Plus500 Share Discussion Threads

[nocents] 13/4/2019 20:00

No I doubt it. But they could support the share price now if they wanted. Glencore did this Jan 2015. Worked a treat. I do doubt the management’s sense of commitment to shareholders though. But with a cashpile that’d keep tgem going at these subdued trading levels for at least another 2 yrs ...yes they could if they wanted.
I personally just see wild stupid volatility ahead. The way it’s been since Feb 12th but perhaps more so. More shorters have joined the crew this week.
Bringers of misery who disrupt real rerating to proper valuation up or down.
It’s legal. Unfortunately . Even if other Euro countries have seen sense to ban.
Gotta ride tge storm. Gonna be a while I think before price settles and they have left.

[tradejunkie2] 13/4/2019 19:13

Will they buy back more shares now LMAO !!

[nocents] 13/4/2019 19:13

Buying the shares can support the share price just when iyt needs it most. Now. That is supporting the share price in the midst of the present turmoil.

[sum493] 13/4/2019 19:01

Buying back shares is nonsense. They better keep the cash war chest to support the price and insulate themselves from the turmoil to come.

[nocents] 13/4/2019 18:57

2018 was a good year for Plus. Stupid pay. But it was back then before revenue plummeted. What would be nice would be cash used to buy back shares to prop ip shareprice. Dpn’t see it though.

[nocents] 13/4/2019 14:55

IMO Odey is up to something here with his investmentment. He is manager of a hedge fund which does not normally take big long positions in pressurised beaten down stocks.No idea.
No Mondypenny you ate not the only optimist here. I see Plus as restructuring their game to suit the new post ESMA environment. Atm all we are seeing is market opportunism and profit making/taking.

[moneypenny2018] 13/4/2019 12:55

I would not know about that. But maybe Odey does. Does he do any CFDs through them? (They say they only do retail). I am sure he knows a thing or two we don’t since he is willing to put such a big wager on them.

[ltcm1] 13/4/2019 12:37

MP I get what you're saying about customers being long in a rising market and generating 'accrued' revenue, it's just like when you get a straem of favourites winning on the Sky Prem games. Strange they didn't say that though.

If it is just a few customers winning with an edge that would be good for them, as they could use this information to trade against other customers, I have heard bookies doing the same at least.

Your explanation about rising markets and a lot of customers being long makes sense though. Bitcoin has moved up sharply.

Do you know if they allow whales at Plus? That is another explanation for the huge profits at Plus, perhaps they have been gambling themselves by allowing huge positions.

[moneypenny2018] 13/4/2019 12:34

What I am trying to say is that the component you are referring too can sometime be negative if you are measuring individual quarters but it should zeroed out as a negative effect for Plus themselves. Why? Because there is no free lunch in the city and making money is not easy. The bookies charging you fees on the other hand have a guaranteed income. Also, a trend that I think people have not really captured is that most likely the likes of Plus and IG will start eating up business from the likes of HL and HSBC. The later two types of organisations have underinvested massively in their platforms which feel like trading in the 80s... IG and Plus have invested in systems and IT and will win business from these guys. The model could even change towards a more AUM based model... I don’t know maybe I am the only optimist here who sees the opportunities ahead rather then the doomsday preached by some. These guys are a “disruptorR21; in the brokerage and asset management business.

[nocents] 13/4/2019 12:16

They would need an extrrnal audit. Just like Tesco who told massive porkies. Plus has no morality. It is a credible and so far profitable company. It is probably good at cooking books.Can’t be so good at the trading component if it lost 28m to successful clients though. Not that it wanted this public until hand was forced. Morally I wish I hadn’t invested here now. Too late. Financially just have to sit out probably 6-9 months with no gusrantees.

