Ig Share Discussion Threads

[jeavom] 14/10/2012 22:31

Looking at the latest reported and?0 normalised earnings per share they are not a million miles away. So 2011 normalised EPS doesn't look too out of place. So I am tempted to allow the use of the reported EPS to judge quality of earnings based on the ratio.

[miata] 14/10/2012 16:45

EPS & CFPS will diverge when, for example, debtors rise or fall.


.............05/09 .05/10 .05/11 .05/12
intangibles 260.61 265.33 117.20 115.37 m
debtors.... 195.58 227.59 289.57 244.00 m

Operating CF 49.22 186.65 83.99 187.22 m

[jeavom] 14/10/2012 15:39

Looking at the average 5 year cash flow per share (CFPS) and comparing it to the average normalised EPS over the same period, average EPS is below average CFPS. For an average company this would suggest poor quality of earnings. (Doing the same exercise with reported earnings finds the converse - so at least this isn't a signal of creative accounting).

Is there a good reason for average EPS to be below average CFPS in IG's case?

Looking at nomalised EPS in 2011, when IG reported a loss ,it is more than +40p over the reported EPS. I am wondering whether the normalised EPS is biased upwards in IG's case.

[jeavom] 30/9/2012 23:26

Thanks Miata. This makes sense as over 50% of revenues come from the UK and around 19% comes from Europe ex UK.I am just starting to read through the reports and financial statements. I normally crunch the numbers first before looking at the story behind the company in the reports as a second stage.

[miata] 26/9/2012 18:18

Fortunately brokers expect profits to hold up.

2013 Revenue expectations basically unchanged.
1 month ago 3 months ago 6 months ago 1 year ago
Revenue (£m)
31-May-2013 375 375 376 373

Did you read the last management statement? You can click it just under the top graph. "Revenue in Europe was down by 20%".

Date..... Broker name New Price Old price target New price target Broker change
11-Sep-12 Numis Securities Buy 461.70p 539.00p 542.00p Upgrade
06-Sep-12 Citigroup Buy 436.40p 500.00p - Upgrade
18-Jun-12 UBS Buy 474.10p 530.00p - Reiteration
14-Jun-12 Numis Securities Add 474.90p 511.00p 515.00p Upgrade
14-Mar-12 UBS Buy 455.00p 545.00p 530.00p Reiteration

[jeavom] 26/9/2012 18:14

Looking at broker forecasts and fundamentals it looks like IG is overpriced until it gets back in the 415p range or lower.Any views on why broker forecasts for sales are down for 2013?

[georgeg2] 20/9/2012 08:08

Thanks for clarifying.

[a0148009] 20/9/2012 08:06

Ex-date means what it says - excluding the dividend.

AO

[miata] 19/9/2012 20:15

No you don't and they haven't.

[georgeg2] 19/9/2012 20:02

Why would people sell their shares on the ex-date???
Correct me if I'm wrong, but don't you have to be a share holder on the ex-date and up until the record date which is the 21st in this instance...
So haven't all these people sacrificed the dividend?

[undervaluedassets] 19/9/2012 15:37

XD and stress about latest iteration of trading software would seem to be the issue here .

Looks overdone.

[a0148009] 19/9/2012 14:30

I emailed the following to them.

Dear Sirs

Your new trading platform and format is a disaster.

The weak grey font and colours are like looking at the screen through a mist, the post office red background on the login page
gives the appearance of such, blindingly crude. There was nothing wrong with the previous design, clear, user friendly and readable.
You have been sold a pup by IT nerds - hope you do not lose clients over this as I am a shareholder.
What on earth motivated you to waste so much time and money, change for changes sake?
I am not a Luddite and welcome change but this guys is very disappointing.

Let's have our old platform back.

This is their reply:-

We will take your suggestions into consideration. Your comments will be sent to the relevant parties.

If you have any further queries please do not hesitate to contact us. Alternatively, please visit our Help and Support section where you can search for frequently asked queries.

Kind regards,

Petunia Mudau
IG Markets Client Services
Royal Melbourne | Fourways Golf Park
Roos Street | Fourways | Johannesburg
www.igmarkets.co.za
Telephone: [phone]
Fax: [phone]

[0rient] 19/9/2012 12:19

Anyone getting use to the new IG colour scheme?? Can't believe how bad it is..i need to use the platform most of the day and can't look at it for more than 10 mins now!!

