Calnex Solutions Share Discussion Threads

[redartbmud] 23/5/2023 11:13

It would appear that today's share price movement has answered the vexed question.

red

[nobilis] 23/5/2023 10:52

Masurenguy
22 May '23 - 07:57 - 773 of 777
0 4 0
Ashworth-Lord takes Calnex upset on chin

Test and measurement instruments provider Calnex Solutions (CLX) has blotted its ‘impeccable217; record for the first time since listing in in 2020, says Sandford DeLand fund manager Keith Ashworth-Lord. Ashworth-Lord has held the stock in his £85m CFP SDL Free Spirit fund since December 2021, where it had until recently been a ‘stellar performer’.

However, on 7 March it "succumbed to a disappointing trading update with a slowdown in customers committing to investment decisions, driven no doubt by the more challenging macro backdrop. Calnex is by no means the only company to warn of such challenges, which seem to emanate from the US in particular. Looking beyond the immediate term, Calnex is a business with some very attractive attributes, not least where its niche products sit in the mobile network and cloud computing ecosystem and a customer list to die for.’ said Ashworth-Lord

He said the immediate problem is "one of timing’ as orders are being deferred rather than cancelled and it is inconceivable that global 5G or cloud roll-out will stall indefinitely. It is, however, a timely reminder than nothing goes up in a straight line." said Ashworth-Lord. Shares in Calnex fell 4.8% last week to 102p. They have plunged 40% since the alert.

hxxps://citywire.com/funds-insider/news





The article is not correct that this was his first mistake
He took it in the conkers on dark trace too

[74tom] 23/5/2023 07:56

Nope, just a lie from an idiot.

What they actually said was;

"While we are seeing signs of a more stable macro environment, trading in the current financial year has continued as anticipated at that time. Customer engagement levels are high, although the timing of orders remains unclear, consistent with wider industry dynamics.

The Board remains confident in the delivery of results for the year in line with the revised market expectations and believes the breadth of product offering, and the market's structural growth drivers, provide Calnex with a considerable long-term opportunity."

[masurenguy] 23/5/2023 07:55

FY23 Final Results

Financial Highlights

-- Revenue growth of 25% to £27.4m (FY22: £22.0m).
-- Growth in profit before tax of 21% to £7.2m (FY22: £6.0m).
-- Closing cash position, including fixed term deposits, of £19.1m (31 March 2022: £15.4m).
-- Proposed final dividend of 0.62p per share, making 0.93p per share for FY23 (FY22: 0.84p).

Outlook

-- Trading in Q1 FY24 has continued as anticipated, and the Board is confident in delivering results for the year in line with market expectations as revised in March 2023.

-- Whilst customer budgets continue to be restricted in the near term, customer engagement levels remain high and Calnex's mid-term order funnel has strengthened during Q1 FY24, although the timing of conversion of these opportunities into orders remains unclear.

-- The breadth of Calnex's customer base across multiple regions, expanding product portfolio and strong balance sheet, alongside the market's structural growth drivers, provide continued confidence in the future.

Tommy Cook, CEO said: " FY23 was another year of solid progress where we executed on our strategy, increasing our addressable market, whilst successfully navigating the supply chain challenges, achieving revenue and profit growth, in line with market expectations. While customer budgets remain restricted in the short term, customer engagement levels remain high, and we have been encouraged to see the early signs of a more stable macro environment. We are confident the market's structural growth drivers will continue to drive long-term growth opportunities for Calnex. These include the need to build out new mobile networks to support the transition to 5G, and ongoing data centre investment to support the demand for cloud computing coupled with the need to be more energy efficient. The breadth of our customer base across multiple regions, expanding product portfolio and strong balance sheet, mean we look to the future with continued confidence."

[redartbmud] 23/5/2023 07:48

Really?

red

[onjohn] 23/5/2023 07:03

Profit warning

[masurenguy] 22/5/2023 07:57

Ashworth-Lord takes Calnex upset on chin

Test and measurement instruments provider Calnex Solutions (CLX) has blotted its ‘impeccable’ record for the first time since listing in in 2020, says Sandford DeLand fund manager Keith Ashworth-Lord. Ashworth-Lord has held the stock in his £85m CFP SDL Free Spirit fund since December 2021, where it had until recently been a ‘stellar performer’.

However, on 7 March it "succumbed to a disappointing trading update with a slowdown in customers committing to investment decisions, driven no doubt by the more challenging macro backdrop. Calnex is by no means the only company to warn of such challenges, which seem to emanate from the US in particular. Looking beyond the immediate term, Calnex is a business with some very attractive attributes, not least where its niche products sit in the mobile network and cloud computing ecosystem and a customer list to die for.’ said Ashworth-Lord

He said the immediate problem is "one of timing’ as orders are being deferred rather than cancelled and it is inconceivable that global 5G or cloud roll-out will stall indefinitely. It is, however, a timely reminder than nothing goes up in a straight line." said Ashworth-Lord. Shares in Calnex fell 4.8% last week to 102p. They have plunged 40% since the alert.

