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Another buying opportunity thx Canna
imho this will double in price in a few years . maybe less
OUTRAGEOUS………. (Sharecast News) - Analysts at Canaccord Genuity lowered their target price on financial services group CMC Markets from 257.0p to 224.0p on Monday, citing "material cost inflation" flagged by the company.
Canaccord Genuity downgraded its adjusted diluted earnings per share forecasts by 25% in 2023 and 10% in 2024, stating it forecasts just 18% growth in net operating income over the next three years, versus CMC's communicated plan to increase net operating income by 30%.
"This leaves our FY25 net operating income forecast circa 10% below the company's target level," said the analysts.
The Canadian bank added that its adjusted dilute EPS forecasts were now 8%, 29%, and 33% below current consensus and said it believes its own forecasts could still be "too optimistic".
"We roll forward our target date to CY24 (prev: CY23), to take account of CMC's growth initiatives starting to bear fruit. We take CMC's average one-year forward P/E multiple since listing as our starting point, which is 12.2x. We now apply a 10% discount to this to reach a target multiple of 11.0x, which we believe is justified by the downside risk to our below-consensus forecasts," said Canaccord, which reiterated its 'sell' rating on the stock.
"Applying an 11.0x multiple to our CY24E EPS forecast results in our new 224p TP (down from 257p), which implies 14% downside from the current share price and a -11% TSR. The next 12-month dividend yield at our new TP is 3.8% and the current buyback, is two-thirds complete."
Dividend payment in acc now n a starting to bounce upwards now ....great share to ride .........unlike yesterdays selection of mine.....Gla
We’ll received results from TP ICAP today may have a positive effect here.
Topped up for 239p , lifted at close after going back to 9th June 2022 recent lows .
Motley saw value yesterday in Sunday e-mail, no surprise then it dropped today.
9th April 2021 was the high 538p, some fall back to 219.5p on 20/2/22. then recovered a bit, but back down to 238p on 20% fall on 9/6/22 .
I sold *335p 15/7/20 , bought back twice as many 3/9/21 & 8/9/21 paid 297p & 285p .
20% fall 28/7/22. to 246 p.
The year low mid February 219p
This is one of the shares for me that just keeps on giving amongst a few others. But it’s not smug, traders fk up like everyone else!
Same sector I thought I caught the bottom at JIM! Lol! So there you go! But I have smashed it here!!!
Fortunately I have many more winners than losers and part of the formula is to revisit shares one knows and grab a ‘nibble’ or In traders terms that’s just a few hundred quid or a few k.
It depends on liquidity about what’s possible, so don’t get caught by stocks that regularly go NT!
Cmcx has good liquidity and often pretty tight spreads so one can grab a few and dump!
So there you go! A traders secrets divulged in the true spirit of a BB. But now try and see how easy it is!
Good luck with your investments,
Usual caveats
Trek
Punter64, yes this shares has always been a swinger...recently.....lets see what tomorw brings....Gla
I see that there was a 25p rise the day after the last big drop. It will be interesting to see whether history repeats itself. I might see which way it opens and jump in if things look more positive.
Final drop into the close ready for the bounce back tomorrow
Well over done on that news. Every company is picking up 5-10% cost increase. When people wake up tomorrow and put their dummies back in this will be 270p+
Watch them exit stage left in the next hour
Thanks Denfos. Maybe I should look in the obvious place lol
Strange is was missed everywhere else (inc Time week ahead etc)
Starting to see a pattern. In 2 months the SP will be +£3 again. Easy money to be made on short term trading.
MarkBell…“Looks like you are right Denfos...ive only just realised. Where did you see this in advance?”
Right here bud… https://www.cmcmarketsplc.com/investors/financial-calendar/
Added another £5k - drop way overdone imv because profits will not be down by 20% as I see it.
Contrast this to plus 500! It is amazing. However, plus is still on a miles lower or ratio on broker estimates than cmc.
Bit naughty the RNS. We gotta read across to previous results to work out wtf is going on!
Traders only at this level and today imo is not the day to buy. Will bounce and retrace. Bottom May show itself then.
As for the guidance on track and 5% costs increase. Yea right!
Show how good IG and plus have been doing!
Gotta raise their game here.
Still sat on hands
Usual caveats
Trek
This shares been a traders dream........ as stated costs for 2023 extra 5% ....... great buy at these levels, took a few........Gla
Punter64, agree that such drops don't instil confidence. However, the divil is in the detail and if you study that, rather than a Headline and the 'market' reaction to same, you'll see that CMCX is a very solid company. It has no debt, majority owned by a Lord Luccas, is growing, etc...Agree the RNS could have been written with some positive quantitative elements to counter the 5% higher costs negative, but the market drop of 19% is not warranted. You obviously are not a shareholder here and probably aren't aware of the detail. ULVR is a good example of a share in recent months which the great market (your barometer) knocked to £34 because of its bid for GSK part Haleon, now it is £40 !! I'm a moderate lt holder of CMCX and cobfident going forward.
Clued, this is the second time in two months that the sp has seen a drop of over 20% in one day. A bit careless - and that doesn't instil confidence IMO.
So punter64, you operate on the basis that the market (and that is itself hard to define as it comprises many different elements) is always right ? Are a share holder in cmcx ? What about meme stocks then and their sp movements ? Are you an investor who judges a book by its cover therefore ? SHEL fell to c £9 in 2020, now it's c £20.....
Clued the only back up I need is a quick look at the fall in the sp - market not impressed
Punter64, please back up your statement below. The only negative within today's RNS is the 5% extra costs and that could be seen as a positive given current inflation and expansion taking place at CMCX.
unhooked, what you're missing are the desert buzzard scavenger shorters who go for a quick gain and then move on after eating as much flesh as they can when there's any perceived weakness in an RNS. Inflation us c 10%, CMCX are expanding and they say their costs are up by maybe only 5%. Some of the latter expenses re dev of platforms could possibly be capitalised but hasn't been because the individual invoice/ amount is below a threshold for capitalising. This drop is definitely unjustified.
if you look at the day chart for the last big drop a couple of months ago the share closed at 239p just 5p above the low of 234p - likely to be similar story today