Quick update and follow-up to our article last week, on London Capital Group shares falling to a 52-week low – or more accurately, as one of our readers pointed out to us, an all-time low since going public in the mid-2000’s following a management buyout.
The company saw its shares continue to slide Monday, another 7.4%, to £0.25 – indicating a market value of under £14 million for the UK spreadbetting company. With LCG’s net cash resources (including amounts due from brokers) more than that at above £18 million as at March 31, one has to wonder if LCG is positioned as an attractive takeover target.
Despite reporting a poor Q1 and facing falling revenues, LCG does own some well known and valuable brands such as CapitalSpreads and Capital CFDs. Unless things have deteriorated since the end of Q1, LCG isn’t making much money but it isn’t losing (much) either. And with more cash to its name than its trading value, it sure does seem like a relatively low-risk proposition for an acquirer looking to break into (or expand in) the very lucrative UK online financial trading market.