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Started: Florence141414, 31 May 2024 09:48
Last post: Florence141414, 31 May 2024 09:48
I think something interesting is going on in the world of personal investment.
Premier Milton’s results yesterday morning showed continued outflows. Whereas HL and AJ Bell have showed really significant inflows in the same period.
Moreover, we’ve seen improved transactional activity from the likes of CMC markets.
It looks to me as if a lot of the money that came out of the fund managers over the last few years is coming back into the market with the self investment platforms not the active managers.
Obviously this has been going on in a small way for a long time. But it now looks as though more people than we thought do actually know that active management is a con but they’ve been reluctant to make the switch most likely because it’s a pain. Now they are taking the opportunity to make the switch as they had cause to remove their cash organically.
With HL and AJ Bell already having made their jump to trade at high teen cash flow multiples, I think the best opportunity right now is with IG.
It trades at less than 10x forward cash flows, is buying back shares like nobody’s business and looks set to benefit from cash that is due to flow back in to the market. Whether that’s people who want to self invest in shares, low cost index funds or derivative trading.
The only caveat is the FCA investigation into client interest. If the outcome of that is anything other than devastating, then IG looks really cheap right now. In my opinion there is a potential upside to both valuation and earnings.
Started: Cheapsharesboy, 30 Apr 2024 14:08
Last post: Cheapsharesboy, 30 Apr 2024 14:08
Business performance was decent in Q3 so traders seem to stick around. It's best to have a reliable platform so you can trade when volatility kicks in
Next update far away in July - until then IG will be saying "transaction in own shares" - buying cheap stock until it's no longer cheap.
Business performance in Q3
"In the period, total revenue of £240.1 million increased on the second quarter (Q2 FY24: £229.7 million) and was stable on the prior year (Q3 FY23: £239.3 million) despite the lowest level of volatility in over five years."
Started: AceofClubs, 10 Apr 2024 11:56
Last post: Cheapsharesboy, 30 Apr 2024 13:49
I've traded with IG for over 10 years
Used other too like cmc and etc
Definitely IG has the best product
It's more likely a failure is your own incompetence
Sorry to say it like I see it
Earnings like to be up with volatility increasing every week now. I wouldn't call this "fully valued" untill over £10.
AceOfClubs, I really do not want to agree with you, however, the facts speak for themselves! I have enormous concerns regarding TastyTrader since their results are unclear! I shall be hanging on for the dividend since I bought these shares at a much lower price. Good luck.
Sold out this morning after holding for years in an ISA. Looks fully valued to me - put half the proceeds into PLUS500. Have lost any faith in IGG management after the last results - the numbers told a completely different story to the managements' self-praise. PLUS500 management is also over-remunerated but have a better track record and a more active and nimble approach to a changing market.
AceOfClubs
Started: Alessandro, 21 Mar 2024 12:53
Last post: NICKTIMS, 27 Apr 2024 03:01
Jonathb, yes I can comment. I have been with IG for around 25 years, when they first started out (spreadbetting). I really like the company, and, I am a shareholder, that's why I purchased the shares too! I would be more interested to learn why you had a problem, and, surprised that you had a problem with the customer service, I DON'T work the company lol. Having had accounts with other company's e.g. banks (Halifax useless), TD Waterhouse (who are quite good too), I am sticking with IG.
First up, some patience please. This is the only place I can think of to post this. Anyway, after some decades of happy trading on NY and LSE markets, I tried to open a plain ol' ordinary ig.com trading account. My 1st trade failed and there followed much time-wasting with offshore support. My usual gut instinct is when a new biz-partner spectacularly screws up on my very 1st transaction with him, I roll everything back and have no furthers.
Was this just bad luck? Anyone out there delighted with their trading experience on ig.com?
Are we ignoring the declining number of users? why is this happening?
"revenues more or less unchanged from last year at £240.1m": how is this even a positive?
Started: longtimeinvestor, 14 Mar 2024 20:19
Last post: longtimeinvestor, 14 Mar 2024 20:19
With the update, but still well below peak prices.
Hoping to see £10 + at sometime in the future - in the meantime happy to sit back on my 535p average price
Started: NICKTIMS, 28 Jan 2024 03:20
Last post: LWHL, 30 Jan 2024 07:04
Well, in that case, it probably means it is still loss-making, IMO.
I would go as far to say that I would find it inconceivable that they would not use the word 'profit' in relation to TT if it were so.
Anyway, I remain interested in what the new CEO says once he has settled in.
