The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
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I have topped up a few times throughout this week. I think 5G will positively affect all companies involved in it. CLX being one of the main providers of test equipment where barriers of entry are high.
Nice rise - stock available on any dips being eagerly bought up.
These are the two reasons that attraced me to invest in CLX for the long term:
1/ "Calnex designs, produces and markets test instrumentation and solutions for network synchronization and network emulation, enabling its customers to validate the performance of the critical infrastructure associated with telecoms networks. To date, Calnex has secured and delivered orders to over 600 customer sites in 68 countries across the world. Customers include Ericsson, Nokia, BT, China Mobile, NTT, Intel, Qualcomm, IBM and Facebook".
2/ Exceptional and unique with this company: "The exponential growth of data creation and migration of industries to cloud computing, along with the long-term transition of the telecoms industry to 5G, continue to drive a need for new test instrumentation, presenting the Company with significant, long-term growth opportunities."
However, I won't be surprised that every technology company at the threshold of 5G would love to take CLX over before it becomes too expensive as did Cisco a few days ago:
"Shares in IMImobile soared more than 47% on Monday, after the London-based cloud-communications software company agreed to a takeover bid from information technology giant Cisco Systems, in a deal valued at $730 million, including debt."
Been interested for a couple of weeks now, lurking only ( first post) and don't intend investing until Jan/Feb next year at the earliest as CLX being a recent IPO, it may do, as a lot of IPO's do - and that is range widely over 3/6 months or so, before settling down at what the market perceives is a fair price.
A poster on here, posted one week after the launch:
" . . . I will wait and watch for the share price and figures like PE ratio to be released and may invest in future. . . "
So, what is it? The P/E ratio? He never came back and aired his opinion. So I will :)
A couple of old annual trading accounts were already available back then (this site shows the historic PE ratio based on last year's annual accounts of a humungous P/E 40.7 at this £1 SP area).
However, with the very latest H1 interim trading results now in, and using the forward P/E ratio with the TTM method of calculation based on the latest higher results achieved, the fwd P/E ratio is actually showing much lower at P/E 28, a big drop on the old historic earnings figure.
However that P/E 28 is still way higher than the industry average that CLX inhabits which is, currently PE 19.3
The fact that even the forward PE ratio is well above the industry average does not bother me unduly as CLX is boasting they are the best at what they do, and their recent trading results do look encouraging (if time in the near future l might post all the annual results data I have available on here, as I have access to several years worth of pre-IPO listing annual trading results.
Besides, this higher-than-average PE ratio is part and parcel of a new entrant being received favourably by the market - so it's that 3 months ending by this year end where the SP can give a clearer picture of how the market feels about that high valuation; and my reason to elect for safety and forgo the chance of rapid profits in order to take a ride for the longer term with a young company, once I feel it gets an SP position that is sustainable and allows further growth, and the possibility off topping-up over the years at suitable junctures.
buys now at 112!
Good to see 100p up - and buying coming in at 103p now.
The Government will today announce the creation of and funding for a “National Telecoms Lab”, which will be “a secure research facility that will bring together operators, existing and new suppliers, academia and the government to create representative networks in which to research and test new ways of increasing security and interoperability”.
I'd have thought this could be good news for CLX as a and perhaps the leading UK supplier of telecoms testing and measuring equipment:
Https://www.cityam.com/uk-to-outline-roadmap-to-removing-huawei-equipment-from-its-5g-networks/
And I bought in after write up in SCSW, I then bought more as the SP rose @ 68p. SCSW then did a further write up last weekend and so I bought more after the results @ 90p. Now I watch closely!
I bought in after reading a promising piece in the 'i' newspaper. The price has risen from about 50p to nearly £1. Thank you to the financial part of the 'i'...
The CEO is interviewed here:
Https://www.heraldscotland.com/business_hq/18898511.calnex-surges-maiden-financial-results/
He notes that "savings in travel and events costs due to Covid-19 restrictions .....would be replicated in part in the second half of the year", despite Cenkos' new forecasts not allowing for any savings being made in H2.
TC also confirms that the pandemic had "no impact", and that there are "no worries" about Brexit.
In summary:
"The need for new test instrumentation is being driven by the transition of the telecoms industry to 5G, along with exponential growth in data creation and the migration of industries to cloud computing."
Thanks Rivaldo for the tip on this one. Sold at 91.3p for 70% profit in a month - much appreciated.
May buy back if price slips significantly - great company, just felt obliged to take the profit on the day
Rich
totally agree amazingly good results - profit and cash generation exceptional. Hopefully the shares will now re rate.
Wow! H1 results are way ahead of expectations, and H2 is expected to be similarly good.
With 3.02p EPS in H1 alone, that should mean around 6p EPS for the current year.
Plus CLX now have almost £10m net cash against the £63m m/cap, after excellent cash generation.
This really does look like it could be a big winner given the exposure to 5G and the booming telecoms sector:
Https://uk.advfn.com/stock-market/london/calnex-solutions-CLX/share-news/Calnex-Solutions-PLC-Interim-Results/83759838
Cheers, I thought limit price was a max price I'd pay and would fill at best price below that. I'll try a market order. Appreciate the help.
@PJenning88, why are you using limit orders to buy shares here? It sounds as if you've set a limit to buy if the price reaches 72p... whereas if you used a market order you'll be able to buy for 67p! Any limit order to buy should be set below the ask price, otherwise it won't get filled.
Odd - I just managed to add 2 lots of 5,000 at a tad over 64p......
My limit is still set at 72p, offer is now 65p and I still can't get hold of any! frustrating
I have held CLX for only two months, and yes they are hard to trade. I find that real patience and a short period of concentration over a few days usually gets the required deal done, though often at additional trading costs.
In early October it took me thirteen purchases to get me to my preferred investment of £20,000. The rewards have been excellent. I have taken £5000 in profits since then while maintaining my £20,000 investment within a £1000 margin. That is a remarkable return and so I wonder if my difficulty in purchasing in what is supposed to be a genuine market place has to do with wealthier bodies cornering the shares somehow. Oh dear now I sound anti the market that I really approve.
I bought in after reading about CLX in the "i" newspaper so am very grateful to their finance reporters.
Had a limit set at 72p for 5 days and no luck.
I'm new to this game is it because its just low volume?
Large CLX customer Spirent issued a Q3 trading update, with some rather encouraging commentary....
Https://www.investegate.co.uk/spirent-comm-plc--spt-/rns/third-quarter-2020-trading-update/202011120700050504F/
Extracts:
"5G-led demand for our assurance solutions continued to show strong growth"
"We have continued to secure key wins for our 5G core network lab test solutions from customers in all regions, as the market prepares for standalone 5G and the future data tsunami. We continue to secure wins from new North American customers for our live network assurance solutions."
"Although some of our customers have delayed their respective 5G device launches, we are continuing to win orders for our new 5G device test solution. The industry continues to focus on 5G network rollouts as a priority, which we expect to enable deployment of more new devices, services and applications."
New video from an investor covering CLX for a full eight minutes - no revelations, but a good fist at a summary, so useful for newbies, and he's very positive:
Https://www.youtube.com/watch?v=VNNiJ9fhbVs
Newly invested today - lets see some good results soon!
Nice start today, up 2p from the off.
Apparently the interims to 30/9 will be out around the 25th November, and given the positive outlook in the IPO document they should be good.