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Started: hellyeah, 21 May 2024 08:08
Last post: BeardedDragon, Today 08:24
Back down to 1150p which surely provides a good buying opportunity .
Yup, party's over.
Looks like the market is unconvinced that Advanced will make a firm bid by the deadline of next Tuesday.
Hopefully the SP will remain supported at the current level until we get news of better trading in H2.
Tbh, I dont blame the Board. They can't entertain every willy nilly piddly highly conditional offers.
Advanced Energy needs to come up with a serious binding offer. There are other suitors out there to take out this market leading business. End of.
So I reckon there will be another bid, now it’s out in the open we have a bit more visibility. Question is at what price we get taken out. Yes, we want fair value but personally I’m a bit miffed by the Board nonchalance.
Started: TheSoundMan., 22 May 2024 10:34
Last post: TheSoundMan., 22 May 2024 10:34
Whilst I won't cut and paste directly from their opinion (and get this post deleted) Berenberg see significant grounds for optimism and a longer range forecast of 3500 per share for XPP.
They are also 'minded to agree' that the Advanced Energy bid is opportunistic.
Started: unhooked, 21 May 2024 11:10
Last post: bestintown, 21 May 2024 17:28
Unhooked
I think the gap reflects the fact that it's not a 'firm' offer and Advanced will undertake due diligence which may throw up an issue that makes them walk away.
I'd love a competing offer that better reflects the historic highs of this share.
Trying to understand why there's such a gap between today's market price and the indicative offer price. Management have rejected the £19.50 offer as being too low and yet the market doesn't believe even £19.50..! It's like the market reckons management have some sort of veto over any offer... but they don't.... they would have to put such things to a shareholders' vote and they don't have a controlling holding.
Started: scoredagainsteps, 21 May 2024 08:54
Last post: scoredagainsteps, 21 May 2024 08:54
SLICE i know a few on here will say dont be silly etc
Last post: Alessandro, 7 May 2024 11:40
What the heck is going on with XPP?!
Noferkinamesleft thanks. Do we know why customers called off orders?
I appreciate all being said about the slowing down of the chip industry and all the rest, however I lack visibility on the scale of the industry related headwinds and the impact on XPP. I have the impression (and that's gut feeling only) that the severity of the hit on revenue is of a magnitude that can't be justified by the slowing industry alone.
Alessandro, they did say a couple of RNS' ago that customers were being slow to call off orders.
The drop in revenue is huge with not much in sight for a recovery. Did XPP lose contracts, are customers turning to different suppliers? Is XPP technology becoming obsolete? Not much clarity here.. for me.
Full year trading results out to tomorrow ( Tues, 5th )
Started: ripley94, 16 Feb 2024 23:38
Last post: Batterseafish, 20 Feb 2024 15:58
Bottom in? Seems to be bouncing on reasonable volume.
The 2nd of October update the share dropped for a good 4 days
3 negative trading updates in 4 months is absolutely horrendous and red flags all over this now
I hope so karlo90 but when you read that RNS again from yesterday they only are positive at 1 point and that is for possible customer orders in 2025.. lots can happen in between
50% may have been an over drop but I would expect it to drop another 8% Monday
Bestintown refered to last November fund raise , 3 months ago.
Tue, 07th Nov 2023
XP Power raises £43.9m in placing, rejects bid approaches
XP Power surged on Tuesday after it raised £43.9m in a placing and said it had received "a small number" of unsolicited expressions of interest which it has rejected.
The company raised the money through a placing of just over 3.8m shares at 1,150p each, which is a premium of around 11% to the closing share price on Monday. It raised an additional £1.5m in a retail offer at the same price.
Proceeds will be used to reduce net debt, improve the group's liquidity position, refinance capital investments and continue to invest in key areas including R&D, the company said.
It also said that since its trading update on 2 October, a small number of parties have expressed indicative, non-binding interest in buying the company "at prices which the board considers fundamentally undervalue the company and its long-term prospects".
Having considered each of the expressions of interest with its advisers, XP Power said it "does not believe that any of them are at a value which merits further engagement with any of those parties and has had no hesitation in unequivocally rejecting them".
