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this is looking like a good opportunity.
dividend on the way, and the company in a stable position to deliver growth and profit.
compared to the majority of the market this is looking very good.
For anyone who missed it live, or simply want to watch it again, Mark Bartlett CEO and Raudres Wong CFO present in detail on their target to double revs by 2025, ESG, and new product development.
Free to view here: https://youtu.be/zLkT_Erscw0
I’ve bought more Strix shares. Average down my share buys. They are even more great value now. Crazy people selling Strix at these low prices.
Just don’t get why anyone would sell at this low price. Decent div in May.
Wayzgoose: Strix shares fall perplexing? Market makers maybe taking shares down, then larger financial companies got chance to pick up cheap shares. Stakebuilding going on here as no major seller revealed thus far. Then big financials can report profits on share transactions. Investors are fools for selling out at a ridiculous low share price. Strix has strong prospects & so that’s all it could be. I’m seeing profit warnings with companies everyday on the Stock Exchanges. So better to park money with a defensive growth company paying a decent dividend. If Liberum broker has 370 pence Strix price target, then Strix at 50% Takeover premium may command around 550 pence, If that happens.
Just hope the price is still here for Monday and pay day. Have bought a chunk already and want to load up more.
Dividend on the way which is a guaranteed pay day.
Fantastic company delivering profit to its shares holders.
Viva la Strix !!!
Bought more this morning 2257 at 1.99 and 422 at 1.97. Quality company, increasing dividend, seems to have good management, leading player in its market. Am I missing something? I don’t understand this continued price fall!
Sellers will clear out soon. That will leave buying pressure, shares going to upside then. See Strix more in the tank regards contracts, share transactions etc… China will do more pumping up their economy, more Strix sales.
To be honest it's really good to see sellers at the moment. Helps clear legacy holders, and looking at the past 3 days there has been lots of buyers cleaning up, which is a positive churn.
Joteller: I agree. Strix has been stockpiling materials last year due to price increases & doubling of the new Chinese factory output. That has shielded customers from price increases but now hurting their profits. So time for double price rises I would guess. Otherwise why would the Strix CEO be really confident of a profits increase for this year. Not just a profits increase but sustained dividend increases for investors. Strix monopoly position makes it unique & deserves a premium shares rating.
The fact that prices rises don't kick in until May tell me 2 things:
1: the company have done a great job in resource management to have enough materials to keep their pricing flat while others in the market had to increase. This shows that Strix have great management.
2: holding off price rises so their respect for the channel and customers, and that Strix are in a strong position if they can keep prices flat. This means that Strix are strong and in a powerful position. It's the weak poor companies that have to raise prices so quickly reacting to knee jerks in the market.
Krusysmegma: Strix did say at the last update that prices had risen already on legacy products. These are new prices rises pencilled for May to counteract the big leaps in commodity prices stemming from the Ukraine invasion. Also Strix will have contractual legal agreements where they have to give notice to OEM’s of price increases & this can cause price increase delays. You can see from the Strix CEO interview that Strix at every stage has responded effectively to new inflation situations quite swiftly. They are also implementing Cost cutting measures with currency hedging.
If you also take into consideration that Strix have spent the past years in spend mode building the company, this was been do they can generate more revenue and increased margins, while at the same time their costs should be decreasing.
As the BoD are looking to increase dividend due in May 2022, there is potential that they will increase again for the interim dividend also that's due after that.
As such, it's rare to get a solid growth company that is regularly providing a divident, which makes this stock a golden ticket for investors.
pernix, costs have been rising in every business for months now, as you have acknowledged. Of course, Strix is impacted by that like every other business. The fact that price rises for Strix products don't take effect until May suggests that someone has been asleep at the wheel.
Admire your optimism jo, certainly some buyers appearing when the sp dipped below 200 (as predicted). However, sellers have emerged again, so I'm not convinced 200 IS the floor. This is down 30% in 3 months, almost 50% in the calendar year. Sooner or later the sp will rise to reflect the true value here, which is significantly higher than £2 in my view, but it may have a bit further to drop yet. Let's see...
Strix price rises on its products should see profit margins rise. That’s why Strix CEO has confidence of an increase in profits this year. Then Strix saying they got enough cash liquidity to invest bolstering organic sales, profits growth more. I personally see inflation taming down once more increased global energy supplies come on stream. Biden in the US is telling energy companies to pump up supplies with land sanctions if they don’t comply. It’s a patriotic duty he says & this likely followed around the world. I can see an Iran oil deal as nobody really wants another nuclear state in the Middle East. Then release of global strategic oil reserves. This should see energy, commodity prices eventually falling. So Strix will likely have a profits upgrade as Strix prices go up, commodity prices fall.
Looks like final clearing of sellers and floor has formed.
3 day rule on drop from results done.
Dividend on its way, and looking good for a rerate back soon :)
So much potential, also for Strix themselves to be a target of a acquisition, which would be interesting.
Looks like the final round of big selling is done and clearing the decks for a new platform onwards and upwards
Strix results were good given rising inflation costs.
It maybe that organic growth may not be enough to hit 2025 sales targets. Then an option is to bulk up with another company for more financial, research & operational resources etc … That’s why a Strix Takeover or Merger with another larger company would be on the cards. That way investors can realise Strix true value especially as Strix shareholders are largely the big fund managers & institutions who likely to support this. It does make a little more sense as Company Directors are reducing their Strix stakes for personal reasons. A sell out of Strix would be attractive to most concerned with a better footing to grow more. I wonder if this will happen sooner as you can’t have a swinging downward share price for a monopoly leader & The Strix Board surely know this.
I bought some more this morning, and when I went to buy more at 201(ish), could not get a buy. Even 1 share buy would not go through.
Looks like a very big player is buying everything up. Expect this to jump to 230 again soon
Was going to buy another tranche at 200-202 this morning but ii.co.uk wouldn’t let me Log In.
Typical, anyone else unable to log in?
unhooked agreed, it would have been helpful if they'd given a price target. I'm sure it would help the sp if they turn positive on this, so worth keeping an eye on.
We all know what's happening, the mM and funds are trading the price to pick up as much as possible as a dividend is on the way and the company are showing good growth. This will bounce hard once they have filled their pockets.
It's a pity Shore Capital don't attach a target price to their sell note - they reiterated their 'sell' on 25/3/22 when the share price was 20% higher, could they be neutral now?
Anyway, they are an outlier - all other brokers are positive.
Fine, but check the broker ratings. Shore Capital, which you refer to in your quote, reiterated this as a "sell" on 25 March.