Wednesday 24 August 2011

IG trading update and market volatility.

IG Group @ 422.7, +4.3p (1.03%) as at 9:20 gmt

Nice to find something in the portfolio benefiting from the volatility. IG Group came back to the market yesterday with a trading update and despite it being holiday season across the globe the company reports that record levels of activity during the recent market volatility should enable the company to achieve quarterly sales of £94m (+19%) against £79.1m for the same quarter last year.

As ever there continues to be some risks around IG with regard to the proposed "tax" on financial transactions but there is widespread opposition from the financial services industry and this is possibly already priced into the shares which are currently on a forecast price: earnings of 11.7 times.
Despite this the company continues to be a leader in its field has cash balances of £124m and is forecast to yield 5.4%.

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