He has certainly got a nice welcome package! - but if he turns this outfit around properly, then it will likely provide fair value for the shareholders. Like I said before, I hope so, because I would be delighted to rejoin here. GLA.
Https://www.sec.gov/Archives/edgar/data/1647386/000164738623000007/FY23-public.pdf
I found this but can't make head or tail of it!
The successful/failure of TT financial results would be a good question to be answered, if need be at the next AGM.
I very briefly glanced over that RNS. Does it include a strike price, or are they his, come what may?
"let's see what the new boss has to say, once he has joined,"
This mornings RNS informs us he has just been awarded free share options worth ~ £1.25M - so perhaps his first words should be "thanks very much"?
He has certainly laid down a marker as to where his priorities lie.
AceOfClubs
Started: MattTheBrave, 25 Jan 2024 08:23
Last post: AceofClubs, 26 Jan 2024 11:30
"Continued execution of the strategy, with a sharp focus on clients, costs and capital has served the Group well in soft market conditions to deliver attractive margins and returns to shareholders."
Reality: Active clients declined 5% on comparatives. Reality: Costs increased 11% YoY – out of control - whilst trading revenue decreased 19%. It can’t cost too much to collect the interest on clients’ money! Trading income and the losses incurred by tastytrade remain undisclosed.
Charlie Rozes, Acting Chief Executive Officer, commented: “It’s encouraging to see the benefits of our diversification strategy paying off”. Dishonest and/or delusional.
AceOfClubs
I had concerns before this update. To my mind, it was actually worse than I expected. I agree the new CEO has his work cut out; I think quite a lot more cost reductions should be initiated. IMO, the buy backs are limiting price discovery here at the moment.
I am not holding any here now, but I am watching with interest to see how the new CEO settles in when he joins officially (I presume he is already making a start on getting to grips with the business).
Hopefully nothing in the closet to come out. Not suggesting that there will be, to be clear, but it will be good to hear from him when the time comes. And what his vision/strategy will be.
I want to get back in here. I just want to see a compelling case to do so first. It might of course mean I need to pay more for shares than today, but so be it. GLA.
Yes, I was not expecting this at all after recent positive momentum and good updates from plus and cmc. New guy will have his hands full for sure.
I've been a long time bull of this stock, but these figures came out of nowhere for me. Very disappointing indeed, particularly after the good CMC figures. That 90m fall in trading revenue really is a kick in the guts. Only bright point is a small rise in the divvy. New CEO has his work cut out :-(
Last post: bangrak, 23 Jan 2024 09:31
My biggest concern is that they have been unable to fix this despite their IT guys working all night on it, they won't tell you via the website there is a problem but I can assure you after many emails and several incident numbers they know this is a big problem..... It all started after the scheduled maintenance at the weekend, i sold my IG shares as i have a feeling there is more to this than the 'bug" they told me about. It begins to work and then the entire alerts system crashes again.
The entire system has a bug, its been like this for 24 hrs, however, i have had an issue with the alerts not resetting correctly for 2 months. Terrible service I'm getting from them. Im in the process of moving brokers after 9 years with IG and until recetly they have been fantastic.
Is anybody else struggling with Alerts on there platform
Started: BubbaBubbaBubba, 2 Dec 2023 23:03
Last post: LWHL, 11 Dec 2023 16:12
Good job we have a new CEO coming soon. JF would have probably bought them for multiples of their current SP :)
Robinhood will be a competitor to HL, not IG, and even that will only happen when they also offer UK share trading - it's only US for now. RH came to the market in 2021, since when, the stock is down 75%, and they still aren't tuning a profit. Don't think we should have too many sleepless nights over them....:-)
Bubba was talking babba
Bubba - looks like you called this one wrong old fruit!!!
RNS out with new appointment of CEO - I like that appointment too and so does the market clearly!!! GLA
I would suggest that IG and the other mature operations in this space are well versed in the regulatory direction of travel.
It is more likely that scrutiny will fall on RH, for the reasons given previously, all of which are in the public domain too, so not simply idle chatter.
But I agree that consolidation in this space may well happen at some point. Such things are a part of the natural cycle.
I felt, and still do feel, like this one could be an attractive target one day.
If this happens, IMO it would be at a price materially north of where we are today.
It is already illegal and should be policed more vigorously.
If the punishments were more severe, then perhaps that would do the trick. Or at least significantly reduce the practice.
Naked shorts should absolutely be banned.
I hope our dumb politicians do not follow suit.
Nothing wrong with short selling whatsoever.
