Plus500 Share Discussion Threads

[elcapital] 25/11/2015 13:28

share price is only here because the old deluded bulls are buying back in, and the company are buying back.

[hpcg] 25/11/2015 13:25

Indeed CC2014. As strange is the gap between the share price with a "guaranteed" 400p result - better than 10% return at 350p - and then price action like this when the definitive return is no longer available.

[cc2014] 25/11/2015 13:19

When was the last time you saw a failed takeover followed by a sharp rise in the share price? Something very odd going on here.

[elcapital] 25/11/2015 13:15

Really, you need to disclose you are talking your book.?

Here is a little tip for you. You should look at your position from a neutral point of view and not try and make excuses for it all the time.

The directors were happy to take 400 for it, PTEC have walked away, and the company are trying to ramp up the share price with a buy back. We are still unsure of the real reasons behind the regulatory problems bur we do know they are transferring to a MUCH more lax regulatory jurisdiction.

If you cant see a reason to short in all of that lot, and there is more, then you are delusional.

[andrewbaker] 25/11/2015 13:10

When a company is struggling to handle the business volume it has being offered to it, due to regulatory requirements, especially financial services in the UK where the regulatory environment is not only draconian but agonisingly tedious, then one should be jumping at the chance to buy shares cheaply. Talk of shorting is delusional. Plus500 won't be shut down by the FCA, and would be welcomed with open arms in other places where regulation is not so onerous. 400p. will soon be an historical support level, with the share price a long way above that. The UK FCA is doing shareholders a big service by blocking the takeover, as the share price may now rise to the level it should be ... a damn sight higher than it is now, IMHO.

Disclosure: long Plus500.

[elcapital] 25/11/2015 13:02

Yes it is!

Why do you think they want to move away from the FCA?

[dodge meister] 25/11/2015 12:56

Cyprus is has EU regulatory body, not an issue.

[elcapital] 25/11/2015 11:20

Why do the bulls not understand the difference between Cyprus regulation and UK regulation? Why do they think they are moving to Cyprus. Wake up

[dodge meister] 25/11/2015 10:57

dlku, where is that quote from...never mind found it from that poor FT article. They are choosing to take people through Cyprus...no problem then.

[elcapital] 25/11/2015 10:31

When you have as much experience as I, you will see that they are doing everything they can to support the share price. Ask yourself why. If all is so good, why support the share price?

[dlku] 25/11/2015 09:56

have the customer data problems been resolved

[liquidkid] 25/11/2015 09:40

Is that what they call it nowdays 'imposed holiday' they should have kept the straight jacket better tightened and had the professionals run a few more 'appropriateness tests' before your release/escape.
'Still not right' Eh. You know you shouldn't really be trading a stock like this. It is too complex and not a good fit to your risk tolerance. The FCA have said it is "likely" that all investments on AIM will be considered too complex for unsophisticated retail next next year.

[elcapital] 25/11/2015 07:45

Well, if you are looking at director buys to be a positive, why didnt he buy below 300 in the morning. ?

I wouldnt follow his way of thinking, he could have bought them twenty percent cheaper!

[sailing john] 25/11/2015 07:30

Significant Director buy 70k at 349.3p

SJ

[elcapital] 24/11/2015 19:47

If all was as it seems, then your numbers might well be in line

There is something not quite right here, directors were more than happy to jump out at 400.

This will have an effect on turnover. I dont think any sane person would not want to trade through Cyprus with them

[sailing john] 24/11/2015 18:55

El - Re $20m buyback
It was pretty obvious to me given the wording "depending on market conditions, share price, trading volume and other factors" that the $20m buyback is likely to be a deterrent tool.

And like all deterrents it is better if it isn't used unless absolutely necessary. So my view is that it will just sit there in the background to put off any weak shorting attack that might be sparked by those seeking a quick return from unwarranted volatility.

For the record I have a comprehensive model and my forecast for 2015 is as follows (2014 in brackets) Yield and PE based on 350p stock price

Rev $278m ($228m)
PAT $83m ($114m)
PE 7.2 (9.4)
Yield 8.3% (6.4%)

Clearly there are some issues but I'm only interested in the bottom line numbers as I think they can weather the storm with the FCA. After all it was poor AML procedures during the onboarding process when they had a surge in new customers to 33k in Q1 15 which was about double the previous onboarding workload. I don't see this as a major issue relative to others (eg banks) that the FCA have on their radar.

[elcapital] 24/11/2015 18:26

Back after an imposed holiday

It didnt look right and it certainly doesnt now

It will more than likely run up to 400 or so now as they buy back the shares. In my view its a false market now, until they've spent the 20 mil. After that I think its a short ....again(it would be a short now but for the buyback imo).

[liquidkid] 23/11/2015 16:36

Here's the press coverage -
There are some certain concerns that are certainly concerning.

FTAlphapha - Still can't understand the magic. It's a Casino. (What isn't a casino?)

Evil - still thinks it is a Fraud (Evil - the funny names guy)

cablecarcrashcapital - say yes, your capital is still at risk (Jacob and the liar character)

businessinsider - (Oscar w. Grot, the fly on the wall...in the wc)
The regulator killed it And good on them for stopping gambling and broking combining, always looked questionable.

The FCA - reckon Sagi is a crook. and crooks can't run a regulated financial company.

