Plus500: past performance is no guide to the future

Wednesday, May 30 2018 by
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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
646.8p
Change
-0.9%
Mkt Cap (£m)
739.6
P/E (fwd)
5.5
Yield (fwd)
11.3



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


3 Posts on this Thread show/hide all

Howard Marx 30th May '18 1 of 3
3

For the FT to describe Plus500 (LON:PLUS) as being "best understood as a bucket shop" must be close to being libellous.

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DaviStoVest 30th May '18 2 of 3
2

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.

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Edward Croft 30th May '18 3 of 3
2

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 !


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