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the share price is held down and dragging along the floor, looks like all the sells are being gathered for a massive buy to be fulfilled
Been watching Strix for some time. It seems unjustifiably bashed about in terms of SP and today's drop really looks overdone. Have made a small investment at just under 84p as the business looks good overall. I agree with unhooked that I will probably be looking post-recession for this to recover well but I'm happy with that.
GLA.
Oh dear. I've always had a nagging worry about Strix's Chinese operations, but ignored my own concerns. They probably overpaid for Billi in this market too. Management got complacent? Subscribers to the recent placing just a month ago can't be feeling too clever...
I've risked at top-up at 81.7p because I have a 3-5 year outlook and don't want to accept I've got this one completely wrong. Nonetheless, time to batten down the hatches, it's going to be a long old haul from here.
This is the kind of buying opportunity I love (Just like APH last week). I'm in :)
I like the 9.30am rule - thought I did well at 82p but couldn't buy more when it dropped!!
Hopefully picked up the falling knife when it was at the bottom
I never to buy before 9:30 ish. Sometimes tempted but my 1st rule!
Me too, in profit, but will add in Jan on any drops, not trading this.
Div will probably go on hold, but imo buying now at these prices the div yield will be great. Bloomberg tv reporting “softer China stance on Covid emerges in media, official rhetoric”
In at 79p & in profit already
Me too! 81p. Hope that is the bottom today.
Christmas has come early, it has taken me 5 minutes to get a trade. Unbelievable, don’t you love this corrupt system? It creates so many opportunities.
Around 10%? Or more?
Just had a great top up which I didn't think possible - happy days!
I’ll be back in at around 9:30. Crazy over reaction. Broker coming straight out of the blocks with a SELL so they can pick some up cheap. Don’t think I’ve ever seen a such quick response.
Agreed. Typical AIM over reaction. Buying opportunity.
Realistic update but markets not happy - company basics and potential email strong imo but out of favour
Placing killed it a bit seems be recovering.
Link to video: https://www.equitydevelopment.co.uk/research/investor-presentation-opportunities-for-growth-october-2022
We hosted an investor presentation with Mark Bartlett (Chief Executive Officer) and Harry Kyriacou (Chief Commercial Officer) of Strix Group plc, the global leader in the design, manufacture and supply of kettle safety controls and other complementary water temperature management components.
The Strix team discussed the opportunities for growth across their three key categories, and provided considerable detail about the recently announced conditional acquisition of Billi. They discussed the strategic rationale for the deal and capital allocation priorities, and answered a wide-ranging Q&A session which has been divided below into two parts - the first focusing on Billi, and the second with broader questions including capex, dividends, own brands, margins and China.
The full video has been divided into chapters for ease of viewing:
0:00:20 - Highlights from H1 2022 & margin analysis (Mark Bartlett, CEO)
0:05:42 - Kettle Control category (Harry Kyriacou, CCO)
0:09:36 - Water category
0:13:25 - Appliances category
0:16:02 - Aurora product video
0:17:44 - Billi acquisition (overview, strategic rationale, medium term targets, capital allocation)
0:31:44 - Outlook statement
0:34:21 - Q & A part 1: focus on Billi (cross-sell opportunity, gross margins, leverage, distribution channels, customer feedback)
0:43:18 - Q & A part 2: capex, debt, dividends, China, margins, own brands
Hard to believe the valuation compression we're witnessing in this former 'quality growth' darling.
2017 IPO price = 100p.
September 2021 peak = 385p.
October 2022 placing of shares = 115p.
Today = 97.6p (to sell).
I'm disturbed by what's happened here. To restore some sanity to the share price, they need to quit the growth plans, at least temporarily, and focus on margins, profitability and cash generation - that's my view.
Yes bendi, it's making me worried. What were they doing raising money for acquisitions in these conditions anyway?
Management getting complacent and starting to indulge in risky behaviour...
Looks like that 115p open offer will be a total flop. I can't remember the last time something like that would have occurred so vividly, certainly not in the last decade or so.
The BoD is starting to make some serious misjudgements. I just hope this isn't a precursor to them screwing up everything completely, after what has been a long period of a well-run company, because I've seen that kind of scenario occur as well; RTN - a classic example, SAGA another one.
Invitation to 'Opportunities for Growth' webinar with Strix on 26th October - sign up here: https://www.equitydevelopment.co.uk/news-and-events/strix-growthwebinar-26oct2022
******************
Equity Development invites you to hear from Strix Group plc, the global leader in the design, manufacture and supply of kettle safety controls and other complementary water temperature management components, for a webinar on Wednesday 26th October at 11.00am.
Mark Bartlett (CEO) and Harry Kyriacou (Chief Commercial Officer) will discuss the opportunities for growth. They will examine the levers behind maintaining kettle global market share and their margin, as well as discussing the opportunities for growth in the Water and Appliance categories more broadly, including the recent conditional acquisition of Billi.
Since Strix came to market in 2017, management have focused on broadening the business beyond its original profitable core kettle controls. The recent conditional acquisition of Billi is another step on this journey, following the successful integration of the Italian business Laica (bought September 2020), and the integration of the assets from HaloSource (acquired March 2019). Their Water and Appliance categories are growing into meaningful contributors, helping Strix accelerate their target of doubling revenues by 2025.
This session is designed to give participants greater insight into the specific products and opportunities that Strix are pursuing in all three categories, and the way in which these products are playing into consumers desire to be both cost conscious and environmentally sound. The webinar is open to all existing and potential shareholders.
No, because they are paid by the company that they are producing the report on. ;-). Strix’s does seem to be buy at this price. Only concern in China, covid, policies etc…
Meanwhile, back on planet earth, Strix's share price is at 108p to sell - an all-time low.
I have to ask, does Equity Development ever write a bearish note?