IG Group

[fisher]

I dipped my toe in the water yesterday with a relatively small top-up of IG. So far it's looking good!

[idpickering]

I find myself siding with Arborbridge. Markets have a habit of over-reacting and I simply don't believe the regulations would mean IGG is suddenly worth a third less overnight! At the end of the day you pay your money and take your chance. Over the last 20 years I've made more than I've lost taking such chances so I've increased my holdings today.

Bravo sir! I did the same earlier this year with the likes of LGEN, HSBA and RDSB. Buy when there's 'blood on the street!'

Ian.

[toofast2live]

I dipped my toe in the water yesterday with a relatively small top-up of IG. So far it's looking good!

Good to see you're in it for the long term

[gadgetmind]

I feel for the holders though .

I'm still up 15% on value and have trousered all the nice dividends along the way.

I'm sure the rule changes will trim a bit off the bottom line, but mugs will always be mugs.

[fisher]

I'm in it for the divvies! But, notwithstanding that, is it nice to see it up the day after you bought.

[idpickering]

I feel for the holders though .

I'm still up 15% on value and have trousered all the nice dividends along the way.

I'm sure the rule changes will trim a bit off the bottom line, but mugs will always be mugs.

Spoken like a true HYPer gadgetmind. It is all about the dividends after all, but a rise in SP is nice too.

Regards,

Ian.

[simoan]

I must admit I'm a little surprised that on this of all forums no-one has even mentioned the dividend cover. It was <1.5x before the FCA announcement, so not great, and a cut in profits will likely lead to a dividend cut. How can there be any meaningful discussion about the forward dividend yield without knowing how the EPS and dividend cover is going to be affected? FWIW I hold IGG but anyone buying at the moment is gambling on the outcome of the FCA changes and the affect on IGG's profits every bit as much as their customers gamble on the outcome of various events. It's not investing.

All the best, Si

[bluedonkey]

I had a very small holding in IGG (<1% of my portfolio). Topped up today with the spare cash in the ISA without much thought as it still doesn't get to 1% of the portfolio value.

[Arborbridge]

Simoan

It was <1.5x before the FCA announcement, so not great,

Not great, but acceptable..... otherwise we would drive a coach and horses through most HYPs.

I just ran the Step One database very crudely for divdend cover from x1 to x1.5 and there are about 20 FTSE shares, all but one of which are typical HYP companies.

As you hold at the moment (which you do) , essentially you are also gambling by your own definition, otherwise you would sell. All I'm doing is gambling a little more, but within carefully constrained limits of capital deployment.
My judgement may well be wrong, but it's a chance I and many others apparently are prepared to take.

Interestingly, Numis has upgraded IGG to a buy after the announcement, though with a lower price target and held dividend.
Not that I take notice of brokers normally, but at least one has looked at it afresh after this news broke.
Arb.

[simoan]

Simoan

It was <1.5x before the FCA announcement, so not great,

As you hold at the moment (which you do) , essentially you are also gambling by your own definition, otherwise you would sell. All I'm doing is gambling a little more, but within carefully constrained limits of capital deployment.
My judgement may well be wrong, but it's a chance I and many others apparently are prepared to take.
Arb.

No I'm not gambling. I buy or sell only based on facts, not share price movements, and as yet there is no sign of how EPS will be affected from the company, so I'm neither buying nor selling. I should point out my holding is not as part of a HYP approach. If you buy based only on the fact that the share price has fallen and the dividend yield has increased then IMHO that is quite different - you are assuming the dividend will be held. The latest broker notes from Citi and Numis have shown EPS falling in line with the share price decline so not really the overreaction everyone was talking about yesterday. So you have bought a share with no dividend cover going forward (although Numis think it might be held for 2017). What's more the German authorities are now after them:

http://www.investegate.co.uk/ig-group-h ... 39043726R/

All the best, Si

[Gengulphus]

No I'm not gambling. I buy or sell only based on facts, ...

You're buying or selling on the basis of some of the facts, with other facts capable of changing the outcome in significant ways.

