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I agree, very peculiar. Price here is about the same as on results announcement date and yet the shares no longer attract the 45-50p dividend coming in November. I'm happy the company are continually buying back shares sub £15. All the more chance that my own holding will revert to £20 when the value here is recognised
It's very odd testpack3. Today was XD so should have been gapped down c.58p/4% on open (all else being equal) but the market pricing seems to have missed it completely? It is marked XD on the stock exchange today and also listed on dividenddata.co.uk but wasn't listed on Alliance News nor IG for today.
I wonder if it may be because it is so soon after the announcement (RNS was just on 14th August) so it's not been picked up somewhere in time. The only other thing I can think of is that there was a separate reason for the market to want to gap the price up a similar amount this morning that negated the expected drop, but other than the nvidia bounce last night I can't see what that may have been?
Record date tomorrow, 25th, so expected sells. The divi is c 4% pre WT, so will the %age sp drop equate to divi.?
But profits from customers losing money were wholly exceptional in h1 2022 at about 172 million dollars! They dropped to a more normal but still high 42 million dollars roughly. In q2 profits held up even with customers making about 8 million dollars. Market conditions have been much more quiet this year so look at cmc for example by comparison.
Did you actually read the half time statement?
Profits were down 43% from the same time last year.
How outstanding is that?
I am happy to collect the dividend every year
Is there any withholding tax on these?
Dividend is also improved including special. $0.7344 gross so roughly 46p after 20% withholding tax.
Strong progress made in accessing the US futures market, representing a multi-year growth opportunity for Plus500
Outstanding - this should be over £20 per share but I doubt we will see that until FY results unfortunately.
Due in 10 days & based on the recent cmcx update we may expect trading to be relatively flat-although we have a massive cash pile on which meaningful interest will have been earned,part from interest on substantial client deposits.Additionally we will hopefully be advised that our US operation is expanding as planned.We should remain in good shape & perhaps the dividend will be increased,bearing in mind there are now 10% less shares in issue .
If Plus500 starts to gain traction the US then that could improve profits further leading to increased dividends.
The whole market is getting walloped though Plus is not immune in brutal sell offs, look at IGG and CMCX similar businesses. Anything financial be it banks, insurers, asset managers are really struggling share price wise.
Regarding the next dividend I'm not holding my breath on it being very good in light of all the extra cash they burned buying Odeys chunk of shares in that one off deal.
Feels like there's no resistance to the drops we're seeing at the moment.
If they could agree a good price with the seller then I am sure the company would buy them.
Personally, I am laid back about the depressed share price because I want to buy more shares at a lower price in November with my dividend.
If there is a large seller ,with view to our cash pile & the fact that we recently bought back about 10% of our issued shares from Odey,to avoid an overhang ,why wouldn't we also buy back their holding,also to eliminate the overhang-if there is one ?
Interim results and dividend declaration are due within two weeks or so. It is going to be interesting if the company is
to increase the dividend especially as the share buybacks have not pushed the share price higher. I know there are other factors affecting the share price including a large seller who is still selling.
All will be revealed soon.
I can guarantee that if there's a right way of doing something or a totally tone-deaf way of doing it (in the shareholder's eyes) then Plus will take the tone-deaf route everytime. It's just their way of letting us know they hold us in complete contempt (and why there will never be a re-rating as everyone hopes). Those bought shares will come back to haunt us I reckon, ultimately and all that money they've spent.................could have just been given back to us in divis all along.
But let's see eh? Plus might surprise us.
I have no idea of Israeli Tax Laws, and if share BB qualifies for tax relief? I would doubt it. The 'Treasury' shares have no value on the 'books', but can always be re-introduced to the companies books by various means, devaluing S/H's. I cannot see any reason why BB shares are not cancelled, rather than placed in Treasury, except for re-introduction later.!
There is always an element of 'greed' at BOD level, then there is 'avarice.' The Market is yet to make its mind up.
I put it to you, if there is a board plan to cancel the treasury stock and accelerate dividend payout, wouldn't they first want to accumulate as many shares as possible in treasury via buyback before unleashing such a share price re-rate? For long term holders, not those after a quick buck on a trade, it makes total sense to first drive buybacks, which is also tax efficient method of returning value to shareholders, before later driving dividends and cancelling treasury shares.
Those with patience will reap rewards here.
Plus hasn't been de-rated, it has flatlined in terms of valuation multiple.
To be clear, its PE ratio was 5x at end of 2016; also at end of 2018, also end of 2020, and is today still is 5.0x.
Meanwhile, EBITDA and EPS are both up around 300% during that time.
That is why the stock price has risen 300% in that time period.
The company has 30m share in Treasury - we don't know what will be done with these but we do know that they amount to around 30% of total shares in issue and this could be transferred to shareholders easily by cancelling them. Management can't give these shares to themselves, obviously - the board represent the shareholders and most are INEDs, so they wouldn't sign off on it.
Share based compensation to management has never been a great deal in proportion to the earnings delivery of the company. This isn't an issue.
The reason for the low multiple valuation ascribed, IMO, is the variability in earnings, black-box risk management system, and arguably low visibility in customer retention despite actual retention being very good. That said, the valuation multiple more than offsets these unknowns, and we know that Plus is broadening its business to diversify.
It's a pretty sweet set of opportunities in my view.
You're right testpack; I first invested at £3.45 and then sold at £7 and then came back in at £9ish and have stayed in ever since (but buying and selling percentages of my holding; some at good times others at bad times); I'd love this to rerate (but tbh getting to £20 and staying there would be good. ) I do feel there's someone in the background toying with us however.
I'd prefer divi's to buybacks tbh - but I recognise what bb's are good. I just don't like the fact they aren't cancelled. Watch them shell out a load to the directors (it's happened before). Hate stuff like that.
I have no worries owning Plus, unlike a few of my other shares.lol
A re-rate will happen when the BOD desist from the BB programme and pay a divi which reflects the companies profit.
Savaloy. you were obviously not invested here when Plus was trading at £2+. I'm happy to say I was, and £2 to £19 is a re-rate in anyone's book.
After the meeting on Monday I think the share buy back will revert back to 30,000 per day from the current 10,000 per day. The SP will slowly move north imo.
Everyone keeps banging on about a re-rate.................and we've been waiting for it for about 5 years...........but Plus has a couple of major errors of concern that simply won't be overcome any time soon. Lack of Trust in the Board, extra tax because of it's domicility and the opaqueness, and the way it earns it's money (customer income and the lack of hedging, even though the lack of hedge means greater profits.........sometimes........risk).
So..........if you're hoping for a re-rate to the same as it's peers...........in my opinion.......that aint ever happening unless something changes. Floating on NASDAQ for example would take away the domicility and opaqueness issues once and for all (and the tax).