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I don't think the fact that shares are not cancelled is a problem. Public companies almost always hold shares bought back in treasury rather than cancel them. You need a shareholder vote to cancel shares as well (to issue and buyback or too). Also, you require a shareholder vote to issue stock as compensation to management. What is the point then of cancelling shares? If enough shareholders team up, you can reject any share allotment plans to management (without the need to cancel shares). It seems to me cancelling shares is then purely an accounting exercise. Arguably, not cancelling is more transparent as book value of treasury shares shows up in the balance sheet. By the way, at the last AGM in May 2023, the board was authorised to issue c. 5mn shares for cash and c. 5mn shares for acquisitions (that's excluding whatever is held in treasury). This gives the board flexibility to act. Similar resolutions were passed in previous years.
Yeah but the shares are being held in treasury no? If there was any value in the buy back then surely they would be cancelled. I guess giving away shares to the BOD only incurs tax when the shares are sold? IDK . Doesn't seem to be much use to the PI?
It wont as authority only exists for the purchase of just under 700k more shares.Presumably there will be an EGM to increase the authority .
Good & decisive news & we all increased our stake in Plus!
Separately - CMC has issued a pretty negative update today. See cmc for the full update (or cityam if you want a precis). Wonder if this is being seen across the board (thus IG and Plus suffering the same). Think we're due an update end of June/early July?
Proper bit of business that. Bought at £13.83 per share.
And now there are only 82,000,000 million shares in circulation and there's another £18mill of budget for buybacks still to be used. At £15 a share that will take another 1.2mill shares out of circulation.
Plus buys out Odeys entire 8.2% holding at 1383p! at least that settles the Odey business.
Broker forecast on Plus500 website for the next 3 years are all stagnant and less than last year by approx $200m revenue. Am I reading this correct?
I've topped up @ £14.40
The share buyback is much less convincing as the buy-back shares are held in Treasury. They should be CANCELLED. Shares in Treasury can be re-introduced, which would dilute your holding.
Whoops - sorry - forgot about the ex-div thing. I'll shut up now.
The shares that have been bought are ex dividend so carry no right to a dividend anyway regardless of who buys it. The shares have been ex div since 23rd of Feb and still doesn't pay until 11th July.
If the broker keeps buying circa 40,000 shares this week (each day) the shares in circulation will be down to 89,000,000. Doesn't feel many in light of the progress the business is hopefully making. I thought the dividends accrued to these bought shares were re-distributed to the shares in circulation but I guess that money stays in the business's coffers and isn't paid out?
How do we know the bottom? Coz this was £12.50 about 18 months ago…
Plus…if there’s someone selling, who you can buy most of the shares from, it gives you something of an advantage picking the bottom, as you create the bottom yourself, by picking up the remaining shares of a seller, leaving the share trading with no seller and a buyback ongoing to provide impetus north, on top of anyone else who’ll join in for the bounce. Not quite a no-lose gamble but that kind of situation stacks the odds in your favour…
I would imagine it is our substantial fall over recent months while being confident that we are trading well & our US & Japanese divisions will hopefully be growing strongly-hopefully a no brainer for him as Plus as been one of his best investments I would expect,with profits & dividends well in excess of £150mill
I saw his Tweet earlier (and replied).
Can see why he flagged this one.
Huge cash pile. Good earnings. Multiple areas of expansion globally. Talk of US listings (probably hype - but if not could double the price overnight based on its numbers).
To be honest the valuation seems bonkers (low).
If there’s no skeleton in the closet then this could be an absolute steal.
The price action can only be one or more large parties dumping. It’s too dramatic to be anything else.
Sometimes those can be the best opportunities…we shall see.
I'm hoping it's soon! Last count was $950M in the bank = £766M / 90.5M = £8.46 cash per share. In theory it should not go lower than cash value, which is ridiculous to be even talking about to be honest. There has been no news from them since the AGM and everything was doing OK. I wish I knew what was going on.
Anyone got any predictions where the bottom is? This continuing slow drop seems to be remorseless from where we were start of the year.
Cheers
jt
They are still buying back around 40k of volume per day and it's still dropping so must be a large seller in the background. There has been no RNS of holdings, I would expect one soon.
Feels like it.
This used to me my favourite holding. It's falling out of favour. Seems to be death by a 1000 cuts.
These buy backs would make more sense if the shares were cancelled.
I don’t really see how a dual listing boosts the valuation. I have seen many shares with dual listings and the market with the highest volume dictates thss price of the other. Having two listings will only increase costs, better to leave London altogether and just list in the states, afterall all of the business is done in US$.
Https://www.financemagnates.com/forex/brokers/plus500-mulls-us-listing-to-boost-valuation-report/
the buy backs -shareholders money- are not cancelled and dished out to directors at a rate that many shareholders think is to excessive. Also these incentives should go through the P&L account. Obviously incentives are important and they roll out the same statements which as you say hasn't worked. At some point the shareholding institutions will rise up and start causing Plus500 a problem. This issue is one of the main reasons we lag behind the ratings of our peers