Plus500 Share Discussion Threads

[metis20] 30/10/2019 15:33

From 13 August 2019 RNS "The Company has appointed Credit Suisse Securities (Europe) Limited ("CS") to manage an irrevocable, non-discretionary share buyback programme to repurchase the Company's shares on its behalf, and within certain parameters." "The Company and its directors have no power to invoke any changes to the above programme and it will be conducted at the sole discretion of CS." Fascinated to know what those parameters are and whether they can vary over the course of the buyback.

[stuffee] 30/10/2019 11:39

Metis, SJ et al, Don’t think there is any fixed limit on buy back price - it’s merely based on prevailing market price at total discretion of CSFB. Plus can’t influence buy back price so CSFB not restricted by any unpublished price sensitive info.

[djokovic1] 30/10/2019 08:00

Thanks for correcting me Metis, didn't see that. I guess we have to wait till tomorrow's RNS to see if it is a 835 price cap or something else that triggered them not to buy above 835 yesterday (As long as the stock trades above 835 ofcourse!)

[metis20] 30/10/2019 07:48

The greatest number of shares bought back in one day in the current round is 67.7k A more likely upper limit is daily spend - that seems to be about £500k before costs. That has almost been reached or slightly breached 10 times out of the 50 consecutive daily buy backs in the current round. In the 2017 round, there was definitely a cap of c800p - so much so that the buyback stopped for 4 months - a period when the share price was above 800p - and came back on just one day when the share price dipped below 800p - after that the share price stayed above 800p.

[fxprotrader] 30/10/2019 07:44

how much more buyback money have they allocated? I think it runs out soon and then the fall commences

[djokovic1] 30/10/2019 07:30

Yes, so either: 1) 835 is the upper limit, which makes that a soft floor Or 2) There is some sort of limit w.r.t max move from previous close, that you can't buy x% above previous close price or something to that effect The other limit ofcourse is max 60,000 shares per day

[metis20] 30/10/2019 07:09

Yesterday's buy back - highest price paid was 835p. Https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/PLUS/14285650.html

[rndm355] 29/10/2019 16:47

update analysed here: hTTps://cube.investments/cube-midcap-report-29-oct-2019-plus/

[valentine73] 29/10/2019 13:47

Thanks SJ and Metis for buyback info , all very useful

[metis20] 29/10/2019 13:41

M thanks SJ re the further $27m in 2017

[shaker44] 29/10/2019 13:38

Good strong results, that should burn a few shorts. Plus, gvc,gan all coming good. Now I need 888 and ptec to follow suit please

[sailing john] 29/10/2019 13:04

Metis re buybacks in 2017 The $10m was the first buyback and they bought $6.9m to 1H results 7th Aug 2017 They announced a further $27m with 1H results and bought back next to nothing as there appeared to be a price cap around 810p and price rose quickly through this post results SJ

[metis20] 29/10/2019 12:22

Https://www.standard.co.uk/business/market-report-plus500-shares-leap-as-it-celebrates-turbulence-over-brexit-a4273246.html

[metis20] 29/10/2019 11:45

For the record, about 75% (excluding costs) of the US$10mn set aside for the 2017 buyback was used. That was just under 1% of the PLUS shares in issue. During that buyback the share price rose from about 530p to about 800p. Up to US$50mn has been earmarked for the current buyback. About 40% of that has so far been used. Approx 2.5% of the shares in issue have been bought back since the buyback started in August.

[sailing john] 29/10/2019 11:23

v73 Re 810p cap - it was me last week! But as Metis quite rightly said I was wrong and they paid a higher price the following day. In 2017 they appeared to have set a cap around 810-815 but it was too low as market reaction to results quickly took it above this level and they didn't manage to make any significant buybacks. Although I think the purpose back in 2017 was as a protection against shorts. This time with a much higher value of buybacks it is more about returning cash to shareholders through share price appreciation which for some (PIs in particular) might be more tax efficient. With the price quickly rising above 825p today it will be interesting to see what tomorrow's buy back RNS looks like.

[metis20] 29/10/2019 10:33

It is clear that there was a price cap of around 800p for the 2017 share buyback. So it is very likely that there is a cap for the current share buyback but it is not yet clear what that is. The highest price paid so far in the current buyback was 812.4p six days ago.

[valentine73] 29/10/2019 09:38

Thks Dj, not sure where i picked that up from.

[djokovic1] 29/10/2019 09:18

No price cap as far as I know. They have bought back shares at £8.12 on Oct 25th. Would expect share buybacks to continue as the previous days/month but obviously need to wait for tomorrow's RNS to confirm.

[valentine73] 29/10/2019 09:09

Good results and reflected by the market reaction.Would expect this to support the continued upward trend onto year end.On the share buybacks - someone on here mentioned that the price cap was 8.10 ( i think ).Is that the case and if so does anyone think they will lift that considering where the share price is right now?

[blueteam] 29/10/2019 09:04

Results good. Should be interesting with lots of share buyback due and shorts closing.

[chucko1] 29/10/2019 09:03

In context, fine results. The market now appreciates that the quarterly results are always going to exhibit some volatility. But they should also appreciate, as many wiser souls have been saying on this board for ages, that the undercurrent is solid. In particular the AUAC, which now demonstrateS the demise of a significant part of the competition. This does not vanquish the possibility of transient poor results owing to lack of trading opportunities for their clients, but you are fairly compensated for this with such a low PE. The issue of client trading losses has always been overblown. You win some, you lose some. But when they lose, the clients trade more so it’s actually of only minor importance in aggregate.

[markbelluk] 29/10/2019 08:08

Floods of small buys orders...looks like a funds algo, probably at least one short fund reducing

[bjfanc] 29/10/2019 08:07

Nothing in this quarters result to stop the current rate of share buy backs and dividends. So the shorters would need a catalyst, as holding a position gets expensive. If lending I'd jack up prices to them, using reduced free flow as the reason.

[markbelluk] 29/10/2019 07:59

The question is, is the update strong enough for the shorts to reduce significantly?

[djokovic1] 29/10/2019 07:51

Agreed on Vol Metis. Also the cash generation (good proxy for net income) in Q3 reflects the strong improvement in margins. 55m * 4 = 220m annualized net income, take away 10% for Australia regs= $200m annual net income. 18% cash flow yield. Granted this quarter better than average due to higher vol Also positive is they had a strong quarter despite 3.5m positive customer pnl.