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I am a little surprised the share price is flat after the recent announcements. Was expecting a rise to 300p
Being 20th July, so look forward to 2.6p per share being paid across later albeit will just re-invest here.
Noted that Amelia Murillo ,non exec for over 2 years is now intending a maiden purchase to invest >£150k in the company. Must see value at current valuation .
Nat Rothschild sounded super-bullish, far more so than in previous webinars, which are sometimes quite flat. I noted down that he was using too many superlatives, everything seemed to be "incredibly", "exciting", etc. It was a bit too much I thought. But I'd rather have that, than them sounding cautious!
Overall though, it sounds like the business is doing great, and the acquisition looks very shrewd, and the culmination of a 3-year process to get to know the (retiring) owners. Turkey sounds a great place to be building up facilities to supply European customers who now don't want to be dependent on extended & wobbly supply chains from the Far East.
Best line was his answer to a question on whether the shares are undervalued,
"I've just invested £15m, because I think it's cheap. Enough said!"
I have been looking at investing in Volex for a couple of weeks, waiting on funds to become available, i think i may wait a few months until after the equity raise has been dealt with, concerned about share price dipping due to extra shares being issued, but having dont my DD, Volex is definitely going places, im surprised its not getting more publicity.
https://www.proactiveinvestors.co.uk/companies/news/1018631/volex-announces-acquisition-to-be-part-funded-by-equity-raise-1018631.html
I would rather it wasn't as big and in Turkey. I'll see what the market makes of it before I take up the offer. HL have already messaged me so they're on the ball.
Motoring along nicely and the new acquisition certainly holds an impressive global customer base. Will certainly take up their Offer.
Large Placing of £60m to help part fund the acquisition, sweetened by a Retail offer, both at 275p. Will be interesting to see how the market reacts.
Well, looks like VLX will announce a large takeover with Final results. Funding will require a rights issue, depends how the market takes it as to whether VLX will rise or fall on the news. We shall see.
No surprise tip. Hard to understand why the sp dipped so low, early this year. Admit i missed great buying chance there.
Https://www.telegraph.co.uk/investing/shares/volex-electric-car-stock-gains-questor/
Summary:
"While it is tempting to lock-in the stock’s large capital gain, this column believes it has further room to run. Therefore, Volex remains a worthwhile holding in our IHT portfolio."
NR appreciates the current article in the Investors Chronicle highlighting the low valuation of Vlx compared to its peers.
Yh true . There is gonna be a lot of selling at 300
The electronic sector of which volex, is part , is making new 6 month highs, which is supportive of the break upward. Bollinger bands are both separating, which indicative of a fast sp, move. If and when the lower Bollinger band starts to turn up, the sp, will probably retrace, which provides the opportunity to profit take. Since the long term down trendline is broken, expect the trend to resume after any retracement, is finished. The old highs are 300 and 325, for prospective price targets.
Personally I’ll feel happier to see a break of 300p to know those highs are back in sight.
Broker targets all increased
Now High 658p
Med 484p
Low 372p
Was High 514p
Ave 390p
Low 322p
Likely Tesla as the source of the order. I am a long term holder both in Tesla and Volex
https://twitter.com/sharetell/status/1651505520040108032
…and for an expanded range of products. :)
Great Rns. £30million Ev contract win
Great entry opportunity at support price
Analysts at Canaccord Genuity raised their target price on power products manufacturer Volex from 380.0p to 400.0p on Wednesday after the group's full-year trading update came in "strong and ahead of expectations"
Canaccord Genuity said Volex had seen "good demand" across structural growth markets including electric vehicle, complex industrial, and medical, which has driven share gains as supply chains improved through the year and boosted manufacturing output.
The Canadian bank stated reassuringly, new client wins and increased volume allocations had also allowed the group to "largely mitigate against a well-flagged normalisation of demand in consumer electronics" following the Covid-19 pandemic.
However, Canaccord thinks the most important piece of new information was that strong cash generation, in part due to some unwinding of strategic inventory, had driven "a significant deleveraging" of the group's balance sheet in H2.
"As a result, we think M&A may feature sooner rather than later once again to support the group's strategic growth ambitions. We have raised our forecasts to reflect the upgraded guidance for FY23E which subsequently lifts our outer year expectations. Adjusted EPS rises by 5%/3%/1% for FY23E/24E/25E, respectively," said Canaccord, which reiterated its 'buy' rating on the stock.
Sounds very encouraging.
Fonzey.
I'm impressed with FY 3/2023 TU from £vlx
H2 revenue actually dropped slightly from H1 (H1: $357.5m, H2 $352.5m) = $710m+ FY
However, margins rose (H1: 9.0%, H2: 9.6%) underlying operating profit margins.
Annoyingly, the update quotes a profit measure that is *not* quoted in the last Singers note (from Nov 2022). So we have to manually work it out, which I've done, as follows:
Underlying operating profit of $66m turns into u/l profit before tax of $60m (assuming the differences in H1 are unchanged in H2)
Assuming same tax charge %, then I estimate EPS as H1 actual: 14.4c, H2 est: 15.3c, FY 3/2023: 29.7c
Translate into sterling, gives 24.0p EPS (my estimate, based on today's TU)
With net debt strikingly lower than forecast at $76m (Singers last forecast was $102m) and only 1.0x EBITDA, nobody needs to worry about debt, and not much of an adjustment is needed for valuation purposes.
Outlook sounds perky.
How to value it? I can't see why we wouldn't apply a PER of say 12-14. That would give a valuation of 288p to 336p. So at just over 200p last night, this share looks significantly under-priced, and should logically be a 20-30% riser today, I reckon.
Complaints - why has Volex left it over 5 months from the last trading update? That's a yawning gap, and causes shareholders to worry. So it needs to introduce another trading update in between this too-long gap in future.
Why does the trading update quote underlying operating profit, which is a measure that Singers does not include in its forecasts? It needs to quote u/l PBT, and EPS in trading updates too.
Overall, this looks terrific, and VLX shareholders are going to be rewarded nicely for their loyalty, I reckon. Well done to holders!
Regards, Paul.
P.S. Singers note has just come through. They've estimated 27.4c for FY 3/2023, so a little lower than my guesswork above. Not sure what the reconciling items are - they're probably building in a little caution, so actuals beat slightly?
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I'm pretty sure everyone can see that, Mick.