Ig Share Discussion Threads

[essentialinvestor] 28/8/2019 13:40

I'm not really one for TA, but does it look to be heading for a potential DB at 4.80 approx ?.

[morus193] 28/8/2019 13:38

Trade war, brink of recession, brexit... All good news for IGG profits seems like a bargain at current share price not to mention the upcoming divi also!

[gbh2] 27/8/2019 09:15

There early morning dips have allowed me to add an extra 30% to my holding at and below 540p, which has significantly reduced my ave cost of shares in my holding :))

[aishah] 22/8/2019 13:44

IG GROUP HOLDINGS PLC
ASIC Consultation on CFDs and binary options

IG Group Holdings plc ("IG", "the Group", "the Company"), a global leader in online trading, notes that the Australian Securities and Investments Commission (ASIC) has today issued a consultation paper on potential product intervention measures relating to the provision of CFDs and binary options (CP322 - Product intervention: OTC binary options and CFDs).



The Group has previously set out that it expected that product intervention measures would be introduced in Australia, and this consultation paper does not change the Group's previously stated target revenue growth for its core business of around 3-5% per annum over the medium term. The Group's guidance that it expects to return to revenue growth in FY20 also remains unchanged.

The consultation proposals

The package of measures being proposed by ASIC are similar to those that have been introduced by ESMA in the EU and will apply only to retail clients. In summary the measures being consulted on in relation to CFDs are:

· Leverage restrictions of:

o 20:1 for CFDs over currency pairs or gold;

o 15:1 for CFDs over stock market indices;

o 10:1 for CFDs over commodities (excluding gold)

o 5:1 for CFDs over shares or other underlying assets; and

o 2:1 for CFDs over crypto-assets.

· A margin close-out rule which would require positions to be closed out if trading funds fall to below 50% of the initial margin required;

· The introduction of negative balance protection;

· A prohibition on inducements to open or fund a CFD trading account or trade CFDs;

· A requirement to include prominent risk warnings;

· A requirement to provide real time disclosures of total position size;

· A requirement to provide real time disclosures of overnight funding costs; and

· A requirement to maintain and make available pricing methodology and execution policy.



Additionally, ASIC are consulting on a ban on the provision of binary options to retail clients.

The measures being consulted on would apply to retail clients only and would not apply to wholesale clients. Clients can choose to elect to be categorised as a wholesale client if they meet the legal requirements. The requirements are that an individual must have net assets of at least 2.5 million Australian dollars or a gross income for each of the last two financial years of at least 250,000 Australian dollars. Either requirement must be independently verified by a qualified accountant.

The consultation is due to close on 1 October and the Group expects that the final product intervention measures will be implemented by ASIC early in the second half of the Group's current financial year, FY20.

The Group's focus on serving sophisticated and knowledgeable clients means that IG's business is well placed to adapt and thrive in a stricter regulatory environment. In IG's experience, when proportionate regulation has been applied consistently and appropriately, client outcomes have improved, and compliant providers have benefitted over the longer term.

[aleman] 22/8/2019 13:38

Relevant paragraphs:

CMC noted in its Q1 Trading Update on 25 July 2019 that the imposition of limits by ESMA had resulted in a period of transition, where clients adjusted their trading behaviour to the new environment and CMC adjusted its model accordingly. Following the stabilisation noted in the Q1 update, the Board is pleased to see that net operating income has performed strongly through the summer.


Outlook

On the basis of recent and current trading as noted above, the Board believes that CMC is currently on track to report net operating income and Profit Before Tax for the year ended 31 March 2020 that is marginally ahead of the upper end of the current range of analysts' forecasts.

[aishah] 22/8/2019 13:34

ASIC proposes ban on retail binary options and CFDs

[f15jcm] 22/8/2019 13:21

CMCX just provided a strong trading update with their comment on Aussie regulation. Should act as a catalyst for the IGG share price which seems to be lagging.

[aleman] 21/8/2019 10:44

I suspect it will rise to the ex-dividend, too, but I'm not bothered. Topped up for the yield. Revenue is expected to return to growth in H2. I don't see the dividend being cut. Recent market volatility could see it covered again sooner rather than later.

[gbh2] 21/8/2019 09:34

Comparing with CMXC is a worst case scenario, Plus500 is up there with IG and their share price is rising.

Edit: The upcoming divi of 30.24p/share is very attractive up to an share price of 600p and imo we'll see that being chased in the run up to the e divi date.

I'm thinking it'll be ca 580p ex divi date.

[f15jcm] 21/8/2019 08:32

Decent open this morning. Yesterday looking like a tree shake.

[finkie] 20/8/2019 18:22

Buy cmcx and sell igg therefore hence the weakness...

[f15jcm] 20/8/2019 17:05

CMCX isn't very profitable, or paying much of a dividend. Their costs are much higher in relation to their revenue. CMCX has had loads of cash on the balance sheet for ages but they aren't doing much with it. P/E probably more useful for relative valuations here. CMCX does have its attractions, limited downside due to the cash balance and if volatility persists it will deliver much better results this year than last.

[pj0077] 20/8/2019 16:31

The valuation tells a story : PRICE/TANGIBLE BOOK VALUE

IGG 3.0x

CMCX 1.25x

Both companies are obviously exposed to similar regulaory risks.

Either CMCX needs to double else IGG needs to halve.

Either way, a HUGE valuation anomaly.

[gbh2] 20/8/2019 16:09

IGG has had some vigorous, so called Tree shakes before, but I cannot remember +4% in one day. I've been adding a few during this afternoon's session but not managed to catch the bottom.

[f15jcm] 20/8/2019 16:03

This could be behind it: hxxps://www.thetimes.co.uk/article/exchange-takes-stock-of-changing-times-for-women-6v5bmq7m5

[f15jcm] 20/8/2019 15:45

Hmmmm. Been caught out by these situations before so set a tight stop. Can always come back to it if I get stopped out. I'd expect revenues to be at least up with expectations given recent volatility in the markets.

[gbh2] 20/8/2019 14:35

Beginning to look like someone knows something ?

We need to wait until:
19 September 2019 Q1 FY20 Revenue Update & Annual General Meeting

[f15jcm] 20/8/2019 13:42

Agree with previous comments about VIX and being out of step with sector peers, PLUS and CMCX both heading up now. I sold at 579p in june and have just bought back in. CEO and Chairman were both buying above this level.

[gbh2] 20/8/2019 11:53

IG share price movement out of step with it's peer group atm.
Low volume trading allows share price to be driven down again by small sells.

[gbh2] 15/8/2019 13:53

FinalDividend = 30.24p
Ex divi date 26th Sept.
Paid 24th Oct 2019

[sailing john] 15/8/2019 12:26

Yes cracking 43p divi "expected" BUT likely to be partly paid out of cash reserves based on last year's 2H eps of just 18p (Eps split 1H 25p and 2H 18p)
They need to make significant progress to maintain a 43p payout in the longer term
nai SJ

[gbh2] 15/8/2019 12:15

This is completely out of step with its peer group, but I've picked up a few more on the basis it still has the best divi.

[randdokic] 15/8/2019 10:02

VIX Up and the next coming months (China Trump, recession?, Brexit) should bode well for IGG & Plus500
Btw Plus500: today massive share purchase by 10! directors and others

[gbh2] 14/8/2019 17:58

I wasn't expecting too much movement of the share price until mid next month, how wrong could i be !

[randdokic] 13/8/2019 08:46

Plus500 Just released their numbers for H1. Looks very good. Will do good for IGG too I guess.
Both IGG and PLus500 look pretty well, CMC not so much. Wonder how it will play out for them in the long run.