Plus500 Share Discussion Threads

[planelondon] 07/8/2017 11:35

Spectacular H1 set of results for Plus500. I would imagine Peter Hetherington, CEO of IG Group, is twitchy in his chair this morning.

[nfs] 07/8/2017 11:22

Excellent analysis sailing John, correctly identifying the impact of reduced marketing cost per customer.And they exceeded your estimates comfortably.Fabulous numbers.The cash on hand is hugeWell done to all holders.So do we think double H1 eps to get the full year?

[pbutterworth1] 07/8/2017 10:40

Back from Hols. I did not think I would buy (even more) PLUS, but the successful buyback programme (and its extension), reducing costs/user, increased sales/user and solid consumer marketing activity are persuading me to increase further. Even at £8 the shares look significantly undervalued. GLA and DYOR. PS THX Metis for excellent post 25th July in answer to my buyback Q.

[elcapital2017] 07/8/2017 10:22

shorting territory now

[its the oxman] 07/8/2017 10:15

Berenberg raises target to 875p

[nod] 07/8/2017 08:59

Impressive. Good for us Playtech holders.

[letsmakesome] 07/8/2017 07:28

Plus 500 doubles pre tax profithttps://otp.tools.investis.com/clients/uk/plus500/rns/regulatory-story.aspx?cid=1399&newsid=899151

[planelondon] 03/8/2017 11:34

ShareCast News: Berenberg upgraded its rating on Plus500 to 'buy' from 'hold' and lifted the price target to 725p from 560p as it said cash flows could be undervalued and the group's first-half results on 7 August could beat expectations.
The bank noted that after a sharp fall in December 2016 after the Financial Conduct Authority published proposed regulatory changes, Plus500 has been among the top performers in the diversified financials sector, rising 62% year-to-date.

"We believe that regulation is the key driver of the top line at Plus500, and, as it is hard to forecast, rarely positive, difficult to time and even harder to model in terms of its intended and unintended consequences for customers and competitive environment, the road ahead is unlikely to be smooth.

"However, we also believe that Plus500 has a business model that works, can adapt and is generating very strong levels of cash. As a result, we think there is an argument that these cash flows are being undervalued."

Berenberg pointed out that Plus500 has low working and fixed capital requirements, meaning that it has high returns on capital and can return a large amount of cash to shareholders via dividends or buybacks. The bank's forecast dividend implies a yield of around 9%, but this could turn out higher.

[planelondon] 02/8/2017 16:07

Following the Bitcoin fork, Plus500 has today added BCH/USD (Krakan) to their crypto offering, bringing the total to seven. Although it doesn't appear tradable at the moment.

[sailing john] 02/8/2017 08:16

Kindly posted elsewhere
"SJ, watched Atletico Madrid play in a friendly last night, they are playing again tonight on ITV4. Their new shirt does a much better job of promoting their sponsors PLUS


Similar shirt for Brumbies Aus Rugby that PLUS also sponsor

And just for Lydnem here is IGs attempt at sports sponsorship. If you look closely you can just see the G!!!


Of course IG mentioned sports sponsorship might be under threat from ESMA ruling in 2018 in their latest results - perhaps so but will take a few years to implement and in the meantime PLUS are raising their profile whilst IG leave everyone guessing at Harlequins matches as they sing - "Who the hell are IG" - sorry Lyd couldn't resist!

[the monkster] 31/7/2017 22:21

yes well done lol. that's a big holding you have obviously. Not surprised you've sold up, just one force majeure after another. What next I wonder.....

[linton5] 31/7/2017 17:43

Clear and present danger mate😉, mine as well, what a carry on they said there was no serial number on cheque so had to re apply. I was due 10k got 7.2💩.,I'm gone monkster. Good luck with your investments

[sailing john] 31/7/2017 13:10

PLUS Twitter feed


Big focus on Cryptos recently - not surprising given the volatility
They now trade 6 cryptos vs 2 at IGG who have recently added Ethereum

Edit - example Crypto spreads (slightly tighter at IGG currently)
Bitcoin 0.54%
Ethereum 1.57%
So a decent margin for these volatile instruments!

[sailing john] 31/7/2017 12:59

My latest model output for info dyor etc. - slight increase to Q2 following IGG FY showing strong comparative Quarter
1H Rev $162.5m  (+2% compared to 1H16)
1H PAT $68m  (+52% compared to 1H16*)
(*1H 16 comparitor included higher selling expense on Brexit vote customer surge.

I have shown the comparison with 1H 16 to demonstrate that despite Revenue being flat the step change reduction in Selling expenses they have achieved recently is likely to give a 50% increase in PAT (my model output)
I don't think Mr M has fully priced this in yet!

ShareCentre 2017 Market forecast appears to have been increased in the past few weeks from a PAT of £58m to a PAT of £75m for the full year.
Or approx £38m for 1H assuming a 50:50 split
My PAT now £52m for 1H still some 37% higher than the SC market forecast

[the monkster] 31/7/2017 12:47

LINTON5 - the chicken's in the pot !! (if you can name me the film i'll be really impressed)

[planelondon] 26/7/2017 22:41

Sailing John. I think you are spot on with your analysis. IMO a spectacular set of H1 results are coming. Likely this performance will have carried over into July with increasing cryptocurrency trading and a strengthening EUR/USD (Plus had 200m of EUR earnings 2016) pushing revenues further ahead.

[sailing john] 26/7/2017 16:52

PLUS and IG both closed at around 623p
Which will make Plus's 1H interesting
Why?
Well IGG full year eps was 46p
I'm expecting Plus's half year eps to be around 46p
Which will make the valuation differential rather obvious!
What Mr M hasn't yet priced in is the step change reduction in marketing cost that Plus has achieved without a significant impact on new customers.
1H 7th Aug
SJ

[shaker44] 25/7/2017 17:25

Thanks metis. Great post. Good clear info

[the monkster] 25/7/2017 15:10

Yes will do. They lost the cheque last time from memory. As I said I work for a fairly "on the ball" outfit and they only paid the other day so.......may be a while yet!!!

[pbutterworth1] 25/7/2017 13:04

SJ, Thanks and GL. I too am significantly overweight, and am wondering where they are with the buyback programme. I have a feeling they are nowhere near used up the authorised potential share allocation to treasury

[sailing john] 25/7/2017 08:42

Had chance to review IGG FY yesterday (on holiday last week)
Their Q4 rev was slightly higher than I had forecast so I have adjusted my PLUS model upwards slightly
Impressed and slightly surprised by the very positive market response to IGG FY
So yesterday I added to my already very overweight position here at 600p
Strong open today - I will post my revised model output when I have more time
GL - SJ