Plus500 Share Discussion Threads

[eeza] 30/4/2020 15:00

Interpretation: Hold the share price until my mates load up.

[markbelluk] 30/4/2020 14:54

On the ball ;)

Berenberg raises target on Plus500
Thu, 30th Apr 2020 12:35
Analysts at Berenberg upped their target price on online trading business Plus500 from 1,033.0p to 1,120.0p on Thursday, stating the group had continued to recent tumultuous conditions across financial markets.

Berenberg said Plus500 was once again trading "substantially ahead" of prior consensus estimates and was "undoubtedly" doing "fantastically well" in the current market environment, acting as a hedge against a volatile market.

However, the German bank thought it was prudent not to extrapolate from this performance, not least of all because it had seen this exact scenario before.

"During the crypto-asset boom and bust in 2017-18, Plus500 upgraded multiple times and had a record-breaking year, but ultimately this trend proved unsustainable," said Berenberg.

"Therefore, despite making large upgrades to our FY 2020 estimates, we continue to value Plus500 as the sum of the expected capital return for FY 2020 and normalised FY 2021 performance."

Berenberg also said it was assuming a continuation of the positive trends seen in new customers, and high levels of both customer income and customer trading performance, even while anticipating a return to normalised operating metrics from the third quarter onwards.

As a result, Plus500 reiterated its 'hold' rating on Plus500's shares.

[the white house] 30/4/2020 11:13

Agreed but to alter price target in just a fortnight or so is ludicrous Volatile day today. Can anyone confirm that April ends level with March, so from tomorrow, if busy, we are..in credit...

[markbelluk] 30/4/2020 10:21

WH I dont understand? Its STILL a shambles!

[the white house] 30/4/2020 10:18

Hilarious, did not take long for them to realise their own analysis was a shambles

[markbelluk] 30/4/2020 10:15

BERENBERG RAISES PLUS500 PRICE TARGET TO 1120 (1033) PENCE - 'HOLD'

[metis20] 30/4/2020 10:08

Odd - for some reason I thought David Zruia made yesterday's director/PDMR purchase but it was Cypriot Chief Executive Officer (CEO), Ofir Chudin

[jw330] 30/4/2020 08:30

i think price follows volume and right now unless we see an uptick in the OBV prices are going to trend around this range.

[simplethesis] 30/4/2020 08:22

Just for interest, Mr Chudin previously bought 7306 shares at 685p on 15.8.19.

[the white house] 30/4/2020 07:38

24 grand ain't that shabby, however the price paid is more significant GBP12.80The Others thought a clear buy at GBP8 and 9 but this player thinks 12.80 is cheap...

[metis20] 30/4/2020 07:17

Yesterday's director purchase by -

David Zruia, Interim Chief Executive Officer
David Zruia is interim Chief Executive Officer of the Company and its Chief Operating Officer. Mr. Zruia joined the Company in 2010 as head of the affiliate programme and he was appointed Chief Operating Officer of the Group in 2013.

Mr. Zruia is responsible for all operational aspects of the Group including customer on-boarding, KYC/AML processes, payments, and customer service amongst other areas. Mr. Zruia holds a B.Sc. in Industrial Engineering and Management from the Technion, Israel Institute of Technology.

[galileo8] 30/4/2020 07:13

Share buy back restarted (23,000 shares) and a small director purchase. Suggests the direction of travel to me.

[jw330] 30/4/2020 07:10

Come on Mr Udin get your wallet out! Dont be a stinge lol

[chucko1] 29/4/2020 20:43

JW, not sure about the low interest rates. We’ve had those pretty well for the last 10 years. Base rate at 1% or so. 50bps either way won’t make much difference to most customers’ spread betting.

I see the worst outcome (absent of unexpected factors) as one where we get a quick fix to the virus (meaning 9 months) with considerable reduction in markets’ volatiles and also with people going back to work and betting on sports when available again, rather than financial spread betting. That part could happen within 3 months.

But, there will have been tens of thousands of people trying PLUS for the first time and some will stick, especially if - as you argue - the experience is good, or even flawless. That emphasises the importance of customer focus, as you again state. They do appear to be delivering on that, however, and I cannot see why that would change.

Furthermore, as I previously argued, suppose we return to normal volatility consistent with VIX = 18. In that case, I estimate earnings of $0.65 each quarter and 7.5x earnings gives you 1500p. The prospective 7.5x represents the market view of a more seasoned PLUS with overall higher quality customers and earnings. Maybe a lower P/E and price if much of the cash being earned now is distributed to shareholders, but it doesn’t alter the overall value, of course (ignoring the tax issue).

[jw330] 29/4/2020 20:02

There is also the financial backdrop we are in that people need to consider...record low rates means banks are giving savers zero %...people are going to have to trade their way out of inflation so the demand for a reputable platform is huge. Plus500 needs to have lazer focus on customer feedback and don't become complacent. The economic results will continue if they can please their customers and keep them...

[the white house] 29/4/2020 19:46

I would think those poor journalistic efforts produced today might make the founders feisty enough to bang out a bigger payout to show em...Once again it has been completely overlooked by all that some heavy gamblers are in this game because sport is off. This is a time not comparable to ANY other. Plus500 and others are making hay while the sun shines, while some seem blinded to this...

[jw330] 29/4/2020 19:45

fxpro have you starting shorting yet? how much have you made? minus one bar?

[fxprotrader] 29/4/2020 19:42

When posters feel the need to defend the company it is a big red flagWhen the company keeps putting out trading statements it is a big red flag. I've waited for an inflated price, might not be the peak but that's why I leg inI'm always right in this POS

[jw330] 29/4/2020 19:00

I think looking at Vix alone doesn't reflect the potential of plus500 earnings as ST and chucko mentions. In 2018 during their record year of earnings peak VIX was at around 30 but there were months where VIX was below 15...crypto and oil are definitely going to carry on their volatile path for the rest of the year and this will not be reflected in the VIX at all. I think the next update on revenue will surpass 1st Q easily and announcement of director buys and massive dividend will finally lift the lid on this. Who in their right minds wouldn't want a 15% dividend payout?

[chucko1] 29/4/2020 15:41

Wonderful analysis. The pro analysts should be ashamed.

[djokovic1] 29/4/2020 15:30

Great stuff ST, a free account on ADVFN brings far greater value than paying £££££ for broker research notes on Plus ;)

[robow] 29/4/2020 15:25

thanks simplethesis