Plus 500 crashes lower like a burnt out rocket Now Sub 500 trading op?

Wednesday, Jun 25 2014 by

£PLUS was one investors were getting excited about earlier in the year when it went up like a rocket with talk of 1000 to 1200 pence price targets as it hit 700 pence having listed via a placing at 115 pence on AIM in July 2013. So with the stock having plummeted back to earth like a burnt out rocket it is now sub 500 pence so perhaps it might present a buying / trading opportunity down here for Timmy trader types?

I note they put out a Q1 update in early April - so I guess there could be Q2 update in early July which could be a catalyst? Failing that they reported maiden interim in August last year. 

Given the fall in the shares (see chart below) I would have thought they might have to put out a statement anyway to either explain or state that they know of no reason to justify it. In addition I note it was down on big volume yesterday and that JP Morgan have announced today that they have gone above 14% in the stock having last announced at 12% on the 10th June. This suggests to me that a big seller / stock over hang that may have been driving the price down was perhaps cleared out yesterday. Certainly the price action with the stock up nearly 6% first thing this morning seem to support this argument.

So what is it - well you can learn more by clicking the highlighted name link above, but basically it is a competitor to IG Group (IGG) the spread betting firm which I have written up a couple of times. It is an Israeli based technology Company which operates a dealing platform for Private investors in the Contracts For Difference market (CFD's). It makes most of its money from the spreads and also generates revenues from overnight premiums, effectively a financing charge, on certain positions held by customers overnight and gains (offset by losses) on customers’ trading positions. The Group does not charge customers a commission on trades. They seem to have robust risk controls but I guess it is early days in their operation to know how robust these are. The Non Executives seem to have good relevant experience while the executives are the founders and are from Israel.

It has grown rapidly since listing last year and still has a couple of…

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All the posts and articles on this site are the personal views of the author and should not be construed as investment advice or a recommendation to buy or sell any of the investments mentioned. Readers should remember that share based investments can go down as well as up and you should only invest with capital that you can afford to lose. You should also generally get professional advice before investing unless you are happy to do so without.


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Plus500 Ltd is an Israel-based company that develops and operates an online trading platform for individual customers to trade contracts for difference (CFDs). Its online trading platform allows its customers to trade CFDs on over more than 2,200 different underlying global financial instruments comprising equities, indices, commodities, options, exchange-traded funds (ETFs), crypto currencies and foreign exchange. The Company enables individual customers to trade CFDs in more than 50 countries. The trading platform is accessible from various operating systems, such as Windows, iOS, Android, and Surface, as well as Web browsers. more »

LSE Price
744p
Change
0.1%
Mkt Cap (£m)
835.4
P/E (fwd)
6.2
Yield (fwd)
9.3

IG Group Holdings plc is a United Kingdom-based company, which is engaged in online trading. The Company provides contracts for difference (CFDs) in over 17 countries globally. The Company's segments include UK, Australia, Europe and Rest of World. The UK segment consists of its operations in the United Kingdom and Ireland, and derives its revenue from financial spread bets, CFDs, binary options and execution only stockbroking. The Australian segment derives its revenue from CFDs and binary options. The Europe segment consists of its operations in France, Germany, Italy, Luxembourg, the Netherlands, Norway, Spain, Sweden and Switzerland, and derives its revenue from CFDs, binary options and execution only stockbroking. The Rest of World segment consists of its operations in Japan, South Africa, Singapore, the United States, the United Arab Emirates and Dubai, and derives revenue from the operation of a regulated futures and options exchange, as well as CFDs and binary options. more »

LSE Price
581.2p
Change
-1.1%
Mkt Cap (£m)
2,148
P/E (fwd)
14.2
Yield (fwd)
7.4



  Is LON:PLUS fundamentally strong or weak? Find out More »


1 Post on this Thread show/hide all

jjis 1st Jul '14 1 of 1

 Trading Update today which I've written up if that is of any interest.

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