Plus500 Share Discussion Threads

[markbelluk] 17/2/2021 12:38

LIBERUM RAISES PLUS500 PRICE TARGET TO 1,990 (1,950) PENCE - 'BUY'

[rhatton] 17/2/2021 10:35

Positive Investor call if anyone dialled in.

Share dealing in the final stages of development so hopefully not too long to wait on that.

[metis20] 17/2/2021 09:14

"Net profit for the year was $500.1m (FY 2019: $151.7m). Due to the Company's recognition as a PTE, the net profit for FY 2020 was higher by $85.2m than the net profit would have been ($414.9m) had the Company not received this tax accreditation."

and from the interims -

"Plus500's proprietary technology formally recognised as a "Preferred Technological Enterprise" following an extensive process of more than three years

o Plus500 is one of the first companies to receive this accreditation under the new tax regime by the Israeli Innovation Authority ("IIA") and Israeli Tax Authority ("ITA")

o Immediate and substantial benefit to Plus500 Ltd and its shareholders with a reduced Corporation Tax rate of 12% (from the full tax rate of 23%) estimated to deliver repayments and cash savings of over $100 million, with a c.$47 million rebate already received in July 2020

o This will remain in force until the end of the financial year 2021 and has the potential to be extended after that"

[irishmatt] 17/2/2021 08:14

Agree on the short term vs long term comments, definitely good to see clients winning to keep them interested. Hedging to manage any large exposures will be very useful to avoid too much being won at plus expense

[jamessmith23] 17/2/2021 08:11

Offsetting performance is not good in the short term but in the long term it builds a strong customer base because they have a better experience. Obviously that can't continue for ever but I'd much rather revenue was generated through the normal channels than by negative customer performance. Plus is still generating profits, or it was in Q4 anyway when markets were almost straight line up and so for holdings these long term I don't think it should make a difference. That's my personal view, others may disagree, the introduction of hedging seems smart to reduce risk slightly when it's elevated, and in a market where everyone could be long it seems sensible to reduce risk where you are over exposed.

[jamessmith23] 17/2/2021 08:03

Usually the drop was because of a large rise prior to results I think, which we haven't seen here but actually a 20% fall from 1600.These results were the first ones where I saw real long term thinking coming in around diversification of products, risk mitigation and ESG considerations, all of which are really positive. I previously held this with the expectation of it not being a long long term hold, e.g. 5+ years, but if they can actually execute on this properly then we should see P/E multiple growth as well as long term earnings while reducing regulatory risk of solely providing CFDs. Doesn't take a genius to see IG have twice the market cap with far less earnings as its seen as lower risk, maybe PLUS want to be viewed like that going forwards.I never like to predict where something is going to go on a results day as I'm always wrong, but happy with this is a longer term hold provided execution comes together.

[jw330] 17/2/2021 07:54

Good luck to LTH. Had the displeasure of shares falling after great results in the previous quarters so still keep an eye here to learn from that experience. Hopefully they come good today

[irishmatt] 17/2/2021 07:51

Agree, the hedging bit caught my attention as potentially helps get to a higher multiple from the market. Though comment on customer p&l offsetting outperformance so far this year is pretty negative but shows why the hedging could be very useful

[hatfullofsky] 17/2/2021 07:39

For balance IG reported HY PBT of £231.3m / MCAP £3000m

[rhatton] 17/2/2021 07:39

A lot to get through. But from a market perspective one would think the following is a positive : -

- starting to hedge in the market when necessary

- growth plan with different product lines

- Liberum numbers FY22 now going up

- 50k new customers in Q4

[hatfullofsky] 17/2/2021 07:38

Wow - no commentary from the board, shows the interest levels an partial reason behind the depressed share price I would expect this to be greeted well in the market but normally PLUS dives on results......

MCAP £1421 / share price 1379

PBT $523m
EBITDA up 168% to $515.9m
Cash balances to $593.9m ($83m divi +$25 buy back to come)
Implementation of targeted hedging in FY 2021 to reduce market risk, as appropriate
strategy to access future growth, through organic investment and targeted M&A:
Final Divi 54c / Special Divi 28c

Platform usage remains elevated in FY 2021 to date
Further outperformance of Customer Income and across key operating metrics
Offset by continued heightened movements in Customer Trading Performance

[markbelluk] 16/2/2021 15:58

Think Im going to be greedy here when others appear fearful

[scepticalinvestor] 16/2/2021 14:19

should be an interesting day tomorrow

[podgyted] 14/2/2021 12:06

Results on Wednesday.

TU in Jan gave the key numbers so not expecting any shocks from historic results.

Key is outlook statements - Liberum is only forecasting $430 revenue for 2021 which seems low - however given Plus has avoided giving any longer term guidance for over a year I get the feeling this will be mooted again.

Do wonder, looking at Liberum's cash balance projections of $643m, $734m and $826m for 2020 to 2022, why they need to hold that amount of cash.

[rhatton] 01/2/2021 14:01

Anyone think the influx of new retail traders with the current news in the states may or may not bring, this could be one a positive due to more clients getting involved in training and two maybe a negative in terms of regulation?

[dennislevine] 30/1/2021 10:06

Plus have AMC Networks - they don't have AMC Entertainment

[riverman77] 29/1/2021 19:54

If you go to the popular instruments section on their platform it includes Blackberry and AMC, amongst more standard things such as oil, GBP/USD, etc. Both these stocks have been part of the frenzy. Just hope PLUS not been caught out with large unhedged exposure.

[dumbbunny] 28/1/2021 12:20

Where Plus500 do offer very popular single equities (r/wallstreetbet type stocks), you can’t get any size on. Notional limits look like they are being very tightly managed and customers are on strict rations - allowing everyone to have a little to keep them on board but not much in the way of total aggregate to pose a material risk to the company.

[irishmatt] 28/1/2021 11:39

Perfect then. A quick google suggested they do but I didn't log into the platform to check

[dennislevine] 28/1/2021 11:36

Plus dont have GameStop, AMC Entertainment on the platform

[irishmatt] 28/1/2021 11:34

That depends if they have been allowing a lot of GME positions (and other like AMC) to be placed and not hedging. Not just about overall market, it's about what exposure they have taken to specific stocks too

[djokovic1] 28/1/2021 11:25

This sort of volatility is great for Plus. What hurts them is a strong one directional move up in assets like in h2 2020

[riverman77] 28/1/2021 11:14

Any views as to whether the wild moves in certain US stocks could have an impact - specifically whether PLUS could be exposed due to unhedged positions?

[podgyted] 27/1/2021 21:56

Vix rose 62% today!