![]() ![]() Third, there’s no shortage of competition for clients. Today would appear to be clear evidence of that! Second, the threat of increased regulation in this industry can never be discounted. On the downside, the small ‘free float’ means the share price is potentially far more volatile than that of other stocks. Even so, this does strike me as adequate compensation for what could be rough times ahead. A potential 16.9p per share dividend also has this stock yielding a chunky 5.5% at its new, much lower price. The returns on capital metric beloved of UK star fund manager Terry Smith has been high for many years. It appears to have a sound strategy for growth and an incredibly robust balance sheet. There’s also a lot still to like about this company, at least in my view. Let’s not forget that, before today, the CMC Markets share price had increased 35% in just 12 months. Having benefited so much from the incredible volatility seen in markets last year, there was always going to come a time when trading moderated. Personally, I think the fall is overdone. But is a 25% fall truly justified? Has the CMC Markets share price fallen too far? If the recent lack of activity continues, it believes net operating income for FY22 will now come in somewhere between £250m and £280m.Ĭlearly, news like this (as well as an indication that operating costs were increasing) was never going to be greeted enthusiastically by the company’s investors.
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