Plus500 Share Discussion Threads

[sailing john] 23/11/2017 08:11

CMCX 1H today strong (mainly due to ARPU uplift) and positive outlook
IGG TS end of next week of more interest though (edit 5th Dec)
And PLUS divi pay day today 23.87c less tax - as always can take between one and ten days to hit accounts depending on broker

[nurdin] 23/11/2017 07:23

Many thanks.

[aakash30] 22/11/2017 23:16

From 2016 Plus annual report:

"We have started to make the necessary adjustments
to comply with the regulatory changes that were
announced during 2016 and we will continue to adopt
any future requirements, as certain regulators continue
to go through a consultation and implementation
process. Proposals to reduce leverage are expected to
have the greatest financial effect. In this regard the UK
regulatory proposals have the most material impact and
we note that approximately 20% of our revenues are
currently derived from the UK regulated subsidiary. At
the same time, we have a highly flexible business model
and a lean cost structure to help mitigate the impact
of regulatory changes on our financial performance.
Overall, we anticipate that the industry will consolidate
around a smaller number of larger participants, of which
we believe Plus500 will be amongst the leaders."

[nurdin] 22/11/2017 21:37

Useful posts there Aakash,thanks.However I cant see where the Company has stated that their exposure to the FCA regulation is only 20%.Could you please point it to me? cheers

[cg8riverside] 22/11/2017 16:12

Let's look at the recent share purchase by Non Exec Director Daniel King hxxps://uk.linkedin.com/in/danielking1 This guy seems like a shrewd cookie and in the habit of making money on his investments.

He bought...
13259 shares in Nov 2015 for £45k
5558 shares in June 17 for £30k
5323 shares in Nov 17 for £50k

This month the guy made his largest purchase to date and increased his holding by 66% at a price of £9.39. He knows a lot more about what's to come than any of us. Follow the money. Plus500 is smashing the worldwide Crypto sector in particular. These markets run 24hrs per day 7days per week and are more volatile than anything the world has ever seen. Plus500 is going to the moon along with the Cryptoverse in 2018.

[sailing john] 22/11/2017 15:49

Everyone still talking about cryptos and not just professionals as also getting regular mentions on TV

[aakash30] 22/11/2017 12:23

Hi Alan,

The 60% of revenues going through CySec is mentioned by James Hanbury of Odey Asset Management in his quarterly reviews. Also Plus have mentioned in the past, the amount exposed to FCA regulations is 20%, so I assume 20% from UK sub, 60% from CySec and 20% from Australia (roughly). But I am no expert in understanding how they manage this side of the business, any comments welcome.

Regarding Japan- see this:


Also in addition to the above, while skimming through work Odey had done on this - they mention they had looked into the top 4 FX brokers in Japan and their Trading revenues were either stable or increased right after regulation. They also have a nice graph on it. If you want that report PM me, I could email it to you.

[alan00] 22/11/2017 11:40

Hi aakash,Are you able to share your source for 60% of revenues going through Cyprus leverage limit? I wouldn't have thought they would be applying those regulations anywhere outside of Cyprus. Thanks for the post on Japan, I'm interested in what happened there, if you have any data / links on this that would be appreciated. Thanks

[aakash30] 21/11/2017 20:35

Whoops, sorry, I really have to learn how to post. (sorry for the doubles)

[aakash30] 21/11/2017 20:31

Another interesting points based on my research (and correct me if I am wrong):

~60% of Plus500 volumes go through CySec arm (Europe volume)
~Cyprus had already implemented leverage restrictions in Nov'16

Measures announced by CySec:

a) Default leverage of 50:1 on account and increased leverage allowed only if client demands it and passes appropriateness test
b) No bonuses
c) Negative balance protection - always offered

Now 60% of their volumes go through Cysec and these regulations were present all of 2017 and Plus500 has performed stellar through 2017 (granted some of it is due to Cryptos)> that suggests that they can perform well through upcoming ESMA leverage restrictions (if any)

[aakash30] 21/11/2017 20:18

double post

[the monkster] 21/11/2017 16:59

back to 3 quid we go then !!

[dennislevine] 21/11/2017 14:06

Giambrone look like a dreadful outfit - a key participant in a property scheme with alleged mafia and IRA connections:

hxxps://www.lawgazette.co.uk/law/law-firm-liable-over-mafia-property-scheme/5062305.article

"A law firm that became embroiled in a property scheme that was abandoned amid allegations of 'mafia' connections has been told it must compensate nearly 200 investors for loss of deposits"

"In 2013, Giambrone’s name was ordered to be withdrawn from the SRA’s Register of European Lawyers over ’accounting irregularities’; in connection with the scheme"

Ambulance chasing law firm - a few google searches reveal that they have plagued the binary options and FX markets looking for "victims" - Giambrone then ask for money upfront to take a "claim" forward - well you can guess what happens next, needless to say Giambrone become hard to get hold of.

[pbutterworth1] 21/11/2017 14:00

The share is indeed off the shoulders as I thought it might ;-) IMHO regulatory risk is in the price already

Giambrone appears to be a reputable company but is targeting a wide variety of binary options players and is basically on a fishing exercise. The lack of regulation is their opportunity, and I really can't see significant damage to PLUS who will likely respond well to forthcoming regulatory change - lets face it they have had enough experience of these issues already. As sj highlights human nature and interest in such instruments is not about to change

[mickharkins1] 21/11/2017 13:54

Thanks sj. I just became aware of it and am not trying to scare monger...just got me nervous as I had a large holding and have been through a couple of share price crashes with PLUS the past few years!

[sailing john] 21/11/2017 13:51

Mick - that has been around for ages
Look at PLUS T&Cs - bullet proof imo
People lose money and look for somebody to blame - it's human nature!
GL though

[mickharkins1] 21/11/2017 13:45

I also reduced my stake the past few days when I became aware that a law firm appear to be putting together a class action lawsuit against the company:

hxxp://www.giambronelaw.com/site/servicesforindividuals/binary-trading-litigation/english/class-action-plus-500/

the company are very cheap on fundamentals but seem to be constantly dogged with reputational slurs.

[pbutterworth1] 21/11/2017 12:32

good post aakash thx

[xajorkith] 21/11/2017 11:09

Fair enough nurdin.

I suppose it depends on how you view the risk on/risk off balance between a booming business & the threat of upcoming regulation.

Happy to hold myself & expecting a positive year end update.

[pbutterworth1] 21/11/2017 10:15

GL Nurdin. I think its bottomed. Lets see....

[nurdin] 21/11/2017 08:52

Decided to step aside for now...looks quite weak

[pbutterworth1] 20/11/2017 17:31

JPM are back at 5%. I think, with the share price now down to recent shoulder at today's close, there might be buy backs at this level (925p) Certainly on the chart this looks like a potential turn point ahead of div 23rd. We will see.....

[sailing john] 17/11/2017 19:34

Stuffee re buybacks I posted this a few weeks back

"I think they had good intentions regarding buybacks but perhaps set a price cap too low. I had thought that a MACD limit was initially stopping buy backs but I note in their original announcement of 2nd June 2017 they mention share price as one of several restrictions (and I assume something similar for the further buyback announcement with 1H results 7th Aug)

Looking at the only bubacks post Aug 1H results 7th 741p, 8th 798p 9th/10th none (price above 820) 11th 807p and no further buybacks
Suggests that perhaps a price limit set around 810-820p
So I'm not expecting any further buybacks - and presumably they will have to give a bumper special divi at YE to catch up!"