Plus500 Share Discussion Threads

[moneypenny2018] 12/4/2019 14:40

Anyway I am off. Good luck to all longs and shorts. Do your own research and as Elcap says don’t be naive ;)

[fenners66] 12/4/2019 14:36

Yes doubled my money.
It should have been 4x or even a sell at 3x but got out around £10

That admission of client trading profits was the killer - you cannot get away with that kind of an error and trying to explain it as a typo - far too crucial an aspect of their business.

[elcapital2018] 12/4/2019 14:33

money. im sorry mate but youre being naive again....like an accountant would be, you believe what youre told. im succesful because i dont

[elcapital2018] 12/4/2019 14:31

fenners....were you a bull before?

[moneypenny2018] 12/4/2019 14:25

In some quarters Trading activity is low there is nothing wrong with that and you can’t control it. But it’s also wrong to say all quarters will be bad. All I am saying is this seemed a bad quarter for trading activity overall.

[moneypenny2018] 12/4/2019 14:22

Revenue Growth = population growth, expanding in other markets, using cash in BS to buy smaller platforms (if cheaper then acquiring clients directly)

Revenue Level => Trading activity => Vix and market opportunities to exploit (I.e plus 500, Debenhams, Indivior, currencies etc.)

[elcapital2018] 12/4/2019 14:18

Thanks fenners

you will see soon ive been bang on all the time. This is a zero

Bulltrade

Its a rarity for IC to be right. Must be following me lol

[creditcrunchies] 12/4/2019 14:17

I reckon when IGG hits 400 that looks tempting all of these companys have lost the cash from mug punters all because of ESMA. The cash you see on balance sheet can't be capital you can use its stuck there to conform to ESMA regulations surely? which means it's just insurance from going bust so where is the revenue growth going to come from?

[fenners66] 12/4/2019 14:15

LiquidKid
12 Apr '19 - 12:22 - 19861 of 19888

12/4/19
Fiddling the accounts:
Gross Revenue $82.0m
positive customer performance $28.1m
SG&A:
User acquisitions $26.2m
Admin "low fixed costs" $17.2m

= Q1 EBIT $10.5 million.

10. Million. Dollars.


Thanks LK - I was going to look at the numbers in that way too,

Did you use half of the second half for the Admin costs ?

$10m x 4 = $40m for the year - and what dividend to pay from that guys ?

Ermmm.....

[bulltradept] 12/4/2019 14:15

"Feb 29 2018

IC View
Given Plus500’s higher level of client churn – which admittedly did reduce to 46 per cent, from 62 per cent in 2016 – it is more reliant than peers on acquiring new customers. Unsurprisingly, marketing costs are expected to remain elevated despite falling customer numbers, which were down by more than half over 2018, with margin erosion looking likely. Investor trust is also likely to have been damaged by this latest revelation. At 729p, sell.

Last IC View: Sell, 1,121p, 12 Feb 2018"

For once, the IC got it right.

[moneypenny2018] 12/4/2019 14:15

More vix more trading activity more revenue

[moneypenny2018] 12/4/2019 14:12

Lol cmc will most likely be gobbled by IG or Plus. Do the maths how many clients they have put a multiple on clients and compare it with market cap and average acquisition costs. Why acquire new clients if it’s cheaper to buy smaller competitors and get their clients. They have the cash for this and they will be buying revenue while probably pocketing the costs because majority will be shared across one platform (there are economies of scale here)

[elcapital2018] 12/4/2019 14:11

plus dont make their money from vix, thats a different reason

You make money from vix by writing options, safest way if you cover.

I should start charging you for my advice. I can make you a lot of money!

[elcapital2018] 12/4/2019 14:10

no its not!

[moneypenny2018] 12/4/2019 14:08

It’s a long vix play...

[creditcrunchies] 12/4/2019 14:07

I just read Graham Neary's update on this basically ESMA is the main ingredient that has blown up the business model of this company. The summary is why bother investing in this stock that is higher risk when other stronger brands like IG and CMC are on similar valuations which are more likely to survive. The other bit is guidance you can't give it because there isn't any revenue visibility

[moneypenny2018] 12/4/2019 14:07

Plus is you VIX... I don’t know a cheaper vix product right now.

[elcapital2018] 12/4/2019 13:59

moneypenny...are we on the same page here?im talking about writing fx options

[elcapital2018] 12/4/2019 13:58

you want to buy vix on plus? PLUS is a dead man walking. ive been saying it forever

You dont need high vix to write options. Its better when vix is low, as risk is low.