Plus500 Share Discussion Threads

[elcapital2018] 14/1/2019 19:42

watch and learn mug punters. im never wrong

[1oughton] 13/1/2019 22:13

Which Feb elcapital2018? because we all know your screen is upended.

[andrewclarke99] 13/1/2019 21:59

Bell End 2018 I think you missed out a "2" and the words "I will be" from your post above. Not sure why you felt the need to use such bad language so much, I can only assume it is your lack of education!!

[1oughton] 13/1/2019 10:33

Why does everyone hate you elcapital2018?I'll be your friend. But only if you turn your screen up the right way.

[gettingrichslow] 13/1/2019 10:02

ElCap, have you got anywhere with getting yourself a girlfriend? I think that would help sort out your issues?

[1oughton] 13/1/2019 09:19

Plz turn your screen up the right way elcaptial2018. You'll do very well.

[elcapital2018] 12/1/2019 19:20

you might not be able to!

[base7] 12/1/2019 17:28

Including shorts under 0.50% total 3-4% we are the most shorted stock on The Market & thecshorts have had the nerve to increase their positions despite the recent very positive trading statements & ahead of what will clearly be strong results accompanied by another bumper dividend.The share buy backs,in my opinion ,are symbolic ,& can create a small brake on sellers.Buy backs are often viewed cynically by The Market as indicating that the Board have run out of ideas & don't have any investment ideas or plans.However Plus throws off cash & continues to grow & if ,later this year,we announce entry into new & potentially substantial Markets ,we are likely to grow further ,resulting in the production of more cash & higher dividends.Perhaps as we throw off more cash the buy backs will increase,leaving those of us who are long a larger stake in this superb company.
I was fortunate enough to climb aboard shortly after the IPO & have only sold enough to cover my original cost & leaving me with a very decent 'free' holding which I have no intention of selling

[sogoesit] 12/1/2019 11:55

Buy backs, if managed properly, add to the "value per share" for those who retain the shares.
Good news.

[elcapital2018] 12/1/2019 09:33

Buy back helps accommodate founder sales. Not good news

[metis20] 12/1/2019 09:23

rvsy38

I agree that 0.5% is hardly massive. I was well aware of that relatively small percentage. However, do note that the US$10m is what the company has described as an "initial" amount.

IMO share buybacks are often much more to do with affecting sentiment than with reducing the number of shares in circulation. That could include by slowing, if not reversing, intra-day share price movement.

(I use to rapidly scan a company's RNSs)

[rvsy38] 12/1/2019 08:37

metis20

Many thanks for your detailed response to the question I raised - I never expected anyone to take the time to provide such a well thought out explanation.


I had no idea that the company had acquired such a large number of clients during the crypto-currency boom or that the founders had reduced their holdings so dramatically in the last few months.

You mention the effect of the share buyback announced on 23 October. I think that is not significant : PLUS has committed to buy back US$ 10 million worth of shares. Say the buy backs are at an average price of £14 (around US$18) that would result in buying back only around 550,000 shares , less than 0.5% of the shares in issue.

I have been very encouraged by the last RNSs,the intention to start operations in more countries and the recent forecast of 4Q revenue by Berenberg and look forward to the results in mid February.

[fenners66] 11/1/2019 23:55

Please stop feeding the troll , its all it wants.

As for shorts - max profit 100% sure you could leverage it a bit with cfd's - ha ha.
But longs from the 500's easy enough 300-200% and you could leverage that as well.
Add in the dividends and its a lot more.

[saltraider] 11/1/2019 22:32

I agree chucko ... in principle the increase in the value of the short and the cash the shorters have to find to pay the dividend are pretty much equal and opposite. But one is real money and the other is paper value.

The fact of the matter is shorters are going to have to find cash to pay the dividend. That is certainly going to sharpen up their thinking.

[chucko1] 11/1/2019 21:28

On the subject of the dividend and how it affects the shorts:

There is no theoretical reason that it has any effect on them. They do have to cough up cash for the dividend, but the value of their short increases by exactly the same amount. Also, the cash is awash as they would benefit from precisely the same amount as a reduction in margin. So little, if any, cash flow implication.

But there’s an interesting thing going on here. Let’s say that the total amount of shorts adds up to 20%. So the longs hold 120% of the stock and the shorts hold minus 20% (excepting those held in Treasury). The shorts have to pay 100% of the dividend, but the longs only get 75% (or 85% for the non-lazy ones) of the dividend. The difference ends up with the Israeli exchequeur. I guess the latter must be praying for even more shorting! (well, unless there was a proper reason for the shorts and the company fell upon hard times and had no cash to pay such dividend) - really??

[andrewclarke99] 11/1/2019 20:51

Nice work metis20, thank you for sharing your hard work