Blog posts

Plus500: Buybacks, Fat Cat Pay and Profits Warning

Superstar share Plus500 has plummeted back to Earth. This super stock rose from a price of £3.14 5 years ago (14 Feb 2014) to a high of £20.76 and following a profits warning has dropped to £10.88 today 13 Feb 2019. Tom Winnifrith has commented on this company and the dangers of investing in companies where 80% of their customers lose money. I agree with him, this cannot be a recipe for long term success. But are the directors stupid or have they ...

FCA Proposes to Clamp Down on CFDs

The Financial Conduct Authority (FCA) is proposing to clamp down on CFDs (contracts for difference) and similar financial products such as binary bets. CFDs are complex financial products that have historically been used by sophisticated traders. But they have been growing rapidly in usage by small retail "investors" and the FCA reports that 82% of them lose money based on a review of such accounts. CFDs are a way of acquiring an interest in a listed company without paying stamp duty. It ...