Do not invest more money than you can afford to lose.
Following the news of the 104% rise in the H1 2017 net profit of major European forex and CFD broker Plus500, its stock price on the London Stock Exchange rose 20% to an all time high of GBX 817 on Monday.
On Tuesday the prices opened at GBX 775, but has been rising since, driving the broker’s market cap to around GBP 911 million.
On Monday Plus500 released its H1 2017 results, showing a spectacular performance with three-digit rise both in EBITDA and net profits, as well as in the numbers of active (up 8%) and new clients (up 43%). The results were not only in line with the management expectations, but even surpassed them.
As it turns out, though, the launch of the $10 million share buyback program launched in the beginning of June, was a smart move as the management has been steadily buying back company shares at a cheaper price. Most recently the company bought back 15 000 ordinary shares on August 4, for a price of 656.50 pence per share.
On June 2, when the share buyback program was announced, Plus500’s market cap stands at GBP 622.1 million and a share traded at around GBX 544.
Recently the UK consulting company Investment Trends outlined Plus500 as a leader on the UK market in terms of client acquisition and CFD offering. “Plus500’s client acquisition machine has caused a noticeable shift in the industry, where CFDs no longer play second fiddle to the traditionally preferred spread betting product,” said Research Director of Investment Trends, Irene Guiamatsia.
Plus500 offers trading in forex, options, contracts for difference (CFDs), commodities, indices, and exchange-traded funds (ETFs). It operates its own online trading platform for CFDs available in over 31 languages on desktop and Android, Windows and iOS mobile operating systems. The broker is regulated in five countries – the UK, Cyprus, Australia, New Zealand, and South Africa.