Member Info for pernix

£1 millions of Strix share buys in succession. Then notice Shorts nearly the same, re: 7th Feb tracker info. I wonder if now bounced off the SP lows?

Markets always see saw and this Ukraine crisis is overblown I think. If Putin wants to invade he can do it now. He is playing this shuttle diplomacy with Macron, Shultz to get more concessions. I think nobody really wants war, so some compromise will hopefully be found. Then markets going to head upwards on a relief rally. Markets have priced in several near term interest rate increases now so not much new news here. Inflation should moderate in the future & markets will be much happier. Seeing real demand for Strix shares in especially around 230-240p range like big share trades yesterday. That’s good showing investors believe Strix is totally undervalued. So lets see if Strix share price can head upwards, off its year lows. Hoping so.

Krustysmegma: I agree. Moreso faster trajectory of interest rate rises cause latest concerns around cyclicals. That gives more ammunition for Strix Shorters to crash shares down 200p or sub, next main chart support. Last week went to 223p, so 220p support unlikely to hold as last week’s share bounce was shorts closing their weekly positions. I noticed after hours Friday share trade at 225p, after 231p bounce up. I think Strix Shorter will further increase their shorts too. I’m a supporter of Strix, like the company but just being a realist as what might happen. The big market bear is still to growl, Russia’s possible invasion of Ukraine. That’s a real possibility now I think as Russia garners support from China this weekend. This sudden shock going to send markets reeling downwards & cyclical shares going to get hammered. So wait n see now.

Zeus Capital says Strix sell off caught up in cyclical stocks rotation away from sector. Higher interest rates forcing investors to re-assess investment risks, inflation concerns, commodity inflation, supply chain etc …Strix better to cope with elements of these than others. Can’t tell when this situation will change. That’s their rationale. My view is that investor money will drain away from cyclical sector, pushing down share prices as Western interest rates are just starting to rise more now. So brace yourself for much more shares volatility, a sinking Strix share price has now got to be priced in regards to an accelerated cyclical shares sell off. If shares drop 200p or below, I may consider more share buys to lower my average buy price. It is all a bit stomach churning now

riverbliss: I agree Strix shares has much further to fall. It’s like a falling knife. I’m looking at daily share trades, charts & the trend is my friend downwards. No consistent big value buy trades, the odd one & more continuous selling. So those many years I missed out on buying around 200p could come back, who knows? Surely, it is frustrating & many investors now sitting on hefty losses but just have wait it out. Like I said a lot of great company shares are now beaten up & someday value investors will come back.

Strix SP below 210 - 220p unless some good news out.
Just lots of selling pressure.

GLG shorter has now 1.81% (up 0.11%). Since Oct ‘21 increased by around 0.5%. So it’s sitting on the shares register with a low stake picking off shareholders selling out & then buying cheap shares. All I can say is shareholders watch out for a very big squeeze lifting the share price lots, it’s coming. GLG will turn, I can see the likes of Shroders further up their stake, then a surprise stake builder could be forced to reveal it’s shareholding, then pressure on The Strix Board of Directors to buy shares to show confidence in Strix. Then maybe better results than expected as Strix sounds quite conservative governed company. So those share traders in Strix beware of a very big short squeeze coming. As the end, the market should price a proper real valuation on Strix shares rather than this artificial financial engineering by the likes of Shorters like GLG & Bainbridge.

dun48: GLG are only 1 shareholder, they are a Strix Shorter. If the collective action of all shareholders & influential shareholders were to increase shares buying. These shorts would be without value, a short squeeze would happen pushing up share price lots. Strix has solid growth prospects & so Shorters have no ground shorting these shares, that is totally undervalued share price. Unless as we said they are driving down the share price for their client/s to amass a secret shareholding; possibly for a Takeover Bid. Then afterwards they start buying Strix shares to push up their client’s money base. So fools for those who sell Strix shares early losing future gains + 3-4% Dividend yield. Also, yes consumer appliances need tweaking from time to time so newer models of Strix products will get even better. Shore Capital needs to do more research before putting out Sell circulars to investors. All other brokers have Buy Strix Rating with average 391p target price.

