The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Started: Scutzy, 18 Apr 2024 22:31
Last post: mick-b, Today 11:43
BREAKOUT ‼️
On a red day across the Market.
Impressive...
Unlike previous rises after updates, that have gradually drifted away. The last update has built upon that rise to give todays yearly high.
The force is with us‼️
Yes, without a doubt, VLX SP will go higher in time, but also will go up and down just like all other good or bad shares. So, I am trading the spikes, and with some luck I am enjoying it.
Welcome aboard and good luck to you.🤞🤞🤞
Yes it's a good share...but I've just been buying it...it was recommended years ago by Paul on Stockopedia as a share to buy and hold as it's a solid company...this was before it made lots of acquisitions and deals. It's a great picks and shovels share as electric cars become more commonplace and they all need cables.
Sold again @319.82. VLX is now my favourite trading share. Made £6 K of profit from 4 trades. Now I am waiting for my fifth entry. Have a great day everyone and good luck 🤞 🤞🙏🙏
Started: seen_it_done_it, 18 Apr 2024 08:21
Last post: Scoobydoo321, 18 Apr 2024 15:18
Lol! I remember from last year with the dip in the afternoon - got in @ 300p. GL all!
Bought my shares back @£3, thinking it probably will test 320 again after a short retreat. Hope that I haven't made a mistake.😂😂
It has fallen back to below £3 now, typical VLX!! That's what have learnt from the past. So, I clicked the sell button without hesitation, knowing well that this would happen.
Berenberg says buy, but target price is only £4, the lowest from all brokers since Jan 2021.
Lol suppose it depend on what's your average price for the shares you're holding ;)
Started: mick-b, 18 Apr 2024 09:12
Last post: mick-b, 18 Apr 2024 09:12
Revenue is now expected to be at least $900 million, representing an increase of at least 25% over the prior year, including seven months contribution from the acquisition of Murat Ticaret, while underlying operating profit1 is also now anticipated to be slightly ahead of analyst expectations.
The Company has compiled forecasts from five analysts with current market forecasts for the 52 weeks ended 31 March 2024 for revenue to be in the range of $849.8 million to $873.0 million, with a consensus of $859.5 million, and for underlying operating profit to be in the range of $83.3 million to $84.6 million, with a consensus of $84.2 million.
Profit margin is up -
Operating profit margins improved in the second half of the year.
Growth is organic, as well as from acquisitions -
The second half of the year saw continuing increases in organic revenue
Outlook - sounds upbeat and confident -
The Group's presence in attractive markets and its well-invested global manufacturing base offer significant growth opportunities. Strategic investment initiatives continued throughout the year to support customer requirements and will continue during FY2025.
In response to increasing customer demand, the Group invested in the further expansion of its global manufacturing base, creating additional capacity to facilitate growth as part of the Group's five-year growth plans which target revenues of $1.2 billion by the end of FY2027.
We enter the new financial year with confidence and optimism thanks to the strong momentum generated in the current financial year, improving market conditions in the Electric Vehicles and Consumer Electricals sectors, as well as an abundance of opportunities in the new Off-Highway sector. Our continued, strategic investment initiatives will support increased customer demand as we continue to make strong progress towards the delivery of our five-year plan."
Cashflow/debt - sounds OK -
The cash generative nature of the business provides the Group with flexibility over internal growth investment and M&A activity. Cash flow was very strong in the second half of the year, with covenant leverage at the year end expected to be approximately 1.1x.
Paul’s opinion - remains positive. I think this update justifies a move back above 300p.
I could see this share re-rating decently in the next bull market, so I think investors should be handsomely rewarded if they’re patient. It keeps putting out reassuring updates, despite tough market conditions in recent years. Overall - I think it’s cheap. (I've not looked at today's share price yet).
https://app.stockopedia.com/content/small-cap-value-report-thu-18-april-2024-ids-eman-nxr-vlx-song-995066?order=createdAt&sort=desc&mode=threaded
Started: oxygen, 18 Apr 2024 07:11
Last post: oxygen, 18 Apr 2024 07:11
“ Full year performance ahead of market expectations”, thats all you need to know !
