Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
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What is interesting is all the director sells. Going back a long way no buys. What do they know I wonder?
"Revenue and bookings for the nine months to 30 September (9M21) are ahead of our expectations and we have revised our forecasts to reflect this, with EPS upgrades of 2% in FY21 and 3% in FY22."
https://www.edisongroup.com/company/xp-power/
SP briefly hit 5600 this week, for the fourth time. It seems like pressure is building on that ceiling as results relentlessly continue to exceed expectations.
Q3 update shows no surprises, growth continuing as expected.
Quarterly dividend of 21p to be paid on 17 jan, ex div 9 Dec.
Next trading update due Monday. The last two have seen the SP spike around 5600p. The market seems to expect something different this time, maybe because of concerns over the recent COVID spike in Vietnam and the outbreaks in Chinese cities referred to by Iain Staples? Should be interesting to see how they have coped.
Yes "voluntary living on site" does have a vaugely Orwellian ring to it.
I hope they treat those workers well and reward them for their dedication. Good bonuses and support for their families through the lockdown at the minimum.
Fortunately Berenberg were right and Edison were wrong about short term prospects (see first post in this thread) - Edison have now upgraded their estimates for this year and next, happy days:
https://www.edisongroup.com/publication/h121-order-intake-drives-upgrades/29778/
https://www.sharecast.com/news/market-report-close/london-close-stocks-mixed-with-all-eyes-on-battle-for-vectura--8059537.html
State-of-play discussion with CEO Gavin Griggs and CFO Oskar Zahn :https://www.edisongroup.com/edison-tv/xp-power-h121-results-executive-interview/
While mentioning possible risks for H2 (component shortages, increased freight costs) they seem confident they are better placed to deal with these than their competitors and see full year results being slightly ahead of forecasts.
Investors should be grateful to the 700 Vietnamese employees who have been voluntarily living on-site for the last 2 weeks to keep the business running during lockdown in their country, as authorities rush to vaccinate. Hope the company finds an appropriate way to thank them.
Apologies "over £6" isn't much of a target! Both Berenberg and Liberum are now targeting over £60
https://www.sharecast.com/equity/XP_Power_Ltd_DI/broker-views
I think it was just general market sentiment, Skipsharer, coupled with XPPs high p/e ratio - nothing specific to the business, which has little newsflow outside quarterly updates. Now the reassuring update and increased dividend underpin the investment case, there is good reason to expect a positive effect on the SP. One broker now has a target of over £6.
Solid update this morning. Any idea why the sp fell out of a tree last month?
Samsung forecasting 50% quarterly profit hike based on the global chip shortage - XP probably surfing the same wave?
https://www.bbc.co.uk/news/business-57744982#:~:text=Global%20chip%20shortage%3A%20Samsung%20forecasts%2053%25%20jump%20in%20quarterly%20profit
CFO awarded shares worth about £430K - his holding is now bigger than yours
Apologies for harping on about a subject I am failing to comprehend quite spectacularly, but I've looked at the recent RNSs again and reached a different conclusion. Contrary to my previous posts, the Black Rock CFD position looks like it has not actually changed at all over the two notifications, with the overall effect being, rather, an increase in shareholdings and a small new position in securities lending (which I also don't understand - possibly hedging).
The overall position is up from 6.52 to 6.91 (in terms of percentage of total voting rights), so the simple persons takeaway is a slightly increased exposure for Black Rock.
Apparently Black Rock's Throgmorton investment trust uses CFDs: "In addition to holding long positions in securities, the Company is permitted to employ leverage up to 30% of net assets, which it does primarily through the use of contracts for difference (CFDs) and/or comparable equity derivatives, rather than borrowings".
Not sure if this is a new development, or if they use it in other investment trusts, never noticed it before. Seems more like gambling than investment, with a fancy name like "derivative instrument" masking a sharp increase in risk.
I think you are correct AAS, they seem to have swapped some equity for CFDs. This seems counterproductive in the short term, since selling effectively lowers the share price whereas CFDs are an off-market side bet which have no effect on the SP. It seems to be a pure gamble on the SP rising, which shows confidence, I guess!
Regarding this mornings blip, I haven't heard any takeover rumours. I assume it was just market makers having a temporary shortage. Seems strange if Black Rock have just released a few, presumably they got snapped up.
"Traders who expect an upward movement in price will buy the CFD, while those who see the opposite downward movement will sell an opening position."
I think the implication is that Black Rock expect the share price to rise and want to cheaply maximise their exposure, i.e. buy the gain without owning the shares. I'd imagine it's impact on the share price would be indirect. BR could have sold some stock to fund the CFD?
Apparently CFDs are not allowed on US exchanges.
https://www.investopedia.com/terms/c/contractfordifferences.asp
Why the nearly 5% rise this morning on next to no volume?
Takeover speculation?
Can anyone shed light on the last two RNSs? First one suggested a slight decrease in Black Rock's holdings, but todays looks like they have opened a CFD (Contract for difference - i.e. spread betting?). Not sure if this is an overall decrease, increase, or just a reshuffling of their position. Also, aren't instruments like CFDs unusual for institutions like Black Rock?
9.5% voted against the remuneration report at the AGM, with both the old and new heads of the committee seeing quite a lot of votes cast against them being re-elected (7.1%, 8%). The revolt on remuneration was smaller than last year (17%) but still rumbling, with individual directors getting some negative vibes, including the chair. Overwhelming votes still in favour of everything, of course, but directors clearly under critical scrutiny by some.
Richard Beddard remains happy with this share, while noting it is "pricey" he likes it's resilience and long term prospects: https://www.ii.co.uk/analysis-commentary/richard-beddard-ftse-250-stock-prospers-through-downturns-ii515784
Meanwhile a massive sale by the Chair on Friday: 1.25% of the total equity for about £12.5M. Ker-ching.
Neither Berenberg nor Edison have changed their forecasts after the trading update: https://www.edisongroup.com/company/xp-power/751
https://www.sharecast.com/news/broker-recommendations-/broker-tips-gamesys-restaurant-group-xp-power--7870171.html
Berenburg point out that the SP has lagged the sector this year so far. Eschewing comparisons with last years skewed pandemicals, the two-year progression looks powerful.
Have found Berenburg to be one of the more credible brokers. A few years back they correctly advised me to dump Aviva, other ratings were all buy. If only I had dumped Aviva when they said.
Declined from Q1 last year etet, but improved since the previous quarter (i.e. Q4). That suggests the business trajectory has continued upwards during Q1 in contrast to the SP?
Q1 last year revenue was down due to partial Chinese lockdown, yet orders were up due to healthcare. This year it is the other way around. A sustained strong performance from the other divisions could outweigh the healthcare decline over the course of the year, and the improving book to bill ratio (from last quarter to this) suggests they are on track. With the semiconductor shortages and industry gradually returning to full production it should (hopefully) be a more even year, and if full production capacity is available across China and Vietnam they can put the pedal to the floor.
Book to bill actually declined due to exceptional effect of healthcare in Q1 2020, good update regardless.
No surprises, revenue continues to climb inexorably . Healthcare down as expected, but it looks like the chips are fine, with an improving book to bill ratio "driven particularly by the demand from Semiconductor Manufacturing Equipment and Industrial Technology customers." Can see this pattern continuing all year, maybe even improving as pandemic recedes, looking good imo.