Ig Share Discussion Threads

[hunter154] 08/12/2023 09:32

@LWHL, you make an excellent point re “kitchen sinking”.
Something to guard against in the short term.

[lovewinshatelosses] 08/12/2023 09:20

I took a few off the table at 722, just in case we get a kitchen sink update in January. Left enough in the pot in case this does not happen. Not expecting it, to be clear, just a bit of risk management.

[adamb1978] 08/12/2023 08:01

Good that the gap has been filled. The Cost cutting seems to have provided a spurs to the share price. Hope the new CEO keeps buying back shares

[lovewinshatelosses] 08/12/2023 07:44

I am cautiously positive on this news. I am almost certain that he will be an improvement on the last one though. Been doing a little research into his profile since the RNS. So far, so good. Let's see if the market shares our optimism...

[hunter154] 08/12/2023 07:28

Hallelujah!
I hope he is better than the last one……hope he shakes things up.
I note that he was the CEO at Paddypower and led the merger with Betfair to form Flutter. We need someone to drive value.

[bargainsniper] 08/12/2023 07:06

We have a new CEO

[lovewinshatelosses] 06/12/2023 11:52

Still another couple of weeks of buy backs left until the pre-agreed conclusion date for this exercise.
If I have calculated correctly, we are still short of the fully allocated funds for this exercise, so presumably that strengthens the case for rolling out another buy back initiative in January.

[hunter154] 06/12/2023 11:06

Agree with the comments above. The Share Price reacted to the veiled profit warning and the fcf yield is now 14% for a business with >£500m in cash. The valuation is already at an absurd low.

[lovewinshatelosses] 06/12/2023 10:56

100% agree, although happy for them to keep a decent cash buffer on the side too. As I said before, a good enough strategy for the likes of Berkshire Hathaway, a good enough strategy for us too.

[adamb1978] 06/12/2023 10:42

I'd like to see them continue with the buyback and extend it through 2024.

The FCF yield is sky high given where the share price is so would be good to plough that back into buyback shares. I'd be happy for that to continue whilst the share price is <1000p!

They're also going through a cost reduction plan at the moment, so what else would they use the cash for? No real benefit from increasing the yield more, dont want the distraction of M&A whilst already doing a cost cutting exericse and running the business, don't need to stockpile cash...the buyback is a very good use of their capital in my view

[lovewinshatelosses] 06/12/2023 09:28

IMO it will be the forward guidance that really influences the direction of share price travel.
I am cautiously optimistic about that now, after the most recent update. And I do think, with sensible cost and operational management, that 2024 should be better still. I also wonder if they will continue with the buy back programme? How many left to go, does anyone know? I guess I could stop being lazy and just check for myself though :) GLA.

[adamb1978] 06/12/2023 08:17

Up above the 200 DMA now and the 50 DMA turning up.

Combine that with the cost cuts getting closer/implemented, we might have a reasonable 2024 in IGG

[hunter154] 06/12/2023 07:38

Thanks - I’m not very hopeful when H1 results gets released in Jan.
Saying that the Share Price is already badly beaten up.

[lovewinshatelosses] 05/12/2023 18:38

31st October RNS, mate.

[hunter154] 05/12/2023 09:02

Hi,

I was trying to find the recent news release about soft start to Q2, but wasnt on the IG website. I didnt imagine it right? Charlie did say Q2 will be softer than Q1?
Would appreciate it if someone could attach the link.

[adamb1978] 12/11/2023 10:14

Sticking it nose back about the 100 day SMA again.

We were first at this 660ish price (first being since the precipitous declines) around July so, along with the cost cutting helping fundamentals, am starting to wonder whether this is a sustainable bottom...

[lovewinshatelosses] 10/11/2023 08:01

You make some fair points, Maddox. And I have also known some big corporates cut too deeply in some areas (GFC times), having to rehire some of those same people that they let go just a few months later! An example of what happens sometimes when panic strikes.
Balanced thinking and careful consideration is required when making such corporate decisions, certainly.
But the recent IG announcement does not come across as being ill-considered.
Morale can also be affected when you see a bunch of passengers involved in 'busy work' that really does not contribute to operational resilience, let alone bringing bandwidth for development (by your words I spot a fellow ex big corporate employee!).
Completely agree with you on the matter of skill being spending well to create value. Cost cutting well sits in the same bracket.

[maddox] 09/11/2023 22:58

There is usually downsides to stripping out headcount - focus is then on just running the business - less bandwidth for development. Less operational resilience, Corp memory often lost. Affects morale, motivation and dedication to the business. The real skill in business is spending well to create value - any idiot can cut costs.

When you have to, you have to - but shouldn't be undertaken lightly.

[lovewinshatelosses] 09/11/2023 17:47

Good volume today and a month high share price print too.
Not that anyone is going to get excited about that yet. Hopefully we can continue a steady rise towards the 200 DMA, and this time get through it, unlike the last attack back in July. GLA.

[lovewinshatelosses] 08/11/2023 10:26

100% agree. In my experience, it is usually only in tougher times that such decisions get made. Luckily, I was never one of those that got cut, but then I never operated in one of the 'luxury' (unnecessary) jobs that litter so many large and even medium-sized corporates.
US companies tend to be quite a bit better at trimming the fat/dead wood more proactively than UK outfits, even in good times, which perhaps partially explains why they do better on average than our ones do. Obviously not all US outfits etc.

[adamb1978] 08/11/2023 08:08

There's very few businesses which couldn't operate with 10%-20% fewer people in my view. Its just that some companies get fat and lazy and dont want to take the hard decisions, and particularly when business is going well.

Agree with LWHL about public sector too - could probably cut far more than that

[lovewinshatelosses] 07/11/2023 21:12

I disagree with that notion. Look at the headcount reduction at Twitter once Musk took over. IMO, the platform is entirely unaffected, with no decline in service experience whatsoever, in my experience.
If only we could apply the same comprehensive cuts to our bloated public sector services, then we might be able to avoid a debt default. Anyway, time will tell here of course. The latter matter is way past an orderly fix.

[royaloak] 07/11/2023 09:32

Level2 down all morning, still not fixed, do not trade without it.

[hopeful holder] 07/11/2023 09:26

If the business is growing as they suggest, surely they would need extra people. But we are reducing headcount.OrThe upgrades to systems efficiency is huge.....

[riverman77] 01/11/2023 10:27

Slightly surprised that Q2 trading still soft as VIX (volatility) has started to creep up in Sep and Oct. PLUS also reported fairly solid revenues in their last udpate, so I'm wondering how much of this softness is company specific?