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Research on PLUS 500 own website reveals a lot of useful information in my book. Since 2nd April this year there has been 7 major purchases from institutions. No less than 50% of profits are paid out to shareholders & this year that is over $3M, thank you very much.
Having just returned from Portugal the dividend from PLUS 500 has more than paid for a full days river cruse on the River Porto to Pinhao with breakfast and a wonderful 3 course lunch with wine included!
I did noticed that Numis had valued a target price of 824p. My own further research today values Plus 500 @ 838p, so I am expecting the share price to increase awaiting 2nd Quarter results in due course.
Cheers from Lightningtiger
Hi Mark & Heisenberg,DCF or discounted cash flow is defined as " a valuation method used to estimate the attractiveness of an investment opportunity" according to the Investopedia web site found via Google- DCF. A short video explains the formula how it is calculated. Certainly since I first bought some shares in Plus 500 back in October 2113 & topped up a few times since. The volume of trades in October were small in number compared to todays trades, which must be a positive note. Should the price go to 900p/1000p by the end of the year I will be more than a happy bunny. Only time will tell. Based on all this DCF valuation I bought some more PLUS 500 shares today against my better judgement of buying when the price is dropping. Stockopedia shows a pretty positive profit for PLUS 500 too with estimated profit for this year increasing from $50.6M in 2013 to $93.9M (almost double)
Cheers from Lightningtiger
Further to the above DCF comments Stockopedia has under tools a DCF for PLUS 500 coming at 578.07p. On the same choices of valuations Ben Graham rule of thumb technique comes out at 2540.27p. There are assumptions on both of these valuations. Also from the FT site 2 analysts offer price targets for PLUS 500 have a median target of 787p with a high estimate of 824p & a low estimate of 750p for the end of 2014.My own research shows today the value up from 838p to 892p.Clearly huge differences in future estimates!
Here are the facts:-
Revenues for the full year of 2013 were $68.92M.
for the first 3 months to 31st March were $60.7M up 207% for the same period in 2013 helped by 63% increase in new customers to 20,124. Those figures are pretty impressive to me & I can only visualise that sooner or later the share price is going to top 1000p, perhaps before the end of 2014 or maybe a bit later. That is my guess. The next stage is the Q2 results which will have at least 7 institutions buying coming into the equation now. The end of June is not far away for these results to be available and they have to be positive in my book.
Cheers Lightningtiger