Plus500 Share Discussion Threads

[eeza] 07/5/2020 09:04

rackthedon now racksthedon. Created today 7 May. filtered.

[rose_by_another_name] 07/5/2020 07:58

Succinct but lacks detail.

[markbelluk] 06/5/2020 19:32

So as 10% of PLUS customers form 90% of revenue, going forward (2021, 2022) if you ONLY retain the 10% cream of new customers so to speak, you keep the 90% revenue increase into future years ( when on paper you look to have lost 90% of the new customers)

[djokovic1] 06/5/2020 19:15

Rhatton: Spread is basically bid offer spread

Funding /overnight charges vary by product and whether you are buying or selling

Can easily see the charges on their app

Historical 90% of their revenue has been from spreads, 10% from funding costs and close to 0% from customer pnl

[rhatton] 06/5/2020 18:52

Simplethesis this maybe a really silly question but when you say ‘spreads’; are you referring to the actual diff between buy and sell or the overnight charges?

Does anyone know the overnight charges by the way

[simplethesis] 06/5/2020 18:44

the white house - with respect, that's not the point. The company carried 111k customers into Q1, and then had 83k new customers to sum to the 194k active customers. Many of those new customers will have arrived in March, since January was average, February better, but March when it all kicked off. The key learning here is that the new customers in Q1 will have contributed not much in revenues in that quarter.

The Liberum Q2 expectation is $200m revenues. It had previously been $100m spreads minus $30m customer P&L = $70m. Berenberg Q2 expectation is $294m. I don't know if Peel Hunt/ Canaccord/ Autonomous have come out with a number.

So, yes, I expect Q2 to beat expectations. And, yes, most of the huge Q1 profits will likely be paid out.

But even that's not entirely the point. The company's new customer recruitment in Q1 and Q2 will drive revenues beyond 2020. The core of high quality customers who love to trade and will still be trading with Plus500 into 2022 will grow. That's the point.

[jw330] 06/5/2020 18:37

hxxps://cointelegraph.com/news/bitcoin-on-chain-data-suggests-miners-expect-halving-to-pump-btc-price

bit more info about what is happening in bitcoin world, the event is actually happening in around 5 days time

[jw330] 06/5/2020 18:30

yeah, all signs are looking good for plus this year. The oil volatility has definitely boosted their income further and we could see a boom in crypto trading later in the year due to the halving event happening this month. I would say we could hit circa 750m in revenue in the next report

[the white house] 06/5/2020 18:14

Vix still above 30...The first 8 weeks of previous Q had vix @ 12 with last 5 very high and high. This Q will have had 6 weeks high by the end of this week (inc Easter)From Monday the next 7 ALL need to all be down at 12ish to MATCH the previous Q

[fxprotrader] 06/5/2020 16:17

krgdekanker troll. NO one cares what you say skint boy living in a tent

[rose_by_another_name] 06/5/2020 12:08

Bobbing like a cork.

[fxprotrader] 06/5/2020 12:01

falling like a stone

[djokovic1] 06/5/2020 11:30

Yeah i recently saw that video, had not heard of him before but he makes some good persuasive points

[jw330] 06/5/2020 08:46

Yeah, agreed, ultimately the buybacks need to make sense to what you perceive as the intrinsic value of the business. I feel some people see sharebuybacks and automatically think its a green light to load up on shares which could be a mistake.

Have you heard of Chamath Palihapitiya? He used to work for Zuckerberg when they were starting out and he recently did an interview on CNBC which was quite enlightening to me

[djokovic1] 06/5/2020 08:33

A few points on that:

I dont think Rightmove is trading below its intrinsic value + margin of safety. So maybe not a good use of capital.

Most companies doing sharebuybacks just before the coronavirus, it would end up looking bad. But that's not necessarily because it was a bad capital allocation. It's because something unexpected happened. Using the same logic, the same can be applied for dividends btw. Companies that paid dividends just before coronavirus, a better use of capital for a lot of companies would have been to keep the cash with themselves to weather the storm.

Some companies like Berkshire do buybacks only when its creating value. Others may not. That you have to judge for yourself and an easy test for me is, if I like owning the shares, I think its cheap and hence I like buybacks

[jw330] 06/5/2020 08:17

I understand but I don't know if share buyback is really an indicator of value? For example, rightmove bought back shares right up until Feb 2020, it didn't stop their shares being hammered 30% during the crash? Surely that was not a good use of their capital?

[djokovic1] 06/5/2020 08:09

You should be holding shares of companies that are trading at a significant discount to intrinsic value.

If the above is true, you should be happy with share buybacks. If you dont like share buybacks then in most cases you think the stock isnt cheap anymore and you shouldnt be owning the share.

The caveat to the above is leverage, but Plus doesnt have any debt.

[1smallcap] 06/5/2020 07:55

If it gets to 30 quid I'll happily sell my shares back to the company.

[jw330] 06/5/2020 07:49

don't really understand what you trying to get at? I am not saying we have control over the board, I'm just aware the founders may not have the shareholders interest if they keep buying back shares even if climbed to 30 quid for example, just to line their own pockets?

If something like that happens I hope I'm smart enough to gtfo lol

[stoxx67] 06/5/2020 07:41

PLUS Board are best to decide what are sensible prices for buybacks jw330

[jw330] 06/5/2020 07:37

hxxps://www.plus500.co.uk/Trading/CryptoCurrencies/Bitcoin-Halving-2020:-All-you-need-to-know~8

there is going to be more volatility in the coming days for bitcoin due to the halving event, which I assume will be good for plus500?

Does anyone think we could use the extra capital better? Apart from buyback or dividends could the founders be using the capital to expand and create more value? Or is it better to confine themselves within their own circle of competence?

I hope the buybacks remain at sensible prices because at the end of the day buybacks benefits the people with the most number of shares in their hands ie the founders