CMC Markets (CMCX)

Sector:

Financials

Index:

FTSE 250

285.00p
   
  • Change Today:
      5.50p
  • 52 Week High: 505.00
  • 52 Week Low: 219.50
  • Currency: UK Pounds
  • Shares Issued: 287.41m
  • Volume: 134,193
  • Market Cap: £819.12m

Sunday share tips: Deliveroo, CMC Markets

By Alexander Bueso

Date: Monday 18 Oct 2021

LONDON (ShareCast) - (Sharecast News) - Deliveroo's debut on the stockmarket was a flop and investors now need to gauge just how much risk they are willing to take on, or hold onto if they took part in the share sale, said the Financial Mail on Sunday's Midas column.
Shares in the meal delivery outfit saw the previous week out from £2.82 apiece, having debuted on the London Stock Exchange at £3.90.

That was at the bottom end of the company's expected IPO range of £3.90-4.70, which had implied a valuation for the entire firm of between £7.6-8.8bn.

What might have gone wrong?

First, it is entirely that its labour practices will be taken before the courts and the company forced to change them.

Just recently, the Supreme Court had barred Uber from classifying its drivers as self-employed.

Compounding matters, said Midas, was the fact that after eight years, Deliveroo had yet to turn a profit.

Furthermore, as lockdown restrictions were eased, consumers were likely to want to get out and about.

Big investors were also put off by founder Bill Shu structuring the IPO so that he retained 57% of the voting rights despite only owning 6.3% of the company.

"New investors will also be assessing whether Deliveroo shares, at £2.82, look cheap. Shu is undoubtedly a smart operator. He has created an international business out of nothing in just eight years. But this company is high-risk and that is unlikely to change for some time," said Midas.

"Investors in search of adventure may feel Deliveroo is worth a punt.

"But those who prefer companies that make profits, pay dividends and look after their workers should steer clear."



The Sunday Times's Jammie Nimmo recommended readers 'buy' shares of CMC Markets, arguing that the firm was likely to continue benefitting from volatility in financial markets.

Indeed, the firm's own clients - especially the bigger fish - weren't about to ditch their trading accounts either, Nimmo said in his 'Inside the City' column.

The latter had been key to CMC's success throughout the pandemic and would continue to be so.

In 2013, CMC founder, Peter Cruddas, had wisely chosen to focus on "big-fish" clients, instead of ordinary punters.

That proved prescient when, a few years later, regulators cracked down on spread-betters after finding that most punters lost money on 'risky products'.

CMC had also focused on contracts for difference, which meant it was spared the bulk of the new regulations.

Covid meanwhile had driven heavy trading and the focus on big clients was now paying off especially handsomely, allowing CMC to "stun" analysts with its bullish guidance for 2022, the tipster said.

"There are reasons to argue that the rally has some way to run yet. The market volatility CMC thrives on is set to continue with the Covid fallout, and its customers are not likely to ditch their trading accounts - especially the bigger fish. Buy."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

CMC Markets Market Data

Currency UK Pounds
Share Price 285.00p
Change Today 5.50p
% Change 1.97 %
52 Week High 505.00
52 Week Low 219.50
Volume 134,193
Shares Issued 287.41m
Market Cap £819.12m

CMC Markets Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
33.03% above the market average33.03% above the market average33.03% above the market average33.03% above the market average33.03% above the market average
12.4% below the sector average12.4% below the sector average12.4% below the sector average12.4% below the sector average12.4% below the sector average
Price Trend
29.76% above the market average29.76% above the market average29.76% above the market average29.76% above the market average29.76% above the market average
13.87% above the sector average13.87% above the sector average13.87% above the sector average13.87% above the sector average13.87% above the sector average
Income
77.02% above the market average77.02% above the market average77.02% above the market average77.02% above the market average77.02% above the market average
40.26% above the sector average40.26% above the sector average40.26% above the sector average40.26% above the sector average40.26% above the sector average
Growth
98.18% above the market average98.18% above the market average98.18% above the market average98.18% above the market average98.18% above the market average
94.96% above the sector average94.96% above the sector average94.96% above the sector average94.96% above the sector average94.96% above the sector average

CMC Markets Dividends

  Latest Previous
  Interim Final
Ex-Div 25-Nov-21 05-Aug-21
Paid 20-Dec-21 09-Sep-21
Amount 3.50p 21.43p

Trades for 20-May-2022

Time Volume / Share Price
16:35 43,974 @ 285.00p
16:29 481 @ 285.00p
16:29 199 @ 285.00p
16:29 497 @ 285.00p
16:29 3 @ 285.00p

CMC Markets Key Personnel

CEO Peter Cruddas
CFO Euan Marshall

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