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Ha, ha, as I’ve said I change my mind very often especially if the sp moves. Wasn’t expecting the sp to hold which is good so will probably have to wait for a market correction now. My next profit will be S4 capital after the 13th. Unless of course one of my other shares zooms up ,then I might change my mind. Got to be on the ball . :-).
Quickest pump and dump I have seen in a long while.! ?
Ah sorry
I’m referring to Seaking not you ;)
Most probably I do! Though can’t see what you mean specifically here. My last 3 posts are not all about VLX
You must have a split personality I’ve just read your last 3 posts.
Sold out at 488 this a.m. sp is holding up very well. Hopefully I will buy back in on a decent drop.
482p
topped out @ 489p
But for how long.......
Depends on the day with me I’ve just sold 1679. still holding 1000 change my mind by the minute sometimes . Got a good sp a bird in the hand and all that . I will buy back if there is a nice drop great company.
488/489p
I am a bit nosy!
Are people holding loads of shares in VLX?
I am holding only 1000 shares.
I would request you not to post any rude comments to my question!
Many thanks.
The great thing with volex is it’s not a one legged donkey. All the divisions are doing very well. Concerning the ev cables they will get competition but the ev world will be a big place. also I personally expect 2025 to be way off more like 2023 . I’ve decided to keep hold of my shares and add on any 7% or so dips . :-).
Long post warning!
Global EV sales look set to rise 98% this year from 2020. Tesla, reportedly a Volex client, remains the largest manufacturer with almost 15% market share in H1 ‘21. About 60% of 2021’s EV are set to take place in H2. It will take total ‘21 EV sales to 6.4 million vehicles including hybrids and commercial. I would imagine that the vast majority of EV purchases either include or trigger the buyer to purchase a mains charging cord, for which Volex claims to be the market leading producer. I don’t know what they wholesale the mains power leads for. You can buy them online for about £100. I’m guessing it’s $50-$100 wholesale revenue per item but I could be way off. That would imply the sale of between 500,000 and 1 million units last year, which is around the same as the number of Tesla sales, or could mean they have contracts with other major EV makers (VW, GM, Renault etc). All of this looks pretty positive for near-term earnings surprises and reinforcing the recent share price gains.
The really explosive growth in EV adoption looks set to come in around 2025 onwards as the law changes loom. At that time Tesla alone is forecast to be selling 5 million cars a year. By holding their market position Volex could be looking at ten or twenty fold increases in EV power revenues. Some people have not yet got their head around the fact that almost all cars will be electric within 10-20 years. It’s a very exciting landscape for Volex and I have no doubt serious profit growth is coming.
Nevertheless they are rightly quite cautious on this part of the business. The question is to what extent they can defend market share and margins in the long-term in a cut-throat commoditised manufacturing business with not many barriers to entry except scale and a head-start. Remember, Volex have been here before when they were a big player in iPhone charging leads, an absolutely huge growth market. But the competition is fierce and crowded, there are few patents - in the end it’s a fancy wire. But if they can build an unassailable position in EV the upside will be absolutely mind-blowing and we’ll be looking at a multi-billion business eventually.
Thank you for posting lamsailing.
Whilst it's good to read the telegraph report I wonder if Nick Hawthorn could post the contact number and time so we could have a good old conference call or maybe Zoom it;-)
Great post by Rainmaker (posted just after midnight) on ADVFN this morning he goes a bit further in the research.
I was going to post the gist of that article, but you beat me to it. However it only rates Volex as a hold, not as a buy. The same article mentions DSCV which I also hold. Their shares are more expensive but I am expecting a good day there today and over the next few weeks.
Conviction increasing according to today’s Telegraph’s Questor Column…
By Richard Evans
(Telegraph) -- No Questor Aim tip has performed anything like as well as Volex. Shares in the cable maker have more than quintupled in the three years since we added them to our Inheritance Tax Portfolio. As ever in these circumstances we find ourselves wondering if the share price has got ahead of itself and we need to sell before bust follows boom.
Nick Hawthorn is in a good position to help us decide. His employer, Downing, is one of the largest shareholders in Volex and has excellent access to the company’s management team – “we speak to them at least once a fortnight”, he says.
This column is a strong believer that actions speak louder than words and Hawthorn’s are unambiguous: Volex is the largest holding in both the Downing Strategic Micro-Cap investment trust – at a highly unusual 17pc – and the Aim portfolios the firm runs on behalf of clients who, like readers of this column, want to minimise their inheritance tax bills.
“It was a high-conviction holding three years ago but we have even more conviction in it now,” he says. The company has performed “exceptionally well” during the pandemic, according to Hawthorn, but he says there are many reasons to expect more.
“I think it can continue to benefit from its ‘buy and build’ acquisition strategy,” he says. “There’s a huge number of ‘mom-and-pop’ outfits that Volex can consolidate. It tends to buy them on cheap multiples such as six to eight times Ebitda [earnings before interest, tax, depreciation and amortisation] whereas Volex itself is valued at 12-15 times Ebitda.” Those businesses therefore become immediately more valuable once they are part of Volex.
“We expect the company to produce at least $30m (£22m) of free cash flow a year and it also has bank loan facilities, so even after it has paid its dividend it should be able to fund one or two new acquisitions a year,” Hawthorn adds.
Volex is also one of the biggest suppliers of cables to the electric vehicle market. “The electric vehicle arm made $50m of sales last year at a margin of about 10pc, the group target, and management has said it expects $70m this year,” he says. “We think this is too low because it ended its 2020-21 financial year at a rate of $8m a month.”
Prospects also look bright for the company’s healthcare division, which supplies cables for scanners. Hospitals need more scanning capacity to help clear their backlogs but installation programmes have been disrupted by the pandemic, Hawthorn says, leading to an even bigger need to invest now. “Philips Healthcare, which Volex supplies, has experienced a 30pc increase in order intake coming out of Covid and lockdowns,” he adds.
Finally, the firm has a strong position in high-speed “active” cables for use in data centres, where the need for ever greater speeds has shortened product lifespans from about six years to two. “Volex has an installed base to upgrade
Bought in here about a month ago. Looking very interesting. Like the recent purchase, earnings enhancing yr1. Keep that up Nat. Market certainly likes it.
Shell plans 50,000 car charging points in the uk. Now I wonder where the cable chargers are made?
One guess.
Taking into account the very low number of shares in issue and being a growing company with great potential in its field of business I personally think the sp is a very good buy for investors .
Also can see the share price at 700 within 18 months easily based on the current numbers of shares on the market. :-) any 5% drops add.
strong breakout technically, director buying and operating in some v strong sectors where secular growth expected, namely data centre and ev. one of those you hope pulls back significantly in the hope you can buy more.
FLYING now that it's broken out into new territory
Far more to come
Yea, great vote of confidence, especially as the pair of them already have a shedload of shares, and have made several million quid on their holding in recent years. That’s what I call alignment of interests.
Clearly the Molloy’s believe the SP remains attractive at 390p and has plenty of steam left in it ! . Quite agree this should do well very over the next few years & certainly won’t be selling any time soon !
NOT FOR SALE. This is going to be big.