Bright red plastered onto everything...even the iphone app. How to turn something classy/sophisticated into something horrible and garish!

[miata] 18/9/2012 16:56

XD 16.75 Wednesday 19/09/12. Pay 23/10/12.

[miata] 17/9/2012 09:23

You would have thought they would have learnt from the similar disimprovement by CMC who replaced their excellent Marketmaker software with a garish video game style platform.

[0rient] 17/9/2012 09:04

100% agree...have just give them constructive feedback too!! It's genuinely awful..can't look at it for more than 5 mins without getting eyestrain..

[a0148009] 17/9/2012 08:58

Dear Sirs

Your new trading platform and format is a disaster.

The weak grey font and colours are like looking at the screen through a mist, the post office red background on the login page
gives the appearance of such, blindingly crude. There was nothing wrong with the previous design, clear, user friendly and readable.
You have been sold a pup by IT nerds - hope you do not lose clients over this as I am a shareholder.
What on earth motivated you to waste so much time and money, change for changes sake?
I am not a Luddite and welcome change but this guys is very disappointing.

Let's have our old platform back.

[miata] 17/9/2012 08:10

Take note of the clients IG:

Ben Nevis 17 Sep'12 - 07:10 - 174178 of 174184
IG hits us with RED SCREEN first thing. Dont like it.
THEN more red notices saying "problems with dealing on charts"
POOR SHOW IGindex. PULL YER SOCKS UP.

jojo 17 Sep'12 - 07:48 - 174181 of 174184
Platform is the worst I've seen. Like trading in the fog - if nothing entered in the position size box price can't be seen! Wishy-washy font and colours, an embarrassment to whoever created it and even more so to whoever approved it - cringeworthy in its awfulness.
Little white arrow to denote movement is a backward step too - from the red/ blue used previously. It's simply too bad to waste time discussing - just switched it off. Shame as IG been one of the better sites up to now.

[undervaluedassets] 12/9/2012 10:03

Everyone was expecting disaster yesterday - they were short essentially - In a scramble of covering the price spiked .

Quality niche operator - This is the Apple/the Nestle/the Coca-cola/the Paddy Power of Spreadbetting.

IG Index is the global number 1 Spreadbetter. And they continue to invest in the brand and consolidate that no 1 position. (now including terrific mobile and tablet apps and amazing app called insight).

The markets they operate in have been tough but when they fly so will IG.

Gorilla operator with mouse valuation.

They have the global penetration and the product offering and terrific brand awareness.

In the interim they pay a very tidy dividend.

[a0148009] 12/9/2012 08:31

The final div is 16.75p ex 19 Sept not 16.25 in my previous post which I have now edited.

AO

[a0148009] 12/9/2012 08:17

Extract taken from the Preliminary Results to 31.05.12.

"Our US business, Nadex, remains a long term project but we are seeing some very early signs that it is gaining traction, with a steady increase in the number of members trading over the second half of the year, albeit from a small base. This growth was principally driven by direct client recruitment".

There is a lot of competition but IG has an excellent trading platform, no reason why Nadex should not be a major profit centre in the future.

AO

[undervaluedassets] 11/9/2012 16:09

The one thing that was clear from the call was that although markets are flat and turgid IG Index is the Global Gorilla spreadbetting firm and getting bigger.

When the markets roar again IG will be in the driving seat ready to take full advantage.

[a0148009] 11/9/2012 12:41

Not much to be learned from the conference call which was short, company sticking to guidance and steady as she goes.
The News Pages in UK and OZ popular and growing and company rolling them out in other centres.

AO

[undervaluedassets] 11/9/2012 08:06

And we are up...

Surprisingly...

clearly the whisper number was much worse than the statement out today.

So the market sees this as a relief.

News of slow markets this year has been no secret at all. But revenues not as bad as everyone thought they might be.

Shares did not go up much last year either during IG's spectacularly good year (which was churlish). So going into this update the shares were already extremely cheap for a company which, given more normal conditions is an out and out growth company.

Slew of strong broker Recs yesterday and today cannot have hurt:-



Will listen with interest to the conference call

[a0148009] 07/9/2012 13:55

Goes ex dividend on 19 Sept 16.75p very tasty.
edit - add to this next years consensus forecast 22.9p gives a running annual yield
to late October 2013 circa 8.25% for just over 13 months.

AO