Strix saying Laica trading performance was particularly strong, in their most recent trading update. That’s the new Italian company Strix bought recently and is great news! I did read somewhere that Laica doubles the turnover of The Strix Group. If so, this could be a big driver of Strix sales & profits growth. Also I like that Strix have got 14 contracts for their new HaloPure Technology; hope this becomes another growth driver but would like to know value of contracts so far.
Strix says:
With the combined contribution of LAICA and HaloPure technology, the Water category has made solid progress with its growth aspirations. The trading performance of LAICA has been particularly strong as the acquisition continues to be successfully integrated in line with plan to achieve the identified benefits. The HaloPure technology also continues to gain wider recognition by the market and has now secured 14 contracts, which demonstrates the continued focus on commercialising this important product.

Shore Capital’s news of March 2021 is old news. They say profit margins are expected to be lower in the water category in the future. However Strix profits for 2021 are too meet expectations as the company forecast in their most trading update. So they are wrong. In any case Strix are increasing prices on their product ranges & so this should help preserve profit margins. Also, I think the £5 millions of extra debt to counter inflation, currency swings will end up increasing Strix profits in future years with extra cost cutting & more price increases having long lasting effects. I expect the higher Global inflation to be transitory as higher Western nation interest rates will slow economies, energy demands, consumption demands, shipping costs & squeeze out the worst aspects of inflation. Interest rate hikes swing economic growth moreso than temporary war mongering by nations like we are seeing with Ukraine at the moment.

dun48: There are too many fake reviews by competitors generally on Amazon, other shopping sites. So the Aqua Optima hot/cold reviews may not be truly correct. I prefer independent lab testing for product reviews by respected organisations like Which consumer panel.

dann11: Yes, I see Shore Capital have a sell rating (no price target) but I could not find justification reasons for this. As far as I know they have had this for some time, so not recent. I checked MarketWatch, they are the only broker with a sell rating. Every other main shares brokerage house has buying rating with average 391p Target Buy Rating.

Rare opportunity at Strix, says Liberum (460p target kept)

I would agree. These Shorters of Strix shares are playing a financial game to mainly benefit themselves. So the sellers who sold these shares over the last weeks are the main losers. Do not fall for this, Strix shares are substantially undervalued as Liberum broker still maintains a target price of 460p even after last weeks update. Great time to buy Strix shares. I did buy more Strix shares at 233p last week, a great buy at this price. Here is Liberum’s views on Strix below:

Kettle component maker Strix (KETL) is a ‘superior stock on a sub-sector rating’, according to Liberum.

Analyst Christian Hinderaker reiterated his ‘buy’ recommendation and target price of 460p on the stock, which closed down 2.4%, or 6p, at 246p on Thursday.

He said pre-close results show full-year 2021 earnings in line with estimates as the group’s 55% market share within kettle controls ‘provides pricing power amid a backdrop of high commodity and freight cost inflation’.

With 30% year-on-year revenue growth, plans to double revenues by 2025 are on track.

‘Cost pressures persist as they do elsewhere. However, Strix is well placed to cope given it has the highest margins and free cash flow in our coverage,’ said Hinderaker.

‘With shares down more than 33% since third quarter 2021 this is a rare opportunity to buy quality.’

Hi dun48, thank you for sharing the Shorter names. Yes, I agree if shorters are stakebuiding for other investors this makes a lot of sense. Strix should be on a forward P/E of 26-28 given it’s superior earnings quality, high cash flows & dominant monopoly position in its main markets with innovative product growth prospects. UK engineering shares generally are P/E 20. So with share price falls, Strix is cheaper than these engineers. Shares are now so heavily discounted on what, an extra £5m debt to hedge against currency, inflation & cost control measures. Strix are saying product shipping volumes are up, profit margins are being protected with price rises. The fact Strix can raise prices is a good thing, other companies with little competitive advantage are too scared to raise prices for fear of losing customers. So if your estimates are near close, then that £5 millions of extra debt can be recouped from a lower tax charge on profits. So near evens score but hedging against currency swings, inflation will increase future profits too. So as I said Strix is a Takeover target as all investments have now been done & the fruits of their business strategy will surely pay off. That is how normally big valuation gaps come to the attention of investors. Also, it’s the China effect that should capture investor interest I think as Western economies have to digest high interest rates, much higher inflation, higher energy costs, highest national debt, slower economies & political instability. Whereas China has the fire power to reflate it’s economy with its huge money resources & lower Chinese central interest rates to jump start consumer spending more. That’s great for Strix as it operates in China, sells in China & can leverage its contacts to increase market penetration!

