Worldspd Share Discussion Threads

[sjcsystems] 16/9/2010 11:28

Interesting that TwoWaySpreads are also offering zero spreads through their white label with WSPR.. According to their last annual report, they were supposed to be disposing of their CFD/Options/FX business.

[slowtrain11] 13/9/2010 20:00

The only commercial reason I would imagine for this would be to attract funds to prop trade with - thats not quite the business model advertiased by the business though.
P

[sjcsystems] 09/9/2010 10:44

Are zero spreads for clients who deposit more funds commercial suicide or an attempt to take on the bigger firms ?

[trentendboy] 09/8/2010 20:50

Some good points - not sure how this share is trading at such a high price

[socrates9] 21/7/2010 12:07

Not disposed of but taken as part consideration from Irish management.
So company is sitting on 5.2m shares that have to be sold in next 5-6 months.
You correctly point out how difficult it is to short a 30m mkt cap company, equally I'd imagine you'd agree disposing 5m shares in a 30m company is a tricky task.

Why is this company guiding a pathetic 2m for 2011 when it claims business is booming?
Why has a recently appointed CEO departed after just 4 months?
Why did they sell a very profitable unit (more profitable than the firm itself?) for just 8m?
Why are they paying 28% coroporation tax when as an Irish company they could have paid 12%?
Why are they continuing to shout about white label partnerships when there is scant evidence within the industry these alliances contribute anything other than cheap PR?
LCG have had Paddy Power for 3 years and make no reference to it being a major profit driver, ditto WSPR with VC. WSPR have had Ladbrokes for a few months but are guiding just 2m for the whole group.
If these white labels were a fraction of what LCG and WSPR make them out to be they should be driving revenues/guidance substantially higher.

[slowtrain11] 20/7/2010 22:47

That still doesn't tell me where in the accounts the shares are, and you can't have a disposal of shares and an unrealised gain...

Its a bit difficult practically to short a 30m mkt cap company.
P

[socrates9] 20/7/2010 19:31

Not only are they in the accounts but they are claiming a 600k unrealised gain on them.
I cannot figure out the disposal price accurately but looks like about 76c per share so how they can claim to be ahead by 600k beats me.

I see the CEO of just 4 months has already departed.

A buyer of WSPR cannot be ruled out but that's about the only reason I wouldn't short, sorry apart from no liquidity.

[slowtrain11] 19/7/2010 09:25

Maybe u can point out where these shares from the company disposal sit in the accounts Socrates??

500k to 1m euro is a bit P&L hit for a company with 2-3m euro pre tax profits.
Slowtrain

[socrates9] 13/7/2010 18:30

Slowtrain,

Where can I get access to reference to the 3.2m expiring in Dec?

Also do you really think if 3.2m shares had to be sold they would attarct a current market price of approx 73p?
Alongside the nearly 2 million shares WSPR still have to dispose from the Irish sale, that's a huge amount of stock overhang for a 29m illiquid company.

Even allowing for above, do you not concede 2.0m is miserable guidance for 2011 for a company that claims to be trading exeptionally strongly?

[slowtrain11] 12/7/2010 15:00

The options were granted at 62cents not pence as the shares are priced in. Thats very much in the money and theres 3.2m of them to expire in Dec?
Slowtrain

[socrates9] 09/7/2010 12:46

1.4m 2010 expiring options that are currently just barely in the money and you think that excuses pathetic 2.0m PBT guidance?
I do however see that the almost 2.0m shares they took in as part of their Irish sale still aren't sold.
So along with everything else they have 5% of their company sitting there looking to be sold in stock that barely trades anyway.
The absence of the spring time rampers on this thread who said the Ladbrokes deal would explode revenues is interesting and telling.

[slowtrain11] 08/7/2010 09:57

If you read the notes to the accounts Socrates you'll find that theres share options expiring in December of this year - these need to be expensed to the P&L.

Haven't got the exact numbers in front of me but this is a potential euro 500k - 1m drag on the results this year.
Slowtrain

[socrates9] 07/7/2010 16:28

Gone very quiet in here?

WSPR Irish broker now saying they expect just 2.0m for Mar 2011.
Anyone saying that is anything other than poor is fooling themselves.
That 120p is looking like fantasy now.

[socrates9] 01/7/2010 17:01

Czar,
You said in Feb you expected them to "smash 4.5m"
They announce 3.0m and you deem that "very strong"

Moderate set of results with no evidence their growth in clients is delivering a proportional increase in revenue, quite the opposite in fact.

15m gross revenue is identical to the year before.