It can serve many positive purposes, from highlighting problems in certain companies, which the mainstream have overlooked/have not seen, to providing market liquidity.
Not to mention generating a lot of revenue for the public purse.
Which the politicians will no doubt squander of course, but the point still stands.
Laws already exist to deal with the type of dodgy activities that some short sellers/boiler rooms use, so rather than banning short selling, they can simply enforce existing laws to this end.
Which I am sure most people would welcome.
South Korea bans short selling
Started: DiveCentre, 1 Nov 2023 05:22
Last post: DiveCentre, 1 Nov 2023 05:22
A buy recommendation from Tempus in the Times:
https://www.thetimes.co.uk/article/oil-major-adrift-after-loss-of-skipper-72ldmrphh
Started: nick2723, 31 Oct 2023 08:59
Last post: nick2723, 31 Oct 2023 08:59
As someone who has been holding IG for a few years and is in the red, I'm pleased to hear they are trying to be far more profitable. It also looks like the market agrees as we have gone up 3% so far and I hope it holds it at the end of the day.
https://www.proactiveinvestors.co.uk/companies/news/1031481/ig-group-to-cut-workforce-by-10-1031481.html
This does not have an opinion but it's good to get the news out with traders.
GL all holders and DYOR.
Started: hxulcolrdoh, 23 Aug 2023 08:07
Last post: LWHL, 31 Oct 2023 08:22
I do not think they are going to sacrifice those people who make the business work well, such as the customer service staff.
I am confident that they can find a lot of those savings in some of the (underperforming) senior management.
Exactly what we wanted cost cutting
Good news
I don't like the RNS. They want to grow and reach more customers by reducing staff in big numbers? The quality of customer service will go down, same for product upgrading and servicing. It feel like a shortsighted move and it tells me that IGG is struggling to meet earning targets. Which ties up nicely with insiders selling their shares.
Well, not sure how the market will take that RNS, but personally I am quite pleased to see that the opinions of some of us here are not falling on deaf ears.
Will buy a few more if we see a dip, but IMO, this update should drive the SP to a higher range, meaning I should not get the chance. GLA.
The share price could be doubled so easily.
Just need a CEO from USA who knows how to cost cut and run it efficiently.
I am just not sure it's gonna happen.
They'll just hire another one who can do the "job" and that's about it.
Clueless! If the CEO had a clue - she would embark on a drive to double protitablity right now.
If you get the right guy - that would be so so easily done. I just don't think it's gonna happen.
Most UK companies are content on a stalemate - rather than progress. Sad because this company is literally a cash machine and could be double so.
Last post: DiveCentre, 26 Oct 2023 19:33
It does make me wonder when people ask questions like this because the information is very easily found.
However:
The previous interim dividend was paid 3/3/23 so expect the next around a similar date in 24. It will be announced in the Interim results expected late January or early February.
When is the next dividend scheduled to be paid please?
Last post: LWHL, 12 Oct 2023 17:55
Hopefully we are making good progress on the CEO hunt.
Just seen that we have a disclosed short, registered a couple of days ago.
Might explain some of the SP action of late.
Hope they have got this one wrong! GLA.
I take it it's a good time to buy with volatility kicking off, interest rates will remain high for a bit longer. Plus 7% yield , the sp is at a 3 year lows now, I think it dipped to 620p where it has bounced from. Last we were lower was March 2020 corona chaos.
A new CEO is a given of course. Getting a strong one is vital. Not somebody who is going to come in and look to make radical changes to what is a fundamentally strong, cash machine business.
I want to see the new CEO focus on strict cost controls. Reducing costs. No more M&A activity. At least not in this current climate. Build an even healthier balance sheet. Good enough a strategy for the likes of Berkshire Hathaway, certainly good enough for us.
I use IG, not as my main account, but as second account because the platform and execution is the best in the market. Yes IG has done poorly recently but I wouldn't listen to a word Ace says as he was selling Tcap at 120p right near the bottom. I would imagine that IG will improve at some point not sure when. There is always the generous dividend if nothing else. But defo the CEO needs to be replaced
Completely agree. Now is not the time for M&A anyway, IMO. We simply do not need it. Wrong time more generally, too.
Indeed, we need to make sure TT is a profitable arm of the overall entity on a consistent basis. Improve operational efficiencies (cut costs) across the board and keep a significant war chest for what is surely going to be a challenging period of the economic cycle.
But equally a period of time that should suit our business well (heightened volatility etc).
As long as the BOD (and new CEO when they join), avoid making stupid decisions, this should be a fairly comfortable hold for the medium term at least, but hopefully many years into the future too. GLA.