dun48: Who are these Shorters? What proof you have they are shorting this share? Is it just hearsay speculation or do you have actual proof? I can see Shroders increased their stake to 7% (from 5% previous) & that is positive for Strix. Yes, strong trading statement from Strix today. This will turnaround as Mr Market cannot ignore Strix undervaluation, growth potential, future prospects etc ..

Strix Trading Update today, Great trading update today in my opinion. The Key points:

Strix has experienced continued positive momentum in H2 2021 and the Group has achieved circa 30% revenue growth on a constant currency basis and profit after tax in line with market expectations for 2021*. This outcome underpins management's confidence in delivering on the medium-term target to double the Group's revenue by the end of 2025, primarily through organic growth in its Water and Appliances categories.

Strix continues to proactively manage and mostly offset the impact of a number of headwinds which continue to persist including supply chain, freight cost inflation and adverse foreign exchange rates. This is being achieved effectively through price increases on some of its legacy products, implementing hedging strategies as well as a range of other efficiency measures and strategic initiatives. Additionally, the Company crystallised a tax benefit in relation to the factory opening which is expected to result in a lower effective tax rate in 2021.

This strong trading performance demonstrates the continued resilience of Strix's business model, which benefits from geographical and product diversification and is strengthened further by the Group's high cash generation and prudent control of its balance sheet.

Shroders sees these Strix shares are undervalued. They increased their stake to 7% (5% before) last Friday. This reverses share sales for them recently. Strix has solid growth prospects for the future. Like I said most industries, suppliers, manufacturers have had supply chain issues & inflation is rising everywhere. This is not unique to Strix & so there again is a level playing field. So I don’t think companies can be marked down for this. Supply issues resolve with time & people will always buy kettles, smart product appliances, better products etc… Yes, short term share prices fluctuate but these are buying opportunities. I am buying Strix shares on weekness in its share price, it happens to most shares in my view as nothing is perfect. I have no doubt these shares will reach previous highs & go up more again. Investors Chronicle Magazine has a Strix shares target price of 390p & one of the shares brokers highest target prce is 460p. So clear undervaluation of Strix shares.

Stuartrm: Yes, the potential for conflict wars will always exist. That’s a reality of life. After a while, markets assess & move on to another news story. It is Western interest rates rising with the upcoming USA Fed meeting now in focus. In China where Strix operates interest rates are actually coming down to reflate their huge economy. That will help increase consumer spending on things like Kettles, home appliances etc …

I see Shroders last Friday upped their share holding to 7% (from 5%) previous, today’s RNS news. They were sellers before, so me thinks they know Strix shares are undervalued & buying more in the market-place. Just need more investor fund managers to do the same now.

Kevijoh: I agree container shipping costs have gone up a lot but Strix is not shipping the kettles. They are shipping thermostat controls to Chinese kettle manufacturers on the Chinese mainland so their own direct costs are much lower. Yes, of course most of everything we buy is container shipped so everyone’s costs go up & consumer everywhere will have to pay higher costs. If there is inventory build ups, they will be cleared with time. People are still going to buy kettles etc.. You are talking too generalistic about small appliance manufacturers. Strix has dominant market position in its main markets with high net profit margins with unique high barrier to entry products which are continuously being updating. So with new innovation products hopefully consumers will pay up higher price premiums. So you are right, Strix is currently undervalued substantially & the company should outperform when the company updates come out with time. Anyone can say they will wait for next updates for share price to drop but yet you are buying Strix shares today. So you are hedging your bets I see.