Plus500 Share Discussion Threads

[sb888] 20/9/2018 13:15

dl you have just totally contradicted yourself then

[financethoughts] 20/9/2018 12:54

The figures put out by IGG are clearly troubling the market as seen in the share price reaction, but this is a company who operates on a tighter operating margin, and ROCE than Plus500. A revenue impact for Plus500 is arguably more impacting as they are more efficient at converting that revenue to operating profit & in turn into FCF. But this has already been factored into the price by way more than the -5% seen by IGG. If we assume Plus500 H2 revs are -30% compared to H1 (I personally expect much less impact), we’d still see $400m free cash flow or around £2.65 per share, which would still value Plus500 at only 5.8x FCF. IGG is around 15x. I hold & remain very enthusiastic for price appreciation once the Q3 figures are revealed in late Oct.

[f15jcm] 20/9/2018 12:49

Turned a decent profit on Kier this week. Large short positions do seem to come unstuck quite often. Kier, Occado etc. My short tip of the week: Topps Tiles (see Kingfisher and UCG updates). Made a few quid on an IGG short this morning. Could't work out why it had just gone up, unlike CMCX and PLUS, when arguably they were most exposed to the effects of ESMA.

[poolefox] 20/9/2018 11:58

Massive short interest in Kier, 19%.They got that wrong as well.

[dl6789] 20/9/2018 11:36

sb888 - I did check the facts before I posted that and what you actually said, word-for-word was "There is a reason it trades so low when compared to the rolls royce of the sector IG" and "Do not make the mistake of comparing to IGG, there is no comparison"... I was paraphrasing

[dumbbunny] 20/9/2018 10:24

sb888, the loss ratios of c. 80% for both IG Group and Plus500 would evidence that it doesn't matter how a company treats its customer order flow (whether it's internalized or hedged), the outcome for the customer is same.

It's, therefore, a myth to say that because some of the order flow is hedged, potential conflicts of interest are managed better or those customer outcomes are improved. The evidence, simple does not support it.

[sb888] 20/9/2018 09:42

I have never said that dl6789

You really should check up on the facts before you gob off

I said there is no comparison between the two, because PLUS operates as a bookie that makes its own prices.

[chucko1] 20/9/2018 09:19

To answer a previous question - Odey are short in IGG half of what they are long in Plus. Regulatory hedge. Smart.

[rackerrs1] 20/9/2018 09:09

morning pig filth

[dl6789] 20/9/2018 09:01

sb888 - you've also been raving about how Plus can't compete with IG and IG will be the winner out of the two. How is IG's share price doing today?

[sb888] 20/9/2018 08:58

i dont need to, share price doing the talking

[andrewclarke99] 20/9/2018 08:57

Nothing constructive to add then SB

[sb888] 20/9/2018 08:57

Suppose i should thank fenners, was hovering whether to average ap, and he nudged me to do so

[sb888] 20/9/2018 08:55

Always a bad sign when the bulls have to start making up excuses lol.

[sb888] 20/9/2018 08:54

Good morning ladies

[dumbbunny] 20/9/2018 08:51

So in summary, there has been no fall in IG Group Q1 ARPU against 2017 after 1 in 3 months of ESMA reduced leverage. IG's fall in revenues Q1 is due to a reduction of active customers during the quarter. Not because of reduced revenue per customer.

It would, therefore, appear IG Group's fall in revenue is not so much ESMA leverage related but because customers failed to turn up to trade in sufficiently higher enough numbers during the quarter.

Is the reduction in active customers due to:

a) a fall in new customers;
b) a fall in returning customers;
c) lack of trading opportunities in the quarter.
d) all three?

[brexitplus] 20/9/2018 08:44

Proactive investor on IGG

“IG Group Holdings PLC (LON:IGG) reported a 5% drop in first-quarter revenue as the spreadbetting firm experienced lower levels of volatility in financial markets than last year.

Revenue fell to £128.9mln in the three months to August 31 from a record of £135.2mln a year ago even as the number of clients rose by 3% to 129,000.

The company said the heightened level of volatility in financial markets that boosted last year’s results had not continued into the new fiscal year.

Revenue fell in the UK and the European, Middle East and Africa divisions by 8% and 12%, respectively, offsetting 7% growth in the Asia Pacific.

New measures by the European Securities and Markets Authority (ESMA) to clamp down on the sale of so-called contracts for difference led to a significantly lower volume of trading by retail clients in the UK and the European Union in August.

IG told investors that it was not “possible to draw conclusions” from a one-month period as it would take for retail clients to adapt to the new rules and change their trading behaviour.

“The group's performance in the month of August has not changed the company's previously stated view that the impact of the ESMA measures on historic revenue would have been a reduction of approximately 10%,” the group added.

The German subsidiary IG is setting up ahead of Brexit has received a licence in principle, subject to conditions from the regulator to offer financial services to EU clients.

The firm said this “provides certainty that IG will continue to be able to offer its regulated financial products in all EU member states following the UK's planned exit” from the bloc.”

[dl6789] 20/9/2018 08:39

This has probably been mentioned several times, but I have just seen that one of Plus500's biggest shareholders (Odey) holds the largest short position for IG (1.89%). They must be fairly confident that Plus will be taking business away from IG

[dl6789] 20/9/2018 08:26

Although not the most encouraging news, surely this has already been priced in to Plus500's share price and the reason it is down 26% from its recent highs after stellar results?

[brexitplus] 20/9/2018 08:20

Nothing much to worry about here. Plus no binary. Good opportunity for Plus to take customers from IGG.

[andrewclarke99] 20/9/2018 08:14

Down 8% already for IGG. Plus down 3.2%

[andrewclarke99] 20/9/2018 08:12

IGG is taking a large hit

[andrewclarke99] 20/9/2018 08:10

Looks like plus has come out in sympathy. Significant little drop this morning