Ig Share Discussion Threads

[coxsmn] 25/1/2021 09:54

The acquisition announcement rns gives a dec 19 to dec 20 growth figure of 5%.

If Tastytrade was in high growth we would be seeing double figures.

This suggests to me the rate of customer acquisitions at Tastytrade might already be starting to plateau?

[its the oxman] 25/1/2021 09:22

I'm sure they expect tastytrade to continue growing fast. If it does I guess doubters will be proved wrong and ig could move up considerably. Can't see why growth won't continue myself, a lot of conservative holders will be churning out , top of cycle acquisition acquisition does play well, so need a few weeks to see where we end up. Hoping it's not sub 800p. Still get a nice div here.

[muzmanoz] 25/1/2021 08:46

when I logged on to my IG spread bet account this morning it says I can now trade us equity options. Is this to do with the acquisition?

[coxsmn] 25/1/2021 08:44

I still can't understand a $1bn acqusition delivering only $46m yr pre tax profit. Unless they expect a very high growth rate for tastytrade?

[coxsmn] 24/1/2021 09:30

Some great and balanced posts here.

[taras73] 24/1/2021 08:54

On the IC site it says it’s spec buy
Hopefully the link works

[chess123] 23/1/2021 17:02

Reassuring that investors chronicle has given Igg a buy rating, Couldn't post the link but worth a read.

[apad] 23/1/2021 14:41

Looks like a politically correct appointment to me.

Ascent of a woman
By June Yee Felix
July 30, 2018

Developing a 'Competency Loop' Boosts Women's Confidence
By June Yee Felix
July 17, 2018

DIVERSITY’S REWARD
By June Yee Felix
June 11, 2018

Been around a bit too much as well:
As President of Europe for VeriFone, June has full P&L responsibility for VeriFone's second largest region and over 2000 employees. Prior to VeriFone, June was Managing Director of Citi Enterprise Payments, a global business focused on healthcare payments and digital transformation. In 3 years, June built the business from 6 people to hundreds of people in sales, marketing, technology and operations to create a new consumer-centric mobile healthcare business (Money2 for Health) with Aetna and HCA which was selected by The American Banker for a 2013 Top Innovator award and is a finalist for the Edison Award.

As Global General Manager of Banking & Financial Markets, she was responsible for the overall business results of IBM's largest industry and led teams that developed new solutions and partnerships in payments, risk management, core banking, on-line banking, customer management and data managementnalytics. She delivered consistent double digit revenue growth as well as market share gains.

As CEO and Chairman of the Board of Certco a financial services security and risk management company backed by Deutsche Bank and JP Morgan, June engineered a successful turnaround by raising net new capital and negotiating long term contracts with a 15-bank consortium

As JPMC Head of Asia Pacific Payments, Cash Management and Trade Finance, June more than doubled revenue and profits in less than 3 1/2 years. As e-commerce executive, she drove the formation of a strategic JV between Chase, Wells Fargo and Wachovia in Electronic Bill Payment & Presentment.

As a strategy consultant at Booz & Hamilton, June advised a broad number of companies on growth and turnaround alternatives.

[luderitz] 23/1/2021 14:03

I’m happy to sit on the fence with IG to see how it plays out.

I suspect and hope that there is something positive about the purchase that we don’t know about , as usual only time will tell.

Good luck all.

[scrwal] 23/1/2021 13:39

So far this isn't tasty but more like a bout of campylobacter.
For a company reporting record figures to drop like this is unreal and shows the market thinks the deal is way overvalued. Fortunately this is my smallest holding so I can still grin and bear it. If there is an uptick I'm probably going to sell as I have lost some confidence with the way things have gone as the deal seems overvalued by at least 25% in my opinion.

[apad] 23/1/2021 11:16

From SCVR
"They're giving away over 25% of the company for an acquistion that will be low single digit accretive to earnings next year, that's outside of their immediate domain of expertise, in a market that's notoriously difficult to crack and at a time where we're seeing a lot of speculative froth.

