Plus500 Share Discussion Threads

[poolefox] 25/1/2018 10:08

EPlus500, the top contributor to the fund for the year (+11.60%). 2017 was a period of significant progress for the company. At the start of the year consensus thought earnings per share would be down c.30%. We now believe they will finish up c.85% after five upward profit warnings. They continue to win market share, generate more operating cash flow than any other European CFD operator, and have more active accounts than the next three largest companies together (IG Group, CMC and Saxobank). We had some satisfactory regulatory clarity from ESMA as well in December 2017 on how further regulation will look in 2018 for retail clients so we believe a tighter regulatory environment suits Plus500 well. Historical examples from Japan and Singapore would suggest that lower leverage limits create a healthier CFD market in the medium term, albeit with a possible short-term revenue headwind for a couple of quarters. Apart from the leverage limits, all other changes proposed by ESMA should be of benefit to Plus500. This contrasts with IG Group which still offers binary options and where negative balance protection is neither routine nor without cost. We also believe the market will be surprised by how much of Plus500 revenues comes from 'professional' clients, to whom ESMA regulation does not apply. There will be very little reason for eligible Plus500 clients not to opt for professional client status, which we do not believe to be the case for IG Group clients. There were two new licence wins in the year for Plus500, including Singapore. We believe the company is well positioned to win further licences this year. Despite regulatory changes going through in 2018 (2017 also saw a lot) we believe the company is well positioned to generate good revenue and earnings growth this year. It starts 2018 with c.100% more active customers than the prior year, and has new licence revenue from Singapore starting in January. At its core Plus500 is a market-leading technology and online marketing business combined with a compelling consumer offering, excellent risk management and phenomenal cost control. We see the analogy of Ryanair versus the flag carriers 20 years ago as very appropriate to how Plus500 is positioned

Monthly performance
Year-to-date performance
CAGR since inception
These figures refer to the past. Past performance is not a reliable indicator of future results.


$ R Class 145.44 $ I Class 158.41 £ I Class 181.67 £ R Class 156.33 € I Class 165.90 Fund Size $159 million Strategy AUM $372 million Fund Inception 06 Jun 2013 Class Inception 22 Aug 2013 Fund Type Irish Long Only UCITS


James Hanbury Adrian Courtenay Jamie Grimston
For full bios visit odey.com






now. In the medium term, we expect Plus500 to drive home its competitive advantages in existing markets, and move into new territories and verticals. Our base case is that potentially there are multiples of upside to the current share price.

Figure xtract from Odey Allegra factsheet

[aakash30] 23/1/2018 08:19

Strong IG results

hxxps://www.leaprate.com/forex/brokers/ig-group-reports-record-1h-2018-revenue-establishes-germany-sub-ahead-brexit/

[sailing john] 22/1/2018 22:02

Cryptos bouncing around over the weekend +/-10% and off 10-20% today. PLUS appear to be exposed to the long side given the contract sizes on offer and the number of customers (though not value) sitting on the long side. The volatility is obviously good for business but I'm happier that overall they are off a little. BTC approaching $10k again having nudged $13k over the weekend

[sailing john] 21/1/2018 18:45

hfos - yes discussed above
You can have your say as I and an few others on here have via Leaprate
Won't change anything but good to have an input!

[sailing john] 21/1/2018 18:45

Duplicate deleted

[hatfullofsky] 21/1/2018 18:20

Response period closes on 5th Feb

Not sure if posted already

[hatfullofsky] 21/1/2018 18:02

CCY 3.33% Margin
INX 5% Margin
COM 10% Margin
EQU 20% Margin

[nurdin] 21/1/2018 17:59

Subject to consultation

[hatfullofsky] 21/1/2018 17:09

Anybody else use IG? Got a mail through showing the ESMA margin proposals, look very severe, would have to hold substantial funds

[sailing john] 18/1/2018 12:36

Nurdin I think that ESMA is advisory to all EU regulators but I assume they normally follow. UK might be different given Brexit and decide to do their own thing. They were awaiting ESMA before deciding what to do but might decide to take more note of comments from Industry and Customers

[nurdin] 18/1/2018 11:51

I wonder if the UK has to follow ESMA regulatory regime now that we are looking to exit Europe?

[nurdin] 18/1/2018 10:54

Mr M is taking consultation as quite positive!