[tonysss13] 23/11/2015 15:58

someone's cranked up a sell bot

[brahmsnliszt] 23/11/2015 15:52

hmmm rally up to 365 today looks to me like a sell the rally stock now.

[tonysss13] 23/11/2015 15:41

still there


Requirements
Requirements are rules placed on the firm that apply to all of the financial services activities that it can operate.
Requirement 1 30th October 2014
SCHEDULE
1. This schedule sets out the terms of a requirement to be imposed on Plus 500 pursuant to Section 55L (5) (a) of FSMA with immediate effect.
2. The requirement is that Plus 500 must:
(a) prohibit all account activity of existing customers; and
(b) not accept deposits from or open accounts for new customers
until it has obtained and verified those customers' due diligence information in accordance with the Money Laundering Regulations 2007.
3. For the avoidance of doubt:
(a) "prohibit all account activity" means 'freeze accounts' to prevent further deposits, trading activity or withdrawals.
(b) The requirements in paragraph 2 do not apply to the accounts of customers for whom Plus500 has obtained and verified adequate customer due diligence information.
4. An exception to the requirement in paragraph 2(a) is that Plus 500 may permit customers with open positions to close these on a business as usual basis, including adding variation margin funds if necessary prior to closure, but thereafter, all account activity, including the withdrawal of funds by the customer, must be prohibited until adequate customer due diligence information is provided by the customer and verified by Plus 500 in accordance with the Money Laundering Regulations 2007.
This requirement will remain in force until Plus 500 has satisfied the Authority that it is operating in compliance with the Money Laundering Regulations 2007 and SYSC 6.1.1 and SYSC 6.3.
Requirement 2 15th May 2015 (part 1)
SCHEDULE
This schedule sets out the terms of a requirement to be imposed on Plus 500 pursuant to Section 55L(5)(a) of FSMA with immediate effect.
2. Plus 500 must:
(i) in relation to existing clients, prohibit all account activity unless and until it has (a) advised all active clients in writing by midnight 15 May 2015 to the most recent email and/or postal address that they are required to complete a new questionnaire and, where applicable, provide additional customer due diligence documentation; and (b) advised all clients which are not active clients in writing by midnight on 26 May 2015 to the most recent email and/or postal address that they are required to complete a new questionnaire and, where applicable, provide additional customer due diligence documentation; (c) received the completed questionnaire and any additional customer due diligence that may be required to ensure compliance with procedures and the Money Laundering Regulations 2007;
(ii) in relation to new clients, not take on any new clients after 12.00 am on Friday, 15 May 2015 unless and until it has implemented new AML procedures which enable Plus 500 to verify those customers' due diligence information in accordance with procedures and the Money Laundering Regulations 2007;
(iii) in relation to new clients, not take on any new clients unless and until it has taken all necessary steps to ensure that its assessment of a client's appropriateness complies with COBS, in particular COBS 10;
(iv) take all reasonable and necessary steps to ensure that all future financial promotions (including financial promotions made via Plus 500's website) which are issued and capable of having effect in the UK (a) are balanced, fair, clear and not misleading; and (b) comply fully with the Conduct of Business Sourcebook ("COBS").
3. For the avoidance of doubt:
"prohibit all account activity" means 'freeze accounts' to prevent any further deposits, all trading activity or withdrawals;

"active clients" means all Plus 500 clients who have traded at least once in the last three months;

"procedures" refers to revised procedures which include revisions made to Plus 500's AML policies and procedures following implementation of the recommendations set out in section 5 of the draft section 166 report dated 27 April 2015 (and any subsequent recommendations made by Kinetic Partners LLP and/or the FCA).

Continued in part 2.
Requirement 2 15th May 2015 (part 2)
Continued from part 1:

4. An exception to the requirement in paragraphs 2(i) is that Plus 500 may permit (i) existing clients with open positions but who have not completed a questionnaire and provided additional customer due diligence to close these on a business as usual basis, including adding variation margin funds if necessary prior to closure, but thereafter, all account activity, including the withdrawal of funds by the customer, must be prohibited until adequate customer due diligence information is provided by the customer and verified by Plus 500 in accordance with procedures and the Money Laundering Regulations 2007; and (ii) existing clients who have completed a questionnaire and provided any required additional customer due diligence to continue with all trading activity pending the skilled person review referred to in paragraph 5 below.
5. The existing skilled person will review the steps taken by Plus 500 in compliance with paragraph 2(ii) above. A new skilled person will review the steps taken by Plus 500 in compliance with paragraph 2(i) above. The new skilled person will be appointed by Plus 500 under section 166 of FSMA subject to a timescale to be approved by the Authority.
6. Mr Mark Winton (Chief Executive) will attest to the Authority that Plus 500 has taken the remedial action set out in paragraphs 2(i), (ii) and (iii) above. Mr Gareth Derbyshire (Head of Compliance) will attest to the Authority that Plus 500 has taken the remedial action set out in paragraph 2(iv) above.
This requirement will remain in force until (i) the skilled persons appointed under paragraph 5 above have reviewed the remedial action taken by Plus 500 and confirmed to the Authority that Plus 500 has complied with the terms of the requirement set out at paragraphs 2(i) and (ii) above; and (ii) the attestations referred to in paragraph 6 above have been provided to the Authority.