Member Info for ggplyr

Rosewall- take my approach and write some quick and sarcastic

The difference is PLUS don't hedge, IGG and CMC do.
PLUS is more more volatile, if you don't understand it then you are definitely better sticking to IGG and CMC which is simpler to understand.

PLUS are now looking at hedging, because of pressure from investors who don't like the swings. Personally- id rather they didn't, hedging is a not cheap. it makes up a large chunk of the cost of sales for IGG and CMC

Or maybe he could hire you to teach him what he has to learn

The numbers are a ratio. I.e. Customer Income of Plus* divided by the net operating income of CMC**

My objective was to investigate whether i agreed with your statement: "I'm not convinced that these are good figures at all when looking at equivalent quarter last year".

CMCs net operating income estimate was published on the 25th of march, so they are estimating only 1 week of a quarter, so it is sufficient to draw conclusions from.

*Plus’s Revenue consists of Customer Income & Customer Trading performance.
Customer trading performance comes from gains and losses on customers positions (should be zero over time, but can be volatile month on month.)
Customer Income is from spreads and overnight charges. Q1 2021 = $221.5m, Q1 2020 = $233.5m. This is the core of the business, it does not expect to win or lose on Customer trading performance.

** yes I meant net operating income here rather than revenue.

CMC and PLUS share the same quarters so analysis is easier. Here are the no. of times larger Plus's CUSTOMER INCOME is over CMC's revenue by quarter (i am comparing like for like CALENDAR year quarters)
(apologies for the CAPS - bold or italics would be prettier we don't have that option here)
2019 Q2 1.8
2019 Q3 2.1
2019 Q4 1.1
2020 Q1 2.2
2020 Q2 3.1
2020 Q3 1.9
2020 Q4 2.5
2021 Q1 2.6

PLUS have done better than CMC when comparing customer income across Q1 2021 to Q1 2020.
PLUS were on the winning side of customer trading performance in Q1 2020 to the tune of 82m which should be neutral over time, this was not repeated in Q1 2020

@MattTheBrave - A quarter ending February 2020 a quarter ending March 2020 are not comparable at all. life was normal in Feb 2020,markets got a little volitile from the 24th of feb, life changed in march and marketst got very volatile.
Sum up the VIX for a quarter ending Feb 2020 = 955
Sum up the VIX for a quarter ending Mar 2020 = 1880

The RNS on the 9th advised that the Trust is buying shares to be able to award the the share options to the employees.

If the share prices hits 31pence then the Trust still requires another 1.3m shares to be able to satisfy the share options.
Given the volume of shares traded here is <50k on a normal day this is quite a lot of extra shares needed in a short period of time which i believe will put considerable upward pressure on the share price.

Chucked on a virtual bonfire- yes effectively.
The company doesn't own shares in itself. they are cancelled off, on the balance sheet there is a reduction in cash (to purchase the shares) and a reduction in equity.

It means the remaining share holders own a slightly higher % of the company. Eg. say there are 100 shares, each share is worth 1/100 of the company. if they buy back one share then each share owns 1/99 of the company.
If the directors/board feel the market has undervalued the company then it is good for the shareholders for them to do a share buyback. it also makes the stock more liquid as there are more trades going through each day.

Given the withholding tax it is possibly a more efficient way to return cash to shareholders who wish to sell some shares.

Still going up nicely today.

At an airport you shop where you can due to limited choice. Online you have the pick of all food shops. So no, it's not a closed system for marks.

is making a move on this.

@retired banker - where do you get $250m loss from?
What is their exposure to bitcoin given you can't trade it as a retain investor?

I don't see the problem

To make no impact on SAYE members is the only thing I can see.
Or perhaps they are colluding with this website to drive traffic here to discuss it every day constantly...other than that I don't see much other benefit.

Cheers - although i would think return of capital would be paid out of share capital and share premium account. From Vecturas statement of changes in equity for their return of capital it was out of retained earnings.

I feel like you're getting frustrated... I'm just interested in how it works. My small holding is in tesco is in an ISA anyways.

Was the asian business not sold at a profit of the net assets disposed of?

Very high level: The value of a company is assets - liabilities + an estimated value of future profits.
What happens when a company pays a dividend... cash decreases i.e the assets go down therefore your market cap goes down. the rest (share consolidation) is just noise. The market will decide what the market cap should be and adjust it very quickly.

Indeed it does say "return of capital"

Well, I'm interested to see how it works. Although my Tesco is in an Isa so it doesn't matter either way.

Either way, invest 240k and 50k is coming back to you so not sure what your point is here?

I can't get my head round how a capital repayment would work. I assume the capital isn't coming out of retained earnings or its a normal dividend. So that leaves share account and share premium, which is less than 6bn in total, so no way they'd return 5bn through this.

Is there a tax accountant around?

Yes i personally didn't like the big sells from the one of the founders (albeit who doesnt work there anymore) and found the RNS updates ambiguous with many on here on this forum (who come across as intelligent investors) interpreting them differently. So i sold a large (not all) chunk of my holding, i always did have a little more invested here than i was comfortable with tbh.
The withholding tax on dividends also means you're not going to achieve the same P/E either when the dividend yield is so high.

Nigella- if you think your break even point goes to 2.94 why haven't you sold now at 2.42?