An odd press release from Numis on behalf of IG yesterday in response to the Dear CEO public letter about CFD trading concerns (which IG clearly received) in which it said it was largely unaffected and repeated its view that it is more likely that P500 with its "lower class" customer profile would be more heavily affected.
A helpful response from P500 followed, in which it points out that the conduct issues covered by the Dear CEO letter were not relevant to its business model, and in fact Plus500 had not been included in those addressed by the letter. P500 resisted any temptation to comment on anyone else's position.
Pretty disgraceful from Numis and IG (again). I would be considering a "cease and desist" letter of my own to them if I were general counsel at P500.
Well even as good days go that was one and a half. Congratulations to everyone who ignored last month's hiatus and blocked the twerp last Summer shorting this back down to 600p.
My instinct is that we will see the sp up to £12.50 by or when the financial results released late Feb turn this latest super trading update into hard numbers and dividend. I might even add a few on that prospect.
£15 on the next trading update expecting it to show spectactular business growth has not been stalled by regulatory strictures.
Do not be spooked into selling this money maker too early unless you have an even better prospect of a 50% return in the next few months.
Bitcoin's rollercoaster ride powers online trading firm Plus 500
Rising interest in crypto-currencies such as Bitcoin led online trading firm Plus 500 to hit a record number of new customers in 2017
3 January 2018 12:07pm
A surge in the popularity of Bitcoin and other cryptocurrencies led online retail investment firm Plus 500 to hit a record level of quarterly sales at the end of 2017.
The company said it had seen increased interest in the investment products it sells that are linked to cryptocurrencies, as interest in the asset class grew among private investors.
Bitcoin in particular grabbed the attention of currency speculators globally last year after hitting $19,187 in December on the back of a 1,800pc rise compared to the start of 2017.
The cryptocurrency's heady rise and subsequent large fall to $13,472 has been beneficial to Plus 500, as its contracts for difference - or CFDs - allow traders to speculate on the rise or fall of an individual security without actually owning it. This means Plus 500 customers could have backed Bitcoin to fall from its 2017 highs without having to buy any of the cryptocurrency.
As well as reaching an unspecified record quarterly revenue at the end of 2017, Plus 500 said its 246,000 (2016: 104,432) new customers for the year as a whole was also the highest it had achieved.
The comments, which came as part of a short trading update from the company, mean it now expects sales and profits to be ahead of market expectations.
Investors in Plus 500 reacted positively to this, sending its shares up more than 16pc in early trading to £10.27.
Asaf Elimelech, chief executive of Plus500, said the company had started offering trading in cryptocurrencies in 2013, but that interest had risen in 2017.
The update tops off a strong 2017 for the business, which announced a $10m scheme to buy back some of its shares in June and a more than doubling of net profits in the six months to June, as well as a surge in new clients and an increase in existing customers' trading activity.
Plus 500 will publish its full results before the end of February, the company added.
I have read the reports again and commentaries this morning. My real effect is that nervous investors have been tipped into taking their profits before Christmas.
P500 may only be slightly affected by any new restrictions, hence the reasssurance from Liberum. Numis are scathing and think P500 will really suffer while preferring IG's outlook. It is hard to know who to believe.
P500 have a CFD business model which already largely addresses concerns raised by ESMA and are unaffected by binary trading rules since this is not their game. On which basis P500 continues to have fresh licenses awarded to trade in new geographic markets.
The only vulnerabilities in P500's current business model are with bonus incentives and trading inducements to retail investors, and maybe how it does some of its advertising in the CFD space. The changes it needs to make and the potential consequences for the business are slight, underlying growth prospects remain stellar as it expands markets.
My take is that the impact of restrictions could be far harder on the likes of IG who are bleating about it, while P500 are supportive of the ESMA regulatory changes.
A corporate sale by a founder of a large stake which is value-priced (on my projection of forward earnings and dividend) is possible, actually I expected a full buy-out approach attracted by cash generation ... if you were Global Finance Inc why leave your investment under outside control in a country with difficult political and tax-withholding issues.
So the rumour of a stake sale is quite believable ... but the idea that such a move has stalled because of an argument on price from 980p to 940p is not credible, especially as we have dipped below that price point. More likely we are seeing an open market over-reaction to renewed publicity and regulatory concern about financial "brokerage" of binary betting being a ruinous form of gambling.
And ordinary investors sitting on huge paper gains cashing in this year's sp progress. My year end target was 900p+ and here we are still.
The effect of (results and) the previous buy back which ran through August was a powerful improvement from 650p through 800p. I don't know what caused further momentum to peak at 1050p three weeks ago, appreciation of good value and prospects? But it suggests that announcing a further buy back would see us back there. Given that free cash will have continued to roll in and given investors' dislike of the witholding tax, another buy back could well be imminent. Stellar results and an increased bumper final/special dividend next Summer would not surprise me either.
A buy back after Christmas maybe, we don't get results until February but I wonder if they might run a buy back ahead of financials again?
My feeling is to hold for £12 by next Easter wth a 50p+ net div to go with. And that will still be cheap compared to a £15 fair value price.
Plus been plunging due to attempt by founders to sell around 7m shares last week. Placing aborted due to price disagreement. Regrettably this overhang will probably hold price back until cleared.