As a shareholder I can't see anything in this I like at all, all of the perceived benefits are in the future. And, as an added kicker, the existing tastytrade shareholders walk away with all of the cash in the business - about $112 million - and we have two new institutional shareholders holding 5.7% of the company on a mere 6 months lock-in, virtually guaranteeing a stock overhang for the foreseeable future.

As ever, this shows the importance of sizing portfolio positions correctly. If I were holding IGG as part of a concentrated portfolio I'd be spitting feathers. As it stands I'll ride it out and see where we go, but it'll be a few years before we know whether this was a good deal or not.

At the right price this would be a decent bit of diversification but this isn't the right price, or the right time.

timarr"

[velocytongo] 23/1/2021 10:51

Some years ago Provident Financial paid a hefty premium for Yes Car Credit, an online car subprime business. Like tasty, it was just a few years old and wasn't very profitable. Suffice to say that the purchase was a disaster and was eventually written down. I maybe wrong but I get a sense of deja vu.

[apad] 23/1/2021 10:34

Two director buys.

Mike McTighe
Purchase of 3,100 Ordinary Shares
£8.279
June Felix
Purchase of 6,300 Ordinary Shares
£7.896

Petty cash for PR reasons. It'll achieve the opposite of what they intend.

apad

[sirrux] 23/1/2021 08:46

While the presentation was a bit wooden, like they wanted to dampen down excitement prior to completion, I see the following as key.-- Longer-term opportunity for greater client penetration and cross-selling internationally through a broader proposition. 15% of tastytrade's funded accounts who seek to trade US exchange traded derivatives([23]) are located outside the US. As tastytrade has a very small footprint outside the US, these clients represent unsolicited, inbound demand which highlights the attractiveness of the international growth opportunity over time. tastytrade recently established brokerage operations in Australia, where IG is a leading provider of CFD and FX trading products, while IG has a broad international presence and client footprint across Asia and Europe to which tastytrade's proposition could be extended over time.There is demand from outside the US. The current management team at IG tend to downplay things. Remember, they downplayed the bump from COVID in 2020 (causing a share price slump) but the results did not bear that out. I think we might see a similar effect here.I'm a buyer given the tasty January sale discount. It is risky.

[coxsmn] 23/1/2021 08:16

The two worries are firstly we are significantly overpaying, secondly i read the regulators could be about to clamp down on the type of trading Tastytrade does. Could be a very costly acquisition for a business adding negligible earnings.Or are we all missing something?

[chess123] 23/1/2021 00:13

Let's hope recovery in share price on Monday.

[luderitz] 22/1/2021 23:46

To few people hold shares in certificated form so not practical I’m afraid. I

[growthpotential] 22/1/2021 23:25

Just vote the deal down when the bid gets put to shareholders

[coxsmn] 22/1/2021 20:52

So how do we get to a 1 billion USD valuation?"For the financial year to 31 December 2020, tastytrade delivered:Revenue of $116.2 millionAdjusted EBITDA of $54.1 millionProfit before tax of $49.0 million Tastytrade's gross assets were $200.5 million"

[eeza] 22/1/2021 19:24

Not for you

But, possibly for the Board. Gonards nailed.

[coxsmn] 22/1/2021 19:01

Is it too late to reconsider?

[frazboy] 22/1/2021 18:55

$1bn purchase which thus far has cost IGG shareholders $600m in lost value. Anyone who thinks this is a good deal who wasn’t holding the shares on the morning of the announcement must be rubbing their hands in glee. Everyman has his price!

On a more technical note, why doesn’t this require shareholder approval? Limited new equity issuance?

[coxsmn] 22/1/2021 18:45

Surely we could set up our own US options business for a fraction of the cost.

[chess123] 22/1/2021 18:36

When I went on Tastys website, was like wt France 😳 thought it was a burger joint.

[coxsmn] 22/1/2021 18:29

1bn for Tastytrade!

Their website looks like it was designed by a bunch of 1st year students and not at all professional.

Is the company really worth this much money and has IGG carried out sufficient due diligence.

I think the board needs to provide investors with a lot more insight into the deal and the rationale behind it to justify the high offer price.