Ig Share Discussion Threads

[lovewinshatelosses] 14/9/2023 10:15

Why has my splendid comment from earlier not been published without having to log into the site?
The world is being robbed of my peals of wisdom! :)

[adamb1978] 14/9/2023 10:15

I emailed the IR team at IGG and they tell me that:

The medium-term targets are as follows:
• Core Markets+ - total revenue growth of 5-7% on average per annum from FY22
• High Potential Markets – total revenue growth of 25-30% on average per annum from the FY21 base pro forma for tastytrade

[adamb1978] 14/9/2023 08:32

Agreed Masurenguy. FCF yield of around 15% which staggeringly cheap - you almost need to believe that the company is going to go under for the price to make sense.

Share price has gone sideways for around 6 months now so, whilst I am no technical analyst, I'd like to think that that constitutes 'forming a base'

[masurenguy] 14/9/2023 07:07

While revenues are slightly down, interest income is up by nearly 500% to £34m. With a PER of just under 7 and a yield of circa 7% this remains undervalued at the current shareprice.

[mister md] 14/9/2023 07:03

I agree - bit vague, but sounds better than the -20% revenue trends at CMCX.

I suppose this stock is on a low valuation so these results shouldn't affect the shareprice too much. Will keep holding in my long term portfolio.

[adamb1978] 14/9/2023 06:54

"The Group remains confident of achieving its medium-term targets."

Can someone remind me what they've publicly stated as medium-term targets?

[adamb1978] 14/9/2023 06:53

Hi Hunter

Understand why you would look at the results ex-interest, however in a low interest rate environment financial markets and trading would be far more active so the 'normal' revenues would look better.

re the efficiency comment, 'cost efficiency' generally means lower cost. I read that comment as incremental rather than transformational though given that if a company had a plan to take costs down by say >10% they'd announce it given it would be headline grabbing. 'efficiency' to me is more along the lines of holding flat in nominal terms, so improving in real terms

[hunter154] 14/9/2023 06:13

Stripping out interest , revenues down ca 10%.
TT, ex interest up 3%.

I am furious; but for the imminent CEO hire, I would have sold on these results.

“We are progressing with plans to drive even greater cost efficiency…221;
These people have no shame. The above reads like costs are not going to come down, but we are trying to be more efficient.

Great company with poor C Suite.

[lovewinshatelosses] 11/9/2023 10:26

Yeah, the fundamentals here are not the issue. The (legitimate) gripe some of us have is only that the company could - should - be doing even better.
Which hopefully the next CEO will achieve and then new ATH's will be a viable target. IMO.
Anyway, this is nowhere near a high forward dividend yield that might render it unfeasible. What we have here is a nice dividend to look forward to. GLA.

[hunter154] 11/9/2023 08:53

f880gna you clearly don't understand concept of fc yield , dividend cover etc.

Fcf yield is 14% and dividend yield is 7%. DiVidend cover is x2, so nothing to see here.

[f880gna] 10/9/2023 21:45

Usually an unfeasibly high forward dividend yield portends a dividend cut.

[lovewinshatelosses] 08/9/2023 10:30

Fewer than 400m shares in issue now too.
I assume they have to provide the market with daily updates on these share purchases, but I would prefer it if they did it weekly, or even monthly, until the full allocation had been concluded. Instead of these daily RNS prints, which clutter up the RNS history page. Yes, I am getting grouchy in middle age :)

[lovewinshatelosses] 08/9/2023 10:17

Thanks Hunter. Let's hope we are both right about that! :)

[hunter154] 08/9/2023 09:53

Perfect summation!

[lovewinshatelosses] 08/9/2023 08:47

I know what you mean! :)
Having seen similar price action in this one a number of times in the past few years, while history does not always repeat of course, I took the view that it sure does rhyme.
I have made my criticisms well-known here, but equally the positives too (all of which pre-date JF IMO).
IMO the current price range is attractive, even allowing for the negatives. If the next update is within guidance, which it should be, then the dividend will offer some comfort while we wait for a new CEO. One that will hopefully get this outfit back to where it belongs quite quickly.
At that point, IMO strong capital appreciation will almost certainly follow. And it can hopefully go back to being one of my portfolio darlings, as it once was. GLA.

[gbh2] 08/9/2023 07:43

I was tempted yesterday, but the current drop has me wondering whether I should be reducing!

[lovewinshatelosses] 07/9/2023 13:57

Looks like the only one buying here, apart from the company for those to be cancelled, is me :)
Gulp!

[gbh2] 07/9/2023 11:35

Well IF value was double yesterday, it'll be nigh on treble after ex dividend!

[adamb1978] 06/9/2023 12:28

If you believe the FCF figures which analysts have, then IGG is trading on a FCF yield of approaching 15%! Given that large-cap, high performing US mega-caps might trade on perhaps 3% and 'good' companies perhaps 5%, this is really, really cheap here. 7 years of FCF buys the entire company!

Even if you say that this is average quality, the FCF yield needs to halve, which puts the share price double from these levels (assuming you believe that the company continues to tick over rather than decline)

[lovewinshatelosses] 06/9/2023 09:02

Not sure anyone would be just looking to jump in and out for the dividend here, but I take your point.

[gbh2] 06/9/2023 08:05

The pending dividend will not cover the current loss in capital value, so this share price could be a complete disaster ex dividend!

[lovewinshatelosses] 05/9/2023 07:12

The US markets have been a graveyard for many UK hopefuls, so I am fairly nervous about that idea.
Perhaps we could spin off TT and list that entity, albeit it would probably have to be on the OTC exchange.
Not sure that this is the right stage in the economic cycle for either of those ideas though, to be honest. Maybe in late 2024, early 2025, assuming rate cuts have taken place by that stage (and the dust has settled on the almost inevitable stock market crash that will follow the first cuts).
That kind of time frame should also allow for the joining and bedding in of a new CEO, who will hopefully get TT into shape, costs down materially, and generating consistent profits at last.
I am still to be convinced that the US markets are not going to see a PE valuations correction that reverts to the historic mean, but when that day will come, not a clue. I thought it would have already happened by now. Especially the tech stocks. I mean, even all the best in class US mega caps are all grossly bloated!

[hunter154] 05/9/2023 05:46

Another thing that could help the Share Price is if the new ceo grasps the opportunity to list (2ndry) on NASDAQ. A very profitable fintech business…̷0;.not many on that exchange and we would be valued at more than pe of 7. In fact the way Americans value tech businesses we would be valued at x20 on revenue, lol!

[lovewinshatelosses] 04/9/2023 12:48

Agree with your first sentence. Not sure how likely such a profile exists for your second sentence, although yes, that would be ideal.
Chief focus IMO needs to remain on the proven and successful UK operation though. And not pouring much, if any, further cash into TT if the next update is weak.
Say no to the sunk cost fallacy. Anyway, who knows? Might be a moot point if TT is now at least cost neutral. Although it should by now be in the black, to my mind.
What a goodbye note that would be for June, who I am sure would be as keen as the rest of us to see it come to pass.