Stockopedia comments Paul Scott - VLX26 Jun 2024 23:08
Paul’s opinion - this all looks fine to me. I’m surprised shares fell c.6% today on these sturdy results & reasonable outlook. Maybe the talk of short term costs being incurred to increase capacity might have led some investors to trim their short term profit expectations? It will be interesting to see if the broker forecasts dip slightly over the coming days?
I look at things the other way - to my mind, VLX spending money in the short-term to expand capacity and go into new markets where it sees opportunities, is a positive thing, and should result in a larger & more profitable group in the medium term.
Overall, I remain enthusiastic about this share as a long-term holding, being a successful GARP share. So it’s another GREEN from me. I see good upside on this share, for patient investors, and it should attract a more generous PER once we’re more established in a bull market. Could it be a bid target? Anything is possible, but I suspect Nat Rothschild (26%) wouldn’t sell the company unless the price paid was generous. He’s mentioned before in webinars that he sees the share price as under-priced.
Volex is one my top 20 share ideas for 2024. It's only up 1% YTD, but I cannot see anything wrong with the original share idea, quite the opposite actually, it's performed well on fundamentals, but for unknown reasons demand and supply for the shares seem to be in balance. Maybe there's an institutional overhang, who knows?
Buying the dips looks a good strategy on this share -