Ig Share Discussion Threads

[wynmck] 30/7/2021 11:46

Jeffries Buy and raises tgt to £11 from 1050p

[growthpotential] 26/7/2021 22:37

Needs to shoot back to 950

[tourist07] 26/7/2021 17:33

Quite a leap on the closing bell and my brokers site is showing 896 close .... any insights?

[hpcg] 23/7/2021 15:03

anhar - yes, same for Morrisons, and quite possibly for all the perennial takeover candidates that haven't been. 1200p would be a 5% free cash flow yield, which in turn is growing at +10% a year. Even the 12 year olds at investment banks could put a presentation together for PE with a cost of capital at 2%. It doesn't even need to grow to beat long term treasuries / gilts (30 year gilt at a touch over 1%). I don't for one minute think IG has put itself on the block, or been positive to any feelers that may have been put out, but ultimately if investors in the public market refuse to assign a sensible value then private money will. In your terms we are paid to wait anyway, so it doesn't matter. What I see with my own eyes is PE filleting the LSE of any half decent companies and leaving miners and oilers, which are the only companies that seem to catch the eyes of most local investors.

[drinkdoctorpink] 23/7/2021 14:42

People selling this and moving even finance director from IG is there!!! https://uk.advfn.com/cmn/fbb/thread.php3?id=48733531

[anhar] 23/7/2021 13:16

hpcg: "Because it throws off immense amount of cash, has no debt (cash is required for regulatory reasons), is asset light, high margin, market leader and is lowly rated..." I've held IGG for many years and what you say has I think has long been the case, from memory. Yet no bid has emerged. That doesn't mean it can't happen in future but those attractions you mention haven't proven bidworthy in the past over a very long period. As an amusing aside, some years ago I went to a financial exhibition and IGG had a stand there to attract new customers interested in gambling with their products. I chatted to the guy there and told him I'd made far more money from buying the shares during an early very depressed period when they got into some sort of currency problem, and had since risen strongly, then I would have made by being a spread betting customer - which is a loser's game for most.

[rcturner2] 23/7/2021 12:42

Weak pound also makes UK companies more attractive to buy.

[hpcg] 23/7/2021 12:11

Because it throws off immense amount of cash, has no debt (cash is required for regulatory reasons), is asset light, high margin, market leader and is lowly rated. At a take out price of, finger in air, £4.5b it is easily with the reach of Private Equity. This is no different to the broker price targets so not exactly a reach. Summer doldrums are a great opportunity to accumulate IMO.

[anhar] 23/7/2021 12:01

Not sure why you think IGG is a bid target. Almost any share could be a bid target but why should IGG be particularly susceptible to this? Not that I'm against it, just wondered why you think that. Bids are nearly always good news for my strategy.

[hpcg] 23/7/2021 09:09

ULE (probably) follows Morrisons out of the building and I could certainly see IGG taken over at a 30-50% premium to today's share price. I don't speak as a long suffering shareholder, I've been in and out many times in the last decade and have only started to rebuild a position as of yesterday, but London focused investors seem to be simpletons with regards to valuation of profitable, growing, mid-size companies in a low interest rate world.

[wynmck] 23/7/2021 07:42

barclays raise tgt price to 1185 from 1035

[hpcg] 23/7/2021 00:34

I accept that, but the cost of tasty has been in the price ever since the deal was announced. I can't really see a long bear market without much higher interest rates, especially now that fiscal support for economies is in favour. So much money is sloshing around that I think there will be similar trading volumes at least the next year and likely beyond.

[anhar] 22/7/2021 17:32

hpcg: "Why will volumes collapse?.." Because market volumes fluctuate according to the mood of investors. In a serious downturn, far fewer people trade and consequently brokers suffer. That's not my opinion, it's just a fact of market life. Similarly with all economic activity in such times, fewer people will buy property or cars for example so estate agents and car dealers/manufacturers get hit and so on. It's called a recession and it is inevitable every so often, we just don't know when. IGG itself depends on volume and suffers badly in periods of low volume and that's without tastytrade. So my point is that they purchased TT in a very profitable time but what will it look like in bad? It looks poorly timed to me. For the time being it may work out whilst the good times last - until we hit the next recession when it may prove to be a burden and won't be worth a fraction of what they paid for it. That is the time to pick up a brokerage on the cheap.

[its the oxman] 22/7/2021 15:02

I'm sure ig realise tasty and all brokers will not repeat the stella activity of last year but numbers will largely hold up and further decent growth will continue for sure. Current forecasts eps no reflect this and arguably are over cautious. We will see.

[hpcg] 22/7/2021 13:54

Why will volumes collapse? Serious question because I know that the market presumption is that trading during 2020 was powered by an unusual set of circumstances and will revert to 2019 levels. I'm not sure why people will stop, especially those that have made good money thus far. For sure more difficult times are ahead for investors, but I'm not sure why those active now will simply stop.

[anhar] 22/7/2021 12:10

Remains to be seen on the tastytrade acquisition, it's not in the results yet. They bought in very good times and prob paid the price for that. I hope it's not a top of the market purchase which may prove foolish in the inevitable downturn when volume collapses. Seems to me that the best time to buy a brokerage is in a market depression when nobody wants it - but what do I know?

[hpcg] 22/7/2021 12:00

I would think they might continue to hold the dividend based on that language. If they can make a return on cash by growing the business they they should do that. Broadening the US market options offering to UK and global investors would make a lot of sense to me.

[rcturner2] 22/7/2021 11:25

I wonder if they are considering another acquisition?

[its the oxman] 22/7/2021 10:40

Made me think div will be upped next time or extra special payment to shareholders, can't see div being cut or held too much longer myself, but who knows.

[cwa1] 22/7/2021 10:29

Re the dividend, there is one section in the release... The Board have proposed a final dividend of 30.24 pence per share, which would maintain the Group's full-year cash dividend for FY21 at 43.2 pence per share as guided previously. We have commenced a review and update to our capital planning framework, which we will discuss in the coming year. Consideration of shareholder distributions, alongside other priorities such as current and future regulatory capital requirements, operating capital requirements, and organic and select inorganic growth opportunities, will be the principal areas of focus. ... I'm not sure whether to be excited by this in that they will be more generous, or worry that it is a sign the dividend might be "rebased"! Anyone got a take on it?

[rcturner2] 22/7/2021 09:55

I am a bit surprised that they didn't raise the divident, even if only by a small amount. It's not as if they are short of cash.

[wall street trader] 22/7/2021 09:32

I'm buying more of these today - great growth and have moved aggressively in to the US market with an acquisition of a leading player - great dividend alsoWhat's not to like - am invested for the long term here and will be adding along the way

[its the oxman] 22/7/2021 08:15

Yes should be nearer 1000p, hoping upgrades and price targets will go up. Increase in div would really help, next time maybe.