At 1158 GMT, the shares were up 23% at 1,275.30p.
×
Too cheap. I bought some, my trade at 4:23pm. Bounce up Monday.
Started: fundamentalanalysis, 16 Feb 2024 13:41
Last post: bestintown, 16 Feb 2024 14:02
I find in hard to believe that "the professionals" that paid 11.50 in the fund raise of November misjudged the value of the company to such a degree. I've bought more today at 9.52 so hope it works out....
Judging by the last drop it keeps dropping for a about a week then bounces well, so on my watchlist for now.
Started: BlahBlahDoh, 11 Jan 2024 11:03
Last post: ROCKETVI, 16 Feb 2024 11:41
2nd plunge in 5 Months so bought back in again. Sold too early on 1st plunge around £12, but what a great opportunity again. RNS confirms difficulty in the semi-conductor sector but will recover as it always does. Vulnerable for takeover at these prices.
This will soon bounce back up to around 1250p for certain. Typical market over-reaction this morning.
This is the second big drop if past experience teaches me anything there may well be a third , it hasn't dropped so far yet but I think it's avoid for now . I bailed at £11.50 just before the fund raise at £12.50 so was thinking I had made a big mistake having bought more at £7.50 , I still took an overall loss . You just can't win them all!
Who is MF?
Sometimes best to cut a loss early if story changes - but surely not at these levels.
Sometimes pays to average down if bounce expected and then if story still negative bail.
Sorry to hear. They are in growth markets so if they are to be believed the problems should be temporary. You could average down on a sign of bounce. The drop today looks overdone.
Started: Blowntobits, 16 Feb 2024 09:09
Last post: Blowntobits, 16 Feb 2024 09:09
A 37.5% fall in SP denotes to me that there are some who feel there are serious issues lurking behind the trading statement, despite the board reassurances for the medium term.
What do subscribers read into "Our year-end financial close processes have identified some capitalised product development costs that needed to be amortised or impaired, adding £4 million to costs. This is a non-cash item. Approximately half of this is one-off in nature. Underlying operating profit for full year 2023 absent these costs was in line with our expectations"
How bad is the situation really. I do hold, am well under water, some time ago MF did say bail, since I was already in a loss situation I didn't.
Started: Bongobondhu, 5 Dec 2023 14:33
Last post: Bongobondhu, 23 Dec 2023 12:13
Happy Christmas to all
This is looks struggling to move towards £15
?
Now moving started,
Started: GeordieShores, 6 Nov 2023 20:59
Last post: BlahBlahDoh, 7 Nov 2023 11:41
"hoping to persuade some mug to takeover this dog."
You don't appear to have read the RNS or the thread you are replying to. There is no shortage of UNSOLICITED suitors.
Why does a short-term economic downturn make it a "dog"? It has been trading, growing and diversifying very successfully for years, the main problem is a lack of foresight by previous management over the court case and the resulting financial problems. These are now being aggressively addressed. It is not unreasonable to hope that previous success can be resumed and built upon. A limping greyhound, perhaps?
I expect the teenage scribblers bought most of the 20% on offer hoping to persuade some mug to takeover this dog.
GeordieShores, you are thick as mince. Raising at a premium is never, ever going to be a negative...
You can buy on the open market at 1036p with a low 1.17 spread yet the Primary Bid offer is 1150p which is a 6.1% premium.
So they need a rise of 11% tomorrow otherwise it will still be cheaper to buy on the open market.
They say there are some interested parties who are interested in buying the company.
That said, they were 2000p in September this year and 5280 in September 2021.
Stockopedia gives them an overall score of 61 with 86 for quality.
Will be interesting to see what happens tomorrow and during the next few weeks...
Started: GeordieShores, 7 Nov 2023 09:32
Last post: GeordieShores, 7 Nov 2023 09:32
Are you okay ShearClass?
I'm just asking, because someone with real Shear Class wouldn't start criticising or calling other forums members names.
Please change your username to NoClass.
