Our latest Investing Matters Podcast episode with QuotedData's Edward Marten has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
There's a weakness in the share price.............despite trading conditions that traditionally favour Plus500's performance (massive volatility = good for Plus). Is this the Odey overhang..........or does someone else know more than I do about what's going on. I honestly though this would kick on this year...........instead it's that £20 share price cliff hanger again.........hit £19.99 and then drop like a stone.................
Dirt cheap, cheaper even than a mid cap E&P co but is actually a good business that makes more money when there is volatility in markets and should sustain this cash flow for years to come. Good chance of breaking into the US options market too. Their tech platform has proven itself over many years. I'm happy for more buybacks to a point and then I would like more in dividends for income.
EGM Monday 24th July.
Yep that was a fast and shrewd bit of business.
Odey holdings causing trouble in the market for some.
Bought more today. I thought the stock was cheap at 1900p a couple of months ago. We're at 1500p today but with 8% fewer shares. Bargain, especially for a company that typically does well in volatility when everything else is going down.
Surprised no comment as yet on this as eps key to the valuation. The number of shares has dropped by 8 per cent so ex the interest cost on 101 million pounds eps has indefinitely been enhanced 8 per cent. The interest cost of 101 million pounds is probably close to 2 per cent of consensus pre tax
profits. Hence an uplift in eps of about 6 per cent.
PLUS were able to quickly capitalise on a distress sale by ODEY. Buying back shares already already increasing the share price by 8%. this doesnt sound like a bad thing to me.
The problem is that the directors may take the treasury shares as bonuses etc despite unhappiness by the shareholders regarding the companies incentive arrangements
Treasury shares do not have voting rights or qualify for dividends . The good news is with 8% of the floating shares removed from circulation the dividend when announced next will be divided into a smaller amount of shares boosting the payment. The bad news is that the BOD being tightwads with the last dividend might just reduce it by 8% to compensate.
They must have some plan of what to with all these treasury shares and for all the relentless buybacks the share price has still performed very poorly in the last three months, so I am yet to be convinced by the merits of buybacks.
Thanks K it S. So,do shares held in treasury still have voting rights and qualify for dividends? sorry if being thick - this is just an ill-informed hobby of mine. Betting on the dog would probably be a better option.
I don't think the fact that shares are not cancelled is a problem. Public companies almost always hold shares bought back in treasury rather than cancel them. You need a shareholder vote to cancel shares as well (to issue and buyback or too). Also, you require a shareholder vote to issue stock as compensation to management. What is the point then of cancelling shares? If enough shareholders team up, you can reject any share allotment plans to management (without the need to cancel shares). It seems to me cancelling shares is then purely an accounting exercise. Arguably, not cancelling is more transparent as book value of treasury shares shows up in the balance sheet. By the way, at the last AGM in May 2023, the board was authorised to issue c. 5mn shares for cash and c. 5mn shares for acquisitions (that's excluding whatever is held in treasury). This gives the board flexibility to act. Similar resolutions were passed in previous years.
Yeah but the shares are being held in treasury no? If there was any value in the buy back then surely they would be cancelled. I guess giving away shares to the BOD only incurs tax when the shares are sold? IDK . Doesn't seem to be much use to the PI?
It wont as authority only exists for the purchase of just under 700k more shares.Presumably there will be an EGM to increase the authority .
Good & decisive news & we all increased our stake in Plus!
Separately - CMC has issued a pretty negative update today. See cmc for the full update (or cityam if you want a precis). Wonder if this is being seen across the board (thus IG and Plus suffering the same). Think we're due an update end of June/early July?
Proper bit of business that. Bought at £13.83 per share.
And now there are only 82,000,000 million shares in circulation and there's another £18mill of budget for buybacks still to be used. At £15 a share that will take another 1.2mill shares out of circulation.
Plus buys out Odeys entire 8.2% holding at 1383p! at least that settles the Odey business.
Broker forecast on Plus500 website for the next 3 years are all stagnant and less than last year by approx $200m revenue. Am I reading this correct?
I've topped up @ £14.40
The share buyback is much less convincing as the buy-back shares are held in Treasury. They should be CANCELLED. Shares in Treasury can be re-introduced, which would dilute your holding.
Whoops - sorry - forgot about the ex-div thing. I'll shut up now.
The shares that have been bought are ex dividend so carry no right to a dividend anyway regardless of who buys it. The shares have been ex div since 23rd of Feb and still doesn't pay until 11th July.
If the broker keeps buying circa 40,000 shares this week (each day) the shares in circulation will be down to 89,000,000. Doesn't feel many in light of the progress the business is hopefully making. I thought the dividends accrued to these bought shares were re-distributed to the shares in circulation but I guess that money stays in the business's coffers and isn't paid out?
How do we know the bottom? Coz this was £12.50 about 18 months ago…
Plus…if there’s someone selling, who you can buy most of the shares from, it gives you something of an advantage picking the bottom, as you create the bottom yourself, by picking up the remaining shares of a seller, leaving the share trading with no seller and a buyback ongoing to provide impetus north, on top of anyone else who’ll join in for the bounce. Not quite a no-lose gamble but that kind of situation stacks the odds in your favour…