Plus500 Share Discussion Threads

[tonysss13] 23/11/2015 15:38

pbutterworth

maybe you should read the whole FT piece again as it's been added to and it appears PLUS500 have admitted they are

[pbutterworth1] 23/11/2015 15:32

I have re read the FCA notice and not convinced there are in fact any restrictions now remaining at all.

[dodge meister] 23/11/2015 15:26

Another quality piece of FT reporting admitting they struggle to differentiate between requirements and restriction.

[tonysss13] 23/11/2015 15:10

pbutterworth

Maybe, but the fact that they are being conservative with the truth would be a red flag to me. And the extra work in applying for accounts may slow down the turnover of customers they need to fleece to survive

and as I said before, why are they now happy to use shareholders money to buy shares at this level when they were happy to offload their lot at £4

are directors allowed to buy during a buyback? if so will they?

[pbutterworth1] 23/11/2015 15:04

tony - perhaps management will fully focus on resolving the UK element again now PTECH has gone....

[tonysss13] 23/11/2015 14:55

oh dear



So does today’s more definite comment mean the FCA has lifted its restrictions? According to a Plus500 spokesman, it does.

Yes, the Group means Plus500 Ltd and its subsidiaries – none of them have any restrictions on them. That includes Plus500 UK Ltd.

According to an FCA spokesman, it doesn’t.

The restrictions remain in place and are still detailed on the Register: hxxps://register.fca.org.uk/ShPo_FirmDetailsPage?id=001b000000NMTYtAAP “

[pbutterworth1] 23/11/2015 14:50

ps - Monkster - the directors were happy with £4 because they were offered lucrative sweetners.....

[pbutterworth1] 23/11/2015 14:49

In August we said -


macarre 10 Aug'15 - 19:38 - 10058 of 10203 1 0

Dead thread. Rest in peace.

ELcapital 19 Aug'15 - 14:15 - 10059 of 10203 0 1

Game over

ELcapital 20 Sep'15 - 10:42 - 10060 of 10203 0 1

maybe not

- We were wrong !!!!! As a former PLUS shareholder, and current Playtech holder, I am actually delighted with this new development and will be wading back into PLUS long when the initial dust settles in 2-3 days. I held Playtech for PLUS operations and will probably now sell it. PLUS is exciting, entertaining and a money making machine that encountered short term problems that led to undervaluation for PIs. Yes I was disappointed management sold out, but they will have learnt an awful lot over the last few months.

[the monkster] 23/11/2015 14:39

....again, why were the plus directors happy with £4 then ????????

[grassroots1] 23/11/2015 13:58

Kirkie what are you talking about when you say "I'm sorry-this isn't worth 400p per share". The aquisition failed because of the FCA. Something must be wrong with Playtech since the Central Bank of Ireland also blocked they acquisition of AvaTrade.

And can you offer some numbers as why it is a short? In the 9 months to 30 Sept 2015 revenue was up 28%. Number of new and active customers was up 46% and 38% respectively. EBITDA margins were down in their last half yearly report due to exceptional cost relating to the know sorted regulatory issues. They had to hire a lot more staff to sort it out, increasing their administrative costs in the short term. Going forward, I expect continued revenue growth and material improvements in their EBITDA margins.

I can see short term downside due to Playtech selling off their shares, but in the long term this is a strong buy on most investment metrics. And can you inform us as to what the value is? I am going to buy some shares after writing a research report that I will post back on here.

[kirkie001] 23/11/2015 13:11

Surprised (but not very surprised) that Playtech's proposed acquisition fell through.

On one level, there's "obvious" value here - multiples are low; customer numbers and revenue continue to grow, etc.

But at the macro level, it's almost impossible to put together a case that the equity is a buy. You've had a buyer, who's had full access to both the Company's books and advisers, and the regulatory authorities, turn round and say "I'm sorry - this isn't worth 400p per share".

You can't get much more damning than that.

If one were a mug punter, rather than an investor, you might take a short term view and try and trade one way or the other - but as any kind of investment, this is completely shot. Anyone taking a position in this for any longer than a few days is deluding themselves if they think they know what the value is.

[tonysss13] 23/11/2015 13:11

I see his lordship also picking up on my previous point

[the monkster] 23/11/2015 13:01

I hear you dodge but why were the plus directors happy to be taken out at £4 ??????

[dodge meister] 23/11/2015 12:39

This got trolled horribly (with predictions designed to scare the willies out of investors )when it came out that they had to take remedial steps in response to regulatory requirements. This drove the price down with Playtech being opportunistic in their bid. Since the high volatility days very few leveraged products are now available to traders (IG Index lowest tier is 25% for positions 0-32 pounds a point, which is very small positions compared to pre crash). So hopefully this will not attract the more unpleasant of the boards occupants and not attract the press comments accordingly.

The operation of the company does not seem to be too damaged from the affair, the question I have is what cost affect the extra regulation has...but the cost implication here seem to be well covered in the low share price. The company seems to be a good cash generator with significant growth opportunities.

[udyy] 23/11/2015 12:36

PTEC has problems as clearly indicated by the AVA purchase which was halted by bank of Ireland. Probably now they were expected to get the same treatment from the FCA. PLUS, PE=6.9 at >20% growth, 7% expected dividend yield and PE is grossly undervalued when compared to its main competitor IGG, priced at PE 21 currently with less than 0.3% growth and 4.1% dividend yield.
Bought PLUS this morning all the way up from 290 and will continue buying. Covered my PTEC short.

[grassroots1] 23/11/2015 12:00

I am opening coverage on this stock with the aim to build up a long position after my research. But from my scim reading their financials. They seem disgustingly undervalued at this level. Fair enough uncertainty still clouds their customer AML process. But with a PE of 5.9 and 20% increase in revenue growth in their last half-yearly report I can see them weathering this 2-3 years down the line.

I was actually going to buy Playtech because of their acquisition of PLUS500. What do others think?

[dlku] 23/11/2015 10:32

GLOB prob dun it

[dodge meister] 23/11/2015 10:27

A lot of the shareholders were not happy, that is why playtech bought 10% to get the deal over the line.

Looking like this should have a dividend next year around the 10% mark;-)

[tonysss13] 23/11/2015 09:19

so the major shareholders were happy to sell out at £4. and now they are desperately trying to prop the price up with shareholders money at £3.50. If I we're a shareholder I would not be happy

[seernb] 23/11/2015 08:37

Togglebrush, thanks. That does make sense. Well, I did think of doubling down but I waited for a dip back down to the 300p level, which hasn't happened.

[togglebrush] 23/11/2015 08:33

Re Seenb 10189

Playtech will not incur any financial penalties with respect to the termination of the acquisition of Plus500

[seernb] 23/11/2015 08:31

Do Plus500 get the breakup fee? I know they would get if Playtech walked, but what about if the merger was cancelled because of regulators?

[dodge meister] 23/11/2015 08:29

FCA are not happy with PTEC, it is not a PLUS issue.

[togglebrush] 23/11/2015 08:29

FWIW

Playtech has no immediate plans with respect to its existing 9.9% holding in Plus500.