Plus 500 Results due 1/5/18 for Q1 2018 now in new Naps portfolio 2018

Wednesday, Nov 25 2015 by
11

I first spotted this stock last October and purchased some shares in the company. It fits the William O'Neil's screen and I noticed he bought in Feb 2014. It is an AIM stock and doing really well. I have increased my holdings 4 times since then. This must be the best stock I have bought so far. First quarter figures are out today with excellent results, pushing the shares still higher.
The customer base and the sales figures still keep increasing.

As I am not a particularly good writer perhaps someone else would care to comment. I would welcome Paul Scott's view.
Cheers Lightningtiger


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Plus500 Ltd is an Israel-based online provider of Contracts for Difference (CFDs). The Company develops and operates an online trading platform for retail customers to trade CFDs internationally over more than 2,200 different underlying global financial instruments comprising equities, indices, commodities, options, exchange-traded funds (ETFs) and foreign exchange. The Company enables retail customers to trade CFDs in more than 50 countries and in over 30 languages. The Company's trading platform is accessible from multiple operating systems, such as Windows, smartphones (iOS, Android and Windows Phone), tablets (iOS, Android and Surface), Apple Watch and web browsers. The Company conducts operations in the European Economic Area (EEA), Gibraltar, Australia and certain other jurisdictions across Asia, the Middle East and elsewhere. Its subsidiaries include Plus500UK, Plus500AU, Plus500CY and Plus500IL. more »

LSE Price
1640p
Change
-2.5%
Mkt Cap (£m)
1,884
P/E (fwd)
10.4
Yield (fwd)
5.8



  Is Plus500 fundamentally strong or weak? Find out More »


200 Posts on this Thread show/hide all

lightningtiger 23rd Feb 181 of 200

Worth reading a bit from the company report : "We are confident we can continue to deliver our business and expand into new markets whilst successfully incorporating regulatory changes with minimal disruption. Our strong balance sheet, cash & generative business model, geographical diversification & competitive market position are expected to engage us to provide strong shareholder returns despite continuing short term regulatory uncertainty.

Total distribution to shareholders over the 5 year period including today will be $530.9M which exceeds the market cap of $200M.
The board now expects revenue for the year ended 31 December 2018 to be significantly ahead of market expectations".

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lightningtiger 2nd Mar 182 of 200

!6M shares traded today while the founders sell a 6% stake, 7.27M realising £80M for them.They have agreed not to sell any more shares for a period of 180 days This is the largest number of shares ever traded so far.
The valuation is 1638p according to Vector Vest & Stockopedia Stock Rank still at 99. The MA's are still holding up OK.
ESOP have been notified, with a dividend statement from Hargreaves to claim back the 25% Israeli tax back & not as other people think it is only 10%.

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Edward John Canham 22nd Mar 183 of 200
2

IG Group (LON:IGG)

From Q3 2018 trading update:-

"Client trading in cryptocurrencies accounted for 11% of revenue in the period (Q3 FY17: 1%), however, cryptocurrency trading by clients has slowed markedly since the end of January."

If this is a general trend I suspect it will impact more markedly on Plus500 (LON:PLUS) .

Phil

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Edward John Canham 29th Mar 184 of 200

After the ESMA update this week I moved back into Plus500 (LON:PLUS) - I've always liked it and the update removed some uncertainty. Its reaction to ESMA was the best of the bunch here - I've always found the 'holier than thou' attitude adopted by IG Group (LON:IGG) jarring ( Plus500 (LON:PLUS) never offered binaries) and somewhat defensive.

What remains is what business model is better - IG Group (LON:IGG) and CMC Markets (LON:CMCX) with their concentration on "professional" users (which can use higher leverage and therefore bigger revenue per user) or Plus500 (LON:PLUS) based on high volume retail users (smaller fees per user but potentially higher absolute revenue).

Wondered if anyone had any views?

Phil

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lightningtiger 10th Apr 185 of 200
1

Fib retracement now showing target price of 1500p and valuation of 1909p, figures from Vector Vest. Share price today finished @ 1302p with 1.2M trades & 12 screens with Stockopedia , StockRank 99.

With regard to IG Group & CMC Markets, the screen chart comparison of Stockopedia clearly shows the out performance of Plus 500 leading the pack. Volatility in the market should also help with number of trades for Plus 500. Still awaiting Q! figures to come.

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lightningtiger 25th Apr 186 of 200

Now looking forward to a trading update for Q! figures which are due on 1/5/18, meanwhile the valuation is steadily rising hitting above the 2,000p mark for the first time with Vector Vest.. Stocopedia is still showing 12 screens 98 StockRank with the share price finishing the day up at 1375p & making it's way towards the 1500p Fib retracement mark.

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Edward John Canham 1st May 187 of 200

Plus500 (LON:PLUS)

Certainly doing its best to improve the results of the NAPS portfolio.

Already at 90% of last years EBITDA at the Q1 stage.

Phil

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lightningtiger 1st May 188 of 200
1

Fib retracement comes up trumps again smashing the target price of 1500p & actually went to 1600p earlier today with outstanding Q1 results. Resisted the temptation to top slice @ 1600p, but the chance was there for the taking.
Revenues from Q1 2017-2018 +284% @ $297.3M
New customers from Q1 2017-2018 +228% @ 72,960
Active customers from Q1 2017-2018 + 204% @ 218,187
EBITDA $237.3 +418%
All this magnificent results will push up the share price, their profits and in turn should pay out more increasing dividends. That's the theory.

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pgs501 1st May 189 of 200
2

Results undoubtedly good but management also state that this is exceptional and has calmed down since Feb, also the ESMA changes will have a negative impact.

