CMC Capital Markets (CMCX)

[yieldhog]

Down 26% today on disappointing guidance update.

Temporary slowdown or start of a longer slide?

I have a small position in my SIPP and was looking for an opportunity to add more. Is this it or is it a case of catching a falling knife?

On the face of it, the shares look a good buy. Last reported dividend cover was 2.01 and PE well below 10. If the current year's dividend is maintained the yield would be nearly 10%

Y

[fisher]

I don't know about CMC, but I notice that IGG (IG Group) has been knocked down a bit on the back of the CMC results as it is in a similar business. Currently down 8.5% and yielding 5%. Also worth considering perhaps?

[monabri]

CMCX - I'd be a bit wary - as short a time ago as 29th July 2021 - Just over 1 month later and the story has moderated.

https://www.hl.co.uk/shares/shares-sear ... dinary-25p

(second link)

"Online trading platform CMC Markets said on Thursday that while client levels have moderated, it has continued to perform "well" and still expects to achieve its net operating income guidance for FY22.

In an update on trading for the period from 1 April to 30 June, CMC said overall monthly active client numbers remain at similar levels to those reported in 2021, which were up around a third from pre-pandemic levels."

"As a result, the board remains confident in achieving net operating income in excess of £330m for FY 2022."

[monabri]

CMCX set up by Lord Cruddas...

https://www.businessinsider.com/disgrac ... ?r=US&IR=T