The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
You can just get this daily - https://www.cunninghamllc.com/firm-financial-information.html
there are some novel ways of valuing the business coming out here.
beauchamp, yours makes no sense to me. lets say they sack everyone, keep their $950m and keep the interest income only as the business. how would you be willing to pay £20 per share? i hope not.
value intestor and oi oi, you cant quite value the business exactly how you describe, youre viewing all the cash as liquid and freely available to share holders, but its not. plus need $500m to operate as working capital. a more comparable way to look at it is to take $500m out of cash and pretend its stock/inventories & then do your *** packet calcs.
for avoidance of doubt... i still believe its well undervalued and a very strong business!
looking forward to the counter points ;-)
Ok, got what your trying to convey.
I believe plus is well undervalued.
However, cash per share doesn't really imply the same. Firstly, they've been buying back shares so all being equal, cash per share of will go up. Second, all this really means is they are not distributing as much cash as they could. They've said they need circa 500mill dollars for working capital, so they could distribute another 400 right now via special dividend if they choose to.
As the business grows they will need to keep more cash though as working capital.
Can we infer much from the number of US downloads & what it means for revenue and profit? according to Appmagic there have been over 200k since the US app launched, still over 50k in last 30 years. The buckets are quite large on app magic, it seems to be >5k, > 10k, >20k, >50k, >100k, >200k etc so difficult to get exact numbers out of it.
The fees Plus earn for the futures are a commission fee of $0.49 per Micro contract and $0.89 per Standard contract (per side). So as Seatank points out its low margins as Plus are just the middle man for the futures rather than taking a side like they do in the CFD business
Trying to piece it all together.
This is the stats for the download for the US app, "Trade & Invest". which is the us futures platform
https://appmagic.rocks/google-play/plus500-trade-and-invest/com.plus500.futures
it shows in the last 30 days its had over 50k downloads from the US. thats half of the all the downloads in the most recent month since it launched A few months ago, that sound like its growing very fast. not all downloads result in a revenue generating customer of course.
I don't quite follow it, but while it's not on the balance sheet it is in the accounts as an in and an out on note 7.
Google appmagic for downloads. No idea if it's any good or accurate mind. Just found it the other day.
@seaTank. delving a bit deeper and im a bit confused. at the end of december 2023 the CFTC data report shows customer assets in segregated account of $369m
whereas in the preliminary results for 2023 note 7 shows "Segregated client funds" of $249.6m. The preliminary results of course show the figure for all (including non US) segregated funds. so you'd expect this to be alot higher than the CFTC data. any ideas?
Thanks SeaTank, very interesting.
Downloads of plus 500 app is getting big from the US. in the last 30 days there have been over 50,000 downloads from the US, thats 18% of the total downloads in the last 30 days. It must be starting to get material.
@hardboy? Why do you like that?
They are just earning 3.3percent on cash... Absolutely nothing impressive here. If anything they probably could get a better rate.
Anyone know what the succession planning is in place. Peter Harrison is 66
Also what really stops the like of siemens developing their own antiboidies rather than paying the royality
Doubt it.
It probably won't be included as a qualifying company as it's not just a British business.
If it is included then so will a lot of FTSE all shares companies.
It probably won't affect how people invest, people in the UK already heavily favour UK listed equities.
It won't increase the amount of invested capital, 4million people took out stocks and shares ISAs in 21/22. So the absolute max increase in cash to UK equities is x £5k = 20bn. It won't be anywhere near this high of course, unless all 4m people have a spare 5k. I'd say you might get an extra 1bn inflow.
Market cap of FTSE 100 is 1500bn....so I really can't see it doing anything. Maybe I'm wrong, & the extra marketing around British ISAs might make people poor all of their ISA allowance in the UK equities.