Cmc Markets Share Discussion Threads

[aleman] 09/6/2022 13:53

I'm pretty sure I had shares where this happened before though I can't remember which company. If I recall correctly, they had to have a vote at a special meeting to clear/indemnify certain parties of some technical legal liability so that dividends did not need repaying, and then business just carried on as if nothing had happened. Effectively, it was a legal oversight that got authorised by shareholders moving legal liability from directors to the company retrospectively - or something like that. I doubt this amounts to anything to worry about.

[indiestu] 09/6/2022 13:53

The price before the Covid bump in earnings was around the 150p level. It is clear there has been corporate mismanagement or dishonesty here so its unlikely to attract any serious buyers until it has all played out. No smoke without fire.

[riverman77] 09/6/2022 13:47

Even after today's fall, it is still a lot more expensive than either PLUS or IGG, and I think unjustifiably so. PLUS in particular reported very strong trading, in contrast to the rather lacklustre udpate here. I think it's also clear that costs are going to rise quite sharply over the next couple of years. Don't see any rush to get back in.

[markbelluk] 09/6/2022 13:41

PS for the record the 2016 IPO price was circa 240 and that was with a dividend 50% lower than current and a revenue of £169m vs £281m!!

[vladimirbob] 09/6/2022 13:41

I think I found the reason it dropped significantly. In 2016, 2017, and 2020 management paid unlawful divis to their shareholders due to misfilings. This is taken from their annual report, page 101 -
"During the year to 31 March 2022, the Board became aware of
certain procedural issues (namely an inadvertent failure to make
the relevant filings at Companies House) in respect of payments
of interim dividends on 23 December 2016, 22 December 2017
and 18 December 2020 (together, the Relevant Distributions) which
means that the Relevant Distributions had been made otherwise
than in accordance with the requirements of the Companies Act
2006. At the AGM to be held on 28 July 2022, a special resolution
will be proposed which will, if passed, authorise the appropriation
of distributable profits to the payment of the Relevant Distributions
and the entry by the Company into deeds of release. One deed
of release will release shareholders and former shareholders from
all claims which the Company has or may have in respect of the
payment of those Relevant Distributions and there will also be deeds
of release which will waive any rights the Company has or may have
to make claims against former Directors and Directors in respect of
the Relevant Distributions. The entry by the Company into each deed
of release constitutes a related party transaction (as defined in the
Listing Rules and IAS24). The overall effect of the proposed resolution
is to return all parties to the position they would have been in had
the Relevant Distributions been made in full compliance with the
Companies Act 2006"

What do you think?

[markbelluk] 09/6/2022 13:37

>I'll wait for 150p.

Don't think you'll have any money left by the time you kick that meth habit mate! ¯_(ツ)_/¯

[lennonsalive] 09/6/2022 13:30

150p based on what?

[exotic matter] 09/6/2022 13:29

I am trading shares only.

[exotic matter] 09/6/2022 13:29

I am trading shares only.

[indiestu] 09/6/2022 13:21

Can get as many as you like on a spread bet. If you are brave enough! I'll wait for 150p.

[exotic matter] 09/6/2022 13:16

try to buy very difficult unless 8K-9k

[exotic matter] 09/6/2022 13:16

try to buy very difficult unless 8K-9k

[exotic matter] 09/6/2022 13:11

I bought 5K now.

[exotic matter] 09/6/2022 13:10

Someone hitting bid, while stopping online buys, but for some reasons buy trade getting in.

It's an institution

[bookbroker] 09/6/2022 13:05

Crazy reaction, what we need is info. on Q1 trading and the split.

[woodhawk] 09/6/2022 13:03

Agree, coxsmn. Back in at under 250p.

[coxsmn] 09/6/2022 12:50

Over reaction today, it is what it is

[markbelluk] 09/6/2022 12:08

FT / IC

upgrades Today 12:07
CMC tanks despite "a record year outside of 2021"....
The good news for shareholders is that we could see a further step-up in volatility rates, both here and across the Atlantic, as central banks struggle to keep a lid on inflation. Real interest rates remain in negative territory but every incremental increase reduces the attractiveness of risk assets - and may provide more trading opportunities in the process. The group’s hefty cash pile leaves it trading on an undemanding enterprise/cash profit multiple of 5.8, which we feel is a viable entry point on the balance of risks. Buy. (from HOLD)

[aleman] 09/6/2022 10:46

Consensus forecast was 11p and we got 12.4p. It seems to have been beaten due to a stronger than expected Q4. Q1/2023 looks on course to beat Q4 if VIX is anything to go by. Consensus dividend for this year was 12p but we look to be off to a strongish start so I'd guess at 14p for 2023 - but there is a long way to go yet.

[markbelluk] 09/6/2022 10:43

>I don't think the 60% reduction in the dividend will help, do you?

Pretty much inline with the share price down 55% from its high?

[woodhawk] 09/6/2022 10:26

I don't think the 60% reduction in the dividend will help, do you?

[nigelpm] 09/6/2022 09:57

Yup - I'd be closer to £3.50 I think but still a sensible price target if all goes well.

[markbelluk] 09/6/2022 09:30

Brokerage RBC says it sees CMCX with "excellent value for a high margin, debt-free, and capital-generative business"; cuts PT to 390p from 400p

[nigelpm] 09/6/2022 08:44

You're conflating the share price with the results.

Results were ok, cost pressures starting to show through but growth there also on pre-pandemic.

A 5-10% fall would have been sensible.