Guess we may get a Full Year trading update soon, last year it was posted on 18/04.
Sorry Robina, that rebound was short-lived. I am hoping that this will go back up to over £3 again soon. Was in decent profit, but I am under water now. Should have stick to my plan and sold when it was above £3.20. Let see if I will get another chance then.☹️☹️
What was that about rebound?
Here comes the rebound Robina, let's hope that there will be more to come tomorrow.
I'd hope this is a long term play.
It seems everything is being knocked back at the moment. All my UK stocks are in the red, I think because of the general malaise in the UK. Even good results are met with sp falls.
Started: Scutzy, 25 Mar 2024 06:23
Last post: Scutzy, 25 Mar 2024 06:23
Started: Monet1, 26 Feb 2024 19:03
Last post: oxygen, 26 Feb 2024 21:08
Yes he certainly was a generous philanthropist, the Arts world & the National Gallery in particular benefiting from his wealth.
A sad day for Nat and all the family. By all accounts Jacob was well thought of and contributed to many and varied charitable causes.
The rogue charger is manufactured by a company called Wallbox. Nothing to do with Volex. In fact it should give Volex an opportunity if that charger is banned in the Uk after June 2024.
Started: DavidPM, 21 Feb 2024 18:31
Last post: chumba, 21 Feb 2024 19:03
Hopefully an RNS in the morning explaining what the situation is.
The UK has just banned the Copper SB car charger due to security issues. Probably a read across from that.
Started: Rog21, 21 Feb 2024 17:38
Last post: Rog21, 21 Feb 2024 17:38
Why the significant fall today? - there doesn't seem to be any unfavorable news.
Started: seen_it_done_it, 10 Jan 2024 18:24
Last post: seen_it_done_it, 10 Jan 2024 18:24
So today's fall must have something to do with the extra 213k shares for people who wanted shares instead of cash for their dividends. They paid 307.3p per share, and the SP has closed at only 302. 1.4P per share dividend and paid 5.3p more for each share. 😂 😂 😂
Started: oxygen, 4 Jan 2024 11:41
Last post: EdwardSeaton, 9 Jan 2024 19:27
Intensely funny.
But no, you were right to hold them until they fell to 308.
I meant 335 not 235...😂😂
Should have sold when this has reached over 235, then buying them back. Now, I am paying for being too greedy, lol.
From Berenberg, who now starts Volex with a 'buy' and price target 400 pence. I’ll take that for now !
Last post: seen_it_done_it, 19 Dec 2023 10:21
It looks a bit stronger now. Bounces up well after yesterday's dip.
Long may this upwards trend continue.
Good morning and good luck everyone.
I had planned to sell at this level, but I am waiting for 340 now. Hope that I am not going to be punished by my greed, lol. 😂😂😂
That was a great week and a good ending. Let's bring on next week.
340, here we come!!
No idea, but as long as it keeps going up. I am happy. Nevermind what causes it, lol.😂😂😂😂
Suddenly got it skates on....
buy @ 332p
Could be a weekend tip that leaked?
Started: EdwardSeaton, 23 Nov 2023 15:59
Last post: seen_it_done_it, 1 Dec 2023 20:03
Yes, the recent trading update was good as well. So it has a very good future here, suitable for a long term hold, but I wouldn't mind a bit of trading in between too, hahaha.
Good luck with your trading, personally I don’t Trade only sell if need to rebalance Porfolio. Lots to look forward to here including that recent EV contract win ( suspect Tesla) worth excess $30 million, with full production anticipated to commence during the 2024 calendar year. This is a core holding for me.
Yes, VLX is good for trading if you time it right, but it's also good for long term hold as well. I'll sell again if this gets up to 330 in a short term and buy back later when it pulls back, lol.
Have a nice day all and good luck.
Would be pleased for 320.
Lot of sells today. I dunno.
Given the lack of stamp duty I guess it's a good trading stock?