[moneypenny2018] 13/4/2019 12:14

In my 20s I turned £2,000 into 150k in 1 week... so it can happen. They usually start monitoring / hedging when they see someone consistently wining. In which case the cost to hedge is justified because of the trader’s ability to win more often. It’s all probabilities and skill. The thing is they have the data to check who they need to be hedging against. If it’s a new client that is a genius and consistently wins then this takes time to generate the data and start hedging. Also naturally most people are long and in a rising market if you don’t hedge you will have clients that win. The question is how much of this ‘accrued’; revenue they will manage to take back... It is not a loss until client you take your chips and cash out at the cashier. There are points in time when the Casino’s P&L is affected by clients who got lucky and are wining but on the long term the CASINO ALWAYS WINS... so this “revenue lost form clients trades” can be reversed in subsequent quarters and show as a gain...

[ltcm1] 13/4/2019 11:56

I take your point MP but IG and City Index don't do this, it's always Plus and etoro. But perhaps I am not 'investment grade' advertising matieral.

But the style of their adverts is clearly aimed at compulsive 'traders'. Virtually all their clients go bust in 90 days whatever the markets are doing so their excuse does not match with the way the punters operate.

Have they expanded on how they lost this money??? Seems very hard to believe when their average customer is someone in their 20's earning about 20 grand a year.

I dare say the 'losses' are really from their colossal marketing spend.

[moneypenny2018] 13/4/2019 10:31

Itcm1 that’s because YouTube has cookies on you and tracks your activity... Obviously your browsing activity indicates to them that this is the kind of stuff you are interested in. YouTube and all other big Tech is spying on all of us unfortunately. You all heard what happened with Amazon’s Alexa... They should sue them big time. What they did is horrible.

[ltcm1] 13/4/2019 10:11

How does this low volatility argument stack up when their adverts are totally focused on cryptocoin trading???!!!

Another thing - if you watch Youtube a lot as I do, the amount of adverts they have on there is mental.

I imagine they make a large proportion of their money from these idiots that gamble on Bitcoin.

[nocents] 13/4/2019 09:55

Ok
Shame u stop posting. Up to you. Rationality needed on BB’s. Not feeding anything IMO. Just giving sense. We knew risk or should’ve done.

[moneypenny2018] 13/4/2019 09:38

This should be trading at 6.5 minimum.
Others saying otherwise just want you to sell your shares so they can come in cheaper or day trade because they trap people. The losses you guys state above are normal and are only “paper” losses. If you invest in listed equities and especially volatile stocks like this one. If you can’t stomach it then you should not be investing in such stocks. I will stop posting because I am just feeding daytraders. Time will only tell who is right... until next updates we can argue all we want. Personally I would buy volatility when it is subdued, like it has during Q1, and not at the top others can short and do what they want its their money...

[nocents] 13/4/2019 09:32

Asusasus. Yes it’s down to rising non-volatile markets Jan-March. Change in trading behaviour as result of that and other variables. Loss on trades(£28m !! ..not forgiveable!)Partially new regulation although that did not destroy Q3and Q4 last yr.
Things can change dramatically in digital trading.
Buy the profit target 2019 is very veey unlikely to be met . Markets often work forward-looking. But on the other hand as Peel Hunt said-the rest of tge year may be different and Plus is developing new strategies to take the changing environment into account. Sorry for me and all on a loss. Hang in there. Big cash pile and no debt. Just much lower profits at the monent.

[asusasus] 13/4/2019 08:09

30k down. I hope this turns around. Didn't expect these poor numbers. Hopefully it is down to the non volatility in the markets.

[sunnybeachboy] 13/4/2019 07:52

Crypto currencies trading is on the up again people.

[hsduk101] 13/4/2019 00:03

This is a real volatile share. Just wasnt exoecting a 30% plus drop! Its not like they made a loss lol

[moneypenny2018] 12/4/2019 23:14

No I am saying “don’t let them bully you...”

[fenners66] 12/4/2019 22:59

mp

"don't let shorts bully you"

Are you saying ignore all shorts ?
Only believe longs ?

I have spent time analysing the accounts and RNS's of Carillion , Interserve and Debenhams over the past 18m-2 years.

All 3 had a large short interest.

2 Administrations and a liquidation all 3 wiping out shareholders 100% says ignore shorts at your peril.
As the man said shorts make money merely because the share price goes down.
Directors and their failings wreck companies and take shareholders with them.