Calnex Solutio. Share Price (CLX)

Although there was no news flow from Calnec -25% the funds largest monthly decliner, we can only put thjis down to what the broking community refers to as READ-ACROSS from the takeover of Spirent communications, which is held in the BVuffetology fund. the simple bear case would go something like this ; Spirent is Calnexs largest sales channel partner theresfore and change of ownershir will be depremental or disruptive to calnexs relationship. This is naturally something we considered durin our investment process and was an arewa of focus durin our due dilligance prior to purchasing the positrion. Spirent and Calnex have worked sucsessfully for over ten years. The hardware supplied via Spirent is all badged under the Calnex name, which is important as in the even of any change to the supply chain it is clear for the customer where the kit origonates from. Crucially calnex products are differentiated with capabilities that competitors can not easily replicate. Therefore we expect customers will quickly adapt to any potential change in distribution partner, as has been Calnexs experience in the past!!

Having said the below, the news of the takeover bid did overshadow the results at Spirent. There was an 80% drop in profit which was pretty brutal in 2023. Hopefully, 2024 has started more optimistically, but it mayvtake a while to filter through into results. Without a takeover, this may take a while to recover

Me too- I took 1/3 out of spirent as a hedge and put it here. I can't believe this share price will stay here for long. Either a takeover or, with the positive noises from the PMI numbers, things will surely move up from here. Either way, I'm expecting my portfolio to be a little rosier in a few months' time.

I topped up this morning Pedro, bit puzzled why the SP hasn't moved at all this morning.

Spirent take over at 175p cash.

I have reinvested some of the proceeds in advance into CLX

GLA