Bought some back yesterday @303.4. Think I am just in time for the rebound. Here we go, onwards and upwards!
Last post: seen_it_done_it, 23 Nov 2023 13:38
I have just checked. It was a mistake. Yes, the next dividend will be 1.4p and ex-dividend date will be Nov 30 and pay day will be Jan 20 2024. Sorry for the misinformation everyone.
The info was from DividendMax. A notification was sent to me yesterday.
Seen it. The ex divi date is 30/11 with payment 10/1/24. Not sure whose announcement you’re looking at but it’s not VLX.
The SP is now 304.5, up 7p, nice.
Company Volex Plc (VLX)
Stock Exchange London Stock Exchange (United Kingdom)
Amount 2.6p
Dividend Type Interim
Ex-Dividend Date Thursday November 23 2023
Pay Date Friday December 15 2023
Started: oxygen, 23 Nov 2023 07:38
Last post: seen_it_done_it, 23 Nov 2023 11:05
Yes, it has fully recovered. Buying the dip is often rewarding.
300p‼️
292p recovering strongly
Only down 7.4p now. Today is also the ex-dividend day. The dividend is 2.6p, so the the actual loss is less than 5p. Maybe this will be fully recovered by the end of the day. Who knows.
Decent growth when adjusted for acquisition costs etc. though organic growth isn't that strong. Maybe why the market is punishing the share price this morning?
Started: mick-b, 26 Oct 2023 14:19
Last post: mick-b, 16 Nov 2023 19:16
BOO (boohoo) was clearly his big mistake.
ps Paul Scott holds VXL
Overall I agree with Paul Scott on Volex and for the same reasons I'm invested here, but Paul Scott's track record is hardly noteworthy (I have been on Stocko for several years), so I'm starting to question my judgment :-))
CONTINUED.......
Outlook - most companies are sensibly sounding cautious in their outlook statements, given all the macro trouble, and risk.
Volex sound pretty upbeat to me, and I trust what management say here, as their track record is good. Also, well-chosen acquisitions can be a nice way to mop up any shortfalls in performance elsewhere - so rising debt needs to be considered against rising earnings.
I like that Volex has a good spread of sector exposure too, which seems to smooth out peaks and troughs. It’s all sounding encouraging to me -
Volex delivered a robust performance during the first half of the year, despite the challenging backdrop, whilst executing its most significant acquisition to date.
The Board remains optimistic of a number of potential near-term sales opportunities to make further progress in the second half of the year, and remains on track to deliver full-year results in line with market expectations.
That’s very good actually, given tough macro.
Paul’s opinion - I hold a small position currently. I really must buy some more.
The forward PER of 10.3x seems modest, considering the excellent track record here, and no signs of any impact from macro problems. Could it warn on profit in future? Possibly, I don’t know. Hopefully the nice exposure to growing sectors could continue to mop up softness in other areas, who knows?
This is hard to argue with, and a forward PER of 10x seems distinctly undemanding -
https://app.stockopedia.com/content/small-cap-value-report-thu-26-oct-2023-scs-vlx-978494?order=createdAt&sort=desc&mode=threaded
Started: mick-b, 26 Oct 2023 14:15
Last post: mick-b, 26 Oct 2023 14:15
This is one of many small-mid caps that tends to drift down between announcements, as people worry about macro impact on its trading. Then we get in line updates each time. It’s the same this week, we’re reassured -
The Group continues to maintain strong financial momentum and is well positioned to achieve full-year results in line with market expectations1,2…
2. The Company has compiled forecasts from four analysts with current market forecasts for the 52 weeks ending 31 March 2024 for revenue to be in the range of $849.8 million to $891.0 million, with a consensus of $864.6 million, and for underlying operating profit to be in the range of $82.3 million to $87.0 million, with a consensus of $84.3 million.
Excellent, very clear reporting there. Hats off to owner/manager Nat Rothschild for building a significant sized, and decently profitable group here.
Remember that Volex was quite a mess years ago. I can remember being initially sceptical about its turnaround, but then turning positive on it possibly around 2019 from memory, when the figures really began to strongly improve.