Someone
Started: perkimik, 6 Nov 2023 16:59
Last post: AndyAMG, 6 Nov 2023 19:31
I'm glad I took my loss last week , I may buy back in when things become clearer next year but I don't like the look of it at the moment
Indeed seems a strange Retail Offer given where the SP sits currently, but then maybe the price suggested by the un-named suitors provided a marker?
" Since the trading update of 2 October 2023, a small number of parties have expressed indicative, non binding interest in acquiring the Company at prices which the Board considers fundamentally undervalue the Company and its long-term prospects. Having considered each of these unsolicited expressions of interest, with its advisers, the Board does not believe that any of them are at a value which merits further engagement with any of those parties and has had no hesitation in unequivocally rejecting them."
Seems not to be a good business plan. Buy from the retailer at £10.30 or buy direct for £11.50.
Cheaper not to bother.
So raising funds at an 11% premium to closing price. Not for me. Anyone interested?
Started: noferkinamesleft, 12 Oct 2023 20:59
Last post: noferkinamesleft, 30 Oct 2023 18:04
Blah,
Yes, agree with you 100%, they certainly don't deserve a bonus so it will be interesting to see whether they do.
I would like to think its a given but the greed of a board never ceases to amaze and surprise me.
Maybe if you have time you could email the chairman and ask him :)
Rather than the knee-jerk dividend cuts, they could save money by axing management bonuses and reducing the salaries of these failed decision makers. Wonder why they didn't think of this obvious measure?
I agree with you both, the RNS makes the right noises, but its a gamble and with the dividend suspended for how long ?
The company worded it "will recommence paying dividends as soon as appropriate" - doesn't sound like a short suspension to me. "Appropriate" is surely when the debt mountain has been paid down, and cash flow / banking covenants are sorted and the company is making money and the building work in Malaysia recommences. Could be a long time.
My take on it is minimum of 1 year, probably more.
So the only upside left for shareholders is if the share price rises and that is debatable with all this going on. All Imo of course.
Im happy to wait and see what unfolds.
"other near-term actions to strengthen the balance sheet" almost certainly means fund raising. this company is in my **** pile and i will not be throwing any more money at it.
RNS news is as good as it could be regarding current situation. Still concerened about lack of cash so have resisted buying back in as can see a fund raise coming soon. The lack of big funds buying more at these levels tells Me they are also waiting for bank agreement terms. Good luck if still holding but would take some profits if You are lucky enough to do so.
Started: HorisM, 12 Oct 2023 14:07
Last post: noferkinamesleft, 12 Oct 2023 20:36
Why the ramptatastic talk about "cheap shares being going to be sold into a large buyer". Where do you get this information from ? Your sixth sense ? Lets try to keep it factual.
There are not any large buyers, just large sellers and in case anyone hasn't noticed, they all just sold up and moved out.
Share price consolidated, looks like the harvested cheap shares and going to be sold into a large buyer
Started: stew200, 9 Oct 2023 20:35
Last post: noferkinamesleft, 12 Oct 2023 10:34
Horis,
The company has just warned shareholders that it is likely to break its banking covenants...
What will happen then ???
Big debt mountain + Big court fine to pay 40Mil + Comets Court costs to pay 16Mil + Reduced orders = Share price drop surely ?
Where is the money going to come from ? No Divi here for couple of years methinks.
BeardedDragon, the price dropped from 2300.
So from that to 1500 is still down 40%.
It is clear that all the "cheap" shares are being bought up, and there will be massive averaging down happening over the course of the next few days.
The company has until this week delivered a very healthy dividend, as such the big funds will want to eat all the shares up to hold for that time.
HorisM, after you said at 1250p it would rise to 1500p, it actually fell to 725p, when I took the plunge myself and bought. We are now seeing the 20% rise from there. I will be selling my holding at 1125p as there is no chance of it getting anywhere near 1500p.
Yes, 20% onto 1250p take us to 1500, exactly what I am saying at the moment that it will be 1500 next week.
The additional drop is just the market at the moment, we are seeing big irrationally drops across all companies.
And as for Aberdeen selling, once you factor in divided payments and what they sold at £50 a share region, it appears that they have made a profit on the 5% sell over the course of 2020-2023.
