Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
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Trading update due on Tuesday. Edison have forecast an EPS decline this year, offset by lower taxes. They see last years exceptional performance as difficult to match, but do see underlying growth continuing, with elevating EPS returning next year. Berenberg envisage further progress right away, driven by the upswinging semiconductor cycle and industrial recovery.
After a few weeks of decline from a mountainous peak, I'm hoping the Q1 update backs Berenburg's bullish bravado begetting bags of buoyancy and branding Edison as bearish bumba claats.
Lombard Odier should have shorted at 5600, not 2200 ( :
If you see them shorting again, that's probably the time to pile in!
Clinging on for the next update, think it should be another good one, almost sure, definitely maybe
Either way this is not the time to sell. In fact I was hoping for a further drop when I would buy more.
I would have thought the shortage of semiconductors means the semiconductor equipment makers will be trying to ramp up production, and therefore likely to be buying more from XPP not less? For example "Taiwan Semiconductor Manufacturing (TSMC) has more than doubled its capital expenditure budget for 2021 compared with 2016-19 as it strives to meet soaring demand." https://www.argusmedia.com/en/news/2184341-viewpoint-no-quick-fix-for-semiconductor-shortage?backToResults=true
Have to see what the company says at next trading update, but they seemed bullish on semiconductor market last time.
Deeply dippy though - a rough ride since results!
A simple explanation for the downturn in the sp is probably the global shortage of components, i.e. semi-conductor chips. It's become a big headache for manufacturing generally and there's no no doubt XPP's sales are going to suffer despite the demand for its products remaining high. Until the production of chips recovers, reportedly next year, XPP is going to suffer along with the rest.
Sell off indicates many investors see the SP as toppy. Perhaps naively, I still think it has legs and maybe only half way through a marathon.
Berenberg raised their target to £59.45 today based on prospects, and I'm hoping to see that surpassed by year end. They see the drop off in COVID-related sales next year being more than offset by a rebound in demand from industrial clients and continued momentum in semiconductors. Long term, they believe earnings can double in five years through a combination of overall market growth and gains in market share. That's a big ask, but it's a logical extrapolation from recent results.
High BBD - Results look pretty good to me. However a muted reaction from the market so far. Perhaps they were only in line with forecast expectations.
I used to be able to access that information via digittalook/sharecast.com but they stopped that a few weeks ago. Bit miffed at that. Anyone else know where you can get it from?
Hi Jab1tt, lovely to hear from you. Although there is no obvious relationship between the companies, AllAtSea opined that they have "quite similar prospects", hence the discussion. The conclusion drawn was that, although XPP has passed the significant £1Bn market cap size, it is still relatively small. Strange to bring this up on results day. What did you think of the results?
What on earth is the point in comparing these two companies, which are completely unrelated to XPP?
How do you expect to draw any conclusions from it?
Stunning set of results. Debt down, margins up, Q4 dividend slightly higher than expected at 36p, prospects looking outstanding with disciplined R&D spending focusing on expanding the addressable market, RF power, and green products, and cash available for growth through acquisitions.
One big difference between XPP and AHT/OCDO, apart from their markets, is the MCAP - they are both about sixteen times bigger. I've been speculating about how XPPs growth prospects are naturally less compelling than when they were tiny, but I suppose there is no logical reason why they cannot eventually become as big as those two. OCDOs performance has been a bit sluggish since you posted AAS, but AHT seem to be keeping up.
Final results are due on Tuesday (2 March), good luck all!
JPM's Brittain: Uncovering hidden digital transformation stocks.
JPMorgan’s Georgina Brittain says there is a quiet digital transformation taking place at several more-traditional businesses.
Interesting stuff about retail but XPP also gets a mention.
We take a look at the fundamentals of the company to determine if we should include within our share portfolio.
https://youtu.be/irE6aAx1_L0 Let us know if we have missed anything important??
Now balanced my XPP investment with AHT and OCDO. Quite similar prospects IMO.
