Hi,
It appears that all these spread betting companies are falling, am I missing something in the press or laws changing, PLUS500 seems in profit good prospects etc but am -8% down, before I cut at a loss is there something that I do not know about causing the industries to fall?
Also had CMCX but managed to make 20% profit on that before it dropped.
Understand timing is everything but PLUS500 does not seem to be going up.
Kind Regards
Electrical Engineer by trade and am new to Investing, Rather than have low interest rates on savings thought I would try myself.
I don’t hold Plus500 (LON:PLUS) for various reasons.
I do hold IG Group (LON:IGG) and CMC Markets (LON:CMCX), they are not falling.
I would give Plus500 (LON:PLUS) more time, They pay large dividends as well.
There is a problem ATM with the CFD firms.
If you look at the stock screens for all of them you will see a fall-off of profits in the future year.
There is one definitive reason for this in that Australia will bring in regulation similar to the EU/UK which will restrict profits from this geographical location. However this is well known and all the companies have (I believe) given some guidance which suggests this will be significant but not material.
The unknown is the the extent of the reduction from the "super-profits" earned in the Q2 and Q3 this calendar year. Many, myself included, do not think this will be as severe as the analysts are predicting - the main basis being the number of active clients all three have attracted, continued volatility in the markets and bored people stuck at home.
However, the companies themselves are saying nothing at the moment to reject the forward year big profit dips , therefore causing a lot of uncertainty.
Realistically you have to decide which side of the fence you are on and go for it.
Would concur with herbie - I'm giving Plus500 (LON:PLUS) more time - and equally, in these CV19 times, it is fully operational. Even if analysts are correct in the dip in future profits, it is on a low fwd PER (partly due to its risk-taking) and good yield. But if it drifts much further I'll be out - negative momentum can be hard to reverse.
Phil
(I hold Plus500 (LON:PLUS) and IG Group (LON:IGG) - with hindsight I wish I had herbie's mix)
2 days to go. I'm currently -5.59% on my Plus500 (LON:PLUS) with a break even @1444p.
Any thoughts on Wednesday's Full Year earnings and dividend?
Volume is very quiet today.
Fun and games to come.
I am pleased to see IG Group (LON:IGG) up another 2% today, now back to 814p, low of 740p on 10/02/2021. 5 days of Green.
It all helps!
No idea what's going to happen tomorrow with Plus500 (LON:PLUS) as the information from the company and house broker just doesn't make sense.
On dividends Liberum is forecasting $1.67 for the year - allowing for the interim of $0.95 this leaves $0.72 for the final. But this doesn't make sense given the EPS is $4.35. Why are they retaining so much cash? Liberum forecasts cash balances of $643m, $734m and $826m for 2020 to 2022. These are staggering sums and way above what they need to cover a rainy day on their hedging policy - and their on-going requirements are covered by operations. Think they really need to explain what they are doing.
We know the raw numbers for 2020 so it revolves around the outlook statement - and it wouldn't surprise me if they say the outlook is uncertain and Liberum leaves its forecasts for 2021 and 2022 as they are. But I do hope they surprise me.
One thing is highly likely early tomorrow morning - my finger will be on the buy or sell button - just hold seem a low possibility.
Phil
Cracking set of Q3 figures from Ig Group (LON:IGG) this morning with an interesting read across to Cmc Markets (LON:CMCX) - I hold both. Undoubtedly there has been a boost from the GameStop publicity but both seem to be taking advantage of the fair wind affecting the sector. Although it is difficult to assess how permanent the new higher levels of activity and revenue will be, they are persisting for now and indeed increasing further. Both companies look undervalued to me.
Yes but how much business will IG Group (LON:IGG) lose from banning 900 shares on their CFD/SB accounts and clients moving to other platforms, I know some on here were upset with the changes and have left.
I think the management could have handled it far better. Also the customer service from IG is pretty poor, I had cause to phone them up once and it took around 70 minutes to get through, HL it took me around 5 minutes. I'm still trying to move some funds from HL to IG, not sure where the problem is but it's taking ages and it's only cash.
