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...than the spread betting firms in times of vol, but the market always forgets. Stock collapsed in the first months of the pandemic before everyone cottoned onto the fact that profits would be a record. Same happening here as well IMO. I do agree that the stock price would be higher today if they hadn't bought TT, but that doesn't mean the market is right - only time will tell on that one. PE of 7, Yield of 6%, huge FCF generation, whilst higher interest rates mean they can charge more on clients' leverage all mean that I remain very positive here.
average up purchase at 723p
"Plenty of time for you to get back in, go on you know you want to :).". Hmm :). Didn't want to sell out to be honest. I am surprised it fell back to the level it has today, 3 bad days, or is it 4 in a row?. It would be easy to fall into the trap of thinking this has bottomed; it may have and for holders I hope it has. I may reconsider if it falls to 700p.
Sorry to hear you are nursing some big losses. As I said previously, buying is easy, selling is what is difficult but we need to take a loss before it gets bigger. That is a hard discipline. And no, don't over expose yourself....you can get locked up for that!. I now have just one holding and not looking, at present, to change that........then again.........
Good luck and regards to all
CM
Next dividend will be declared at the final results on July 21. Historically this has been paid around the third week in October. Plenty of time for you to get back in, go on you know you want to :)
Looking back at my records my last sale here was 837p from a buy of 727p so made a pound before costs. Might add a few more if it drops towards £7. Nursing some big losses elsewhere so need to be careful not to over expose myself.
This has probably bottomed now my stop loss was triggered, (below what I set it at)!. However, yesterday it fell, recovered, then fell more in the afternoon. Yes, this is "cheap" now, but it may get cheaper yet, difficult to say of course.
Selling is always harder than buying. I for one, always think as soon as I sell it will rise, usually to be proved wrong by holding. Oh, and the price must surely rise now after such a fall - getting too attached to the share. Too busy doing other things this week to have sold earlier which is why a stop loss at 800p would have been wiser.
Not sure when next Divi is due, but come ex Divi date the share price will likely fall by the same amount and therefore from which level?.
I will keep this on my watchlist and possibly look for a re-entry point.
Good luck all
CM
Not sure investors will keep more money in the bank with interest rates at around 2% and inflation likely to hit 10%. Means money saved has less value, so spend it now on things you need rather than things you want before prices go even higher. This inflation has been caused largely by circumstances that higher interest rates will only have limited effects. It is more of a supply issue than a demand issue. But......the central banks probably believe they need to be seen to do something.
With the DOW down over 1000 points, 3%, and the NASDAQ down by 5 %, tomorrow does not look good. Higher interest rates are not good for equities on the whole. Difficult to know how low this will fall before there is any recovery. The fall isn't a true reflection of the companys' performance more on the economic climate. As such I may well sell out by setting a stop/loss, take my losses and wait for a new, lower buy back price. I am not the only one who has been taken aback by the fall over the last couple of days, this week. Had I foreseen this I may well have sold out before. If I add in my dividends received then my loss could be worse.
From the Naked Trader (Robbie Burns) blog today, just seen:
"IG went for a profit of £84. The reason I sold? I was making a phone trade with a different SB company who said they were "quiet" so I thought maybe the same with all the SB firms at the mo.". Make of that what you will.
Wishing all well.
CM
No only that but it's the fed rate decision that likely implies investors will keep more cash in the bank. Agreed TT was a rip off but I think actual traders (not investors) will continue to trade here and there. HOWEVER, this is still dirt cheap. With plenty of cash and increasing cash-flow. A divi increase would better sentiment.
Asset managers and brokers are having a tough time right now with higher than expected inflation possibly causing less money to go into stocks, spread betting or whatever. Today IGG has been singled out for a big dump.
FTSE 250 has been horrid since the start of the year, the pound is going south big time v the dollar. No good news anywhere except investing in fossil fuels have done very well.
Another case of should have taken the opportunity of selling at around 840p, but "it will be different this time". IGG seems to have bouts of rising to mid 800s only to fall back. Chances are it will happen again. Personally, at this moment in time, I don't have an issue with the company and see the price movement as a reflection of the market uncertainties generally. Many of the uncertainties should help IGG over time, theoretically. All very frustrating.
CM
"The share price should be double £7-£8".
Over the past 13 years IGG has traded at an average P/E of 13 - now it trades at 8 or 9 and the consensus expects that to continue.
IGG is no longer considered a well managed growth company. Management appears to be weak and a bit clueless. It generates lots of cash but no real growth - competition is strengthening. New leadership required?
AceofClubs
Because when given the chance, instead of fat divis/ buybacks we bought a useless bucket shop. For 1 bn, got saddled with debt for a worthless acquisition.. that is why we don’t higher and plus does.
