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Taken from above 22nd aug 2019,make of it what you will.
The Australian market for binary options and CFDs is growing rapidly, with the number of clients more than doubling in the past two years to one million clients (99% are retail clients and the majority are based offshore). Licensed issuers of these products conducted 675 million trades with clients last year and earlier this year held $2.9 billion of client money for trading.
ASIC is concerned that retail investors have suffered, and are likely in future to suffer, significant detriment from binary options and CFDs.
During 2018:
licensed issuers received gross trading revenue of $490 million from binary options and $1.5 billion from CFDs—which can largely be attributed to a combination of net client losses and fees and costs charged to clients
CFD issuers automatically closed out 9.3 million client CFD positions in margin call, and
over 41,000 clients’ CFD trading accounts went into negative balance, totalling -$33 million (that is, clients owed money to the CFD issuer).
I look at it this way. During a dreadful H1 Australian accounted for 15%. I expected that is near max in terms of Aussie use, but I see the rest of the world users (especially ESMA) picking up so would reduce Aussie share to 8-10%. Even if ASIC regulation cuts Aussie revenue 75% ,of 8-10% its a 6-7.5% revenue hit. In share price terms from a +1.7% to a -4.35% today we just lost 6% market cap (CMC went up 1.25%)..its a ******....solution = buy and hold or top up and hold
Just as we were starting to pick up a bit to where we should be regarding share price. They really know how to bomb the SP
;-(
Q buybacks tomorrow!
Above paper was issued today,did PLUS have to respond today?.The SP was popping up around 760p,could say it's better to release what the market would perceive as bad news on a rising share price.
I don't think it's bad news,it could lead to more business,zero binary could mean more CFD's.
Will be interesting tomorrow to see if PLUS did take advantage of the lower price to buy back more.
Looks as if the buyback will be on a daily basis until a target price is reached. That appeared to be the arrangement throughout the 2017 buyback when the target appeared to be 800p. When the sp was above 800p the buyback stopped. It then resumed on 8th Dec 2017 after a 4 month break when the sp dropped below 800p as a result of ESMA regulation update.
After 8th Dec 2017 the sp stayed above 800p and there were no more buybacks until 6th Nov 2018 when another US$10mn was put aside for buybacks and the target price was much higher.
Today's RNS - https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/PLUS/14199910.html
Lowest price 709.6p vwap 738p
Current buyback is for up to US$50mn
Aussie market only 15% of our business & impact likely to be minimal.Gonen & Co expected this & still bought substantial amounts & clearly still see value here.
Interesting that the penny dropped with whoever was buying back our shares an hour or so before the close & ironically stopped buying at lower levels
Yes - the share buyback stopped yesterday at 15:04 when just short of £500k had been spent (excluding costs). Maybe the arrangement is that the max daily spend during the current buyback should be £500k.
If that's the case metis then next time they fire off an RNS torpedo like that they should consider buying the the half a million afterward lol.
Ps. Good advice at 15:13 yesterday singe :-)
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/PLUS/14186161.html
"The Company has appointed Credit Suisse Securities (Europe) Limited ("CS") to manage an irrevocable, non-discretionary share buyback programme to repurchase the Company's shares on its behalf, and within certain parameters. The Company and its directors have no power to invoke any changes to the above programme and it will be conducted at the sole discretion of CS."
Great work metis thanks
Friday's share buyback was just short of £500k - as was Thursday's. On Friday the share buyback was throughout the day unlike Thursday when it stopped around 3:30. Does look as if £500k max daily spend is one of the parameters Credit Suisse is working to.
If they intend purchasing £500k per day that's a nice round 100 days worth of buying. If that's a continuous 100 days then I assume the shorters will be under a fair amount of pressure and the SP has to improve from present positions
think that answers your statement, Not sure that the company isnt shorting its own shares as well, screw the investor to make company gains buy at cheaper prices. Or maybe they are just unable to beat the shorters. It should be banned to be honest as unfair practise and allow shares to trade as they used to based on market conditions and trading. But what do I know!!
You can't short your own shares...in fact even as a provider you can't...i.e IG clients can't short IG via IG..this is because most providers hedge the short..i.e buy shares and sell to match the client short position and for a company to buy its own shares I believe you need shareholder approval (classed as buybacks) but I'm not 100% sure on the process & legislation
Thanks for that info, it just seems very strange that they are buying up so many shares at lower prices which may be just advantageous. The price has gone up over last couple weeks but really..... I was in this share when they did a buy back and it was leaping a 50 to a 100 now it is ending in negative territory....
Why do you think that is? that is a question not a sarcy remark because I really do ot understand!! we hit 750 last week and now hitting 707 this week,
The current PLUS buyback is to raise the share price. The 2017 buyback stopped when the sp had moved up to 800p - see my post early last Friday. Interesting to know what the target is for the current buyback.
Jbatch - the sp dropped last week in response to the publication of the ASIC paper
https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/PLUS/14199514.html
which was followed by an increase in the shorts - see
https://shorttracker.co.uk/company/IL0011284465/
Great news thanks 8 pound would do me nicely for now! thanks for letting me know.
Be nice to 740 today,
you wish jbatch