Cmc Markets Share Discussion Threads

[hawaly] 06/9/2021 10:14

Perhaps these were telling trades by the Deputy CEO and ex Chair

Feb 10, 2021 C.L. Salmon SELL 12,227 @ 409.00p £50,008

Nov 19, 2020 D.J. Fineberg SELL 253,857 @ 390.00p £990,042

Jul 27, 2020 D.J. Fineberg SELL 237,869 @ 341.33p £811,918

GLA 😎

[angersharkz] 06/9/2021 09:50

The writing has been on the walls here for a while with unconvincing trading statements and a chart that’s been in a slow downtrend for months and has never really found support at any level. The fact they said they were confident of the full year guidance to weeks later dropping a profit warning I wouldn’t touch them with a barge pole.

Market volatility could and will return so I’m sure they will recover at some point but there’s a market full of shares I don’t really deem in necessary to have this headache in my portfolio.

[undervaluedassets] 06/9/2021 08:43

CMC cannot predict market activity and they do not try to.

Instead, in their trading updates, they simply report markets as they find them. Quite right too.

Ironically, they make their money out of precisely those people that DO try to predict markets.

Will the volatile markets that short term traders favour return? I will now make a prediction ...course they will.

Current pricing will be seen as a gift in a few years time.

[gbh2] 06/9/2021 07:38

Charts are useless without good liquidity which cmcx has never had.

[imastu pidgitaswell] 05/9/2021 16:38

Whatever the merits or otherwise - you can be sure that buywell hasn't a clue, with or without charts.

[arja] 05/9/2021 12:11

Of course it helps to combine the chart with good fundamentals but chart takes precedence

[arja] 05/9/2021 12:09

what you fail to understand Growthpotential is that charts often give good indication of future price movements and next best thing to a crystal ball. so please do not deride something you do not understand and using charts transformed my fortunes some years ago .

[growthpotential] 04/9/2021 12:19

I simply don't agree with technical analysis. That's like saying it's gone down over the last 6 months and this doesn't look good. Isn't that obvious?

[12toes] 04/9/2021 08:32

* market amnesia kicks in.* Clowns like you will always lose money

[buywell3] 04/9/2021 01:28

The chart is imo not in a good place



free stock charts from uk.advfn.com

[mach100] 03/9/2021 22:59

Should be dividend reinvestments going in next week or Monday following and these will buy a third more than before. Might boost the share price back to 320p on the ask. PW a smack in the chops but you often come to your senses after said smack. I expect to see 350p again as market amnesia kicks in.

[riverman77] 03/9/2021 17:33

Worth also highlighting that markets had already partly factored in the slowdown in activity with the share price having drifted lower for past few weeks. It fell 30% yesterday but before that had fallen around 20% from its earlier peak. Certainly a lot of scope for a sharp recovery if trading picks up, which I suspect it will before too long.

[aleman] 03/9/2021 16:59

I think the key is how much traders are holidaying. It could be that more have holidayed in late summer with Covid increasing through late July and August (esp. in the USA) such that some have decided to have a break/cruise/music festival/etc. before any possible restrictions were reimplemented. Will traders be back at screens come the end of September? Don't know!


Stuart Duncan, an analyst at Peel Hunt, said: 'CMC cannot escape the slowdown in trading activity. He thinks that waning customer activity has been driven by 'reduced volatility, fewer reasons to trade, and clients taking holidays as restrictions have eased.'

But Duncan maintains that CMC Market's strong customer levels mean it could rebound quickly if trading activity picks up as the new seasons beckons.

[growthpotential] 03/9/2021 16:43

Lol, in your dreams? No harming in hoping for it though!

[pj0077] 03/9/2021 16:12

The Tangible Book Value (TBV) of 75p proved to set a floor for the share price in the summer of 2019.In the meantime, the TBV appears to have risen to 133p, so this should set a share price floor this time around in the event of a profit wipe-out.

[spob] 03/9/2021 15:55

profit warnings often come one after another

I expect profits to be wiped out here

might be tempted to take a nibble at around 50p

[disc0dave45] 03/9/2021 12:31

Detail on page 11 of the AR:HTTPS://www.cmcmarketsplc.com/media/1494/cmc-markets-plc-annual-report-and-financial-statements-2021.pdf

[marktime1231] 03/9/2021 12:26

Careful where and when you end up if Tom Baker is at the controls.

[arja] 03/9/2021 12:17

interesting and i must google TARDIS .

[disc0dave45] 03/9/2021 11:55

Assuming their normal operating margin of 30% then at mid forecast operating income, eps is circa 22p, so even after the substantial drop it's still on a PE of 13, which is about right. That said, given the massive change (-20%) since their July update how confident should you be in what the BOD are now saying?.......at the moment I'm happy to sit on my hands and see what happens.As for their hedging strategy they use TARDIS to determine client risks and hedge accordingly. Perhaps in a recovering and less liquid market it doesn't work quite as accurately as it has previously (since 2019), hence client retention income has declined.

[arja] 03/9/2021 11:45

IG have allowed me to short CMC with a CFD which surprised me as they often will not allow a short in an obvious candidate . I rarely short TBH as it has been a bull market overall for many years

[arja] 03/9/2021 11:42

actually it means Farrugia is wrong as they would win more than they lose on the
clients they do not hedge . hence that would not affect the bottom line and must be other factors .

[farrugia] 03/9/2021 11:38

In a past report they've been quoted that they were going to reduce the extent of their hedging and take on more risk...

CFD providers without offshore subsidiaries are in a tough place in the UK and Australia now - leverage of clients is severely restricted. They were saved in 2020 by the huge trading wave of new clients but its unwinding now. Their share trading offering only generates low revenues compared to their CFDs one.

[arja] 03/9/2021 11:37

nigelpm,
so in effect they hedge those who trade using a none technical approach such as using charts , ie a punt or gamble, as they would mainly be in the 70% or so who make net losses . Other traders are net winners in the main. So the adverts about 70% losing money is really missleading as of course those who think of it like betting a horse race will probably lose overall.

[imastu pidgitaswell] 03/9/2021 11:27

1121 - fair point, I didn't read it too carefully. Seems a bit odd, given what a thing they made of their cost base being variable and responsive to volumes.

Happy to stay away.