Since then, Volex has been absolutely transformed through a turnaround, and it seems an effective, value-building, disciplined (not over-paying) bolt-on acquisitions strategy.
Revenue growth in H1 of 4% is quite modest, but that’s organic, and against a strong comparative.
Customer de-stocking is mentioned, an important point of general read-across that I’ve spotted other companies mention too - higher interest rates mean that companies generally want to reduce cash tied up in receivables and inventories. Improving supply chains also mean that companies feel safer to run down inventories back to more normal levels.
I’m impressed that Volex seems to have been able to ride out and offset this destocking -
This has been more than offset by strong demand in Medical and Complex Industrial Technology supported by better availability of key components. There is evidence of de-stocking slowing in some channels, as order patterns are starting to normalise, particularly in Electric Vehicles.
Major recent acquisition $195m - of Murat Ticaret - positive-sounding comments on this. It will contribute 7 months to the P&L for FY 3/2024.
Debt - “covenant leverage” of 1.3x looks fine to me, and would only become an issue if trading fell off a cliff. Also I cannot imagine that the owner/manager called Rothschild would have a lot of trouble arranging bank facilities!
Cyber incident - we have to trust management on these things, but I don’t see (or even hear) any alarm bells ringing here -
… there is not expected to be any material adverse impact to revenue or underlying operating profit as a result of the incident. Costs for the recovery and remediation of systems are anticipated to be approximately $2 million, which will be reported as an exceptional item in the second half of the year.
Hopefully they’ll now have bulletproof IT protecti
Last post: SailorBeware, 24 Oct 2023 12:18
Sorry ... Finger Trouble and no edit facility or delete I could find
What ever is the point in re-posting (twice!) almost the entire contents of the LIve RNS update?
Extracts of Update
Revenues for the first half of the year were 4% higher than last year on an organic, constant currency basis, against a strong comparative period.
$195 million acquisition of Murat Ticaret completed during the first half of the year. Integration activities are well underway and initial customer engagement has been very encouraging.
Costs for the recovery and remediation of Cyber systems are anticipated to be approximately $2 million, which will be reported as an exceptional item in the second half of the year.
Remains on track to deliver full-year results in line with market expectations. Delivered a robust performance during the first half of the year. Notice of results expects interim results on 23 November 2023.
Extracts of Update
Revenues for the first half of the year were 4% higher than last year on an
organic, constant currency basis, against a strong comparative period.
$195 million acquisition of Murat Ticaret completed during the first half of the year. Integration activities are well underway and initial customer engagement has been very encouraging.
Costs for the recovery and remediation of Cyber systems are anticipated to be approximately $2 million, which will be reported as an exceptional item in the second half of the year.
Remains on track to deliver full-year results in line with market expectations. Delivered a robust performance during the first half of the year. Notice of results expects interim results on 23 November 2023.
Good to see John Wilson aboard, part of the team that helped drive value for Elektron Tech., when they owned Bulgin Connectors, delivering a 10 fold exit valve for many ET shareholders, not that I’m expecting quite the same here.
Started: mick-b, 9 Oct 2023 07:24
Last post: oxygen, 9 Oct 2023 09:24
Perhaps of little surprise VLX have been targeted given our involvement in critical Defence, Space and Aerospace applications .No doubt a full review will now be undertaken which should ensure more robust protections are in place going forward. Hopefully this was a lucky escape !
I nearly bought some more on Friday, but ran out of time.
4% more today - pure luck.
"The actions taken to date have ensured that all sites remain operational, with
minimal disruption to global production levels, and the Group continues to
trade with its customers and suppliers.
At this stage, any financial impact resulting from the incident is not
expected to be material."
I do hope so......
With the acquisition of Murat, Volex have taken over a well-known cable supplier within the industry and it will give them access / engagement to a wide range of off-highway OEMs, which I expect they will leverage to set up sales meetings and promote other products in their portfolio.