[sailing john] 18/1/2018 10:52

Plus have been very nimble in reacting to Regulatory issues - remember the onboarding issue where new customers were switched to Cysec for a short period. They have many potential options - professional status, offering both a regulated and unregulated business in Europe? (if this is possible via a new subsidiary) and of course global expansion which is ongoing (and no doubt other initiatives I haven't thought about).

Plus's big advantage is the speed with which they can change their business and their global reach. I sold out before Christmas for 4 weeks nervous about PLUS's exposure to crypto long positions but they coped with that delivering ahead revenue and profit and 150k new customers in Q4 so I jumped back in. I have since the end of November been monitoring how they have been managing their crypto exposure and they are now changing buy/sell limits on a daily (hour by hour) basis with short duration contracts and biased premiums (+ve premium for short positions) on cryptos

Mr M doesn't know what to make of ESMAs latest announcement! Too many unknowns I suppose!

[metis20] 18/1/2018 10:46

Worth reminding ourselves of these extracts from the 10th Jan RNS ?

Asaf Elimelech, Chief Executive of Plus500 said:

"The guidance contained in the FCA's letter today is not directly applicable to our business model. However, we take note of the FCA's comments and guidance and we continue to ensure best practice compliance with the current regulatory regimes in all the jurisdictions in which operate.


Whilst the FCA issued this "Dear CEO letter" to all CFD providers, Plus500 did not receive any individual communication on the review findings as it does not and has never offered its products via these routes.

[sailing john] 18/1/2018 10:25

The proposals range from a Crypto 5:1 leverage limit to a ban. The 5:1 limit already in place for Cysec (most of Europe anyway for PLUS - introduced Oct 2017)
btw - I agree re Crypto limits - most new crypto customers likely to be looking for an easy way to invest in Bitcoin etc. Much easier via CFD than Crypto exchange/wallet etc. that most including me wouldn't know how to set up - or trust!

[dennislevine] 18/1/2018 10:19

any views on likelihood of ESMA banning crypto CFD's? FT article mentions "possible ban on crypto-products"

[nurdin] 18/1/2018 09:50

Ah..I see ESMA has reared its head again...this time initiating consultation process on its original proposals.

[sailing john] 18/1/2018 08:57

Yes - Mr M doesn't know how to value!

[nurdin] 18/1/2018 08:39

Any reason for the fall this morning anyone?

[sailing john] 17/1/2018 11:18

Yes crypto mini crash yesterday? and still falling slowly - If anything PLUS exposed on the long side so good for Revenue and volatility always good. Crypto traders now have a choice, buy the dip or sell the further fall? Or I suppose sit on hands for a few days! I expect most will wait for the turn as they want to be long. Hopefully some will get tempted by the opportunity to own 50 ounces of gold instead of a bit of machine code!
GL - SJ

[nurdin] 17/1/2018 09:31

A welcome bounce..wonder if there is anything behind it..

[pbutterworth1] 16/1/2018 18:50

sj - was that really 2015? wow how time flies..

[sailing john] 16/1/2018 15:11

Crypto mini crash - some commentary/theories here

I see McCrum back at FT Alphaville today and couldn't resist posting a link from 2015 re PLUS (yes 2015!) - you know that rubbish produced by the one and only (and I mean one and only since he is a one man band!) Jacob Ma-Weaver! of Cable Car Capital!

Was there legal action against Ma-Weaver back in 2015? I can't remember but I note that there is now a warning on his PLUS articles from 2015 "This content is not directed toward persons with residence or place of business in the United Kingdom." presumably McCrum failed to bother reading this before posting the link on FT Alphaville!? lol
Not even discussing PLUS! 11.57am -

[nurdin] 16/1/2018 12:12

Just done it... thanks

[sailing john] 16/1/2018 11:59

Nurdin - The current proposals re leverage 30* max are in the price (mostly) The consensus view is that it is too low for currencies and commodities with low volatility so I'm hopeful that it might be revised upwards (weren't FCA talking about 50*?) Anyway it is up to individual regulators what they do and won't affect PLUSs massive crypto market which is largely already capped (rightly so imo) at 5:1 by Cysec although FCA and others? haven't yet capped.
ESMA still in public consultation phase afaik and you can have your say via Leaprate (as I have) here