This looks to me like a company that is growing aggressively by buying market share with very generous white label comissions to the the likes of VC and Ladbrokes but little or none of this hitting bottom line.

[czar] 01/7/2010 07:22

Very strong results Pe of 6.7x ex cash. Looks the pick of the sector.

[glasshalfull] 30/6/2010 17:23

Notice of Results
RNS Number : 0819M
Worldspreads Group PLC
18 May 2010


WorldSpreads Group plc



Notice of results



WorldSpreads Group plc (AIM: WSPR) will publish its preliminary results for the year ended 31 March 2010 on 30 June 2010.



For further information, please contact:



WorldSpreads Group plc

Niall O'Kelly, Chief Financial Officer

[phone] / [phone]



Collins Stewart Europe Limited

Tom Hulme / Ileana Antypas

[phone]



Bloxham

Peter O'Carroll

[phone]



About WorldSpreads Group plc



WorldSpreads Group plc (AIM: WSPR) is a fast growing financial services group offering online and telephone trading. The Group's core activity is the provision of spread betting products on the financial markets to retail clients from its website www.worldspreads.com.



WorldSpreads Limited, a wholly-owned trading subsidiary of WSPR, is regulated and authorised by the Financial Services Authority and has a European regulatory 'passport'. It offers a full range of spread betting prices on all the major financial markets, including stock indices, individual shares, currencies, commodities and interest rates.



The Group floated on the London Stock Exchange's AIM market in August 2007 and gained a dual listing by joining the Irish Stock Exchange's IEX market in May 2008.

This information is provided by RNS
The company news service from the London Stock Exchange

[glasshalfull] 30/6/2010 17:22

Expecting results today.
Leaving it late ;-)

Regards,
GHF

[socrates9] 09/6/2010 15:04

IG up 13% today alone and nearly 30% since Feb.

WSPR down over 15% in same period.

Sector is flying but market just doesn't like this LCG and WSPR type model

[socrates9] 08/6/2010 16:21

Anyone know what is going on here?
I don't like this stock as I've said but why is a spread betting company falling when markets are very volatile which in turn is always viewed as very positive for the sector?


Also, Ladbrokes deal announced over 4 months ago, why hasn't that commenced?

I also read online the sports betting division which they gave away for almost nothing to its management last year has had a very good first year and is back in profit.

Too much background fun and games in this company for my liking but I'd imagine I missed my shorting opp.

[czar] 07/4/2010 15:45

Collins Stewart upgrades after trading statement, target price 125p and says "our forecasts are highly conservative."

[czar] 31/3/2010 19:07

Socrates you seem unnaturally negative on this company for one who has no interest. This statement is full of positives "continue to trade strongly" "key performance indicators continue to deliver satisfactory levels of growth" "new key appointments at senior management level have made a positive start" "growth in new accounts" "well positioned for further strong growth" "highly cash generative" etc. What more would a shareholder want. I rate this company as the outstanding pick of the sector and confidently predict 120p+ this year. We will see. Good luck if you short these, I would take a look at EPO where I am short, it is a total basket case in my view.

[socrates9] 31/3/2010 13:39

Sub 3m pbt after almost 3.4m last year is good??

How can they be down nearly 15% on Revenues if their international business is supposedly flying and a whole year of VC revenue.

This looks fairly priced and any spike near 100 and I will short.

Czar,

Will you be adding to your recent buys which are already out of the money?

I regret top say I think this thread has been hijacked by spinners.

"Dynamic outfit" ?

[fast mover] 31/3/2010 08:43

A really bullish statement and I am pleased that I have now starting building a solid position in this dynamic outfit!

They are cash rich and highly cash generative which is refreshing to hear taking into consideration the current economic climate... I am a long term holder!

[czar] 31/3/2010 08:00

So I was a bit too cautious, they will make their numbers this year and things look very positive going forward, looking for something better than 120p now.

[czar] 27/3/2010 09:54

Hi Socrates, its healthy to have differences of opinion and I guess neither of us will change until there is further evidence. The broker is forecasting E2.9m for the year to end next week, that may be a bit topppy with all the disruption but for the year to start 1/04/10 they go for E4.4m and I think that will be well beaten as Ladbrokes etc kick in. There are no dividends forecast but with such a big cash pile and a cash generative model I am hoping for a start of dividends soon. We will know more in a month or so. If things are not working out I will move on but if, as I expect, Ladbrokes and the overseas offices are starting to contribute I will top up. I do believe WSPR is the outstanding pick of the sector and think it should re-rate to 120p quite quickly IF progress is being made.

Best of luck.