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Given he will get 65% of "the price" I think Cruddas will make sure its good it that where to happen
This will recover. I remember PLUS at sub 200 and everyone selling.....
GeekBench: It's not about loyalty - CMC was already on a serious downhill track in July. If the CFO wants to jump ship it CAN be a sign the ship is sinking; or may be the two were just a coincidence? Everybody is entitled to draw their own conclusion but on 7 July CMC share price was 150p, it's dropped nearly 30% in less than 2 months.
Meanwhile, the remaining "extremely talented people" at CMC are manning the bilge pumps!
AceOfClubs
Lord Cruddas is going to have to take this private and I doubt investors will like the price.
Euan MarshallL: "I have thoroughly enjoyed working with the extremely talented people at CMC over the last 11 years, and particularly my last 4 years as CFO"
What is the time frame for you to think someone has to stay to show his/her loyalty? He has already spent 11 years at the company!
Indeed Mary - and in case you missed these:
7 July: He clearly sees greener pastures elsewhere. If the CFO is giving up on CMC why should anybody else invest?
https://www.londonstockexchange.com/news-article/CMCX/directorate-change/16031140
Difficult one to value, is Peter Crudas any longer up to it?
And today: "Jefferies cuts to underperform. 80p target from 190p."
AceOfClubs
Im buying more
This will come good but will no doubt take a while now
No net debt, decent dividend, Strong FCF ++++
Jefferies cuts to underperform. 80p target from 190p.
Corrected, should have gone to specsavers.
Hazard of a quick scan and a mobile phone screen.
Are you sure that it’s a purchase of 588,135 shares? I read it as two dividend reinvestment purchases of 588 and 135 shares (unfortunately!) but I stand corrected.
Price(s) 129p +
588,135 shares
Mary - you hit the nail on the head
And the converse is true, when interest rates peak the markets bounces strongly initially and Inflexion means outsized stock market returns albeit fleeting but the turn is worth a capture.
Higher interest rates means the company can't offer much upside for 2024"
I agree with this and have pulled 20% from my trading account to stick in a cash isa at nearly 6%. I might take more out. IG offer me no interest on my cash, II a paltry amount. These markets have been horrendous, who needs the hassle stress of trying to make money in them when interest rates are high?
One for the bottom drawer, addBglad.
Not a recommendation of course :)
"higher interest rates means the company can't offer much upside for 2024" - wrong, see below
"Interest income - this is an important point. I recall before the zero interest rate period, spread betting companies made most of their profit from finance income - pocketing the interest earned on substantial client funds. Now that interest rates have gone up substantially, and rapidly, this should result in a dramatic increase in finance income for companies like CMCX. the TU on 27 July 2023 made this important point -
…however weaker client activity has been offset by stronger interest income, resulting in overall net operating income tracking at a similar run rate to the same period last year. "
Looks like a loss is possible for 2024. If net income comes out at the low point of £250m, and costs are £240m, and variable remuneration (assuming continuation of 2023 level) is £16m then that gives an operating loss of £6m. At £280m its an operating profit of £24m. Its a good business but the (almost structurally) low market volatility, a pretty good chance of a recession in multiple end markets and higher interest rates means the company can't offer much upside for 2024. With 7 months to go this year there is still a good chance of more forecast reductions if the macroeconomic indicators keep going the wrong way
Yes trading now below TNAV
Ya reckon ? good luck with that one
can't see it personally, 2019 revenues were £130m with £6m pbt but this year forecasting between £250m & £280m with costs generally unchanged from last year, the share count hasn't increased in that time either, .
I'm fortunate to a degree that I've managed to trade some of this on the way down while the dividend was welcome too and will be reinvested at a lower price, I'm hoping that the demotion from the ftse 250 is already baked in and after some sketchy research I'd say shares tend to recover after demotion which is against the expectation I know.
it's become a longer term hold than I would have liked however
I think 2019 low of 77p might be a good entry point
Been in CMC for years. I look long term but trade shares in companies in which I have long term holdings which I find a useful and profitable strategy. Do not get it right all the time of course. When markets turn back up I believe CMC will see increasing trades and SP will increase. I bought more this morning and am already seeing a profit on this morning's buy but obviously seeing overall loss on existing holdings as a result of today's trading update. Optimistic long term still. The unexpected happens so whatever shares you buy don't buy with money you might need in the short term.....like next month's rent etc! I know someone who did and the SP continued to fall big time before rising dramatically after a couple of years. Same thing could happen here but hopefully this may be the bottom. Think long term with CMC is my stance.
Its effectively aim now... worth about 300 million and steadily declining
CMC Markets is listed in the FTSE All-Share, FTSE 350 High Yield, FTSE 250, FTSE 350 indices.
CMC Markets is listed in the Brokerage Services sector.
....
I am afraid looking extremely dodgy future
Was tempted to buy but didnt. right call. This looks extremely uninvestible now with a loss to be expected. very underwhelming. sub £1.