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Bought back at 144p as re visiting 5/9/22 low, same number bought as sold on 24/4/20 for 174p ( approx 17% difference )
( Covid market lows in the March 2020 )
Halosource Acquisition is the reason I bought these ( a year after )
Proposed Acquisition
Thu, 7th Feb 2019
Strix Group Plc (AIM: KETL), the global leader in the design, manufacture and supply of kettle safety controls and other complementary water temperature management components, is pleased to announce it has made an offer, subject to certain conditions, to acquire specified assets from HaloSource Corporation ("Halosource") for approximately $1.3m in cash.
Halosource is a clean water technology company, admitted to trading on AIM, with operations in the US and China. Strix has offered to acquire certain US and Chinese assets which will assist in accelerating its strategy to expand and grow its water filtration division.
The acquisition is subject, amongst other things, to the negotiation of mutually acceptable legal documentation and the approval of HaloSource shareholders.
Been gradually falling from Highs of 385p 1/9/21 ,
To a low of 144p on 5/9/22 ?
22/4/2020 I sold half for 174p .. Thank God .
Paid 149p 12/3/20 a few days later a low of 125p an all time low on the chat .
Can it be considered normal that daily trading which results in the sale of 0.1% of a firms shares, can cause a drop in the share price from 160p to 150p (7%) and subsequently a fall in the firms Market Capital of £20 million. Is my arithmetic at fault or did someone misplace a decimal point?
The sp is certainly more volatile than I've seen before., and on medium volume for Strix (just over 850,000 shares traded). 148p seems to be the support level for the time being as the sp has already bounced 3 or 4 times over the past few weeks, but these bounces don't last long. I would not like to call this atm.
I agree, takes about two weeks to climb 8 percent and about twenty minutes to fall 8 percent and as you say on no news
...of this share these days is remarkable!
Back down again - a fall of 8% so far today on no news that I can find...
Strix Group plc, the global leader in the design, manufacture and supply of kettle safety controls and other complementary water temperature management components will be conducting an investor presentation covering their Interim Results for the period ended 30 June 2022. The online presentation will be hosted by Mark Bartlett, CEO, and Raudres Wong, CFO.
This event will take place at 11.30am on Wednesday 28 September.
The webinar is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.
You may register at this link:
https://www.equitydevelopment.co.uk/news-and-events/strix-fypresentation-28sept2022
It is a high probability that China will end up like Russia is today.
Strix opened a factory there to deliver higher (double) revenues.
Mark Bartlett said "This is a landmark moment in the history of Strix."
I hope the BOD are totally focused on a get out plan or the landmark moment turns out to be the beginning of the end.
In my opinion.
Nothing's changed with the company, which remains and well-run niche business with steady growth prospects. However, we can't deny the reality that the investing landscape has changed. A company manufacturing nick-nacks in China and trying to export them across the globe is highly vulnerable to prolonged inflation. We also seem to be entering into a period of deepening hostility between China and the West, with investments in this country looking increasingly risky. Personally, I can envisage a situation developing with China, similar to the current one with Russia where Western companies rush for the exit.
We are now set on a course that may one day require divestment from China.
However, Canaccord remains "unconvinced" that sufficient growth will flow in the near term from the water and appliance verticals to meet Strix's target of doubling revenues to roughly £200.0m by 2025. We going in a Global Recession now. So company targets are out of touch with reality!
Topped up also at 162p. Don't understand what's happening here, but know Strix has shown good resilience during the worst of covid. They haven't needed to cut or scrap their div, unlike many companies were forced to. Strix down nearly 11% as I post. Just weird!
Totally agree Ways - this is a solid company with a great track record and ambition for the future - I remain a happy holder and will top up when I can!
Can’t believe people listen to these fools! Canaccord Genuity down grade Strix target from 300p to 200p. They’ve done ‘‘this in my opinion because they screwed up on their price target when they stated 300p.
Just read announcement from Strix on their trading which considering what’s going on in the world I thought was ok. Just bought 2500 more at 163.45 very happy with price.