It's quite incredible how badly this sp performs in war and coronavirus crisis.
The sp should be double of £7-8.
like £15-16 what is the real reason why the market doesn't care?
I disagree - too early to call TT unsuccessful based on one quarter revenue figure. First 6 months saw tremendous growth which kept IGG growth positive when all around (CMC and Plus) saw falls. The US market was clear weakness/gap in IGG's business and whilst I agree not cheap, the TT trade gave them immediate presence and better growth (than existing business). The huge FCF generation of IG's business will soon pay down debt associated with the deal, and divvy's/share buybacks will then come to the fore.
I would like to believe that IGG had done its' due diligence before buying TastyTrade and knew what a fair value was. There would have been a degree of compromise between what IGG wanted to pay and what TT would accept. Although difficult to admit, I think we have to trust that IGG knew what they were getting, after all, they would have access to all the facts and figures whereas we don't. I for one do not know better than IGG. It is not unusual, indeed quite common, for a share price to fall back on the day a company announces updates, I've seen it many times. Not that it matters so much, but one broker has re-iterated its' buy rating on IGG today, make of that what we will. The trend here has been neither one way nor the other for some time, and I guess it will continue. Seems to be one step forward then another back, repeat. Is this a buying opportunity?......Heaven only knows!. Wait and see for me.
With respect - "What might have been", oh yes, definitely but we will never know. What might have been had there not been Covid, nor the Russian invasion and war of/with Ukraine?...another unknown. It is what it is.
Good luck all
CM
Almost everyone on this board who commented on the tasty trade deal said at the time it was hideously overvalued and now we are seeing it. They diluted a good business on a cheap rating to pay way over for something making a lot of profits out of some stupidly overvalued US shares. The ceo should resign. Plus 500 looks way cheaper than IG and has huge amounts of cash and buys back all the time. Mind you IG does not look expensive. It is just what might have been.
Trading update indicates IGG is yet another business not in control of its own destiny. Everything, good or bad, is attributed to too much or not enough "market volatility", too many or not enough "meme stocks".
The one move IGG did make under its own steam was to grossly overpay for TastyTrade. Paid £1billion just a year ago now CEO June Felix cannot bring herself to mention it by name hoping nobody remembers!
Another of my too long list of "Too cheap to sell stocks"!
AceofClubs
The best part of the update is;
'At a Group level, we anticipate FY22 revenue will moderately exceed current market expectations'.
Cheque- meme stocks are the ones which the us investors hyped on social media last autumn when people were locked down, using nil commission platforms. Rises and falls were ridiculous - it was herd behaviour at its worst.
I agree with your thoughts MTB.
Share price shot up on opening, then sharp fall back, some recovery since. Could someone enlighten me please as to what 'meme stocks' are?, sorry if that sounds a dumb thing to ask.
Taverham - good luck with your investment. IGG does seem to be volatile at times. It does pay a dividend though which is why I am in slight profit over the time I have held here.
gla
CM
Numbers are broadly ok, but not standout. I think the market is disappointed in the slowing growth at TT, plus the sharp fall in the stock trading business. The latter can be explained by the sharp rise due to 'meme stocks' last year, but the TT does look a bit disappointing, particularly given current market vol where you might have thought that exchange traded options would have done well. Still, overall growth is positive, PE low, yield c7% and divvy likely to grow so still a great stock to hold from here.
I have bought £17k this am - was expecting a big rise in sp - down on my investment so far - unbelieveable imv.
If these results don't inspire a break of £9.50, I don't know what will..
Yes the CFO voluntarily snaffling a few is usually a positive indicator.
Hoping for sensational trading figures tomorrow (obviously) - could Q3 revenue exceed the previous quarterly record of £259m?
There's certainly a chance it might.
For Tastytrade, Q3 cable exchange rate has been more favourable than in the first half, potentially benefitting the headline TT growth rate.
It'd also be delightful to get an update on capital resource plans, like a new dividend policy and how they plan to invest the Nadex/Small Exchange bonanza, but knowing IGG, they may be silent on that until the year-end report.
Lastly, fingers crossed we haven't been caught out with any unhedged losses in the extreme volatile conditions following Putin's vile actions. I think it unlikely, but with Russian asset values, nickel, oil and many other markets behaving like wild mistresses, the risk (and potential reward) for all market participants increases, including for IGG.
Whatever's released, good luck all and let's hope Mr Market loves, not hates, it...
SBC
CFO buying. Always a good indicator.
If a spread betting company fails to make killer profits during this time, then its facing serious issues... surely the soon to be released trading update from IG will smash it!!
It will be interesting to see how the recent turbulent times effect IGG trading results next quarter.