The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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The CEO said in the latest interview that they are looking at attractive acquisitions, wonder if he is really talking about Strix themselves being sold, might explain why the Director has just bought shares if that is happening in the background.
If so, what kind of price to acquire Strix, £1b?
The company is being built into a power house.
With a market dominant position, manufacturing process in place, majority of spending done, this looks ripe for an acquisition and multi bagger potential.
Get the tickets while on discount!
Back in today early at 205 having sold at 223 on the results and outlook statement being a little underwhelming. Strix has been good to me as I was a broker (now retired) when it was floated at 100p and bought in the placing. Didn't get the top by a long way but did sell some at 310 on the way down.
I did ask at the investor presentation, which I found impressive, about directors possibly buying back in given their confidence and having sold so well higher up, so as the board have gone ahead I thought the least I could do was follow them back in. I do have concerns, China covid spread, cost inflation etc but at the end of the day the share price is reflecting a lot of that and I keep coming back to the fact that this is a world class leader, with strong innovation and ESG credentials, and I will feel like a prize t**t if they get taken over and I am not holding!
By the way, comments about market makers loading up on stock ahead of the divi are tosh. All things being equal, share prices drop by the amount of the div when they go xd so it is a zero sum game. Additionally, the days of MMs running big long term 'back books' are long gone, they are typically bank owned these days, risk-averse and encouraged to keep flat books so not likely to park a few as a punt. There are some income funds who if short of income will 'dividend strip', ie buy before the xd date and sell after, again there is no free lunch and there are trading expenses/spreads involved.
Considering the market, this looks very attractive to big fund managers.
The dividend in the way, the company has already done their outlined spending getting the China factory up and running and can now benefit from production cost reductions and increased productivity volumes.
Plus their ownership of Laica is a big plus with their micro plastic filters which parents across the Western and Chinese world will be buying in massive volumes to clean drinking water to protect their families health.
Company is moving into a market dominant position and already showing massive revenue growth.
Golden tickets!!!!!!
Big Fund Managers may buy more shares. This on the back on Strix BoDs buying shares today, shares going up. That’s what’s been happening giving them a cue. On the upside they bought more shares. Hoping for more RNS news flow in the coming days.
Yes Krustysmegma, now seeing signs of bigger share buys. This on the back of Director share buys today. May be the spark for a higher share price.
The CEO knows what up with the company and that the share is undervalued at the moment, massive potential for upside and big profits!!!
Yes this is excellent news pernix, will see a significant rise today now.
Strix CEO, BoDs buy shares at 199p. So maybe these buys were late last week after closing trades. Strix shares sunk to 189p so Directors overpayed as deal post close trades. Suggest better value below these levels. Still good to see.
If a company is looking for acquisitions, while still able to offer a dividend, that's a massive flex and demonstration of how strong a company they are.
Considering their recent acquisitions have be for great businesses that they have turned around to make more revenue and profit, I'm gonna say based on the companies history this is great for the company.
Plus if they acquire some good companies then they would become even more attractive themselves to be taken over.
So Strix CEO says looking for potential buy acquisitions. I agree with Shore Capital broker this may be dilutive to profit earnings per share at least in the short term. Then Strix debt levels rising above £50 millions now & would be substantially higher if they buy another company. If Strix growth can come from internal organic growth the better. If not, maybe better to go for a merger with another company or Strix be taken over itself to bulk up operations & get resources to grow faster. Shore Capital broker says Strix needs a buy acquisition to double sales by 2025 target. Market reaction to a Strix buy of another company may be negative for this reason.
https://www. directors talk interviews.com/strix-group-establishing-a-world-leading-innovative-and-sustainable-technology-business-says-ceo-mark-bartlett-lonketl/4121059382
Link keeps getting xxxed out
https://www. *************************** /strix-group-establishing-a-world-leading-innovative-and-sustainable-technology-business-says-ceo-mark-bartlett-lonketl/4121059382
https://www.***************************/strix-group-establishing-a-world-leading-innovative-and-sustainable-technology-business-says-ceo-mark-bartlett-lonketl/4121059382
Strix CEO Mark Bartlett "In addition, we’re continuing to look for strategic acquisitions and they would be incremental to our five-year plan and certainly, we’re engaged in active discussions with a target list of opportunities.
We made a commitment back in 2020 to double the revenues in the five years, we’re just really one full year into that plan, we’re well on track and I hope you can see that we’re committed to delivering against our target."
https://www.***************************/strix-group-establishing-a-world-leading-innovative-and-sustainable-technology-business-says-ceo-mark-bartlett-lonketl/4121059382
Strix shares will take time to re-rate. Not going to happen so fast. Shares gone through a bruising fall, confidence takes a while to build up. Just can’t see big buyside volumes (& values) at moment. Last Friday post close trades saw more larger buys but below 200 pence share price. Just it could be a relief shares rally & then run out of steam.
The floor is reached, just the auto trades are playing havoc, once a big buy lands it will lift up and clean the market to form a base in the 230's
Strix Shares: I can see further new lows before rising. Test market lows likely. Selling volumes are high. Strix cannot hold onto share price gains yet. When it turns around, it will turn higher quick & fast. Just my observation.
Looks like the price has now consolidated and a good platform build ready for a rerate back north
Buying up more, getting a dividend payment on a growth company that is making all the right moves is a fantastic opportunity
Strix has solid growth prospects, profits & sales revenues. It has a knack for spotting profit earnings acquisitions like Laica doubling profits, industrial clean water farms technology in Chinese pig farms, Hospital clean water technology in China required by Chinese Legal Regulations (still coming) and now Laica Microplastic clean water filtration for human health & the environment. Also, I would think commodity prices are at peaks & next year will moderate downwards with increase in supply coming on stream. That means Strix price increases on its product ranges will contribute to higher profits & benefits of surgical cost cutting measures. Together with sales growing around 30%, Strix will be pumping on all cylinders. Then The Chinese economy will be reflated higher & with lowering of Chinese interest rates creating more demand for Strix products as the middle classes want higher quality reliable products for home use improving their lives. So Strix shares are going to be re-rated upwards & I stick to Liberum with around 370 pence price target. Also a Strix Takeover is now a real possibility as a bidder would benefit from all the hard work of developing a world leader technology company. So they look to snap it up as Strix free higher cash flow is appealing, which is stable reliable from a monopoly market leader.
Current down turn is 2 things: tree shake and long term holders taking profit.
This should rerate over the next few days.
Strix are in a market dominant position, have build the base for the company revenue and profits to increase. And they have a divident on the way, which for this current market is a miracle, but shows the strength of the company and revenue pipeline if they can spend cash in such a way.
Onwards and upwards, looking forward to 370 region
A chat board writes on another chat board:
buoycat: A lot of similar negativity around convatec a month or two ago. Fortunately I sat on my hands and the shares have risen about 30% since. Hopefully the experts will have the same impact on the Strix SP!
Strix owned company LAICA, a specialist in home filtration systems for more than thirty years, has developed MikroPLASTIK-STOP™, the filter that blocks microplastics.
Thanks to the special technology, this filter reduces particles of size =0.1µm (micrometers) such as microplastics possibly present in the mains water by 99.99%
The MikroPLASTIK-STOP™ filter has a duration of one year.
https://www.laica.com/mikroplastik-stop-filter/
Good video and clear explanation from the BoD that they need to spend money to make money.
With the opening of the new factories complete and secured materials at good rates means stable profit margins.
Also we have coffee and other new products coming online this year, combined with the growing market in China and America.
Overall very positive and looking forward to getting that dividend soon :)