Plus500 Share Discussion Threads

[wildchild] 04/3/2018 17:40

When is the ESMA news expected ?

[poolefox] 04/3/2018 15:04

Mr Market knew the founders were touting £80 m of shares and it may have held back the share price but the shares still fell 8% when it was announced.Ill be surprised if the price doesn't fall when the regs are announced but it'll only be temporary

[nurdin] 04/3/2018 14:32

Here are the reasons why the Company doesnt thinks the current ESMA proposals will have a significant impact on their business :

1) Elected professional process;

2) Increased momentum within the markets outside of Europe (AU operation etc.);

3) Expansion into new markets thanks to the grant of new licenses (Singapore, South Africa etc.);

4) Increased brand awareness in Europe.

From the horses mouth!

[michaeljames1] 04/3/2018 13:58

I'll be adding more if the opportunity presents itself when ESMA news is released, expect a small fall irrelevant of the effect on PLUS which could be a great chance to get some on the cheap.

[aakash30] 04/3/2018 09:25

The couple of other reasons I think Plus trades at a discount to IG:

a) It has an average a more amateur client base than IG group who have a more professional client base. You can see that if you look at ARPU's. These clients on average churn more
b) I don't think the market has fully overcome its negativity on Plus and I know some investors who would not invest in Plus regardless of its numbers

That being said, I think Plus is still one of the most undervalued shares out there. I don't think you are going to find a stock with >100% ROIC, strong earnings growth and a market share leader at <10x earnings. The firm is extremely efficient. Its costs on employees relative to operating expenses is 15% whereas for an IG and CMC this is roughly 50%. Their technological expertise gets them this efficiency. And all that extra cash is returned to the shareholders.

The South Africa and Singapore licenses are huge for the long term. 2108 Q1 is going to be really really good. Thats one of the reason they guided above expectations for the whole year. Think about it Q4 was great even though Crypto was mostly one way and going higher. They still managed to monetize it. In the Q1 market environment, with their much larger customer base they will be knocking the ball out of the park.

[chucko1] 03/3/2018 20:57

I would be more worried if they did not sell. They are supposed to be risk managers and this is what they are doing. They are selling, dividend adjusted, for pretty well 50% more than just four months ago.

Also, all this stuff about cryptos etc. Helpful, but only a fraction of the story. There was little volatility in Q4 and all markets were low vol. in all of 2017, Crypto apart. But Q1 has seen much higher volatility for almost its entirety and with these far higher client numbers and possible higher numbers still arising from the new license awards, I can see why there would be new investors at £11. Good luck to anyone attempting to time their investment here - a foolish proposition. To anyone shorting, I hope you have a loving family.

I would also say to technical traders here attempting to determine double tops and all of that, for a stock with very high earnings growth, news is what matters and not charts.

[stuffee] 03/3/2018 17:22

Important to point out that 5 founders sold the 15m shares yesterday, not the Board. Only one of these, Gal Haber, was stll a director; he was Chief Exec until Feb 2016, when he stepped down to a more minor role.

These 5 founders had been trying to sell these shares for the last 5 months; their attempt to place these shares in Nov 2017, when price was £8.50, failed due to market slipping. I feel the expectation of this placing has held price back since Plus announced its impressive statement with its 2017 results. Although I guess the indigestion from this placing (and also ESMA uncertainties) will hold back share price for maybe a week or two, thereafter I believe there will be fun.

I suggest some of the comments above are a trifle unfair, criticising the Board for bullish statement on trading then dumping stock.

The executive Board are heavily incentivised through continuing large Share Appreciation Rights in Plus (effectively CFDs).

I also suggest Plus suffers from a slight discount to IG through its AIM quote rather then being fully listed. I have been encouraging the Board to seek a full listing, when Plus would gain considerably from FTSE 250 Tracker Funds.

[noujay] 03/3/2018 15:49

Chequered past history perhaps? Hence I'd like to see some name institutions on the shareholders list next week

[jim morrison 103] 03/3/2018 15:25

Could any one tell why we trade at big discount to ig group

[andyj] 03/3/2018 15:17

An unusually optimistic board, although unhealthy naivety in some cases. No doubting the growth potential of the company, but what are the concerns?1 The crypto currency regulations are going to slow new customer growth. Remember too, the fourth quarter was a time when they were consistently in the news which surely brought much of those new customers in. How many will stay once they realise they have not found the elusive goose? 2 It is rather odd to announce your results are going to be significantly ahead of expectations and then quickly sell a large chunk of your holdings. It does not inspire confidence. 3 There have been three attempts to break above 12 pound. Each have failed and attracted a mass of selling. The uptrend is now threatening to end in a multiple top.With markets nervous, enough positive momentum to push higher might not be easy.

[burn248] 03/3/2018 12:41

We could well go down a bit further next week bad market at the moment thanks to Mr trump. Shorters will take full advantage of the uncertainty caused directors sell. Just hang on to your shares don't give them away at silly prices.

[noujay] 03/3/2018 12:23

Be nice to see a couple of large and familiar names in there to lend this more credibility and indicate that the journey ahead might be of a larger/broader scale

[burn248] 03/3/2018 11:51

We probably get a rns o n the 9 March and will know who the shares where placed with.

[noujay] 03/3/2018 11:25

I think the confidence will flow back with a decent trading update that validates the company statement that this year will be "significantly ahead of expectations".Re the trades who knows but once the chop has washed through this will settle and move upwards again IMO.Ok interested to see who the buyers are. If they are taking at £11 then they will see significant upside from there, as many here already do.

[burn248] 03/3/2018 10:54

The share price is going fluctuate for a few weeks,till confidence returns.Always happens when there is a sell by directors. As long as the company keeps trading well and pays big divis all will return to normal.

[jplus] 03/3/2018 10:01

Can someone clarify these "after hour trades", last time someone made comments about big out of our trades it appeared the next open should be considerably higher than the close. Yet it opened at the same price as the close. Again these trades would suggest it should open on Monday at 1105. I would suggest it will open at 1065 as per close. I asked a trader friend & he said they were most likely trades from earlier in the day logged late. Any views?

[andyj] 03/3/2018 08:31

Not important how big the buy is. The seller was equally happy to get rid of them at a much lower price.

[dannyt90] 02/3/2018 18:32

Big buys towards closing

[noujay] 02/3/2018 16:58

Plenty of large ones after hours. Must say quite surprised it's fallen so much but I think it's reasonable to expect a different picture same time next week

[noujay] 02/3/2018 13:17

Plus win both ways in trading terms and so any volatility/events (eg Italian elections per a recent email from them) will be capitalised upon by their marketing team to drive traders to Plus.Then hopefully they, as with the gaming companies, will participate in other markets/asset classes.

[dannyt90] 02/3/2018 13:02

Almost seems like a catch 22. With the volatility in the market, hope is plus500 gains new members looking to short the market but on the other hand the share price of plus500 drops with everyone else!

[noujay] 02/3/2018 13:00

Not sure this is particularly bad news, they've got some cash out at a decent price but equally an institution or two will also be in at a decent price. It may well form a new floor as was pointed out earlier.Recent volatility will be contributing to the strong start to the year so looking forward to the next trading update

[andyj] 02/3/2018 11:47

Risky day to buy. Everything with bad news will get battered.

[poolefox] 02/3/2018 10:15

Added more at 10.90