Ig Share Discussion Threads

[yf23_1] 21/7/2022 14:26

Looking back at my old ICs and IGG had EPS of 50p and were over £8, we now have 90p and we're sub £8.

[riverman77] 21/7/2022 13:56

Not if they run out of money! My view is that the spread betters do very well during periods of short term volatility, but likely to suffer in the event of a prolonged bear market.

[lovewinshatelosses] 21/7/2022 13:49

I agree, WST. Not to mention, this largely recession-proof inflation (IMO) is going to result in a proportion of people trading more heavily than before, to try and retain the value of their capital to some degree, in a way that buying and holding in many cases during this bear market, will fail to achieve (also IMO).
Not suggesting that such a strategy will prove wise, but simply that it may nonetheless be a trend that we witness.

[wall street trader] 21/7/2022 13:08

People bet more in recessions that's a fact

[tourist2020] 21/7/2022 11:14

Anhar, to your recession fears/comments .... I was surprised by the following responess which a client survey of IGG revealed during the "past few weeks":

Asked where, in the event of tighter finances, they would cut back on discretionary spending the order was:

1) Luxury items - 50%
2) Entertainment & Socialising - 40%
3) Holidays - 30%
4) Home improvements - 25%
5) Trading & Investing - 15%
6) Other - 5%
7) No change - 25%

More than one category could be chosen, hence the %´s dont add up to 100.

Not suggesting you should change your views but its a relevant data point (even if the sample is not entirely random).

[mister md] 21/7/2022 10:56

& 'a resumption of progressive, sustainable dividends' ...

[anhar] 21/7/2022 09:42

Better than I expected but we haven't hit a real recession yet, particularly in the US. When that happens I still see IGG suffering badly which is why I sold the bulk of my holding some months ago but nobody can time these events. I still have a fair chunk though as my original investment many years ago had grown a lot.

I certainly wouldn't object if they dumped tastytrade as think it may turn into a massive burden when times turn really rough. The reason I'm still in at all is that I can't be sure so as a small part of my income port I'm willing to take the risk of being wrong but I definitely wouldn't bet big on IGG, which had happened with my earlier much larger holding due to its growth over the years.

More positively, as an income investor I'm pleased to see a modest 2.3% divi increase to 44.2p after three years stuck at 43.2p.

Final divi of 31.24p pd 20 Oct, xd 22 Sep

[coxsmn] 21/7/2022 09:28

Very nice results

[tourist2020] 21/7/2022 08:35

I hope their trading software is better than their webcast software, lol! Anyone managed to get in on the presentation?

[wall street trader] 21/7/2022 08:09

They seem to be managing the US acquisition well - expect this dividend to be maintained for many years to come so a great hold for me long term

[tuftymatt] 21/7/2022 08:03

Yeah I agree that these are good results in general.
The buyback is a waste at that amount of money and if possible would have been better coming a few months back.
Happy to see a divi rise when many companies may be thinking more along the lines of cutting. Getting back to where we were in early April before the year is out would be nice to see 👍🏻

[tourist2020] 21/7/2022 07:58

Agreed, no banana skins in the results.

I was OK on revenue forecasts but costs rose significantly in the second half so I was out on profit and EPS. That said, 96p per share now results in a P/E of 7.4 on last night`s close. This has to rise.

Also, not blown away by the divi rise, but I suppose I knew it is a US weighted board where buybacks are preferred. Not sure if a buyback of £150m (c. 5% of the Mkt Cap)will have much effect.

I am mystified as to how they can continue to project medium term growth of 5% given they are now flatlining H2 vs H1.

And I am not convinced by the one/off nature of TT acquisition costs. How on earth can you spend £50 million (2021 and 2022 combined) on a transaction where virtually no integration is taking place?

All that said, the company is a cash generating machine with no debt and deserves a higher valuation from the market. £8.20 plus, in my view. We¨ll see over the next few weeks/months.

[wall street trader] 21/7/2022 07:44

Happy to hold here for long term dividends excellent results

[lovewinshatelosses] 21/7/2022 07:26

First glance...happy with those results. Neutral on TT versus unhappy - very much on the fence still regarding that acquisition, but not yet 'told you so' camp :)
Do not appreciate the 1% donation to charity - give that to shareholders and they can allocate funds accordingly, including to charities of their choice, if they so wish. Anyway, looking forward to seeing whether the market agrees with us this morning!

[tourist2020] 20/7/2022 17:54

Optimist2022 here .... :)

My spreadsheets churn out the following:

Revenue of £978m (of which TT £111.6m) vs £853.4 2021
Profit before tax of £534.3m va £446.5m 2021
Adjuste Profit after tax of £427.5m vs £368,1 2021

This gives Adjusted EPS of 101.4 vs 2021 of 108 Adjusted and 99.7 Basic

If they are within striking distance I think they will do all they can to show EPS flat or higher as they indicated on the TT acquisition that it wouldnt be dilutive.

The bad news is that within my estimated figures TT monthly revenues dipped slightly Q2 over Q1 .... although obviously up on the prior year. TT is generating about £36m in profit after tax but not deducting the interest on the loan taken to partially finance the aqcuisition. So its still a multiple of 20 ...

If I am right, there will be a tug of war between positive EPS and "I told you so" on the TT acquisition.

Just my tuppenceworth

[lovewinshatelosses] 20/7/2022 15:04

Looking forward to the annual results tomorrow. I am expecting at least good (but hopefully very good) overall numbers and an improvement on the TT side of the business.
If this is still disappointing, I will firmly expect June to outline a clear plan that shows how they will get it to the stage of being a sensible investment for IG in the first place, rather than an expensive white elephant.
I am fairly confident on the first point, less so on the second! That said, the heavy inside buying periodically here has been noteworthy IMO. I am not adding more before results, but no intention of selling either. GLA.

[tourist2020] 12/7/2022 10:59

Looking at PLUS500 results in a bit more detail reveals them to be not as positive as the headline suggests:
1) Their Active Customers in H2 2022 are 65% of H2 2021
2) New Customer Acquisition in H1 2022 is half the rate of H2 2021
3) Customer Income in H1 2022 is 10% lower than H1 2021, BUT
4) Income per Active Customer in H1 2022 was $1.566 compared to $1.136 in H1 2021
4) All of the supposed revenue growth is from Customer Trading Positions which will trend to zero over time (one mans loss is another mans gain).

I certainly hope IGG will show better trends for Customer Acquisition and retention.

And for the CFD/Options regulators, a bit worrying that 1/3 of the declared income is down to customer losses!

[ppreston1] 12/7/2022 07:53

Solid trading update from PLUS this morning. Hopefully some positive read across to IGG today and continuing in the run up to the results next week.

[tuftymatt] 11/7/2022 12:35

Let's hope so coxsmn 🤞🏻

[coxsmn] 11/7/2022 11:20

Annual results 21st July.My money is on them being good.

[yf23_1] 09/6/2022 19:28

CMC results says they were at top end of guidance! ?

[glavey] 09/6/2022 18:46

Tourist2020 > Optimist2022 :-)

[tourist2020] 09/6/2022 16:17

Well, as usual I want too early but couldn`t resist the temptation to add a few more at 670. My average now is about the same as the recent NED buy, so I guess I should be happy with that. Probably enough now, so lets wait for the results in July. I find it hard to imagine EPS below 80p per share and a divi below 48p based on prudential dividend policy and the gain on the sale of their US platform.

[coxsmn] 09/6/2022 14:47

Exactly.That is why i have added.