This was published in FT yesterday - https://ftalphaville.ft.com/2018/05/29/1527566400000/Plus500--past-performance-is-no-guide-to-the-future/
Any thoughts on the same?
I work in the asset management industry. Building and commercializing investment solutions to Insurance clients. Been investing for last c. 5 years through individual securities and funds. My individual securities are UK small - mid cap; while my fund investments have a broader remit and invest across global equity, US equity, EM et al. Have generated a net IRR of c.20.5% over the last 5 years, with my best investment to date in Alpha FX giving a return of 4.3x over the 4 year period. more »
For the FT to describe Plus500 (LON:PLUS) as being "best understood as a bucket shop" must be close to being libellous.
This is the second time that Dan McCrum has posted agressive knocking copy on Plus500 (LON:PLUS) in FT Alphaville. The previous occasion being in January 2015. As the comments below both articles make clear, he does not understand the business and is, possibly deliberately, misstating basic facts.
McCrum seems to have something of a personal vendetta against Plus500 and his articles on the company are definitely not to be trusted.
Of course, Plus500 is going to be unappealing to some because of the nature of its business. There's risk to it and there will probably come a day when the shorters will have a serious go at it. For now, Plus500 trades on a lower multiple than its rivals, the SP has terrific momentum, and its definitely a share that I will continue to hold ... with a trailing automatic stop-loss regularly updated to protect my gains.
I read the article and I definitely agree with a lot of what he says - but as DaviStoVest mentions, it's not the first time he's gone after Plus500.
Even a stopped clock tells the right time twice a day.
Plus500 is the top performing of all the stocks in my NAPS portfolio, and it's the one that worries me the most. I'd be less worried about it if it didn't have so much regulatory & cyclical business risk... but I guess if it didn't have all that risk it wouldn't be up 80% year to date !
