Plus500 Share Discussion Threads

[whitelotus40] 25/10/2023 19:10

Plus was benefitting from a favourable tax rate given their status as "tech" company in Israel. I think they were trying for this to extend. Does anyone know what the latest is around this issue?

[whitelotus40] 25/10/2023 18:58

thank you Thorpematt. My impression is that the $ 875 (715£) is the companies monies from retained earnings/profits . Of which circa 500m is needed to run the business licensing and banking/ brokering requirements etc. (
Clients monies would be held in a different and certainly not be allowed to be touched by PLUS ( and segregated account)..

[thorpematt] 25/10/2023 18:29

Well you have to consider that client money is not really cash so you need to ring fence that....but that aside yes your calcs aren't far off.

Also, as Charlie would say EBITDA really is just BS earnings: -

The I of course would diminsh of you had no cash so you should adjust for that.
The T always needs paying
The D well there's little of that because it isn't that type of operation.
The A is possibly significant because there will be some due to acquistion.

But in the end the post tax profits minus the interest is really the true earning power of the company. And once you work out the EV (with client money ring fenced), then you have a true PER. You will no doubt conclude that this stock is ridiculously cheap!

[whitelotus40] 25/10/2023 17:08

My analysis is as follows;
Cash 875m Mkt Cap 1,372 EV 500m Ebitda circa 300
Meaning its trading at less than 2 times EBITDA ??!!! ( some say 5 in the chat )
Is it best to look at it NET of cash or ?? Hence its ridiculously cheap?

[riverman77] 24/10/2023 20:03

Bought back in today having held this on and off for several years. Not only is this amazingly cheap, with cash almost covering the market cap, but trading has been surprisingly resilient over the last year or so. Despite poor markets, revenues are holding up well. The quality of earnings also seems to be improving with more longer term clients. When volatility picks up earnings could really accelerate, especially if the US or Japanese sides gain traction.

[riskvsreward] 24/10/2023 18:05

Thanks Savaloy. It indicates how cash generative this company is.

[scepticalinvestor] 24/10/2023 18:02

Well my buy was well timed for once. Now up 8%.

[aleman] 24/10/2023 14:53

The Odey purchase was Q2, I believe. The purchase was reported in June. I presume settlement was also June but it's conceivable it might have been later?

[oi_oi_savaloy] 24/10/2023 13:03

From the rns this morning; 'The Group remained debt-free and maintained strong financial position during the period, with cash balances above $875m as of 30 September 2023 (30 June 2023: $849.0m). A strong balance sheet, with no debt, is a key differentiator for Plus500 which enables it to invest in its long-term strategic objectives.'

Near the bottom of the release, just above the tables of KPI's.

[riskvsreward] 24/10/2023 12:50

Do they still have £715 m cash? Have they not spent some to buy back Odey’s 10% shares?

[riverman77] 24/10/2023 11:53

As well as the interest on customer deposits they will also presumably getting interest on their £715m cash balance - that would be around £35m at 5%.

[base7] 24/10/2023 09:04

Solid results & interest received currently relates to around 75p per share-so if all distributed as windfall to shareholders our yield would almost double .Us & Japanese businesses gaining traction & increased volatility since 7/10 should result in a strong final quarter .

[aleman] 24/10/2023 09:01

So the latest cash balance shows a modest rise to around £715m after spending about £24m on buy-backs in Q3. Compare that to a market cap around £1.1bn at £14.

[stevenlondon3] 24/10/2023 08:37

Interest received is now becoming material.

[aleman] 24/10/2023 08:14

Q4 should have got off to a good start if VIX is anything to go by. It's been moderately elevated after a quiet summer. I don't think any investor would suggest the last few weeks have been smooth sailing for markets.

[coxsmn] 24/10/2023 06:16

Good results

[scepticalinvestor] 23/10/2023 16:29

Bought back in today in the 1290s. Lets see what tmrw brings. Good luck!

[scepticalinvestor] 23/10/2023 07:10

Weird, more 0 trsdes

[scepticalinvestor] 20/10/2023 07:55

What was the vix at when this was above 20 GBP? Pretty much the same i imagine

[scepticalinvestor] 20/10/2023 07:54

I expect the results will be decent - also more payouts hopefully

[aleman] 20/10/2023 07:20

VIX highest for 7 months.

[scepticalinvestor] 17/10/2023 11:59

I never imagined i wld be stopped out, never dreamed we would get to these levels but it is what it is I guess - everyone needs their own risk strategyI am watching carefully and will def be buying back in soon i think fwiw

[bulltradept] 17/10/2023 09:42

Some people have a nerve stating others comments are tiring. Use the filter button. Or, better still, pay for advfn then you can genuinely complain.

[scepticalinvestor] 17/10/2023 09:24

Imagine where this would be without the £500k daily buybacks. . .

[scepticalinvestor] 17/10/2023 09:22

Plus treading water currently