What is Amigo Holdings?
Amigo Holdings is a UK-based guarantor lending company that provides loans to applicants with sub-average or minimal credit history. The company uses guarantors who agree to pay the loan if the applicant fails to do so as a means of controlling the increased credit risk associated with its clientele.
The company charges interest rates of 49.9%, which are significantly higher than traditional banking institutions but lower than payday loan companies. They are considered a mid-cost lending agency in the UK and were the first fully accredited company of their kind in England.
The company was founded in 2005 by James Benamor and went public with an IPO in 2018. They are listed under the ticker symbol AMGO on the London Stock Exchange. The company has suffered a severe decrease in market capitalisation and lending facilities since it went public, in part due to regulatory actions on behalf of consumers in the UK.
Due to the number of claims against it, the company applied for a scheme of arrangement with its creditors, and on 12 May 2021 they voted to accept it. According to the Financial Ombudsman Service, the company said if creditors had not accepted the scheme it would have faced insolvency. A court hearing to sanction the scheme was due to be held on 19 May.
Performance of Amigo share price
The Amigo share price has risen steadily since the market crash of March 2020 and has continued to benefit from the economic optimism in the UK as the economy shifts towards reopening in the second quarter of 2021.
The Amigo share price chart shows the company entered 2021 at a price £7.93 and has risen steadily in the first half of the year to reach a price of over £25.00 by mid-May. The most recent financial results released by the company show a net loss of £77m for the fiscal period ending 31 December, 2020. This loss was the result of a freeze in lending facilities and an increase in defaults due to the pandemic.
The company had a market cap of £120.8m in early 2021, which is significantly lower than the £1.3bn when it was floated in the IPO of 2018. While the company has been beset by regulatory actions and consumer lawsuits it is well positioned to capitalise on the economic recovery expected in the latter part of 2021 and beyond.
How to buy Amigo stock
AMGO stock trading occurs on the London Stock Exchange. Those looking to buy Amigo stock can buy it directly through the exchange, through a broker or indirectly through an index which includes AMGO. Traders are also able to purchase derivatives based on the Amigo stock value, such as CFDs or options.
Traders looking to buy Amigo stock using the Currency.com tokenised platform are able to profit from upward or downward movements in the Amigo share price without having to invest directly. Tokenised assets are crypto derivatives whose value is linked to the value of a particular asset, in this case the AMGO share price.
The token is registered using distributed ledger technology (DLT) the same way cryptocurrency is recorded. This technology allows trading using crypto without the need to convert back and forth with fiat currency, saving exchange fees. The use of this technology allows tokenised asset trading to be efficient, inexpensive and secure.
Trading tokenised assets based on the Amigo stock price chart allows you to take a long or short position depending on whether you feel the price today is over or under-valued based on the price chart. If you think the AMGO share price will decrease you can take a short position and if you think it will increase you can take a long position. Trading in tokenised assets on Currency.com also allows traders to benefit from the leverage offered on the platform – up to 1:20 leverage.
Why trade tokenised Amigo shares with Currency.com?
Trading tokenised Amigo shares on the Currency.com tokenised assets exchange has a number of advantages. Tokens are underpinned by robust and immutable blockchain technology. Opening a trade will give you a token that tracks and moves according to the underlying instrument’s price.
Trade tokenised Amigo shares with Bitcoin or Ethereum. Benefit from the share price movements without exchanging your crypto assets into fiat.
Trade tokenised shares with a tight market spread and benefit from maker rebates and competitive taker fees.
Experienced traders can trade the world’s top stocks, like AMGO, with up to 1:20 leverage.
Manage your risks and secure your profits with stop loss and take profit orders. Save your assets with negative balance protection.
Currency.com has a scalable and low latency order management system, which can execute 50 million trades a second.
Currency.com operates under new Belarusian regulation with best-in-class AML and KYC laws. Regulatory details and fees are upfront.
Tokenised shares trading guide
Trading tokenised Amigo shares is no more difficult than regular shares. To begin trading tokenised assets, you will need to follow some simple steps:
1. Register for an account with Currency.com.
2. Deposit funds (with crypto or fiat) in the account.
3. Determine the position size desired, accounting for leverage offered by Currency.com.
4. Determine your trading position (long or short) based on expected price movement and purchase tokenised Amigo shares.
5. Currency.com matches the long orders from its clients with the sell orders and then hedges the unmatched orders through Capital.com, LMAX Digital or exchanges such as Binance, Bitstamp, Kraken, Nasdaq, NYSE, and Gain Capital.
6. Close your position when applicable. You can set a take profit or stop loss indicator to ensure you are not required to constantly monitor the price. Funds will deposit back to your account after closing and you can withdraw or take a new position.