Started: AceofClubs, 20 Sep 2023 09:23
Last post: paul30661, 21 Sep 2023 21:22
I use hl and because I don't have trusts, just shares, they are very good value, and good service too.
I can't comment on pricing of trades, but it's not previously been a material issue for me (as an investor, not a trader)
Lol. Snap! :)
Yes, I too noticed that AS/TMS simply has to have the last word...... which is what drives me to ensure that doesn't happen......lol. I have a daughter who is very similar (can start a fight in an empty room) however slightly less vitriolic and demeaning.
I had a brief glance at his posting history last night. There is certainly a pattern :)
Defending your opinion and even firmly disagreeing with another POV is absolutely fine.
It is the bedrock of these forums, after all.
But when you play the man, rather than the ball, well, it is simply not cricket.
Usually I tend not to engage in such scenarios, but occasionally I retort with equal immaturity. As I did last night :)
I also thought he would find it impossible not to have the last word.
A shame really, as he makes some solid observations. Some I actually agree with. It is more the macro stuff that we seem to be entirely at odds with, and that which seems to enrage him :) Hey ho.
LWHL, it's nice to see that AngerSharkz/MoneyShark is dishing out the grief to other forums here and not just IDS.....lol
Started: AceofClubs, 30 Aug 2023 14:11
Last post: LWHL, 15 Sep 2023 10:31
Am surprised that nobody has commented on here since the last update.
IMO, it was a fairly good update, with a 'better' level of revenue decline than I had anticipated.
Still want to see evidence of improved cost controls and more data on TT performance next time.
Also hoping they get a real heavyweight to replace June (who I wish a return to good health, but whose departure, from a commercial POV, I am relaxed about).
What was your take, Ace?
Julie Felix will not be returning after her medical leave. The search for a new CEO has started - is Malcolm Le May available - he seems to have a track record making him suitable to be rewarded for failure.
AceOfClubs
Started: Doyezee, 3 Aug 2023 09:33
Last post: Alessandro, 8 Aug 2023 15:33
I just looked at recent director deals activities on the HL website.
What a sea of red. All deals were sales and for substantial sums with the share price in the region of £6.80-7.10
https://www.hl.co.uk/shares/shares-search-results/i/ig-group-holdings-plc-ord-0.005p/director-deals
Directors are not feeling very confident on the outlook of the company, why a private investor should be?
I will hold off on this one, at least for now. I feel more pain is coming. The latest announcement on company performance was not as good as many think.
Plus the buybacks of course!!!! 😁
I’ve used IV platform for more than 5 years now and love its ease of use and breadth of markets plus very reasonable on trading costs. Also ranked No1 overall for trading platforms (here in the UK anyway). Touched strong resistance around 672p this morning for the third time in 6 months and with a great dividend, higher interest rates and trading volatility ahead (good for trading platforms as more trades generated which increases revenues) and a low P/E, what’s not to like!!! Plus more and more retail traders coming into the market everyday. GLA
Last post: Alessandro, 20 Jul 2023 13:13
How come the profits before tax didn't increase as much as I would expect after a 100 fold increase on interest earnings?
The contribution from the US market was up 50%. Yet there was a decrease in PBT.
Solid report card, IMO. Not all good, but satisfactory enough to my mind.
Just hope they do not look to make any further acquisitions with that excess cash (after dividends and buy backs) just to be seen to be doing something.
AAPL and BRK sit on a huge cash pile. Good enough a strategy for them, good enough for us (although naturally it would be nice to have their balance sheets!)
Worthy of a return to the mid 8's IMO, but cannot see 9's being hit without higher numbers and improving EPS - but I am a satisfactory holder at the time of print, taking everything into consideration from the update today. GLA.
Absolutely agree Matt, share price hasn't made sense here for years. I remain a significant holder and I expect not to trim my holding at all until the SP tops 900. I imagine I'll remain invested here to some degree indefinitely.
So as expected, interest income making a significant contribution to the overall results, but the key point is that trading revenue whilst a bit lower, was actually better than the competition. Also, what the market hasn't really appreciated is that they have returned over 10% of market cap in the form of dividends and share buybacks. This will rise to around 15% of mkt cap in the next 12 months given announced buyback and (slightly) increased dividend. I've always contended that this business is a cash flow monster, and at some point, the market will reward it!
Surely crazily cheep on a pe of about 7 and including a final dividend over 30p?
