A couple of thoughts. Opinions wanted.

  • I have had a think about this platform and how potential changes going forward affect us traders.

    The first thing I was thinking about is the potential share split and how that may affect price growth going forward. ATM buying 100 shares in a player will see him going up 0.01 in value and selling 100 shares will see him going down 0.01 in value, give or take. Now let’s say we have a player valued at 10.00 at the moment of the share 1/4, that would see his value now change too 2.50, but hypothetically now for his price to come down 0.01 in value, we would have too see 400 shares in him being sold, would you agree? It could no longer be 100 because if all the people who owned him prior to the split sold their shares, its would see his price fall dramatically quicker, 4x as quicker to be exact. Again this would work in reverse, for a player to go up 0.01 in value we would have to see 400 shares being purchased. At current user count this would see growth of player values slow down. This is probably what FI want to keep player buy prices attractive for new investors and to continue the platforms growth. For the record I don’t think this is a bad thing.

    The second thing I was thinking about is how this will effect dividends. Say you own 100 shares in the player valued at 10 pounds as above, a MB at 0.05 per share will see you get 5 pound in dividends. As far as I am aware, if his price is quartered you would be compensated by having your 100 shares changed too 400, insuring your dividends are not effected should the payouts still stay the same. Over time his price could return to 10 pounds, Meaning new investors buying 100 shares in that same player won’t quite get the dividends benefit we seen prior to the share split. Because theoretically prior to the share spilt his value is basically 40 pounds.

    I know it is really unlikely that a player will reach a value of 40 pounds, but I’m just theorising. In the long run this will effect dividends going forward. As the market continues to grow, and players eventually get back to higher value, everything will become more expensive. An IPO who comes on to the market at 0.50 would actually be valued at 2 pounds prior to any split!! Meaning over time if dividends stay the same and player prices increase, we get less for our investment in terms of dividends.

    Again I’m just theorising and this is an inevitable part of market growth. The only way I see FI avoiding this becoming a problem is if dividends are Paid out as percentages, similar to that of the larger stock markets systems out there.

    Apologies for the long winded post but I’d like some thoughts and opinions of what’s been running through my head recently and what you think.

    Thanks for reading.

  • There has already been a share split and players prices continued to go up by 1p per 100 futures.

  • @NewUser59855 is that sustainable going forward in the long run but? I don’t see how

  • @devlin7 I don't know myself really apart from that.

  • This has been discussed a lot. Theoretically a share split doesn't mean anything its just cosmetic if the dividends are split to the same rate.

    Ultimately demand and supply should kick in. If there was a 50/50 split (I don't see another 4 way split) and Naymar reached £10 then you are right the ROI dividend would drop. In theory this should make him less attractive and should see a drop in price. But the exact same thing occurs if there is no split and he goes up to £20. There is no difference whatsoever.

    In real terms (assuming dividends are split as well). A share split should made absolutely diddly squat difference unless there are people who currently want to buy 0.5 of a future. So unless there are stacks of people ready to buy 0.5 shares in players then its purely cosmetic/marketing trick.

  • I can't see players prices returning to the current levels if they reduce the dividends. My personal view is the current market cap is at max £15 based on dividend returns. Now if you halve the dividends that cap becomes £7.50 why would you pay £10/£12 a share for someone generating 50p of dividends.

  • @Noirx4 Tell me what your prediction is over the next year mate.

  • @NewUser59855 for share split. For who will be star players? For growth? Lol give me a scope

  • @Noirx4 Growth

  • @NewUser59855 so with a share split if dividends remained at media 5p per share rather than halving then the growth will be insane. Without a share split I can't see more than 10% more growth on neymar. Everyone else though can see big growth I'd like to think we will see 25-50% growth next year.

  • @Noirx4 I think the dividends will be different again in 4 months and there will be a big growth. We'll see anyway.

  • @Noirx4 said in A couple of thoughts. Opinions wanted.:

    @NewUser59855 so with a share split if dividends remained at media 5p per share rather than halving then the growth will be insane. Without a share split I can't see more than 10% more growth on neymar. Everyone else though can see big growth I'd like to think we will see 25-50% growth next year.

    Whilst I still think its incredibly unlikely, doing this would at least fix for good the overpriced ipos like millner issue.

  • While I agree that the split is cosmetic if the dividends are also split, we've seen this before and we've seen a £40+ player before, his names Neymar and he's currently worth £54 if you think about it? The dividend yields achievable are insane so there's plenty of people out there who would invest in say Neymar for the yield alone. As @Noirx4 says there must be a cap somewhere but while he feels this is £15, and I feel it's probably more like £18, the truth is that we don't know for sure, particularly on this index as investment logic and rates of return don't dictate this market as strongly as they do on the stock exchange. The share split and decision on where to set dividends is a minefield for FI, particularly due to 5p being a prime number... Just split them in half, make single MB 3p and allow growth at the top end to surpass £15/18 or whatever the current cap is! That's my take anyway but appreciate I am no expert in this

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