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XP Power Share Discussion Threads
Showing 2126 to 2150 of 2150 messages
|Yes agree Phil Oakley just raises the question in his article - he basically summarises how I feel about XPP. I am an investor in XPP on the basis of its track record but am reluctant to increase my position. I haven't really understood why it has a durable competitive advantage. It clearly must have some valuable expertise but I worry it seems like the kind of product where high quality could be replicated easily in time and where price will become a more and more important factor in choosing supplier as technology improves. I think the competitive barrier suggested by Courant isn't really a long term competitive barrier more just a factor that means revenue visibility is greater i.e. it is not relevant to competition to supply power converters for new devices(presumably this is where competition happens and how growth is achieved in the longer term). I'm probably missing something but not sure what?|
It is hard to find companies with consistent returns on capital with historic and expected growth on attractive valuations without worrying yourself out of buying the share because you think high returns ought to be competed away.
Such a consistent high return growth company will of necessity have developed with business characteristics that by their nature are not likely to disappear overnight.
By all means ask yourself the question, as he does "The key question is: why haven't these margins been competed away? What is the company doing that its competitors cannot match?" but you need to dig a bit deeper than he does to get the answers.|
|"My main concern with this business would be the sustainability of its high profit margins and ROCE. The track record and stability of both measures gives some degree of comfort but XP Power is operating in an industry which can change quickly due to changes in technology."
Phil misses the point that in regulated markets (e.g. healthcare) once the XPP product has been baked in, it's there for some years going forward. There's a natural competitive barrier there.|
|Good Phil Oakley article
|Hargreaves Hale above 10%|
|Research note from Edison
|Tudes - Good stuff|
|I'm with you Fozzie, bought in Feb 2009 at £1.40 and obviously wished I'd invested more. Almost foot perfect for 8 years now. At least I've resisted the urge to top slice.|
|I can't remember when I bought XPP originally but paid £2.42 according to my records when I transferred them to iWeb. I have held steadfastly and with 'hindsight' wish I had bet the farm here. All the mistakes I have made over the years where I have lost a small fortune and good old XPP, one of the first shares I ever bought has just kept forging ahead.|
|Yes sorry, lazy eyes this morning.|
|oh and happy with the results just wish I had bought more that's hindsight for you|
|Margin not explained! I think it's pretty comprehensive.
Gross margin declined slightly to 47.8% (2015: 49.8%), largely due to product mix and the effect of the depreciation of Sterling versus the US Dollar. The majority of our product costs are denominated in US Dollars so while the weakening of Sterling helps our revenue line, product costs increase more than the revenues as a result of the weakness of Sterling. Operating margins declined from 23.3% in 2015 to 21.6%. This was partly due to the weakness of Sterling but also due to the operating margins of EMCO being lower than those of XP Power as a whole.
The weakening of Sterling versus the US Dollar in the period following the United Kingdom Referendum on EU membership on 23 June 2016 has obviously had a material effect on the presentation of our financial results in 2016.
Approximately 75% of our revenues are denominated in US Dollars and the translation of these revenues into Sterling for reporting purposes has had a beneficial effect. However, the majority of our cost of sales and a large proportion of our operating expenses are also denominated in US Dollars. While a stronger US Dollar helps our overall gross margin in absolute terms (albeit to a limited degree) it also has the effect of reducing the gross margin percentage as costs rise disproportionately to the revenues. We estimate that our reported 2016 gross margin percentage could be approximately 130 basis points lower as a result.|
|I thought the drop in margin was explained
Gross margin declined slightly to 47.8% (2015: 49.8%), largely due to product mix and the effect of the depreciation of Sterling versus the US Dollar. The majority of our product costs are denominated in US Dollars so while the weakening of Sterling helps our revenue line, product costs increase more than the revenues as a result of the weakness of Sterling. Operating margins declined from 23.3% in 2015 to 21.6%. This was partly due to the weakness of Sterling but also due to the operating margins of EMCO being lower than those of XP Power as a whole.|
|Slight fall in margin which isn't explained, it's still high in any event, all other metrics moving ahead, another great statement and I love it when they talk about 'years'. By far my biggest position at 20% of portfolio but very happy to keep holding. We have broken through the £16-£17 trading range but I wonder if a share split would encourage future share price rises.|
|picked up a few more
|Lovely break out above £19 about bloody time in all truth.|
|added a few hundred on the breakout
|yep we may finally break £18
|Knocking on £18 chart looks tidy.|
|Precisely. I have held shares for some time in AVV,SXS and WTB, all higher than XPP, and it hasn't done them any harm. A share split is just a golden opportunity for corporate advisers, registrars and lawyers to get their snouts in the additional fees trough. Even more so here because the company is Singapore domiciled and we own not the shares but DIs.|
|lol yes but a 20% increase in a share price is still 20% no matter if its a £2 move or a 36p move its still 20%
I agree with you the price of £18/share does scare people but it shouldn't I have a number of such priced shares and too be honest once you have a few and watch the price movements on a daily basis there's nothing to be scared of|
|I'm already heavily loaded here more than i like for the liquidity but a break and hold thro £18 and i'll add, equally if it falls back to a point of solid support i'd also add.
|we've both been here a long time and it's been very rewarding particularly on dividends and a fair bit of captial appreciation too albeit from some time ago.
If they do 20% revenue yoy we are going to see a re-rating even with the current capital structure.
The problem is many investors look at £18/share and it scares them off as it's got to move nearly £2 just to make 10%.
As you say 10:1, now that would be interesting £1.80/share and 192m shares i figure we'd see an immediate 20% uplift based on todays outlook statement but wtfdik.