So....28 Sep 2018 16:45
..back from a week in Portugal (mostly business, but some pleasure thankfully).
A precipitous fall which seems to be based on:
1. disappointing quarter, based on the one month contained within it where the rules changed. I'm not saying that the effect might not be worse than expected originally , but I don't believe we can make that assertion based on one months' numbers! I think a lot of bad news discounted on this, so not worried at this price.
2. Departure of the CEO, with no real explanation which is probably more of a worry. It seems to me that the Board has not been happy with his handling of the company through the regulatory change, and their concern seems to be founded on the fact that he has no wider experience of the finance industry outside of IG where he's been all his working life. I don't believe there's anything luring in the closet from a business standpoint here as they would have had to tell us in the interims. I wonder whether he was actually caught doing something he shouldn't have been doing (if you catch my drift) outside of the business. This would explain that lack of rationale, but also the fact that he's staying on for 6 months to effect the handover.
Anyway, as we know, the market is a voting machine in the short term (magnifying bad news), but a weighing machine long-term, and that where my mindset is. Unlike Steve, I am well diversified, (I post on about 20 stocks here), but am planning to take IG up from a small-mid size holding to a large one based on:
- Nearly single digit PE
- Very cash generative + brilliant balance sheet= safe dividend
- Yield now above 6%
- Provides a very valuable service to investors wishing to use derivatives to generate returns of manage risks
- Premium player in the market which will start to grow next year
- At this level, will become very interesting to acquirers now that the regulatory framework has become transparent.
Yes there's risk, but you don't make money buying stock when everyone else does - quite the reverse.
So, that's the fundamental bit out of the way. For the glorious moron Sis8:
- This has nothing to do with your court case, so you can stop crowing - just makes you look like a knob.
- The above 500k portfolio is only to be classified as a professional investor (like me)
- Steve and I did not say it was going to go uploads at £9. I said it was fairly valued and took some profits
- and finally, it's 'strewth' not 'struth' you imbecile. I'll let you off the shirts if you promise to go away and get an education.
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