Started: Jargonpain, 17 Jul 2023 20:58
Last post: Jargonpain, 17 Jul 2023 20:58
Sometimes the smallest bait can catch the biggest fish.
I have heard about some very very unusual experiences relating to some organisations in some sectors and responses varying from; can we WhatsApp you to we have no records of activity and communications.
Great news about the accessibility of WhatsApp by law enforcement.
Lets see some action regarding the sharing of peoples information by organisations.
Time to lift the veil of darkness, for too long now there has been corruption in this world.
Time for a reset.
Started: SirBeancounter, 23 Mar 2023 13:01
Last post: MattTheBrave, 17 May 2023 18:33
2014 - 2022 dividend growth was 5.8% pa, and whilst I can only see the final dividend paid in 2013, it looks like 2014 was up about 20% on 2013. This means that the 10 year 6.88% pa div growth is entirely plausible. I don't dispute the 382m number, I think this might well be close to £1 per share once the 7% buyback is taken into account, now putting this cash flow monster on 6x earnings potentially yielding up to 7% with a divvy increase. Feels a pretty comfortable holding position as we await the strategy to pay off. Much lower than here, and the I think acquirers would begin circling.
Leapgrog,
I don't know where you get your data from but it could explain your "fair value" DCF valuation of £24.59!
"has never reduced its divi instead growing it at 6.44% average annual over 5-yrs" The dividend was 43.2p for 4 years (2018-2021) and raised a derisory 1p in 2022 to 44.2p, a CAGR of less than 1%. I can't be bothered to check your 10 year divi CAGR, but it won't be 7%.
"Debt to equity if 15%." IGG has no debt to equity ratio because it has a net cash position.
Highest analyst price is £12.50, lowest £6.67 - who is more accurate?
Analyst forecast net income to fall to £382M in 2023 from £504M in 2022.
The share price reflects the business, drifting ruderless.
AceOfClubs
The meme-stock bubble burst caused 20% of IG’s clients to leave, mostly in the recently acquired US business, Tastytrade. Most of those who left were the inexperienced novices and IG has been able to replace them to some extent with more experienced traders who trade frequently, making larger trades.
Although revenue increased 10%, this came also from interest on unreinvested cash, where from trading would be heathier.
Alas, the 10% extra revenue didn’t reach the bottom line as operating costs increased by 25%, due mainly to higher staff costs and foreign exchange movements. That left earnings flat - which isn’t that bad given the loss of so those meme-traders.
Looking ahead, recessions can be good for active traders - IG retains its medium-term growth targets of 5-7% for its core OTC business and 25-30% for Tastytrade and Spectrum Markets.
As a dividend stock, IGG offers a 6% yield, 2.16 cover, 46% payout and has never reduced its divi instead growing it at 6.44% average annual over 5-yrs and 7.06% over 10.
Debt to equity if 15%.
IGG has just appointed Adam Wheelwright as Its New Chief Technology Officer. The CEO June Felix has been a steady buyer over the last 12 months and has £119k of stock.
It is currently trading on a PE of 7.7 (its peers 18.6 - because of lower current expected earnings growth - but there is a major marketing campaign due H2. According to my DCF, IGG is 70% undervalued at £7.34 versus £24.59 fair value; or £23.09 if I value using DDF ie on divis (my methods...take care!). The seven analysts covering IGG are not really in agreement but on average give a one-yr share price expectation of £10.77 ie a 48% uplift.
Bit late to Q3's trading update party, but sharing my take anyway!
Revenue was clearly disappointing, especially given FX and interest rate tailwinds.
But on the flipside, there were temporary headwinds that shouldn't affect future quarters:
- December's World Cup knockout rounds involved US, Japan, Aus, UK and Europe, all major IGG markets. Some IGG punters will have partially switched to betting on the fubba, continuing in that vein over the xmas bank holidays, before hopefully returning to financial markets trading in January. Hence why December was a stinker.
- Q3 2022/23 had one fewer Wall Street trading day (60 days) compared to Q3 2021/22 (61), and three fewer than Q2 2022/23 (63).
The last trading update paragraph signposts, to me, a share buy back extension or special dividend later in the year:
"We continue to recognise significant headroom above the minimum capital requirement and the Board has
kept the capital allocation framework under continual review".
And the divi is covered 2+ times by profits, demonstrating scope to continue increasing in the medium term at their intended modest rate.
So FWIW, I'm a buyer at these levels and think June's strategic calls have actually been sound. She targeted the US and Japan as growth markets - to be fair it's difficult to think of larger, alternative growth markets in the world for IG, with accessible regulatory frameworks. So to keep IG progressing and growing for shareholders, she had to have a pop there.
