Ig Share Discussion Threads

[hpcg] 30/11/2021 10:44

anhar - this is where market participants can differ in their perception of the future that none of us know. I don't see trading volumes declining, if anything I think they will expand as the availability of options to retail goes global. The post GFC investor generation is only growing. That still leaves execution risk. On the flip side IGG will just be taken over by PE if the public market won't rate it.

[anhar] 30/11/2021 10:34

Transition is correct though not to an improved business but to a far more risky model with a lot of debt and rooted in good times, that will have a tough time in tough times, I think. Who knows, just my speculation, but enough to cause a sizeable dump.

[luderitz] 30/11/2021 10:01

I do understand your concerns anhar but I think the word "Transition'' springs to my mind right now so not to worried at the mo.

[luderitz] 29/11/2021 12:52

Good for earnings in the short term then.

[american idiot] 29/11/2021 12:50

and overcharging for UK stocks and UK CFDs

[american idiot] 29/11/2021 12:45

UK stockbroker AJ Bell takes on fintech rivals with commission-free investing app



Wonder when IG will reduce commissions before investors like myself take our business elsewhere ?

[50plus] 17/11/2021 08:25

Looks like the cmcx results are having a negative impact here.

[specials_ bankruptcy_lawyer] 14/11/2021 19:17

Cases have dropped over the last 10 days yet nothing reported. They aren't adding restrictions because they know the figures are inflated 🥵🥵

[wasteof] 13/11/2021 10:00

Where would we be without such well reasoned analysis?

W

[specials_ bankruptcy_lawyer] 12/11/2021 17:48

Rubbish share

[anhar] 12/11/2021 12:03

I get all that but apart from the replacement, the facility has risen by £225m with the potential for an additional £100m. Granted this only becomes actual debt if they call on it but why arrange it if they don't see any use for it. It looks like more than just a contingency because this increase is quite large relative to their existing debt, and it must have incurred sizeable fees.

It's likely therefore that they have in mind some use for the englarged facility. I can't know when and for what purpose but I'd guess the pressure will be on in the inevitable downturn in market activity that I foresee at some point. Maybe IGG are preparing for that too. Either that or perhaps another value destroying acquisition. Debt appears fine when things are okay, it's when business suffers a serious downturn that debt becomes a burden and adds to the pressure from reduced trading activity. Consequently my view is that the less debt the better.

IGG used to run a net cash situation with little or no debt at all. It's this change in culture from that rare but ideal situation to running a substantial debt position that irks me. Coming on top of the recent tasty acquisition, this news increases the risks of IGG imo. But I continue to hold for income, for the time being.

[hpcg] 12/11/2021 11:27

They haven't increased debt. They have replaced callable bank debt with long term unsecured bonds. The revolver is just a facility at this time. Only $150m of debt was used for the Tastytrade acquisition, the other half was from cash, and the majority equity.

The bond prospectus is up on the investor relation site, and as ever with legal documents of this type it contains a treasure trove of information. I highly recommend a read:

[uhound] 12/11/2021 10:10

Just bought in.

Buying income producing assets with cheap finance is no bad thing.

Hopefully yield can be maintained.

To me it looks good value - will add if drops further.

[anhar] 12/11/2021 09:24

More debt


Extract:

...Following this exercise, total available credit facilities have risen from £375m to £600m with the potential to rise to £700m, if the new RCF is increased in size...

Having held IGG for a very long time, I can recall when it had no debt at all. Sad to see it not only with debt, but the level increasing quite a bit too with this announcement. Makes it a more risky proposition in my view.

Yield at 790p if the 43.2p divi is maintained is 5.5%, still well above the FTSE100 which is my sell signal.

The news on tasty posted by coxsmn above is encouraging - but we're still in the good times...

[coxsmn] 11/11/2021 19:36

https://www.businesswire.com/news/home/20211111005832/en/tastyworks-Continues-Posting-Record-Retail-Trading-Reaching-1MM-Contracts-Daily-and-Robust-Adoption-of-New-Crypto-Products

[50plus] 05/11/2021 10:12

Hodhasharon_Gruen_Capone_Tom 5 Nov '21 - 10:08 - 3213 of 3213 (Filtered)

For being a Moron!

[coxsmn] 03/11/2021 15:26

luckead_is_filtered