Broker views on Daily Mail today
Shore Capital has Strix as Sell
#KETL Price increases, new product launches, implementation of additional efficiency measures, and an easing of COVID-19 related restrictions all underpin our expectation of a much stronger H2 for Strix Group. As such, we are leaving adj. EPS unchanged for FY22 despite macro and Russia-related headwinds during H1. We estimate a broadly unchanged outcome with adj. PAT and EPS declining modestly by an average of 0.9% to £32.1m and 15.3p, respectively for FY22.
We continue to believe that the target of doubling revenues in the five years to FY25 remains on course. Strix also continues to seek the purchase of either complementary technologies or companies, aided by its strong balance sheet.
We expect the stronger H2 bias in trading to result in only a modest adjustment to our fair value to 275p (previously 284p) because of the measures undertaken. This is despite tweaking our estimates to reflect the larger than anticipated reduction in revenues associated with Russia and peripheral states.
Our fair value/share at 275p continues to be at a significant premium (nearly 50%) to the current price.
https://www.equitydevelopment.co.uk/research/ups-and-downs-but-h2-set-fair
They've been 'overexposed' to China for years. So what's so different now?.
I sold out a 2-3 month's ago. Solid well-run company, but the overexposure to China left me feeling uneasy. Whether we want to admit or not, global supply chains are being stretched by both economic and political events. I sleep easy at night not having any exposure to the CCP. Similarly, divested from XP Power. Reinvested proceeds in Dewhurst (DWHA) and Churchill China, both family-controlled niche companies which still manufacture in good old Blightly.
The key message emanating from Strix’s AGM trading update is that despite the wider macro challenges, Strix is once again delivering in line with guidance. A variety of management actions have proven effective in offsetting the challenging environment. Commodity price inflation and supply chain issues have been largely neutered by a combination of product price increases, forex and hedging strategies, increased automation, and other efficiency measures. New product launches, coupled with price increases should result in a continued H2 bias to trading.
The Group is also successfully managing operations in China, with any concern that the issues in Shanghai might spill over into the Group’s revenues allayed. The Group now hold finished goods across several facilities to ensure continuity of supply to customers.
Link to research report: https://www.equitydevelopment.co.uk/research/reasons-to-be-cheerful
I guess the short position has worked out well so far, perhaps they're looking to double down? In my view any short positions will begin to look exposed once the Covid situation in China improves. Significant potential for growth here & at this level also paying a decent dividend for a growth company. I'm down currently but holding for now.
I have held Strix for a long time and maintain a positive view of the business, although I have some concerns about their investments in China.
I received the notification below from Research Tree and wonder if I am missing something
It is already down 50% from the high and adding to the short at this point seems bold, unless there is an expectation of further falls to come.
The level of disclosed Short Interest in KETL has changed materially.
Short Interest has moved from 2.89% on the previous trading day to 3.43% today. That is a movement of 0.54 percentage points.
My issue with Strix shares continuous down cycle in share price. Most of us making quite hefty losses. The company is sound but no big demand for shares. I may buy back around 140 pence mark, lower maybe. The dividend for me is not a big draw with a declining share price. With a X- Divi next week, the shares will likely reduce more than the dividend payment. So another loss for shareholders I fear. Maybe the big shareholders could stick it out as it’s not their own personal funds at a loss. Best hope for Strix is to bulk up sales using other people’s resources & money.
I like Strix as a company. However the market is factoring a full blown global economic recession. It’s the shares market driving down Strix share price but company fundamentals are good for now. Therefore I think most shares going to drift lower. So I can see Strix come down to around 140p. The markets savage and later in the week American core CPi numbers likely bad reading due to higher energy prices. Markets going to turn down I think. Then today China export growth cut from 14% to 5%. So things swinging into reverse. DYOR
Strix CEO says it’s safety controls are used 1 Billion times per day by consumers, amounting to over 10% of the world’s population. So that is Strix, a Top Tier unique global innovative products company. Those products are recession proof with constant demand for newer, better, energy efficient & multi-use products. That why consumers are willing to pay high premium prices for them. Strix shares are substantially undervalued & I’ve just bought more Strix shares at a cracking price. So they are a good buy, DYOR. GLA
Shroders has been trading Strix shares again. That’s no big news. That may account for Strix price drop as they traded 1/2% holdings. Actually they have kept a stable holdings in Strix so it is great news.