Plus500 Share Discussion Threads

[blueclyde] 01/3/2023 17:32

US TBILLs now yielding over 5 percent means they will be earning over 50 million just on cash. Not sure if they can do the same with the client funds? They have 2.3 billion of customer funds. So you can get 150 million just on the interest on the cash potentially?

[riverman77] 28/2/2023 17:20

Profits were boosted last year by trading gains at the expense of the customers - they are probably assuming these won't be repeated (they tend to even out over time), hence lower expected profits this year. Remember underlying income was actually down last year on the previous year, so perhaps this trend also expected to continue. That said, they normally exceed estimates so wouldn't be surprised to see them beat current estimates.

[blueclyde] 28/2/2023 17:12

I would not look at the any of the analyst forecast. The is a broker target for 11 a share yet currently 10 a share is cash on balance sheet. Also I think they can do well over 50 million revenue a year this year just on the interest earned on their cash. Maybe it is closer to 100 million.

[coxsmn] 28/2/2023 16:56

They normally beat analyst estimates but do you know why they are expecting quite a steep fall in ebita this year?Agree, valuation still looks cheap and considering the large cash element.

[aleman] 28/2/2023 16:10

Possibly. Free cashflow consensus is $266m after $365m. £220m free cashflow for 2023 (and then modest growth in 2024) makes the shares still look good value. It's riskier than most but it trades at a discount to the market on a weaker year's projected cashflow, which seems fair.

[coxsmn] 28/2/2023 15:42

Ebitda forecast of 280M for FY23 versus 454M FY22.Is this correct.

[blueclyde] 28/2/2023 12:29

$70 million share buy back for the next six months. The will announce more again when the interim results are announced. That is a hell of a lot of stock compared to the market cap that will be bought. Things going to get interesting.

[base7] 23/2/2023 10:36

As far as I know they have not said they will list on Nasdaq.I am assuming that if our US division continues growing & becomes a material part of our business that our Board will consider a Nasdaq listing in order to improve our rating & profile in the US

[sophia1982] 23/2/2023 09:03

@base7 When did they say they would list on Nasdaq?

[oi_oi_savaloy] 21/2/2023 14:42

Distinctly underwhelming agreed.

[black bird] 21/2/2023 14:23

dividend poor @ share price of 1824 final + special £0. 27 pence = 1.48% O.Y.M
on your money share price @1824 share will go down. but will hold BB

[mister md] 20/2/2023 13:12

Blackrock holdings increase.

[chucko1] 17/2/2023 21:42

Dear Mr. Simple, there are many around as we well know!!

But therein lies the value.

[simplethesis] 17/2/2023 21:14

Author of that piece is a lazy uninformed cretin.

[blueclyde] 17/2/2023 20:40

The IC article is ridiculous. Like how can you give it a hold rating when the PE is wrong. There is a billion dollars cash on the balance sheet. You need to factor that in as that is half the market cap.As for the slow steady rise, that is the power of the buy backs doing that. Constantly sweeping up shares on a daily basis.If rates end up higher for longer and rising they are going to make a killing on the interest in their cash alone.

[base7] 17/2/2023 14:00

If & when our US division starts generating material revenues & contributions to profits I am sure we will then re rate & our shares then be listed on Nasdaq-when we will re rate again.

[brucie5] 17/2/2023 13:55

Rise seems relentless. Covered in the IC today.
Headed: 'Plus500 keeps paying out'.
It's conclusion is less entirely sanguine, while pointing to value-

Plus500 struggles to break out from its lowly valuation of eight times consensus earnings for 2023, and analysts have been chipping away at forecasts over the past few weeks. There is a sense that it is a distant second in a two-horse race in the UK spread betting market. Hold.

I've held for some time in a largely passive income folio and after some profit taking have just let them roll forever upwards. So I decided to today to take the plunge on my own more actively managed account.

It's difficult to see how they can be cheap, and yet. They get six screens on Stocko including Dreman low Price to cash flow + low PE, Ben Graham Defensive and Screen of Screens, which is a great overall quality indicator.

Not a great dividend of 2.8, but I guess they will need to do something with all that cash?

We shall see.

[beergut] 17/2/2023 12:42

This One of the few companies that just keeps make money. Why it isn't higher is one of the stock markets big mysteries. Would be surprised to see them switch to the NASDAQ in order to get a better valuation.

[blueclyde] 15/2/2023 11:01

Also there is a little gem in the annual report of you read it all the way through. The made nearly 25 million just on the interest on their cash balances. That should rise to 50 million as rates have continued to rise. They have nearly a billion cash on the balance sheet. This is insane value.

[blueclyde] 14/2/2023 21:23

The cash dividends suffer from a huge tax amount. The buy backs alone are so big now they alone push EPS up nearly 8 percent a year just with the fewer shares in issue. Also I think the buy backs could hit an inflection in the share price. Strip out the cash and this is on a PE of 4 and $60 million worth of stock will be bought in the next six months. Hard to see where that supply comes from without pushing up the share price imo.

[base7] 14/2/2023 18:15

If our US business grows substantially our value will increase disproportionately in that our valuation is likely to move upwards towards that of US competitors resulting in a potentially substantial revaluation.

[riskvsreward] 14/2/2023 17:19

This looks very cheap and the results look great. However, why do they cut the dividend compared to 2021 from about 119 cents to about 92 cents for 2022, when both esp and cash are well up?

[investing2retire] 14/2/2023 11:34

yep coxsmn . ive topped up at 1923p this morning. i waited for a good entry this morning so will see how this goes. im targeting 2200p in next few months

[coxsmn] 14/2/2023 07:46

Great results