Ig Share Discussion Threads

[lovewinshatelosses] 21/9/2023 19:57

I took a small amount more today at a sub ex div price. Some people think the VIX is broken and no longer a good barometer for fear. I disagree. Might well get a cheaper price still, but as long as we avoid any silly adventures (and get busy on cost cutting) then I remain confident that this name should do well in the months ahead. Now up to almost 50% of what I once held here. I will happily increase that position on evidence that we are back on track. Even though it would likely mean buying north of my current average (circa 690p, since you asked). Time, as always, will tell. GLA.

[hunter154] 21/9/2023 18:40

Agreed, more shares bought back.

I was thinking about Q1 numbers - at the end of the day VIX has been so low in the last 3-4 months and given that volatility is what drives punters to take OTC position (trades) , it is not a surprise that their trading income was down 10%.VIX will be a good barometer to gauge when the turnaround might start.

[adamb1978] 21/9/2023 17:43

Means the buyback can pick up even more shares tomorrow!

[pete160] 21/9/2023 17:36

A relatively good day after all, ending down slightly less than the XD amount.

[cwa1] 21/9/2023 08:22

XD for 32p this morning, allied to downwards US futures means a hefty drop as expected. Pay day is 19/10

[lovewinshatelosses] 20/9/2023 19:51

Yeah, me too. In fact, if the upper broker price targets of all my stocks were hit tomorrow....I would probably be 100% in cash by Thursday :)

[hunter154] 20/9/2023 14:35

Hi @love..

Thanks for the clarification.

Not sure if anyone posted this, but this is from Shore capital. I would take 950 right now!

"IG's valuation is near historical lows despite resilient EPS momentum over the past three years. Meanwhile, the company continues to exercise a rolling share buyback programme to utilise part of its significant excess liquidity, which itself is supported by strong cash generation. Our prevailing fair value estimate of 1,250p suggests deep value."

[lovewinshatelosses] 20/9/2023 14:09

My comment was directed to gbh2, not you, Hunter.
If you are looking for a dividend chase, have a look at BATS. I have been in that one for a few weeks, planning on holding for circa 30 quid a share (subject to the obvious caveats). Unlikely before ex div, but that is fine for me. Over 8% (annual) at today's share price too. Could well go higher of course, but I will take a view around that target price. Not advice of course, DYOR etc.

[hunter154] 20/9/2023 13:42

But I get the 4.7% tomorrow, once the Share Price comes back to 675p , which it will in a few weeks.

[lovewinshatelosses] 20/9/2023 11:17

In that case you want bonds (although they do not keep up with the pace of real inflation). Or farmland that was bought in 2020 :)
Certain energy stocks and miners too, IMO will offer a good return within that time-frame and indeed, beyond. Certainly hope so anyway! GLA.

[hunter154] 20/9/2023 10:50

Ex div tmrw; 4.7% return on buying today.
I have added ( top up for trading only) just now.
I agree that news flow is going to be scarce till interims in late Jan 24. The only thing that will help is a quality CEO hire.
I cannot see this sliding 10%+ from here unless the whole market goes down.


On a related note, I noticed that Hargreaves Lansdown number, which were good, primarily due to huge NIM. They had also experienced a big overhead increase though.

I have, along with a few others, been vocal re FY23 cost increase at IG. I guess it is a sign of the times that salaries have to be jacked up to keep best staff and not impact the service levels.

[gbh2] 20/9/2023 10:28

It's an age thing, I need more potential than an if but or maybe, over two years.

The dividends look solid and I will keep half my holding until early next year to see if institutional interest improves.

[lovewinshatelosses] 20/9/2023 10:01

Only if you think that the share price is not going to appreciate from these levels. Which it should do, as long as they do nothing silly, IMO. Time will tell of course.
Anyway, you get hit with tax on bank account interest that you currently make over a trifling sum, especially if you are a higher rate taxpayer. Same with the one year bonds. Although IMO it is worth having some of the latter anyway at the current rates, as much for diversity of asset allocation as anything else.

[gbh2] 20/9/2023 08:32

Given current buying interest, adding anywhere around here would leave you with dead money for quite some time.

[adamb1978] 18/9/2023 20:56

Adding anywhere around here will make you very good money on a 18-24 month basis IMO

[yf23_1] 18/9/2023 19:30

FFS, just when you thought it was safe..

[lovewinshatelosses] 18/9/2023 18:45

Yeah, could even retest the year low, ex div.
If that happens, I will likely add a few more, but for now am happy with my allocation here. GLA.

[gbh2] 18/9/2023 13:02

Not much sign of buying in to the above recommendation, share price likely to be below 647p ex dividend :(

[lovewinshatelosses] 14/9/2023 17:52

Indeed. Similar thought crossed my mind, too.
Now watch it tank! :)

[uhound] 14/9/2023 17:24

Nothing to worry the market in the update, so I guess this will be seen as very good value at the current level.

Would not be surprised to see this motor north for a while now.

[lovewinshatelosses] 14/9/2023 17:09

IMO, this looks like the first day of 'proper' buying for a while.
Pretty good volume too, in what has generally been a fairly low volume day across the wider markets.
I wonder if we will see a holdings RNS in the next few days? Cannot imagine it was just retail buying chunks today.
Anyway, still quite a way off testing the 200 DMA, so not getting particularly excited yet, but a satisfactory day, to my mind. Roll on Friday! GLA.

[maddox] 14/9/2023 11:45

Thanks for sharing targets Adam.

Very solid trading update - IGG cannot influence the low level of trading activity but the product diversification and US are providing a useful balance to the revenue mix. Clearly, the interest income is also a great contribution. The share buy-backs will provide increasing support and a floor under the share-price at this low point in the business cycle.

All in all this looks like a good entry point for the contrarian investor.

[adamb1978] 14/9/2023 11:23

No worries. If they hit those targets, this would trade on a 20x PE!!

6%-8% overall growth, high ROCE, cash generative, debt free....

Needs better market conditions first though

[lovewinshatelosses] 14/9/2023 11:20

Thanks for investigating and sharing IR feedback, Adam.