Yes Murat Ticaret looks a great acquisition being highly cash generative and should add at least $180m annual revenue to top line with impressive EBITDA returns. Being involved with four of the five largest agricultural equipment manufacturers in the world, is a good start !
Volex's strategic acquisition of Murat Ticaret provides immediate entry to a
new growth market, with established operations supporting the attractive
off-highway sector across three continents and eight manufacturing sites.
Prerfect timing with new TESLA marketing and pricing annoucements today
52 week high must be just around the corner.
Best share on market currently end of
Started: mick-b, 7 Aug 2023 12:36
Last post: wheelie, 8 Aug 2023 15:29
All time high was somewhere in the region of £20,I don't see that being surpassed any time soon ,if ever.
Can see the ATH being surpassed in the not too distant future. This latest Acquisition is a bit of a game changer.
310p paid
with far more to go.
There was never any serious doubt about this - management indicated previously that competition authorities approval was a formality. However, as the acquisition of Murat Ticaret (based mainly in Turkey) is a significant-sized deal (described as “transformational” in today’s RNS), it’s reassuring to have confirmation that the deal can go ahead, expected to complete at the end of August.
Look at how the growth story at Volex is developing - impressive I'd say, especially as it's continuing to do well, despite tough macro at present -
Paul’s opinion - clearly the acquisitions strategy is adding value, as the EPS has dramatically improved over the years, so I don’t mind the associated dilution from part-funding acquisitions with placings.
As a refresher, I reviewed the most recent trading update here on 27 July 2023, which said trading is in line with expectations, accompanied with a confident-sounding outlook.
Volex strikes me as an excellent GARP share - really a growth business, from reasonably-priced acquisitions, executing very well, yet on a value share rating. That’s an opportunity to me, and for full disclosure I should say that I increased my personal position size after the last, reassuring update.
Many of us are traditionally sceptical about groups which grow by acquisition. However, when executed well, it can be one of the best methods of creating a multibagger - as Judges Scientific (LON:JDG) and others have shown. The lustre has come off SDI (LON:SDI) recently, but it’s still got a great long-term track record of value creation through sensible acquisitions. This type of share can attract a high PER in a bull market, so I see Volex as a potential double gainer from increased earnings, more acquisitions, and probably a higher PER multiple in the next bull market, whenever that occurs.
A 3-bagger over 5-years, and that’s fully supported by EPS growth of a similar percentage - chart also looking quite nice now (looks like it's formed a base, and now above the 200-day MA) - start of another bull run perhaps?
https://app.stockopedia.com/content/small-cap-value-report-mon-7-aug-2023-card-vlx-ctg-ckn-973254?order=createdAt&sort=desc&mode=threaded
subscription only hence full printout
Positive AGM statement, even managed to nip in reference to growing data centre demand due to artificial intelligence applications, no doubt thinking any reference to AI these days can “blow the doors off” . Irrespective still looks good valve at current levels.
Started: kingsinbad, 2 Jun 2023 16:41
Last post: JohnDoe_23, 18 Jul 2023 20:44
I am a little surprised the share price is flat after the recent announcements. Was expecting a rise to 300p
I have been looking at investing in Volex for a couple of weeks, waiting on funds to become available, i think i may wait a few months until after the equity raise has been dealt with, concerned about share price dipping due to extra shares being issued, but having dont my DD, Volex is definitely going places, im surprised its not getting more publicity.
https://www.proactiveinvestors.co.uk/companies/news/1018631/volex-announces-acquisition-to-be-part-funded-by-equity-raise-1018631.html
I would rather it wasn't as big and in Turkey. I'll see what the market makes of it before I take up the offer. HL have already messaged me so they're on the ball.
Motoring along nicely and the new acquisition certainly holds an impressive global customer base. Will certainly take up their Offer.
Large Placing of £60m to help part fund the acquisition, sweetened by a Retail offer, both at 275p. Will be interesting to see how the market reacts.
Started: oxygen, 13 Jul 2023 16:54
Last post: oxygen, 13 Jul 2023 16:54
Being 20th July, so look forward to 2.6p per share being paid across later albeit will just re-invest here.