Good morning, it's Jack & Paul here with the SCVR for Monday.

It's Mello Monday again tonight and Jack's on the BASH. Lots of popular stocks being discussed, including Sylvania Platinum, Intercede, Tandem, Image Scan and Open Orphan. There's an interview with IHT fund manager Stephen English and a great session on 'How to get the most out of Twitter'.

As ever, Stockopedia readers get half price tickets if they use this code MMStocko21 and it will be just £10.15.

You can find more info from David here.

Jack’s section

Good morning all. Yesterday, PIs were blindsided by the news that IG is increasing margin requirements on more than 1,000 stocks. Clients have until this Friday to put up 100% margin on said stocks, at which point positions will either be forcibly closed or kept open for another 30 days. (Edit: Michael has written a very handy breakdown of events on his website, here)

It’s partly to do with this crazy GameStop story almost single handedly exposing structural weaknesses in a rather opaque financial trading system. RobinHood scrambled to raise funds a week or two ago. Now it seems IG’s prime brokers are also demanding more capital.

It’s remarkable that a barely coordinated campaign by WallStreetBets redditors provokes this reaction from key players in the financial ecosystem. These are not all sophisticated professional investors. Many of them are investing for the very first time. It does make you wonder about the robustness of the markets.

What’s more, I reckon this era of coordinated retail campaigns is only just getting started. So how will the industry and regulators react to these rapidly evolving habits? If you do go on these subreddits, it's almost like a millions of people have discovered a new toy: the stock market.

As for IG in particular - its handling of this situation leaves a lot to be desired. I hope those that use the platform haven’t been too badly caught out.

There are a couple of updates out today. First on the list is Fonix Mobile (LON:FNX) - a recent IPO that appears to be highly cash generative.

Fonix Mobile (LON:FNX)

Share price: 160p (+2.24%)

Shares in issue: 100,000,000

Market cap: £160m

Fonix Mobile (LON:FNX) is a UK-focused provider of mobile payments and messaging services for clients across media, telecoms,…

Unlock the rest of this article with a 14 day trial

or Unlock with your email

Already have an account?
Login here