So completely rational that they sold off 5% due to risk management at the moment, plus Aberdeen off loading 5% adds free float back to the market which can be used to get the price back up which benefits them.
Overall very happy with XP Power, appears that the bad news is out so we know what is happening, and appears they have a clear path to good profits and growth.
Horis,
You said last week at 1250p it will rise 20% from here ! What happened - it dropped a further 50%....
Spouting ramping rubbish like "should be back to 1500 next week" is purely wishful thinking .
Why did all the smarts sell out last week ?..
Started: HorisM, 6 Oct 2023 16:41
Last post: Orange33, 10 Oct 2023 03:45
You do know this closed at 2300 and opened up at 1600 on a similar profit level? (yes there's debt etc, but the drop is WAY overdone IMO)
Now that the seller is out, 1500+ is not unreasonable at all
Historically pays around 80p+ of dividend so still a yield of 10% if it starts paying again, plus the 60% or so value drop, easy money
All IMO
Ramping is for those that have bought dog shares at high prices.
look through my history, I look for value plays and takeover potentials.
Hope He turns out not to be an idiot though.
According to ramper HorisM, "we might get to 1500 by the end of next week." What a complete idiot.
Okay, I stand corrected about the current dividend payment.
However, I do agree that using that £3.75m to sort out the company is a good move in the current climate.
Now I really do hope that Ameriprise Financial and Odyssean buy up all the free shares and use a combined holding to force the company to be sold for circa £500m.
Started: HorisM, 9 Oct 2023 16:28
Last post: HorisM, 9 Oct 2023 16:28
Getting rid of Abrdn is good, helps to clear the dead wood and free up float for new investors.
Time to load and hold for a great rise back to the 1500 region.
Was hoping for another Holding RNS from Odyssean today, but nothing as of yet.
Bought another 5000 Odyssean this morning at 137.7p - all I need now is XPP and Dialight to retrace somewhat.
10% today is a start with XPP - as mentioned I await news on any takeover.
Started: HorisM, 9 Oct 2023 11:39
Last post: HorisM, 9 Oct 2023 11:39
09-Oct-23 09:37:14 Shares: 492,627 Cost: £4m
09-Oct-23 09:37:07 Shares: 492,627 Cost: £4m
Started: fundamentalanalysis, 6 Oct 2023 08:35
Last post: SWLC, 6 Oct 2023 15:44
Abrdn Investment Management Ltd. 6.698 % 1,321,741 6.698 %
Today sold volume is more than 1.5m shares, we may see TRI by next Monday or Tuesday then.
Tell that to Odyssean who took 2.5% more at £11-12 or so....think its abdrn exiting, it'll move up when they're done (which they should be looking at the prints today) IMO
PI have no say in this, its the big boys that move it
Sadly mate, the bottom is well below 770p and very little chance of ever reaching 1400p but keep ramping Fundamental.
Sounds about right. Last top up Today as already down 35% on £20K punt. Need to keep some cash in case of fund raise, that`s if PI`s are allowed to particpate ? It was all going too well for Me lately so a dose of s**t was due.
Rights issue /fund raise coming ? PI's are always the last to know.
Started: PJT12, 6 Oct 2023 07:58
Last post: PJT12, 6 Oct 2023 07:58
See the RNS
Dividend cancelled, should do well today now back to £18 please
IMO
Started: Mommur, 5 Oct 2023 13:29
Last post: HorisM, 5 Oct 2023 14:03
Ameriprise Financial is a very good indicator that something could be brewing in the background.
These guys have access to data beyond the market, and being US based could indicate that a US company is hawking for a takeover.
And with Odyssean taking a large stake that adds fuel to takeover expectations.
Maybe we could see Comet Technologies USA Inc. and YXLON International (collectively Comet) make an aggressive move to takeover XP Power, removes a rival and increases their market coverage.
Pity Odyssean Investment Trust didn't wait until today to catch the falling knife and gain 9%. As their strategy is to look at takeover assets, perhaps they now see a buyout as closer than ever and may well add again to protect their investment if the fall continues.
I have 50,000 shares following their expertise, so here's hoping. GLA with XPP, personally I could have done without a falling knife!!