They do end by stating expectations have been increased so definitely a positive update, but difficult to read too much into the amazing looking numbers until we know how much expectations have been increased for me.

I bought around start of the year, it has been one of the few bright spots of my portfolio during 2018.

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HumourMe 1st May 190 of 200
Regulation 
On 27 March 2018, the European Securities and Markets Authority (ESMA) and the Financial Conduct Authority (FCA) outlined the regulatory changes ESMA proposes to implement in the coming weeks. Plus500 is already aligned with many of the proposed regulatory changes, as outlined in the subsequent announcement made by the Company in March, which the Board believes will enhance the CFD trading landscape and create a more level playing field.
We have commenced the process of looking at whether our experienced traders, who represent a significant proportion of our revenue, could be reclassified as professional investors. This would permit them to trade at higher leverage and partially mitigate the impact of the ESMA changes. 
Outlook
We have yet to see the impact of ESMA's proposed changes and our performance could be further impacted by the rate at which customers opt to be reclassified as professional investors. 
As a consequence, the Board has increased its expectations for the Group's financial performance for the year.

I bracketed the initial price action and got stopped out while reading the RNS; only held for 7 days this time, so not a bad result. I've bolded some of the comments that are probably contributing to volatility. On the plus side it's been a good year but that is already clear from other statements. Also on the plus side is the geographic diversity of the base. ESMA partially balances the scales and needs customers to be happy being classified as professional, hence unquantified uncertainty. Low PE, high yield good relative strength - all make it attractive. Just a little too volatile for me.



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Edward John Canham 1st May 191 of 200

In reply to pgs501, post #189

Agreed

One cuckoo does not a summer make - or something like that.

The tail-off of the crypto bubble was also noted by IG Group (LON:IGG) . But the return of volatility is a headwind, as is the basic increase in user numbers originally attracted by the Bitcoin hype (need to see how sticky these new users are).

Its going to be very interesting to see how this pans out over the year.

Anyway, new analysts TP of 1739 based on "cautious assumptions" which I'm reading through at present.

Phil

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Edward John Canham Thu 8:34am 192 of 200

Plus500 (LON:PLUS)

Announces move to Main market - presumably will enter the FTSE 250 at the following reshuffle.

Phil

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lemonjar Thu 9:20am 193 of 200

In reply to Edward John Canham, post #192

What does that mean for existing AIM shareholders, does it just automatically convert and carry over? Sorry, not been in this situation before.

I take it as good news though, I presume it helps to address a lingering question mark I've seen raised once or twice about it being an Israeli company listed on the AIM etc.

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gus 1065 Thu 9:42am 194 of 200
1

In reply to lemonjar, post #193

Hi lemonjar.

Basically “yes”, shares simply move to the main exchange so limited direct change for shareholders.

Full listing is slightly more expensive for the company but holders should get the benefit of better liquidity and possible up tick in price as passive funds based on the relevant index (FTSE 250 or 350 depending on market cap etc.), will be required to buy and discretionary funds unable to buy into AIM stocks will now be able to do so. May also be reputational benefit from migrating to the main board. One possible drawback is that holders using the AIM status to shield IHT if applicable (not sure if Plus500 (LON:PLUS) is currently eligible), would no longer be able to do so.

Similar migration happened last year with Sirius Minerals (LON:SXX) .


Gus.

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lemonjar Thu 10:24am 195 of 200

OK great, thanks for clarifying Gus, much appreciated.

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gus 1065 Thu 10:31am 196 of 200

In reply to lemonjar, post #195

You’re welcome. No position or view on Plus500 (LON:PLUS) , but here’s a suitably pithy comment from Simon Cawkwell/Evil Knievil on his blog today about the merits of the company (or otherwise!).

“To my amazement Plus500 (LON:PLUS) is seeking to move to the main market. As regular readers know I rather self-deludedly reckoned that PLUS since it was – and remains – a non-stop fraud machine would be chucked off AIM. It is quite bizarre that this squalid operation should have its conduct overlooked.”

He does like to sit on the fence, doesn’t he?

Gus.

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rpannell Thu 10:34am 197 of 200

Excellent news and should remove one of the barriers to ownership, namely a 'foreign' company on AIM.

At the current PER of 10 and EPS growth of 13% (stockos figures) the move to the main market should help to see a re-rating towards the same PER as IG Group (LON:IGG) (17.5) or CMC Markets (LON:CMCX) (15.4).

Onwards and upwards

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lightningtiger Thu 10:48am 198 of 200
1

This great news today of joining the Main market will help globally with promoting name awareness and should also get more new customers. It has also hit the technical analyst Midas Touch screen over the last few days in Vector Vest which is always a positive reaction to the share price movement.

Now hitting over £17.00 for the first time today and still under valued share. V/Vest showing valuation @ about £22.00

Stockopedia StockRank 98

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pka Thu 4:46pm 199 of 200

In reply to gus 1065, post #196

Should investors in Plus500 be concerned about a law firm proposing a class action against Plus500 for alleged misconduct?

https://www.giambronelaw.com/site/servicesforindividuals/binary-trading-litigation/english/class-action-plus-500/

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Edward John Canham Thu 5:56pm 200 of 200

I don't know is the honest answer.

However, if you look at the internet address, part of it is "binary trading litigation". Plus500 (LON:PLUS) have always said they don't offer binaries - my history with Plus500 (LON:PLUS) is not long enough for me to state this with total conviction back to 2011.

Is it possible this is just an ambulance chasing exercise following ESMA's pronouncement saying binaries are going to be banned and therefore anyone in the past who has played with binaries has a claim? If this is the case I suspect they have the same chance of success as those 95% of the British population who didn't correctly call the winner of the Grand National.

Phil

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