Plus500 Ltd (PLUS-LSE)

(A Top Pick Feb 08/23, Up 0.2%)

Does not own shares anymore. Fabricated/options trading products. Israel company. High cash flow and profitable business. Founders not involved in business. Return on capital in new business lines not strong. Pay a nice dividend with strong capital allocation. 

Domiciled in Israel. Trading platform for synthetic securities using leverage. Not something everyone should actually do, but the company itself gushes cash. Black mark here is that it's not founder run or owned. Trying to diversify by acquisitions and forays into US commodities trading, which took away some of the ROIC from dividends. He recently trimmed, and he's looking for a better replacement. Until then, happy to collect dividend. Cheap, 6-7x earnings. (Price target in British Pounds.) Yield is 4.16%.

(Analysts’ price target is $2323.33)

UK based financial platform that supplies "contracts for difference". Exceptional return on capital. Low conviction position with very strong dividend. Balance sheet is very strong. Currently trading at 80% to fair value. Believes share price should be ~14-15 pounds per share.