<b><i>Today's Q3'17 IMS is very strong and once again proves the resilience of the business in what has been a year characterized by increased regulation in Europe. The regulatory barriers could increase further in CY18 as ESMA is due to issue new guidelines in Q1'18. Consequently, we continue to err on the side of caution in relation to our own forecasts but given performance to date, we would not be surprised to see a continuation of the positive trend.</i></b>
BUZZ-Plus500: Touches record high on robust Q3, outlook
* Spreadbetting firm Plus500 up 4.5 pct at a life high and best performer on the FTSE Aim Financial Services Index <.FTAXX8700S>
* Sees FY results ahead of market expectations [nL4N1N250T]
* Reports higher Q3 revenue as rising customer numbers help offset challenges from a sector-wide regulatory clampdown
* Says growth opportunities and lean cost structure are expected to assist in mitigating the impact of any regulatory changes
* Plus500 provides CFDs, which allow people to bet on moves in share prices without having to buy the underlying stock. However, regulators have been tightening controls on the fast-growing 3.5 bln stg spreadbetting industry [nL5N1E11M0]
* "Q3'17 IMS is very strong and once again proves the resilience of the business in what has been a year characterized by increased regulation in Europe," Liberum analysts say
* Liberum analysts raise FY revenue estimates to $385 mln, and EBITDA by 10 pct to $230.9 mln
* Co reported revenue of $327.9 mln and $151 mln in EBITDA for FY 2016
* Stock up 169 pct this yr
Melrose Industries have a fantastic track record of profit sharing. Really great results from PLUS today - as expected - which bodes well for future returns. I'm holding but buying more if the SP dips below £10.
Yet another fantastic update. This company is a money factory, and very shareholder-friendly. I dont know if/where I have seen such capital and earnings profits returned to shareholders in any other company. I cant think of one.
Honestly, all I hope for is an update that supports the same story the chart you posted is telling. And while Im wishing, perhaps an increased focus on share buyback, which doesnt incur the 25% theft on value returned to shareholders that the divi is subject to.
I definitely would not want the company to be taken over as a new owner would surely not have the same policy of returning 60% of profits to shareholders that the current leadership has. Well, unless the company was bought for 20 quid a share and then I might feel different! Probably not on the cards though.
Reporting day next Tuesday - I would hope for notice of application for full listing for PLUS and the divi to be exempted from Israeli taxation. I'd also hope there are other companies sniffing around PLUS' territory, looking for a slice of the action, perhaps with a takeover in mind? Strong performance over the last 2 months, investors are becoming aware of PLUS' presence - the adverts are all over the place! Some of the reviews are disappointing, but to give credit to the company, they do respond and explain the situations in some detail. Shorters seem to have disappeared off the radar, thankfully.
I'd agree, OldJoe, this is a Strong Buy up to next Tuesday when it will all become clear. GLA.
PLUS Plus500....heading for a 6 month and 1 year high, company report very soon. In last Statement.........
The Board anticipates that revenues and profits for the year ending 31 December 2017 will be ahead of market expectations.
Further details will be announced in the Company's scheduled third quarter trading update which will be issued on 31 October 2017.
Through previous high at 929 and going strong. I was expecting this to happen off the back of a trading update but will take it in any case! Away from PC and chart tools at the mo but looks like target will be around the 1125 area, will refine once home.
But performing ahead of which expectations as I presume that expectations were increased following the last bullish trading statement-so are we now trading ahead of the upwardly revised expectations.either way our SP should remain solid ahead of the third quarter RNS on 31st Oct.
That's another classic shugg1e cóck up, mere hours before yet another positive RNS!
You are comedy gold.
Plus500, a leading online service provider for retail customers to trade CFDs internationally, is pleased to announce that its business continues to trade strongly. Accordingly, the Board anticipates that revenues and profits for the year ending 31 December 2017 will be ahead of market expectations.
Further details will be announced in the Company's scheduled third quarter trading update which will be issued on 31 October 2017.
Hi be careful, I only have 92 of these and they said the would not send me the 7 dollar tax refund as it was not worthwhile wiring it. They did not reduce the tax but refunded it. I wonder how many others they are doing this to. It could add up to a significant amount.
Certainly there are worse problems to have than the one where you bank a decent profit but wish it was higher!
As I say I don't bother with limit orders, so I don't speak from experience, but I would think that on AIM you would want to leave a significant margin for volatility, and also if you believe the fundamentals are indicating further gains in future, I would question what the stop loss is even doing for you in the first place? If it was a share that looked like it was reaching an unjustified peak, a stop loss would make a lot of sense, but then I guess it can be hard to distinguish which case is which without the benefit of hindsight.
Personally I hold my shares via an ISA so I don't tend to give much thinking time to CGT.
Agree. Not the first time a limit order has triggered when it was, in hindsight, too early.
On the other hand it has forced me to put some paper gains in the bank, it was only a slice rather than a total sell out, and it was 25% higher than the original target I set for these shares when I bought them. The CGT scheme in this country encourages private investors to slice.
As stupid mistakes go this was not the worst, so I expect l will continue to make similar ones.
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