Good Q3 trading update from Plus500 issued today. Revenue up 50% on Q3 2016 and 23% YTD. Profit up 103% at $143.2M compared to the same period last year.

Bit of basic maths, and taking into account the positive momentum noted by the CEO, suggests revenue somewhat north of $400M for the year leaving the brokers estimates for 2017 and 2018 way behind and suggests a forward PER of potentially less than 6 for 2017. You are also looking at dividend yields of 6%.

Israel and Regulation are the main risks, but being computer based I expect they have a detailed disaster recovery plan in place and they seem to be addressing regulation.

Too good to be true? I'd welcome any thoughts.


(I obviously hold shares in Plus500)

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