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Noferkinamesleft thanks. Do we know why customers called off orders?
I appreciate all being said about the slowing down of the chip industry and all the rest, however I lack visibility on the scale of the industry related headwinds and the impact on XPP. I have the impression (and that's gut feeling only) that the severity of the hit on revenue is of a magnitude that can't be justified by the slowing industry alone.
Alessandro, they did say a couple of RNS' ago that customers were being slow to call off orders.
The drop in revenue is huge with not much in sight for a recovery. Did XPP lose contracts, are customers turning to different suppliers? Is XPP technology becoming obsolete? Not much clarity here.. for me.
Full year trading results out to tomorrow ( Tues, 5th )
Bottom in? Seems to be bouncing on reasonable volume.
The 2nd of October update the share dropped for a good 4 days
3 negative trading updates in 4 months is absolutely horrendous and red flags all over this now
I hope so karlo90 but when you read that RNS again from yesterday they only are positive at 1 point and that is for possible customer orders in 2025.. lots can happen in between
50% may have been an over drop but I would expect it to drop another 8% Monday
Bestintown refered to last November fund raise , 3 months ago.
Tue, 07th Nov 2023
XP Power raises £43.9m in placing, rejects bid approaches
XP Power surged on Tuesday after it raised £43.9m in a placing and said it had received "a small number" of unsolicited expressions of interest which it has rejected.
The company raised the money through a placing of just over 3.8m shares at 1,150p each, which is a premium of around 11% to the closing share price on Monday. It raised an additional £1.5m in a retail offer at the same price.
Proceeds will be used to reduce net debt, improve the group's liquidity position, refinance capital investments and continue to invest in key areas including R&D, the company said.
It also said that since its trading update on 2 October, a small number of parties have expressed indicative, non-binding interest in buying the company "at prices which the board considers fundamentally undervalue the company and its long-term prospects".
Having considered each of the expressions of interest with its advisers, XP Power said it "does not believe that any of them are at a value which merits further engagement with any of those parties and has had no hesitation in unequivocally rejecting them".
At 1158 GMT, the shares were up 23% at 1,275.30p.
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Too cheap. I bought some, my trade at 4:23pm. Bounce up Monday.
RNS down 36% to 968p
Bought into these 24/11/2019 for 2040p ( must of been an experiment buying into rising share )
Sold half of them 13/1/20 for 3470p
All out 3/8/20 for 4350p.
Thinking I had made a mistake by 23/2/21 as they topped out for 5700p again 2/7/21 and 20/8/21.
Then a slow continuing fall to 776p by 5/10/23.
Good job I took that profit with further hindsight .
Todays news.
Among London's small-caps, XP Power plunged 36%, after the manufacturer of power controllers, warned its 2024 outturn will be "significantly below market expectations". The Singapore-based firm said there will be a "shortfall in revenue" this year.
"This is based on recent order intake, revenue performance and discussions with customers, particularly within the Healthcare and Industrial Technology sectors, which confirm unusual, temporarily soft demand conditions and destocking. These softer trends have also emerged within our direct industry peers," XP Power said.
I find in hard to believe that "the professionals" that paid 11.50 in the fund raise of November misjudged the value of the company to such a degree. I've bought more today at 9.52 so hope it works out....
Judging by the last drop it keeps dropping for a about a week then bounces well, so on my watchlist for now.
2nd plunge in 5 Months so bought back in again. Sold too early on 1st plunge around £12, but what a great opportunity again. RNS confirms difficulty in the semi-conductor sector but will recover as it always does. Vulnerable for takeover at these prices.
This will soon bounce back up to around 1250p for certain. Typical market over-reaction this morning.
This is the second big drop if past experience teaches me anything there may well be a third , it hasn't dropped so far yet but I think it's avoid for now . I bailed at £11.50 just before the fund raise at £12.50 so was thinking I had made a big mistake having bought more at £7.50 , I still took an overall loss . You just can't win them all!
Who is MF?
Sometimes best to cut a loss early if story changes - but surely not at these levels.
Sometimes pays to average down if bounce expected and then if story still negative bail.
Sorry to hear. They are in growth markets so if they are to be believed the problems should be temporary. You could average down on a sign of bounce. The drop today looks overdone.
A 37.5% fall in SP denotes to me that there are some who feel there are serious issues lurking behind the trading statement, despite the board reassurances for the medium term.
What do subscribers read into "Our year-end financial close processes have identified some capitalised product development costs that needed to be amortised or impaired, adding £4 million to costs. This is a non-cash item. Approximately half of this is one-off in nature. Underlying operating profit for full year 2023 absent these costs was in line with our expectations"
How bad is the situation really. I do hold, am well under water, some time ago MF did say bail, since I was already in a loss situation I didn't.
You think? The lies and misdirections over the last couple of years, now revealed and previously amplified by media such as Money Week and Investors Chronicle, have destroyed my faith in the current management and their ability to recover. Now down by nearly 85%.
Good opportunity here? Perhaps will bounce from 880 previous low but looks like good value even here.
Suddenly past £15 Bongo - squeaky bum time for your prediction!
Sp struggling to get to £15 once past will go to £20 and over
Pretty downbeat update - the patient is still in recovery
Happy Christmas to all
This is looks struggling to move towards £15