Calnex Solutions Share Discussion Threads

[tole] 25/1/2022 19:18

https://www.fool.co.uk/2022/01/24/3-top-metaverse-stocks-id-buy-today-for-2022-and-beyond/#3: superfast networksOne area where the metaverse is expected to drive growth is virtual and augmented reality. Delivering this kind of service needs fast and reliable networks. That's where my final pick comes in.Calnex Solutions (LSE: CLX) specialises in "test and measurement solutions for the global telecommunications sector". It's a recent addition to the UK market that's impressed me considerably so far, with a track record of growth, 20% profit margins and owner-management.One risk for shareholders is that Calnex only listed on the stock market 15 months ago. I think there's some risk of a slowdown after sales rose by 20% last year. However, long term I don't think this should matter.Founder Tommy Cook expects cloud computing and 5G mobile to create new opportunities. I agree. I'd be happy buying a few Calnex shares today to tuck away for the next decade.

[rivaldo] 25/1/2022 12:40

The NED sale is more encouraging than anything else. Firstly, the headline should be "NED retains 75% of very large stake, sells just 25% and retains 2m shares". Secondly, the trade occurred on 18th Jan, when the bid price was at 125p, so the sale was snapped up by institutional buyers at absolutely no discount to the bid price at the time, the spread being 125p -126p. Thirdly, there are very few points during a period when PLC directors can both sell without being "inside" and there is sufficient institutional demand to mop up those shares.

But I don't suppose most will look into these details.

[johndoe23] 25/1/2022 11:55

Large NED sale causing a few to sell this morning...

[rivaldo] 20/1/2022 15:41

Hopefully this afternoon's rebound indicates that sellers have been cleared out, especially given the excellent news from SPT today.

[petewy] 20/1/2022 09:17

I have SPT as well and it's nice to see it move.

[hew] 20/1/2022 08:17

No knowledge of the actual tech or business relationship, but I see these extracts from today's update by Spirent as positive for CLX:

“In the final quarter, we benefited from material growth from our Lifecycle Service Assurance business, driven by increased demand and new customer wins for both lab solutions and, especially, for live assurance solutions, as 5G networks continue to roll out globally.”

“High-speed Ethernet demand outperformed the last quarter of 2020, while Spirent's application security sales continued to progress well; some rebound was also experienced in orders for lab-based Positioning products.”

[rivaldo] 19/1/2022 15:15

Nice 20k buy at 132p - 1p above the 131p published offer price at the time. Looks like someone's keen.

[sphere25] 19/1/2022 14:27

Oh those sneaky sneaky market makers. They dropped the bid yesterday on those large trades (above) @125p making it look like a seller is still in the market and then this...

Buying closed off now. No shares available at 131p.

Breakout time?

All imo
DYOR

[sphere25] 19/1/2022 10:21

Stream of buys here.

Had a little nibble trying to play the breakout.

It is having a go at breaking out.

Sellers done? Not always straightforward to tell - delayed blocks to come or were they all done yesterday?

Might be worth keeping an eye on.

All imo
DYOR

[piedro] 11/1/2022 11:50

Is that not a perfect 'head & shoulders' on the chart?

[redartbmud] 11/1/2022 07:56

rivaldo

Looks like they can add something to the business, but both are over-boarded!!

red

[rivaldo] 11/1/2022 07:16

Two impressive/heavyweight non-exec Board appointments today, which should please the City and bring in a raft of contacts "at what is an exciting time for Calnex, as we seek to capitalise on the telecoms industry's ongoing transition to 5G alongside the growth of cloud computing":

[zho] 08/1/2022 08:08

The CLX website says that they currently have 66 employees, so advertising for 14 positions suggests a fair degree of expansion.

[techno20] 08/1/2022 04:22

Valustar1 - thanks for flagging the vacancies. Does suggest they are very busy. Hadn’t quite appreciated the international scope of the business with roles in Scotland, NI, Europe and US being advertised. Highlights the scale of the opportunity. Topped up on Friday.

[robow] 07/1/2022 14:50

good spot Rivaldo

[rivaldo] 07/1/2022 14:47

The Sanford CFP SDL Free Spirit Fund - run by Keith Ashworth-Lord - have just sent out their monthly Factsheet as at 7th Jan 2022. In the commentary they note:

"We first looked at Calnex Solutions in January 2021. Despite its small size (its market cap is just above £100m) it plays a key role in its market of mobile network testing and optimisation. It supplies many large global network operators and equipment providers and has a long-term growth runway ahead of it, helped by opportunities in 5G. We have built a 3.7% holding in the company."

Since their top holdings include the likes of Kainos, Treatt etc hopefully CLX will continue to be be just as successful.

[johndoe23] 30/12/2021 13:32

Flurry of buying at 11 this morning, tipped?Then selling dragging it back down again. Strange...

[petewy] 28/12/2021 12:32

thanks Riv

[rivaldo] 28/12/2021 10:16

New 14 minute video interview with Tommy Cook not posted here before - he always comes across extremely well.

Great to hear TC say his product is "the only one on the market" that can properly address the necessary accuracy:

[rivaldo] 16/12/2021 11:19

Cheers Mas. Good to see the share price deservedly moving back up.

[cromw3ll] 15/12/2021 15:08

95-100p looking like support levels now. Watching.

[masurenguy] 14/12/2021 16:22

Riv, just sent you a PM.

[rivaldo] 14/12/2021 15:51

This morning's fall was well before ENET's statement at lunchtime. And only 3 weeks ago CLX said they were trading ahead of expectations and were confident in meeting the upgraded forecasts. In particular:

"The Group has not experienced any negative impact on product shipments from the ongoing global semiconductor shortage to date, however the Board continues to monitor the situation closely. Calnex's ability to maintain shipments on time in the current climate is testament to the strong partnership with the Group's contract manufacturer, Kelvinside Electronics, as well as the abilities and skills of the Calnex team who are successfully navigating this dynamic situation."

Looks like just a few sellers in a volatile market creating an opportunity imho. There's still a lovely uptrend on the long-term chart.

[rimau1] 14/12/2021 13:41

ENET, a 5G peer, have just released an unscheduled daytime update that certain 2021 revenues will be deferred into 2022 due to supply shortages. I guess there could be concerns that a similar situation will evolve here. Short term timing impact only