Ig Share Discussion Threads

[investment dave] 07/12/2016 18:55

Well if anything the markets are rising beyond comprehension. Wall Street on the most powerful steroids possible

[ayl30] 07/12/2016 18:51

Why? On what basis do you form this opinion?

[investment dave] 07/12/2016 18:44

Likely to be an opening surge first thing tomorrow

[woozle1] 07/12/2016 17:41

That's true but it's cheaper because it's an inferior business. And that's why I spent some time looking at CMC because I thought it was cheap but reached the conclusion that the big beast is the better investment. Sometimes investing in the me too business makes good sense if it can piggy back of the larger competitors costs. For example, ScS did very well for while (until it over expanded and went bust) by taking sites v close to or adjacent to DFS. That way it enjoyed the benefits of DFS's large ad spend! It's cheeky and it can work for a while.

I'm not sure that the CMC example is analogous because IG's scale benefits are so great. It's like trying to be Goldman Sachs by showing on Wall Street.

W

[kmann] 07/12/2016 17:26

Strength in numbers, IG better.

[nigelpm] 07/12/2016 17:23

Not just about which one is the better business - also about value.

CMC looks better value to me but WTFDIK

[woozle1] 07/12/2016 17:21

CMC's margins are 10-15% behind IGs; 1 in 10 loss days (versus 1 in 73 at IG); lacks IGs scale; takes more proprietary risk; a price follower not a setter. Difficult to see how CMC is a better business.

W

[investment dave] 07/12/2016 17:21

Looking forward to tomorrow's open

[nigelpm] 07/12/2016 17:01

Think cmcx is just as good if not better here. Model pretty much as if but a hugely better interface than ig.

[woozle1] 07/12/2016 16:52

Bolador,
I think we're going to do well here. This is a consultation document and lots can happen between now and then. I expect as the dust settles the share price will rise and those that had the courage to buy yesterday will be very pleased.

IG has a super dominant position with all the attendent benefits from being the market leader. All the other companies have lots of loss days with CMC the No2 experiencing over 50 a year. Because of its dominance it sees greater two way flows, giving it natural hedges while all the others either have to be unhedged (which is risky and hence CMC has 10 times more loss days than IG) or to hedge (which is expensive). This helps explains why its margins are 10-15% ahead of the competition.

I've been looking at CMC since it warned and the more I looked at it, the more I became convinced that buying IG was the right move, if the shares ever became cheap and which they did yesterday.

W

[bolador] 07/12/2016 16:23

Wozzle1

Thanks, interesting comment. I was inaccurate to say catastrophe when I should have said full implementation of the document as published. At these recent lowest levels I think that was fully priced in for IG.

Bookies are more or less left alone by regulators these days and IG are nearer a betting outfit than a provider of financial services. As you say the FCA will probably not be overcome with zeal on this matter. I would add, especially after a few weeks consultation with the big boys, company and clients.IG and the others are not systemic pillars.

Anyway a little rise in share price today.

[investment dave] 07/12/2016 16:20

kmann exactly

[kmann] 07/12/2016 16:16

The irony is, Sophisticated, and not so Sophisticated clients are probably trading CFDs right now!

600-700p

[investment dave] 07/12/2016 16:13

back to £6 tomorrow

[undervaluedassets] 07/12/2016 16:12

there will be some broker's notes pointing out the obvious soon.

. . ie that this is a stable company with a loyal customer base - and for the moment - insanely cheap

[nigelpm] 07/12/2016 16:03

Value in switching some IGG out for CMCX IMHO - both very similar businesses.

[kmann] 07/12/2016 16:00

IG set to RNS somthing imo. Looks like the brokers have called the bottom on this. Most citing IG as sector outperform. Sophisticated clients will remain core.

Looks like a buy.

[it_trader] 07/12/2016 15:55

Will the last shorter please turn out the lights

[woozle1] 07/12/2016 15:52

You'd be brave to short: p/e of 10; DY of 6.5%, which looks secure the short term and there are so many yield-hungry investors; shares rally into y/e (even if you are eventually right, you have to have the stomach for short-term pain).

W

[deanroberthunt] 07/12/2016 15:47

Welease Woderick!

[weemonkey] 07/12/2016 15:46

As has been said - it's not IG's sophisticated clientele the regulator wants to protect.

The regulation is a potential win for IG in fact.

[weemonkey] 07/12/2016 15:46

as has been said - no IG's sophisticated clientele the regulator want to protect.

potentially a win for IG in fact

[deanroberthunt] 07/12/2016 15:45

pip pip Timbo, wouldn't wanna be out of this one.....600p by xmas, then 8 squid Q1 2017

[tsmith2] 07/12/2016 15:36

Reigns about to be released