How does that differ from the case of someone studying facts about the racehorses in a race and placing bets accordingly, and why is one gambling and the other not?

Gengulphus

[Arborbridge]

No I'm not gambling

Oh really? Are you going to sell then? If not you are gambling that the future results will come right and support your continued faith.

Buy continuing to hold your shares, you are taking exactly the same decision that I am - that IGG is still worth holding. Given that you have already characterised buying the shares without prior knowledge of eps cover etc, as a gamble, then I can't see how your position is anything other than gambling. You're in denial.

Arb.

[simoan]

No I'm not gambling. I buy or sell only based on facts, ...

You're buying or selling on the basis of some of the facts, with other facts capable of changing the outcome in significant ways.

How does that differ from the case of someone studying facts about the racehorses in a race and placing bets accordingly, and why is one gambling and the other not?
Gengulphus

Let's not waste time discussing whether we're all investing or gambling; that discussion was done to death on TMF and it's very tedious. It's quite clear I have stumbled onto the wrong board from using the "Active Topics" page as my TLF home page, for which I apologise.

All the best, Si

[Arborbridge]

No I'm not gambling.

Or to put it in essence:

look at it this way. Assume I bought £1000 of shares on Tuesday, assume also your existing shares were worth £1000.

On Wednesday morning, we have a £1000 each without knowing what the future eps and cover will be. We are both taking the same gamble - it's just that you've suggested that I'm gambling but you are not.

I suggest if you do not wish to gamble, by your own rules you should sell tomorrow morning!

Let's not waste time discussing whether we're all investing or gambling;

Well, as John Cleese famously said "You started it!"

Arb.

[simoan]

No I'm not gambling

Oh really? Are you going to sell then? If not you are gambling that the future results will come right and support your continued faith.

Not yet, no. As I say, I take my cue from statements made by the company (as close as you can get to facts) not price movements or the dividend yield. I realise it is not a HYP approach and I am sorry for posting here but I confused this thread with another one because of the way I use TLF. I have no interest in HYP investing.

Buy continuing to hold your shares, you are taking exactly the same decision that I am - that IGG is still worth holding. Given that you have already characterised buying the shares without prior knowledge of eps cover etc, as a gamble, then I can't see how your position is anything other than gambling. You're in denial.

Arb.

I think it's rude to accuse someone of being in denial just because they use a different approach to investment to you and I don't understand why you felt the need to make that comment. Unfortunately, not a first for this board which can be an incredibly rude place to frequent and I used to actively avoid it on TMF. Apologies for posting.

All the best, Si

[Arborbridge]

Simoan, I'm sorry if my approach was too direct for you, and for that I apologise, but it did get your attention

I was trying to make the point that you are now gambling just as much as I am - I believe you can see that now, so perhaps my rude comment is no longer applicable.


Arb.

[Raptor]

Moderator Message:
This topic has deviated from the ideal. To stop it deteriating further I am locking this. This is the not the forum for this discussion.

Moderator Message:
After reviewing this topic, have decided that it has its merits to continue. However, can we be less confrontational and keep to the topic matter. Much obliged.

[Bubblesofearth]

Falls look overdone to me. This is what happened when controls and warnings were added to FOBT gambling;

https://www.politicshome.com/news/uk/cu ... means-harm

If people want to spread-bet then they will IMO.

Considering a punt on IGG, yielding >7% now

BofE

Moderator Message:
merged topic so that we do not have many topics for same subject/discussion.

[micos]

I have just started to track IGG as the dividend seems a bit too good to be true. Any historical information would be appreciated.

[Bubblesofearth]

I have just started to track IGG as the dividend seems a bit too good to be true. Any historical information would be appreciated.

5-year dividend record shows a rising trend;

http://performance.morningstar.com/stoc ... ture=en-US

However, future earnings and therefore dividends will depend on the scale of any impact from the recent regulatory announcement. If, like me, you believe this will be minimal then IMO IGG are a strong buy at current levels.

BofE