Good to hear the HSBC assessment below.
"HSBC INITIATES XP POWER WITH 'BUY' - TARGET 6,100 PENCE"
When a company's SP has risen as far and as rapidly as XPPs it's natural to think about the exit point. Whatever XPPs future prospects, they are not as underrated as they used to be. However, when the likes of HSBC have just noticed them, and their initial evaluation is a target so high, it makes you think that there is maybe quite a bit more to come here, and maybe the sharp management are even capable of stepping up to another level altogether on the back of massive stimulus in the US and simultaneous world recovery via vaccines. XPP certainly seem ready for it.
Market cap is now £1 billion
On the basis of BBD's assessment I have taken some XPP profits and shifted the cash to a growth stock beginning much earlier in the alphabet.. Its exposure to a change of US leadership is purely alphabetical too.
I can understand alphabetical order, I just choose not to. If you prefer reason, other posters are available. That BlahBlahDoh has let himself go.
Trading statement is great, with a useful hard-nosed stripping out of profits purely attributable to COVID-19 still leaving a great leap forward in underlying growth, and it sounds like more to come. Dividend has obviously been permanently scaled back from previous levels, not necessarily a bad thing as it has allowed debt to plummet and should help R&D spending which is vital for the companies continued progress, but seemingly at odds with the very different attitude towards executive pay and bonuses. Investors can hardly complain about overall returns in a plague year though. Good luck all!
There is a good reason why they are last in the list.
It's in alphabetical order!
XP power appear on this list of 41 growth stocks for 2021 identified by Peel Hunt, but they are the very last one mentioned:
https://www.ii.co.uk/analysis-commentary/41-growth-stocks-2021-ii514651?utm_source=newsletter&utm_medium=email&utm_campaign=NEW-DLY-ENGAGE-ii_afternoon_round_up_060121%20(1)&utm_content=newsletter&spMailingID=11746377&spUserID=MTIxNjc2Mzg5MzQ0S0&spJobID=1671380225&spReportId=MTY3MTM4MDIyNQS2
Some might say selecting 41 stocks is cheating, and Peel Hunt should be disqualified from opinionating, but I applaud their bonkers numerical eccentricity and find their eclectic free-range assortment rather amusing.
XPP trading statement due on Tuesday - hoping for another power surge as the dark poison of US protectionism and trade wars start to be purged, vaccination gets turbocharged, and healthy trading returns.
Last year XPP cancelled the Q4 dividend (36p) and the Q1 dividend for the current year (est 18-20p). It seemed overcautious at the time, and proved to be so, with XPP actually benefiting from COVID-19 in the form of extra healthcare and other sales. Management were well compensated for this good performance, but shareholders missed dividends unnecessarily, and when they resumed in Q2 they were at the same level as the year before, i.e. a reduction in real terms. It will be interesting to see what the Q4 dividend will be in January, and whether any "special" dividend will be forthcoming to correct the iniquity. If not, even more shareholders might rebuke the remuneration committee at the next vote.
Fools step in..
Unclear why the SP has been falling, possibly some big shareholders unhappy with what they perceive as poor corporate governance, i.e. management greed? Could just be profit taking though, as it doubled over the last year, or uncertainty over the effect the US election might have on trading.
..was ramping these on my newsfeed. A bit worrying when they do that but the stock was already on my wish-list so I topped up today anyhow.
XPP decided to bite the bullet and respond to a shareholder "revolt" (over 20% voted against remuneration levels for senior staff). With ruthless determination they made two people on the remuneration committee change hats.
The market seemed to love it.
SP has been hovering around 4500 after a major advance following the interims. The company has slipped down Richard Beddard's list because he no longer thinks it is (relatively) cheap, although it holds up well on other critical factors.
Eery cease fire in the trade wars this quarter, with the Chinese presumably waiting for Trump to just "disappear" with the cold weather? Looking for a further increase in revenues from semiconductor equipment and (possibly) healthcare to maintain the momentum.