Big bounce now coming in CMCX?

You just never know with the stock!

Lovely recovery. next up is a tiddler?!
Unloved and huge amounts of newsflow coming up!

[imastu pidgitaswell] 15/11/2021 08:26

I can see the point - but I can't really see the point of an RNS about it before they have even reviewed its feasibility, never mind decided whether or not to do it. Sounds a little desperate tbh - although a decent share price reaction.

Still not back in - will probably just watch it go all the way back up...🙄

[molatovkid] 15/11/2021 08:26

Seems like a natural (& fast way) to realise substantial value - fine by me !

The current strategy doesn't seem to be appreciated by the market judging by the pitiful price performance

[coxsmn] 15/11/2021 08:25

To me they should focus on growing the business and earnings, then share holders value will follow.

[undervaluedassets] 15/11/2021 08:19

Coxmn.. To unlock shareholder value..

[coxsmn] 15/11/2021 08:14

I don't really see the point if i'm honest.

[undervaluedassets] 15/11/2021 08:13

Well I think I was very prescient to highlight the value of the the non leveraged part of the business.

If the non-leveraged part is valued at the same ratio as say PMI or HL. or AJ Bell then this could explode.

If you look you will not find that PMI, HL or AJ Bell are on a pe of 4 !

This proposition reveals what many of us have long asserted .. that assets here are hugely undervalued.

[markbelluk] 13/11/2021 16:10

Red five standing by

Primarch this could be why they are doing it as a defensive move as well although with his 65% share a takeover would be difficult

[nigelpm] 13/11/2021 12:19

very nice move - should put a rocket under price come monday

[primarch1] 13/11/2021 12:05

Clever move the company is so undervalued at the moment,I could even see a bid for this at such a low valuation.

[mighunter] 13/11/2021 11:09

HTtps://www.google.co.uk/amp/s/news.sky.com/story/amp/tory-peer-cruddas-plots-800m-break-up-of-financial-markets-firm-cmc-12467551

[undervaluedassets] 12/11/2021 12:07

Compare the profitability and market cap of AJ Bell with CMC. I think that is all that will matter in the end..

We need to be patient.. Those comparisons will be made in the end. And then we will be confirmed for what we are .. cheap.

[rcturner2] 12/11/2021 08:56

It's fine to look forward. I would suggest that the market doesn't think much of the CMCX forward story to be honest. Time will tell. None of us know whether they will successfully grow the non leveraged business or not.

[tudes100] 12/11/2021 07:45

Fair point IP but worth considering that they are already making 57% of PBT outside the UK. Can't speak for every overseas market but in Australia there is no HL/AJB & the main brokers are banks who have a very poor reputation for customer service & ripping off consumers. In Australia the non-leveraged stockbroking business grew rev's +72% FY21 vs 20, its a very lucrative market if they can secure a decent foothold. Clearly its not going to happen overnight but I think they have a long runway for growth in some of these markets if they can get both their platform & their marketing right.

[imastu pidgitaswell] 12/11/2021 07:24

Some good point Tudes - but I can't help thinking it will take a lot of time (and money) to convince the investing world out there that CMCX are a good place to trust your savings with. The spiv/barrow boy persona that has been their public perception will take a lot of shifting.

I wouldn't use them to manage my money - but then I wouldn't trust any of the regular ones either.

Still watching and still thinking about it re getting back in.

[bookbroker] 12/11/2021 07:22

RCT, investors look forwards not backwards, we know that sentiment is fickle. I have noticed that CMCX do not offer crypto., so maybe that is an issue. I can’t see it on my platform as an option, used to be avaliable but maybe margins necessary are so high as a result of volatility that they choose not offer the product. But then I could see CMCX a takeover target in time, still has a great deal to offer, and volatility likely to rise as central banks are slowly going to lose their grip entirely. Not raising rates is merely an unacceptable alternative to placate investment community now they are withdrawing stimulus. Last bullet in the gun before hyperinflation in everyday essentials.

[tudes100] 12/11/2021 07:13

Sometimes it pays to look forwards rather than backwards

[rcturner2] 12/11/2021 07:07

Meanwhile back in the real world:

"H1 2022 leveraged net trading revenue is expected to be approximately £100 million (H1 2021: £200 million). The Group's non-leveraged net trading revenue is expected to be approximately £24 million for H1 2022 (H1 2021: £26 million)."

Both are going backwards.

[tudes100] 12/11/2021 01:37

Whatever you think of his (Cruddas) politics he is a very astute businessman. Strategically they have made some big moves in the last few yrs & I think he understands very clearly that CMCX will never command a higher valuation with a business focused on spread betting/CFD's. The pivot towards a non leveraged trading platform for overseas markets as well as the UK will not only provide a more predictable revenue stream but will, over time, force a revaluation of the company imo. At the moment the market is not really interested, they see the cost base increasing (technology & recruitment) & revenue massively variable dependent on market volatility.
I think the structural shift in the business is being underestimated. The non leveraged business will grow significantly over the next 18 mths as ANZ customers in Australia are switched over to the CMC platform & they launch in the UK. Cruddas has been very clear in his language saying "we are coming after HL & AJB", I wouldn't bet against him.

[undervaluedassets] 11/11/2021 07:57

And then of course there is this..



it follows that as CMC goes into these areas we should be valued by the same metrics (AJB pe is 43 and HL. pe is 25

CMC's Retail stockbroking turnover jumped by 88% at the last full results

[undervaluedassets] 11/11/2021 05:53

was comparing with AJ Bell.

I know I know.. not quite like with like.. But with the addition of the Australian business plus a stated aim to move into stockbroking in general the comparison is not as stupid as it seems.

(Stockbroking revenues are more highly rated than CFD revenues by the market)

Anyway, by comparison to AJ Bell the valuation for CMC is comical.

I am a buyer at these levels.

[deuchar] 10/11/2021 10:12

will this stock survive the sleaze allegations attached to Lord Cruddas?

[dancing piranha] 09/11/2021 17:42

Wishful thinking.

[nigelpm] 05/11/2021 17:50

No chance of a bid with - simply people clocking the value and buying.

[dagoberia] 05/11/2021 16:12

Who is the source of these bid whispers if i may ask?