Cmc Markets Share Discussion Threads

[dancing piranha] 26/7/2023 21:55

It better be fantabulous..... or else!!

[scepticalinvestor] 26/7/2023 19:09

TU tmrw...

[catabrit] 06/7/2023 17:04

I think it’s likely a couple of things;

1). Everyone is running to fixed income. That’s going to put pressure on the equity market as money leaves the space.

2). Are people really going to trade that much if there’s a cost of living crisis? If your mortgage, car insurance, food bills and utilities are all going up and you still want to have a life and go on a nice holiday, do you gamble or do you cut back on that and become a bit more risk averse? I don’t know.

3). I suspect people are also trying to be ahead of the curve re developments in the US. The rally there - whilst kinda unexpected just from a random or mean reversion perspective - doesn’t make a lot of sense to me. I think the US markets will experience significant vol when people return from the summer and obviously there’s a risk that everything will correlate to that and experience downward pressure.

I don’t know. I’m pretty nervous I have to say.

It feels like how 2008 felt pre Lehman. Deathly quiet and markets continuing their March like nothing happened and everything is fine.

[aleman] 06/7/2023 16:39

There was a whiff of panic about markets today and CMCX goes the wrong way!

[jimbo123elf] 06/7/2023 12:01

Could drop out of the FTSE250 at this rate.

[catabrit] 28/6/2023 09:18

It bothers me that we’ve not seen any significant insider purchases.

[aleman] 23/6/2023 17:53

9 consecutive days of falls for the FTSE250 and these are falling? I imagine business will have picked up here.

[lindowcross] 14/6/2023 18:11

I'm out of step with "The Times" as I topped up my holding yesterday. I think the company will do well in the medium to long term .

[lindowcross] 14/6/2023 18:10

from the Times today:

CMC Markets
CMC Markets is failing in its fight to convince investors that heavy spending on expanding its trading platforms will generate sufficient payback, with the result that the shares have fallen by almost a third over the past 12 months after a series of profit warnings.

Surpassing reduced financial guidance, downgraded most recently in the spring, hardly cuts it. True, net income was 2 per cent higher over the 12 months to the end of March, but that was driven by higher interest rates on client balances rather than greater activity on its leveraged trading platforms or investment across its stockbroking business in Australia. The number of active clients across both arms declined as investor confidence took a hit. Time was, choppy markets were a boon for leveraged trading businesses.

The spread-betting specialist is ploughing cash into the launch of its investment platform and improving its leveraged trading business in the hope of gaining more institutional clients. Operating costs jumped by almost a quarter last year to £217 million, excluding variable pay, and are expected to nudge up again this year to £240 million. As well as building out the technology to handle trading in a greater array of instruments such as options and listed futures, it has also stepped up hiring. Pre-tax profits declined by just over 40 per cent to £52.2 million.

The number of new staff being brought on is expected to peak this year; growth in operating expenses more generally is expected to slow from 2025. Whether an improvement in margins comes to fruition, and by how much, depends on the traction its diversification efforts get with investors. For its retail investment platform CMC Invest, that is difficult to judge: management has disclosed neither account numbers nor the level of assets on the platform.

A three-year target to grow net income by 30 per cent by March 2025 remains in place, which will require a lot of heavy lifting over the next two years to achieve. Trading in the first quarter has already got off to a slow start, with activity down by 15 per cent to 20 per cent. Analysts at Shore Capital expect to downgrade their earnings forecasts this year by high single-digits. More could follow as the months progress.

ADVICE Avoid
WHY Income targets at risk from weak trading activity

[dancing piranha] 13/6/2023 10:15

Well I never! More disappointment....

[ny boy] 13/6/2023 09:51

Chart on a death spiral, another jam tomorrow stock!

[markbelluk] 13/6/2023 08:50

RBC cuts CMC Markets price target to 250 (310) pence - 'outperform'

Hardly a downgrade when we are at 160?

[markbelluk] 13/6/2023 08:35

"We remain convinced about the long-term potential, but the short-term remains more challenging" - Peel Hunt
Now a Market Cap of cap of £450m with a working capital of £310m, cash circa £180m with no net debt paying a 5.3% dividend

"CMC Market reported a net operating income of 288 million pounds for the year compared with the analysts' consensus of 285 million pounds."

Remember the increased expenses are transient

Arja you short it, Im buying more

[boystown] 13/6/2023 08:28

Well, I bt some at 162p anyway :-)

[arja] 13/6/2023 08:16

not really smart to say that Boyston as chart shows a clear downtrend . Not sure about debt/equity ratio and much check it before considering a short .

[jimbo123elf] 13/6/2023 07:49

RBC and Peel Hunt broker downgrades

[boystown] 13/6/2023 07:24

I hope so - as I'll be buying if they do.

[johndoe23] 13/6/2023 07:24

Weak outlook for this year, could get hammered today

[taras73] 13/6/2023 07:20

They clearly missed their own forecast range on operating costs by quite a significant margin. Expected range was 215-220m. And they ended up with 238m. They are pretty bad and consistent at that forecasters.

[triskelion] 09/6/2023 11:19

Mildly negative reaction so far to today's RNS
CMC Markets Plc - Investment in StrikeX Technologies
Codes LSE:CMCX GB00B14SKR37 Z/LSE C/GB I/CD U/RT S/RT
hxxps://strikex.com/
I haven't looked further yet tho' note someone at londonsoutheast claiming there's a subsidiary in there with overdue confirmation statement - also not verified by me yet.

[markbelluk] 20/4/2023 08:30

Tudes because what initially prompted the review was the low value market cap when at £722m

We are now at £487m! Holding circa £170m in cash with a net debt of -£140m

As Aleman stated yesterday if this drops again the business can be picked up for free

[tudes100] 20/4/2023 00:26

Why would you think they would be revisiting the separation of the business when they said this less than six months ago ?
"With the launch of CMC Invest, and its growing B2B platform business, the Group boasts two strong underlying businesses, trading and investing, each having robust growth prospects in sizeable markets with excellent competitive positions. In this context, on 15 November 2021 CMC Markets announced that it had initiated a strategic review to evaluate the merits of a managed separation of the trading and investing businesses of the Group. The review was consistent with the Board's continuous evaluation of strategic opportunities to maximise shareholder value.
The review has concluded that given the strong commercial and operational synergies between the Trading and Investing businesses, shareholder's interests would be best served by ensuring that both businesses operate within the current Group structure for the time being rather than by pursuing a planned separation at this stage."

[markbelluk] 19/4/2023 18:36

I think they may well be re-visiting the split of the business

[aleman] 19/4/2023 16:55

Guidance was only down slightly. It always looked a bit of an overreaction. I'm sure others in the sector would be casting an eye over the business if they thought the could do a friendly merger deal that Cruddas would approve of. It would cost only £300m or so net of cash at the current price. Similarly, Cruddas could probably buy the other 40%+ pretty cheaply on a net of cash basis to take it private. It's fallen slightly too far and should still be over 200p, I think. Other opinions are available.