This weeks Football Index Club Weekly covers what we can expect over the upcoming months, a look into some potentially valuable players with wide spreads and a brief insight intothis week's risers.
Summary of the week
It has been a really exciting week on Football Index with the recent Football Index Market Update.
This update has provided traders with more certainty and confidence in the market again and has led to plenty of risers and tightened spreads. It is likely the speculation and excitement that will build up as we approach the introduction of the new dividend table will lead to further risers in many players over the upcoming weeks.
As explained in last week's FIC Weeky, until Phase 2 of the Matching Engine is introduced many shares may remain relatively stagnant due to buyers and sellers failing to meet in the middle on the price of shares.
However, this is not so true for the top end where there is much more liquidity. We also tend to see considerable risers in premium players in the build up to any big announcement such as past dividend increases/share splits etc. Therefore, it is very likely the top end of the market will continue to rise in the build up to the big announcement on 9th July.
The dividend increase benefits the whole market and so although in the short term premium players may rise the most, longer term many lower priced players will also rise huge amounts.
Top Risers of the week (Currently over 50p)
This weeks biggest riser has been Riqui Puig who is up 20.27% to £2.16 after starting for Barcelona against Celta Vigo recently. Puig was highlighted on FIC at just £1.80 11 days ago.
Puig's recent rise once again shows the potential profit which can be found in finding players which could hit high PB scores, once they get more game time in the future, early on. This point was also mentioned in the recent FIC blog here.
Jovane Cabral, who was also highlighted on FIC just 11 days ago (At £0.82) has also risen a huge amount this week, up a further 12.90% to a current price of £0.98 after scoring another two goals recently. Cabral is now up 19.5% since being highlighted on the site less than two weeks ago!
Andreas Cornelius' hat-trick has sent his price up 12.50%, but this was difficut to foresee and so he had not been highlighted on Football Index Club lately. Cornelius still has a wide spread showing the clear lack of demand for many lower priced players, even after they perform particularly well.
Value in players with wide spreads?
With the attention of the market likely to remain on premium players over the upcoming weeks, many lower priced players may continue to be relatively neglected and could be great longer term holds, especially for once Phase 2 is introduced and spreads possibly tighten.
Many of these player's market prices may not rise, but due to the Matching Engine, we can now make profitable trades without the market price rising. If you buy a player via a matched bid at an attractive price and then the spread tightens, you could then sell the player at a higher price even if the market price stays the same.
Therefore, many lower priced players could be great holds as demand is likely to pick up leading to tighter spreads following the dividend increase and once Phase 2 frees up many trader's funds.
Below is a spreadsheet I put together earlier today of players with 10%+ spreads which stood out to me at their instant sell prices in particular. Many of their market prices may not be so attractive, but the majority could be strong longer term holds, especially if bought via a matched bid at a considerable discount on their market price and so it could be worth looking into the below spreadsheet. *If you have any further questions on any players, check out the Player Reviews Database/Submit a player review request.
You can also find this spreadsheet on Google Sheets here
What's coming up?
There is a lot to come from Football Index over the next few months and it is really exciting times for the platform with the aim to get to a £1Billion Market Cap! Football Index Club will be here all the way to help you maximise your returns in these exciting times that lie ahead!
This week there will be more highlighted players on Football Index Club as well as another blog full of useful data and information on the context of PB scores, focusing on the impact of bonus points such as GWG/Win bonus etc.