Market's view on Plus500
Published on April 2024
- There is speculation that the company might cease buybacks and start paying higher dividends to increase share availability for a potential NYSE listing.
- There is an expectation of increased dividends and continued buybacks following a positive financial update, which has increased expectations for FY24.
- The VIX is noted to be climbing to a six-month high of nearly 20.
- The company’s board anticipates FY 2024 results to exceed current market expectations.
- The company’s cash reserves are approximately £800m, which is just over 50% of its market cap, considered a good value at £20 given robust Q1 performance and an active Q2 start.
- Almost two-thirds of the company’s market value is accounted for by its cash reserves even after accounting for expenses like buybacks.
- The company’s value is considered massively undervalued at 3x historic earnings, with expectations of positive news from Japan and the US.
- The stock price was noted to remain stable during the Israel-Hamas conflict, indicating resilience against geopolitical tensions due to its global operations and minimal physical infrastructure in Israel.
- The company’s stock price reached an all-time high.
- There is anticipation of a positive Q1 trading update, particularly looking at traction in the US markets.
- Indications suggest that the company might be preparing for a US dual listing, with potential legal moves and interest noted in a US law firm’s involvement.
- Concerns are raised regarding the company’s position on cryptocurrencies, with discussions on whether the company profits when bitcoin values decline.