IntelliAM aiming for significant growth with £5 million Aquis IPO. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
The stock is breaking out of its consolidation phase, new high today.
This isn't a penny stock, nobody here can ramp this even if they wanted to
I stick with my £40 target price, see you there in 12-18 months time
Just to keep us honest and avoiding ramping.... CMCs numbers might be good, but they are for year ending March. So offer no insight into PLUS beyond what we already know.
Has become my biggest position too, they seem to be executing each step of their strategy as planned. £40 would definitely be worthy of a few beers! Cheers
Agree. The market is mispricing PLUS big time. It will wake up one day and double and more. In the meantime, we are paid handsomely to wait.
The US futures business is growing really nicely too.
Btw CMC reported good numbers today.
PLUS is now my largest position and I don't go small. See you next time at £40 for beers!
That is fair, but looking at their average EBITDA of 350m or so over the last few years (2020: 515 / 2021: 390 / 2022: 450 and 2023: 340.. throw in the factor of around 30% reduced share count and you could argue that those earnings are a fairly conservative place to put a multiple with some margin. Now looking at a multiple of when they list in the US is another point, and for this i really only have IBKR at a PE of 20, then there are those who lack earnings completely. So just slapping a PE of 20 and we are looking at a around 6.8 B. even at PE10 Multiple 3.4 B usd whereas currently around 2.1B usd? Is this just a LSE discount while waiting for Nasdaq listing (which has been well telegraphed) or something else?
Not sure what use the trading multiple is as useful as normal when it's not usual to be up or down 50percent on the prior year. Makes it difficult to put a value on the company
Sorry, just read in FY 23 report that they require 550m usd spared for Regulatory/Working Capital, Hedging and Clearing. Leaves 400m usd spare cash
So if our 985m USD in the bank = 775m GBP then we have around 900m GBP market cap net cash? At return of divs and buyback last year of 365m USD (290mGBP) we are trading 3 times earnings net cash? What am I missing here?
VIX is back to lows again, which might be why the share price is consolidating.
Next news flow catalyst probably Q2 trading update in early July.
That didn’t last long
Agreed , but interesting that yesterdays buy back almost trebled to over 70k from an average daily of 23-25k - suggesting that Plus continues to see value at these levels
No idea but it's taken a good kicking.
Any ideas?
Thanks for highlighting. Good to see the level on the rise since.
You can just get this daily - https://www.cunninghamllc.com/firm-financial-information.html
I think most of us here "know" that this share is going to £30 at the very minimum. For christsake the USD market cap is still below the peak of end November 2022. Indeed we have a 20% rise from here to reach the all time USD market cap peak of end July 2018. The market can be so incredibly and stubbornly dumb on occasions, and this is one of those.
Https://www.cftc.gov/MarketReports/financialfcmdata/index.htm
Latest data for March released from CFTC. Cunningham Commodities "customer assets in seg" did not increase month on month unfortunately. But VIX is also down, so margin levels may also be lower.
AGM today passed a resolution enabling the company to buy back 10% of outstanding shares equivalent to about 7.8 million shares during the next 12 months. In my view, this suggests that the Board believes that doing so would be earnings enhancing; that cash flow remains very strong and that the current share price in early £20s represents good value.
To see this move above £21 and also move positively as opposed to sentiment elsewhere in the market. Plus does thrive in times of turmoil of course. China's hoarding of gold/war-footing/the West's-sleeping-at-the-wheel/hsbc woes at the top/tesla/questions surrounding AI investment strategy/...........it's all good news (in respect of activity on Plus's app. imho of course.
The company does hold treasury shares which have been purchased as part of its shareholder returns policy and these can be treated as if they have been cancelled; they are not entitled to dividends and carry no voting rights.
It makes no difference whether the shares are held in treasury or cancelled etc, it's just irrelevant to the intrinsic value, I see this all the time on here.
The only thing that matters is if they buy back shares lower/higher than the intrinsic value or issue new shares lower/higher than intrinsic value.
No sane board if just going to randomly issue 33m new shares for no reason unless their was a valid growth opportunity that had ROIC much higher than the cost of issue.
Exactly! The market cap is lagging previous highs, so we must have further to run. The market cap should be higher to reflect all these positives, but still remains lower than it was in 2022. Ridiculous.
Which gives you some idea of the trust lost in Plus by the big institutional buyers, because of the previous shenanigans by the Plus BoD in the past. Re-locating to London or New York from opaque Israel would be a good start imo. Others may differ in viewpoint of course. And those shares...........there's previous with the BoD handing them out to directors. Much better, for all concerned, to cancel them.............otherwise they're still there, however tortuous to re-issue, to be re-issued......
And in addition, as time continues, an ever increasing proportion of the intrinsic value of each share is backed up with cash. Not client cash...but owners' cash. With £1.23 = £1 yesterday, the cash pile must be currently worth a solid £10 per share.
Calculations:
Approx 77.78M shares outstanding at close of business today, assuming about 30,000 purchased today. (see RNS tomorrow)
Approx $1Bn cash held (it was $985M at 31 March). See RNS of first quarter trading update.
Assume £1=$1.25 and the $1Bn translates into £800M today.
That's more than £10 per share as a margin of safety when buying Plus.
I am a holder.