We would love to hear your thoughts about our site and services, please take our survey 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.
With the mood music from the yanks and China’s softening stance on Covid, this is setting up beautifully.
Yes, and during Covid people made a lot of money buying dip created. I remember it too well - specially strong companies like KETL
The ps is below 2020/21 Covid levels, that's the issue here. In fact by 50% or there about.
The china element is on the rader for weeks now, and that was already priced in. It is not more significant now. They already have back up plan as syou can see from RNS
And Billi the recent takeover is not impacted by China. That's new revenue stream ASAP.
Let's see, this could easily steady up over 100p, and be 200p be mid next year. China will certainly be over by then, so short term dip - does not matter how you cut it. IMHO
Let' see.
Magnus. I enjoy reading your posts however the China thing as you put it, is very significant.
I am inclined to agree with Shearclass, the current value is stable considering the World economic theatre.
The decline of this company is evident in the fact that a boring old Strix board has attracted hoards of rampers and day traders. Very glad that I divested a few month's ago. This company has destroyed shareholder value, placed its fate entirely in the hands of the Chinese CCP (who now prioritise national security and control over economic growth) and are now embarking on acquisitions at the same time as issuing profit warnings. In order to meets its five-year growth target, the company is desperately expanding into the generic water purification/filtration sector (products that don't have the same level of protection or margins of the kettle control division). Management's credibility has been seriously damaged. Enjoy being diluted bag holders!
The company is in profit and growing, and taking the current world into account this is amazing!
They are consolidating the market with some great acquisitions of Billi and LAICA that will further increase their profit.
They have just done a placing at 110, so to buy this share under 100 is insane!
well the Dow jumped 2% after our close today so thats a good thing. should help tomorrow’s bounce
Good news was Billi takeover completed - Billi is big consistent/ profitable earner.
Billi is a leading brand supplying premium filtered and non-filtered instant boiling, chilled and sparkling water systems with manufacturing based in Australia. Billi has a successful history of growth with a double-digit revenue CAGR over the past five years and strong cash conversion. The acquisition materially accelerates Strix's growth plans for its Water & Appliance categories and provides an entry into the high growth and strategically important hot tap market.
Trading update
In recent weeks it has become increasingly evident that the disruptive effect of ongoing lockdowns being enforced in China, whilst relatively short in length - and Strix has reinstated its secondary warehouse to minimise any disruption with its own shipments.
They even have A back up plan for China short lock downs. Sell is over done here by long margin, opened at 101p by MMs rest was just collection. Many may be licking their lips here.
IMHO
I bought at 4:28 20,000 @ 75.51p doesn't even show up
seems an overdone drop as usual
30-Nov-22 16:59:27 81.803 399,689 326.96k O
30-Nov-22 16:44:21 82.328 10,000 Buy* 8,233 O
Seller sold in Auction, by the looks of it. Same buyer probs buying more at .80+ also
Can not see this remaining under 100p after this volume
lets see.
If you sold then do be prepared to buy higher, as buyers of shares will not be selling back down here.
Just my 2 cents
Massive volume, after hours! MASSIVE
81+ paid, With this catch of volume it will not be under 100p for long.
still doing dd, let see.
(could be in for big one)
The large UT is probably due to the rebalancing of the MSCI UK index, combined with the poorly received RNS. Trackers have to sell. Two more of my portfolio also drop out of the index. Same thing happened to WJG and to AVCT. My portfolio has taken a hammering today! Now the forced sellers are gone, I hope for better tomorrow!
looks like a bigger seller out, with UT
interesting one for tomorrow
This is hugely (nicely) overdone.
Thanks to gap down sellers, I am sure many stops take too.
yes, what about new takeover reported today? how mush does that to the bottom line.
looks interesting here, doing dd
could move up swiftly now we all day selling to buyers/ mms
In 2018 Strix reported PAT of £23.2m, they had a market cap of £267m and debt of £28m, so enterprise value of £295m. I.e. they were trading on around 13x EV - PAT
Today they said they are guiding to £23m PAT, they have a market cap of £170m at 77.5p and have debt of ~£100mm so enterprise value is around £270m. So today they are trading on an EV - PAT of just less than 12
The business environment today is far worse than 2018 and KETL have a bucket load more debt which is exposed to higher interest rates.
You can make a very good argument that the current valuation is fair vs where it traded pre covid, in fact you could easily say it should be valued lower due to the increased internal and external risks it is facing.
could go lower, and that's good, hold well if have any here
it was overall good news, and china thing is nor here there, just noise.
Not in yet, doing dd.
maybe tomorrow
looks good though
I took a look at Strix at IPO as Simon Thompson wrote about them. Looking back from 2014 to now, the business seems to be able to generate £20m per annum excluding the Billi acquisition which probably adds another £5m. That means £25m net income or ~7x net income. I would expect Strix to reduce the dividend, ideally cut it and repay debt. I guess the key risk in my mind is the two largest customers account for about 30% of sales and I am guessing they have been impacted by these Covid lockdowns in China. I have taken a small position at 78p and would look to add if they issue a third profit warning along with a dividend cut.
all the sells are being hovered up.
look at the trading patterns, drops 30% on open and has stay very stable all day and then massive buys.
any buy under the placing of 110 is a massive discount.
Strix now owns Billi and that other Italian Bottle company are a very very big market operator and opportunities.
4x 215,000 buys have just gone through at 81p. That's £700,000. Eyes on.
twib, this is good board. Do not mess with good people here. You are insulting them here.
You are child, and need to learn. :), and you will.
I have never heard someone who has managed to buy every dip and sell every high. Remarkable.
Mag you sold parsley box yesterday and told Everyone that it was going to go to 2p. So I assume you had a spread bet on. So how did you bank all that money. Oh yes we have talked about your dodgy mathematics haven’t we. Shorting this and clogging the board up again.x
Do not trust Mag Anus
massive opportunity with Billi now onboard.
as Peter Lynch says, always get feet on the ground to see where the market is going, and speaking to a lot of electricians and plumbers, the big growth market is the Billi product ranges (water heaters and electric pumps).
and they have the whole US market to open now with the extra power of Strix to support them.
cant believe how lucky we are to get a buying opportunity with 30% discount after Strix had completed a placing for 110! insane
I see a blue - i bet that is my stalker. Apologies it its folks. LSE did say but him on filter
I just bagged MEAL again - this time for 25k profits, so may push some in here, and about 10 other opps I am doing dd on