ICAP Share Discussion Threads

[bend1pa] 21/6/2013 12:23

Looks like they downgraded a bit too soon.

[garycook] 11/6/2013 08:11

Credit Suisse Broker downgrade,must be Shorting IAP

[hyden] 10/6/2013 20:20

Good on you Bscuit. I haven't held as long as you but I too am doing well and I hope to stay on here quite a while yet. :-)

[bscuit] 09/6/2013 23:17

Looks like IC got this one wrong with a SELL recommendation not once but twice. I have held for years for Income in my ISA and am well up.

[hyden] 08/6/2013 17:52

Yep. I agree bend1pa. Once the wider market correction completes and the trend resumes then IAP should motor. :-)

[bend1pa] 08/6/2013 16:55

So not hanging around for the final div (15.4p ex-div 26th June)? Looks like Wall St should continue its upward momentum which should help Financials and this one along.

[jeffian] 07/6/2013 23:30

Not that brave, then!

8-)

[ginty the brave] 07/6/2013 21:25

thats me out for a very nice profit. GL all

[bend1pa] 07/6/2013 19:04

Little logic to UBS re-rating. Just trying to jump on the bandwagon having seen the price tick upwardss. Where were they when the share price was sub 300? Still advising their clients to steer clear, I'd bet.

As to why the price has rapidly increased, I don't really know as there has been plenty of disappointing news this year, and it doesn't address the assertion by UBS that suddenly business has dramatically improved of late. Why now instead of the last 6 months while stock prices have been surging?

[hyden] 07/6/2013 16:51

Another nice move upwards and a strong finish for the week. :-)

[hyden] 05/6/2013 19:31

So the positive trading momentum has continued into May:



This bodes well for the future imho. :-)

[hyden] 30/5/2013 23:17

Courtesy of Kefta over on IAP thread (re-posted here because of its relevance):

from Bloomberg

ICAP Plc (IAP) and Tullett Prebon Plc (TLPR), two London-based brokers, led financial stocks higher after they were upgraded by UBS AG on prospects of higher trading volumes.

ICAP, the biggest broker of interest-rate swaps between banks, rose as much as 4.6 percent to the highest intraday price in more than 11 months. The shares were up 3.5 percent at 361 pence at 11:20 a.m. It was the best performer in the Stoxx 600 Financial Services Index.

Tullett Prebon, an interdealer broker that lines up buyers and sellers of securities for banks, rose as much as 5.7 percent and was up 4.7 percent to 287.9 pence, the highest price since Feb. 25. It was the fifth-best performer among the 600 members of the FTSE All-Share Index.

UBS upgraded both ICAP and Tullett Prebon to neutral from sell, citing valuations as well as the likelihood of increased trading volumes. Both companies have underperformed financial stocks by about 35 percent over the past year and exchanges by about 30 percent, the bank said.

"This underperformance has been driven by a relative de-rating and weak earnings momentum," UBS said in a note to clients. "We see risks to the upside on both fronts."

Interdealer broker trading volumes are up 9 percent in May from April and 6 percent from a year ago, UBS said. The volume of shares traded on the FTSE All-Share Index (ASX) last year was the lowest this century, according to data compiled by Bloomberg.

UBS raised its 12-month share price target for ICAP by 11 percent to 340 pence from 305 pence and removed the stock from its least-preferred list. It increased the price target for Tullett Prebon by 12 percent to 280 pence. The bank also raised its earnings estimates for both companies.

[hyden] 30/5/2013 20:12

And yes, I agree that a double bottom has formed with confirmation today following breakout from 358p. Might explain the spike around 9:30am and the strong finish? Alas I'd prefer that volume was also high but today's was little higher than average.

[hyden] 30/5/2013 20:05

I was referring to the upturn in trading, per the recent results:

"Outlook
The new financial year has started encouragingly with an upturn in trading activity seen in April."

Previous positive trading momentum has not been sustained but perhaps this time is different? I believe that it may be and that the recovery is starting to take root. I think that market sentiment reflects that view too which risks a sudden reversal if unfounded, but for now I am long here and TLPR.

[bend1pa] 30/5/2013 19:29

What positive momentum in April? Sp fell to its lowest level since Nov and remained sub 300. What did take place in that month was a double bottom (Nov/Apr) which more often than not precedes a surge.

http://tinyurl.com/mmazk6u

[jeffian] 30/5/2013 17:51

Plus investors are falling over themselves for anything paying a decent divi yield. As long as they can maintain the divi, it's attractive here and there's not much else about. I know; I've been looking!

[hyden] 30/5/2013 17:42

Or, quite simply that April's positive momentum has continued through to May and the change in sentiment reflects the hope that the recovery is at last taking root?

[bend1pa] 30/5/2013 17:28

This seems to be doing a bit of a 'Tesco style recovery. Whereas there was a good reason for the share price of that one to surge, I'm a bit baffled why IAP should be doing similar of late, considering the highly cautious statement made by Michael Spencer on 14th May. The most significant thing that day was after telling us that markets were still 'highly challenging', the message he's been telling us for many months, 3 directors including MS bought large chunks of shares at 319p for the first time in years. Since the 13th May the share price has risen 19%(sp 370) Either MS was underplaying good progress that IAP had in fact been making over recent months, or could there be something else at work here?

[badgeman] 30/5/2013 14:21

breaking out!

[aspex] 30/5/2013 09:42

Why the recent surge?

[ginty the brave] 14/5/2013 15:12

cheers no fool. good divi to come too :)

[nofool] 14/5/2013 15:01

Nice one Ginty! Fair play. I'm out of this..for now (Shorting that is)

[lovegod] 12/5/2013 17:56

this should be yielding about 9% at the moment

[nofool] 10/5/2013 11:40

No way, Jose.