It is fair to say TT needs to pull its finger out to address reduced trader numbers/activity from previous peaks, clearly a concern. Hopefully their new marketing campaign strikes a chord with punters, and they finally make it to Canada by the end of 2023. Although Canada timescales come with a pinch of salt, with ongoing regulatory delays and risks there.
Good luck all.
SBC
Nevertheless, good to see some inside buying just now. I am sure June bought a lot more in the past (cannot remember the specifics now, but remember at the time being impressed with the amount in the RNS) - but not pocket money either.
I agree that sometimes there is a fundamental disconnect between a company's share price and the intrinsic value, which sometimes leads to significant profit potential, when the market 'wakes up' to this. However, more frequently, and IMO in the case of IG right now, if the SP is languishing, it is for sound reasons. In this example, the significantly overpriced acquisition of TT. Which many of us pointed out at the time. Also operating costs, which could - and should - be addressed. Especially when it seems we are essentially carrying the TT burden. Until or unless TT becomes the type of profitable operation that June obviously thought/thinks it would be, then cost savings need to be made. Operating costs can increase again if needed, once the balance sheet is bulging and if a business case demonstrates the justification for this. This was not a company in distress which she took over, in which case more latitude could be justified. She is well paid and IMO got a plum job with a proven cash machine. It has not moved forward under her leadership. At least not yet, IMO. I think the SP reflects such sentiments. But I am once again a shareholder here and want to see it achieve its potential. Which I think it can, in spite of these setbacks, which is why I came back. Ultimately, my fear is complacency setting in, lower standards embedding and long term damage to the outfit. Which is totally avoidable and would be unforgivable.
I don’t understand why the next move of the share price should determine the effectiveness, or otherwise, of the management and company. The share price may go to 600 in the next two weeks. It could also go to 800. Would we praise June in the case of the rise, and lambast in the case of the fall?
Post-hoc rationalisation is too easy to fall into. TT was overpriced, I won’t argue that. It could still be profitable. I think operating costs are too high. But I also see huge net profits and revenue growth, and my feelings towards the company are not going to change just because the share price rises or falls this week, or next.
If it goes down, I’ll buy more. Nothing spooks me here right now. I may take some profit on the way up (I’m massively exposed here now), but fundamentally I hate judging the boards performance based on stock price, which is always at the whim of investors.
There are the 6's that I felt were nailed on. Took another baby tranche and may take a few more if/more likely when that 650-odd level is revisited. If that goes, IMO we are going way back to the 5's. And June's job should at that point be under threat, because that would be an appalling result, given what a sound cash machine she inherited when she took the top job. GLA.
Not a good day for a trading update with Credit Suisse roiling the markets. Seasoned IGG investors are used to these setbacks as we get these huge slumps in share price quite regularly. They say the definition of insanity is doing the same thing over and over again and expecting a different result. I suppose by that judgement I am insane to not sell these shares.
Started: AceofClubs, 15 Mar 2023 10:13
Last post: AceofClubs, 15 Mar 2023 10:13
"tastytrade total revenue for Q3 FY23 YTD was £122.8 million up 50% (Q3 FY22 YTD: £81.8 million) or 36% on a pro forma basis. On a USD pro forma basis, tastytrade revenue was up 19%, with the benefit of interest income offsetting a softer trading revenue performance."
"US interest income was £32.7 million for Q3 YTD (Q3 FY22 YTD: £0.6 million)"
"Within exchange traded derivatives, tastytrade total revenue for the quarter of £44.9 million was up 57%, driven by a significant increase in interest income. On a USD basis, the growth rate was 42%"
They never spell it out but it is now apparent that IG paid 33% of its capitalisation for a "corner shop" business that has struggled up to ~£120m p.a. non-interest revenue, aided by a depreciating £. Profitability, or otherwise, is never mentioned so I have to assume we can fear the worst.
Cost control has been ignored in the "surge for growth" - which overall is non-existent. Shareholders would be better off if the directors were paid to just sit on their hands.
A basically solid business in desperate need of some sound leadership.
AceofClubs
Started: Prognostic, 15 Mar 2023 09:49
Last post: Prognostic, 15 Mar 2023 09:49
I don’t understand the negativity here. This is an easy buy, and I added significantly to my holding this morning.
Great revenues, great yield, huge growth potential. I don’t have a great opinion of June, but I can’t see that she’s doing a terrible job: the share price is not a reflection of the value here IMO