Plus500 Share Discussion Threads

[gettingrichslow] 16/10/2018 19:23

Can you expand a little? I know you think that, but why do you think that?

[elcapital2018] 16/10/2018 19:13

PLUS is ex growth as a company

[gettingrichslow] 16/10/2018 19:11

Elcapital, do you think it is ex-growth in Singapore and Australia?

[elcapital2018] 16/10/2018 18:43

NO, Its now ex growth.

[s_a_b] 16/10/2018 18:13

Think a lot of it depends on actual ESMA impact and any consequent revisions to FY19 estimates. The price fall only makes sense if ESMA has a big impact on FY19 numbers IMHO.

[davebdavid] 16/10/2018 18:03

Can anyone see this sky rocket back towards late teens maybe 20 if we have a good set of results and reasonable outlook? Or was the 20 on the back of an amazing q1 and buoyancy in the markets, making it a little out of reach now?

[financethoughts] 16/10/2018 17:53

Basically speaking, nothing has changed since 13-Aug update. The market has taken an exceptional half-year earnings report and focussed on the reasonable cautionary statement about not expecting that to repeat in H2. The numbers tell the story to date - a very profitable, cash rich business with high operating margin & ample buffer for any profit contraction. None of us know the post Q3 ESMA effect & it’s pure speculation until then. I believe the update in 1 week will be better than hoped, but nobody knows until then.

[hatfullofsky] 16/10/2018 17:24

fenners6616 Oct '18 - 12:06 - 15338 of 15358

It was a simplistic example of the valuation mismatch, not a prediction of future earnings.

Please try harder when bashing.

[martin1975] 16/10/2018 17:09

PLUS500 P/E is significantly low but also the cost structure should be taken into account. Administrative and general expenses ( or fix costs) are in comparison with other low P/E companies really low. In H1 2018 it was about 5% of total revenues. Selling and marketing expenses are more variable and related to revenues. That means that for example 20 % drop of revenues means slightly above 20% drop of Net profit, which is still a great P/E. Compare this with other low P/E companies on the market. Usually 20% drop of revenues would result in loss or skyrocketing P/E.

[villarich] 16/10/2018 17:01

He doesn't have any more inside knowledge than you or I. If he did he'd have gone short at £20, not opened his first one at £15. And he wouldn't have closed them after a measley 100 points. Best just to filter

[villarich] 16/10/2018 16:59

No he's in the know ;-)

[gorilla36] 16/10/2018 16:59

Case rested I would say !

[elcapital2018] 16/10/2018 16:53

gorilla i have never seen you post once about the share so stfu and on your way troll

[gorilla36] 16/10/2018 16:51

Really sb/Elcap - If you want to be taken seriously here, discuss the share, provide analysis to substantiate your views.....long or short! You claim to have some inside knowledge....frankly put up or shut up.

[noujay] 16/10/2018 16:44

Ok fair enough hadn't realised that. I though he was just being a tit!

[villarich] 16/10/2018 16:41

Elcapital / SB888 knows something we all don't. But he won't tell us. And even though he is certain of his insight, he keeps closing his shorts...

[noujay] 16/10/2018 16:38

Which was what that Plus is full of embezzling crooks!

[elcapital2018] 16/10/2018 16:37

You miss the point completely

Never mind

[financethoughts] 16/10/2018 16:26

PE is naively used by investors, but earnings can be skewed by various factors (including deliberate skewing), so free cash flow is a much better value to derive. It’s far more reliable although clearly you can still get cashflow skewed by large expenses/income happening just into/outside reporting periods - not likely to be an issue for PLUS however. Comparisons to a Co (who subsequently went bust) with a low PE are irrelevant - PLUS has a unquestionable combination of low Price to FCF, and ridiculously high ROCE, plus pays out a large portion of that cash in Divi’s - no better evidence of cash pile really being there then regular dividends. Probably why PLUS is nearly 1000% up since 1993, whereas Polly Peck is bust.

[eentweedrie] 16/10/2018 16:20

tempted to buy back in now; bar any unforseen / unannounced issues amazing value at current share price

[noujay] 16/10/2018 15:34

I'm not sure Plus having cash balances as they do draws any similar parallels to a company that collapsed with over a billion quid of debt (in 91 too!).

[nurdin] 16/10/2018 15:31

..but did polly peck pay out huge dividends?

[elcapital2018] 16/10/2018 15:24

polly peck was on a really low PE for a long time too...just saying