Member Info for zccax77

I have 100k’s worth of PLUS shares but used to have 400k’s worth, am nervous holding them since the FCA or ESMA might change the rules tomorrow and completely destroy the share price.

I think so could be taken private since underlying business is sound, I might buy in here over the next few weeks. Plenty of time to see. Though won't be in more than £50k, don't trust the FCA not to mess things up via over-regulation or sending mixed messages to the market.

Q3 will be a bumper quarter. Hold for gold.

£350k

forgot SAGA off the list.

MTRO is a better bet than this over the long term.

Is it me or have all of the IPO's over the last 2 years become dog's in 2019:
AML
MTRO
AMGO
FCH
to name a few.

A 15% dividend means getting your capital back after five years. How do you know the company will be around in 5 years? Regulators are like a bull in a china shop and don’t think twice about destroying a company for a minor infringement.

Remember to think about risk weighted returns before you pile in. IMO Wonga was a great business until it wasn't due to regulatory action.

IMO the companies average APR is 50%. In a similar vein you have to apply 20-30% discount rate to future cashflow to account for the significant additional risks of being forced out of business.

It might not exist in year 5, look back at history and you will see similar.

The issue is the FCA do not want them to be a a growing company, that alone rings warning bells. I conservatively the company will have a PAT of 50m, so would value at a PE of 4 to give a MCAP of 200m.

Don't catch a falling knife. Sentiment has changed on this company as of today. Remember return of capital is more important than return on capital, forget the dividend %.

How can you call a company growing when the regulatory environment would rather not have you growing? I think that is the elephant in the room from a risks and uncertainties angle. The brexit guff is just noise.

Give it a few weeks

AMGO - Would not touch with a barge pole. Too much regulatory risk.

Malu - Hill does not care about profitability. His priority is growth and being best in class. Even his Commerce Bank venture only had a lousy PE of 60 when he sold it at 3x BV. Looking back now his old business has become hugely profitable.

Forum for reasonable debate. Not for uninformed posts from newbies meant to scaremonger. There are a number of baseless opinions in Malu’s post, eg going on I admin when the bank has the largest surplus amongst any bank on the ftse.

And the PRA/FCA usually never make such statements. Like a black swan event for them to comment to the market.

See some of their term deposit interest rates reducing, meaning they don't need the money as desparately as before to reduce their deposit to loan ratio:

https://www.metrobankonline.co.uk/savings/products/fixed-term-savings/

I can only assume another dumping of 0.10%-0.25%.