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The markets are expecting a US FED interest rate raise first though.
April trading update no far away. Good entry opportunity at current SP I believe.
Monty-any further recent news the sp is nudging back up
Broker ratings are always higher than true fair value it seems to me, the 480p mark doesn’t seem a stretch. Yes a lot of acquisitions and a little margin off from freight and copper prices. But copper is hedged and passed on with a slight delay due to the normal averaging out period needed as they said in their updates. Also the cost of borrowing is very low, so accelerated acquisition purchasing now is shrewd as we are starting to enter higher borrowing costs and a lot are fixed aside the rolling which probably have contractual lags before rates go higher. Agree it’s all about paying the right prices and integration of the acquisitions. There is enormous global customer synergy from these strategies and big global OEM’s like the reduced global risks from partnership with big CEM’s like Volex. I think we will see a big swing north in their next trading updates unless we have a global black swan event. (China - TW or Russia - Ukraine or Biden dropping down dead etc). All of which will be transitory in time of course.
Jeremy Grantham continues to talk about the US super bubble being burst.
If he is right UK stocks not as expensive as US stocks will take some collateral danage.
https://markets.businessinsider.com/news/stocks/jeremy-grantham-gmo-stocks-housing-bubble-crash-warning-advice-crypto-2022-1
Conaccord Genuity today increased Volex target price from 500p to 510p.
There is no doubt that VLX debt is increasing to support acquisitions. However, given their history of profitable growth via acquisition then apart from tech stocks being out of favour there appears to be nothing sinister in the SP fall.
Buyingplants, finally seen the vector vest analysis. Nos realise its a paid for service though 30day trial is only 99p. Looks very thorough.
They have fair value 473p. Vlx 60% + undervalued.
VV Analysis looks good for a buy and hold. Techs are poor atm due to the downtrend but it is very oversold.
I suspect once trend reverses people will buy back higher but needs that reversal of trend.
Thanks. RN, been researching for a week and had a small nibble as it’s very oversold and looks to have excellent growth potential with its exposure to the fast growing EV market. Supplies Tesla Ford and GM I believe?
Should it drift further I wont be hanging around but hoping to see a bounce.
That should have been "inflation/rates rising."
Yes, it's not hugely expensive, but we may see more falls in the pricey US market triggering more falls worldwide especially with inflation/rates falling.
I am holder, but I've trimmed in fear of a market correction.
However, I've been wrong before ...
Just read HY report here, looks pretty good yet sp fallen off a cliff? Looks like it got a head of itself but potentially now fallen to far?
Half Year
Revenue + 44.5%
PBT +34.7%
EPS +7.8%
Divi + 9%
PE is 14 which is well below the industry standard especially for a high growth company,
Margins dropped slight from 10 to 9 % but looking back a few years ago they were 2% so well up on that. Forecast is/ was to maintain a margin around 10%
Sp dipped below £3 Friday for the first time in 12 months having fallen from £4.75 peak in November which surprised me...
Electric vehicle market currently worth $208 billion but set to grow to $957bill in next 8 years..
Vlx starting to look an attractive buy? Thoughts?
Once fundamentals are reassessed would expect a gradual recovery in the SP after recent precipitous drop. Director purchases and decent half year report /comment are positive . Would expect additional purchases by other directors in the immediate future.
Do you have a link for vector vest valuation, I can’t find it. Thanks
Whilst searching read the MF piece from Nov, they hold but its a balanced piece now why the price may have fallen.
https://www.fool.co.uk/2021/11/12/the-volex-vlx-share-price-just-tumbled-10-is-the-stock-doomed/
Vectorvest has fair value at £4.88 and I would normally lean toward that over Simply WS.
Difficult to know how valid the Simply Wall st methodology is regarding VLX. So many unknowns going forward.
The price of copper is up 79% ytd and interest rates are moving up.
However revenue in 22 should still come in around $600M (+27%) if you project from the recent half year report plus several acquisitions recently. The market (as reflected by the falling sp) would tend to agree with you tho and i sold down through the mid 350's. Happy to hold the rest tho on a mid/longer term basis.
Often is the case that people sell in desperation when they should actually be buying more.
Not overly useful but they is my thoughts!
According to calcs on here this is still 27% overvalued despite the recent drop from highs of almost £5.
Looks to have potential long term but maybe got a head of itself? Any thoughts?
https://simplywall.st/stocks/gb/capital-goods/aim-vlx/volex-shares/news/are-volex-plc-lonvlx-investors-paying-above-the-intrinsic-va/amp
Just when you think it can’t go any lower……..