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Hi, just to say “well done you” and isn’t it wonderful when you called it right = such a quiet share on this site and just look at the rise. Have added other complimentary posts on here and whilst I am sure he will be a pull back whilst some take profits at some point - can see this returning to its previous £5 status. Always had faith, but wow! Do I like that recent takeover
JayneC
Excellent post regarding shipping container prices dropping, it is good news for LUCE but as the profit margin for smaller electrical items like switches, lighting etc is over 75% from China it's a small price ( but still important) price to pay.
https://www.scmp.com/economy/china-economy/article/3153036/shipping-container-prices-tumble-first-time-year-chinas
Although this is about US-China shipping, will apply to UK and elsewhere too. Good news for LUCE surely?
I've had no advice off wise relatives Giraffe, however your Grandfather's advice makes good sense. I bought back into LUCE last week having sold out many moons ago at a very good profit. I regretted selling, so thrilled to be able to buy back in at these prices. As you say, people need lighting, particularly LED. Great management here too, the DW Winsor takeover is a very shrewd move. GLA.
My Grandfather said to me “pick shares that you can see” any that produce food are worth looking at because if you don’t eat, you die - try it you’ll see…so, yes, I am in ABF, TSCO, SBRY, BAKK and overall doing fine.
But LUCE ticks all the boxes - people need lighting, always. This company is established, worldwide and now has taken over DW Windsor - I didn’t see that coming = fabulous.
Yes, they will be impacted by supply chain, but have acknowledged that and still target a healthy outcome
I watched a presentation months back and they are focusing on electric cars. I just love the ambition here, the product is simple, as above, always in demand and meets all my Grandfathers criteria = god I miss him
Even a dividend to enjoy which some other shares in this price bracket don’t offer
Confidently invested and for me a strong buy = anyone else have wise relatives that they have taken advice from?
Thankyou and GLA!
I think the drop started originally with profit taking but accelerated with China worries. This RNS to my mind shows there really is nothing to worry about with LUCE. A great growing company at a great entry point today in my opinion.
I think the drop started originally with profit taking but accelerated with China worries. This RNS to my mind shows there really is nothing to worry about with LUCE. A great growing company at a great entry point today in my opinion.
Yes it look all fine at Luceco. Handling cost inflation well, very minor reduction in margins but the main take away is Luceco are delivering record profits!
I therefore don't understand the share price movement. This surely can only go one way now and that is back up!
It's a breath of fresh air to see a company performing well during and coming out of the pandemic. The resent drop in share price is market related and with a RNS such as this will confirm this company will only grow further. A great buying opportunity.
'We continue to expect Adjusted Operating Profit of not less than £39m, a record result for the Group, whilst recognising the potential for external supply chain factors to impact our short-term forecasts.'
Looking fine to me.
The latest acquisition of DW Windsor looks a good marriage. Added revenues of circa £20m based on latest account filed.
Q3 update due 21st Oct. Hopefully find out the extent of cost inflation and how Luce has navigated this.
Despite disappointing share price performance I remain very positive for this Company.
Scheider Electric share price is also off its lows. Similar supply chain. I am buying.
I agree
Shipping costs from China have taken off, an average container shipped from China 12 months ago would have cost £1500, today its £15000. Luceco recon that they can absorb most of this cost as it's a small proportion of their overall costs.
Me to !!!!
Hardboy: The worry is, its not so much how much is Sold in China but the fact that 90% or products are manufactured/sourced in China. So its China energy costs and logistics that are main concern IMO
Now around 50% down from highs. An excellent company & surely any issues with supply chains will be short lived? Bargain prices.
"we do not know how much of Luceco's product is sold into the China market."
From the interims released last month: % by sales: UK 82.5, Rest of Europe 9.3, Americas 3.8, Middle East & Africa 2.4, Asia Pacific (including China) 2. Or to put it another way - almost negligible.
I think the negativity now is more a concern that the supply chain of Luceco's products will be affected.
Supply chain issues are one part of the worry. The other is that we do not know how much of Luceco's product is sold into the China market. The fall out from Evergrande, the possibility of some of China 's building industry failing, and liquidity in the China housing market is bound to affect Luceco. Maybe Luceco is not exposed to this risk. That would surprise me.
Many thanks Groose, an interesting read although not completely a surprise. I have been buying over the last week or so and it’s currently 2.5% of my portfolio. I think I’ll pause there for the moment and see how the supply chain issues and situation in China develop over the next few weeks/months. GLA.
Dropped, due to China energy crisis i imagine. Just when i was hoping it would turn upward again.
Positive article which clearly explains share price movement
https://www.investorschronicle.co.uk/ideas/2021/09/30/luceco-keeps-the-light-on/
"But there are other reasons to feel more positive, which the share price may be ignoring. Its 2021 first-half revenue of £108m is a record for the company and is 31 per cent more than in the first half of 2019. As well as boosting sales, the company has also experienced a “step change” in profitability in the past two years. Despite the supply chain issues it has encountered this year, its half-year adjusted operating margin was still 17.7 per cent compared with 8.7 per cent in the first half of 2019."
Second day now it's finished blue. Hoping the trend is reversed & up we go.
Another £1m sold by the directors missus.
Wow, this is really getting duffed up now - below the 200 day moving averages