[apad] 20/4/2023 16:09

What a find. Ta!

apad

[strollingmolby] 20/4/2023 11:30

listen to Tommy Cook discuss how he launched Calnex, funded it, and attracts staff...
(from 29 mins in)

THE GO RADIO BUSINESS SHOW WITH HUNTER & HAUGHEY .... AND COOK!
On this week’s show, Tommy Cook, the founder and CEO of Calnex Solutions, joined Sir Tom Hunter & Lord Willie Haughey.

[redartbmud] 14/4/2023 19:58

£20k isn't huge but it is a statement of faith.

Forward statements are a finger in the air job, the further out you go.
What they produce is an essential service, it just depends on the size of the demand.

red

[hew] 14/4/2023 18:54

Interesting purchase by a Non Exec of £20K's worth of shares just announced.

[onjohn] 09/3/2023 10:47

Is wand which suspended today after fraud
Similar

[mammyoko] 07/3/2023 14:17

Halving their forecast eps leaves them plenty of room to beat the new forecast. Pretty early on in the financial year to have much idea of out-turn so best to be, as Cenkos said, 'very conservative' at this stage. Lots of uncertainty out there but their biggest customer is saying that orders are delayed not cancelled so they have to go with that

[onjohn] 07/3/2023 14:05

Sickening fall

Hope they don’t warn second and third time

[mammyoko] 07/3/2023 12:51

The current price only makes sense if you think that 3.6p is representative of this company's future potential earnings. If you think that it's more likely that next year, if it even pans out to be 3.6p, isn't representative of this company's future earnings then it can be ignored as an outlier. The company has been resilient in the face of some challenges in 2022 and Cenkos's ultra-conservatism and Spirent's reference to delays in ordering could just as easily reverse either later in the year as they are hoping (without any evidence for that hope, I hasten to add).

5G is here to stay and whether that translates into softer orders this year that are pushed back into the following year, the tailwinds for this company remain. I see no reason why future earnings cannot recover pretty quickly to a minimum of 5p with the anticipated progress to 7p merely being delayed.

On that basis, 120p is too cheap and the risk/reward looks quite good here. If earnings do recover to 5p for the coming year and forecasts are raised to 6p or so the following year, then a multiple of 25x seems okay to me and a consequent recovery in the price.

Valuing this as if 3.6p is the maximum eps in the future is crazy.

[la forge] 07/3/2023 10:18

Calnex Shares Fall on FY 2024 Financial Performance Warning

Shares in Calnex Solutions PLC fell after the company said that market-driven delays are likely to hurt its financial performance in fiscal 2024, with revenue more heavily weighed toward the second half, and that its financial performance will be below that achieved in the year ended March 31.

[apad] 07/3/2023 10:10

...much later breakfasts 😊

apad

[la forge] 07/3/2023 10:10

FWIW THE FOOL

Calnex Solutions

Finally, check out Calnex Solutions (LSE: CLX). It provides testing and measurement services to the telecoms industry.

This is an AIM stock I’m very bullish on. In the years ahead, the rollout of 5G networks (and the emergence of new technologies such as self-driving cars) is going to create high demand for test and measurement services that help companies prove that new systems operate effectively and conform to rigorous international standards.

As a leader in this space, Calnex is well positioned for strong growth. It’s worth noting that for the six months to 30 September 2022, revenue was up 38% year on year.

Looking beyond the growth potential here, one thing I like about Calnex is the fact that the company is led by founder Tommy Cook. Research shows that founder-led businesses often turn out to be good long-term investments.

This is another stock that isn’t particularly cheap. Currently, the forward-looking P/E ratio is about 26. The valuation risk doesn’t put me off however. I see huge potential here.

Could Calnex Solutions Plc grow your wealth after 50?

[steeplejack] 07/3/2023 09:52

Indeed,forward PEs died with EBITDA but its difficult to teach an old dog new tricks!Cash flow is my obsession,Warren Buffet inspired.This stock will inevitably be oversold and enjoy a bounce....but will it last.

[hydrus] 07/3/2023 09:51

Agreed that valuing the company on one year's depressed earnings when the future prospects remain the same would be odd. I will keep some powder dry though in case that's what happens

[apad] 07/3/2023 09:45

I'm not a fan of 'forward multiples' for this type of company.

Three and a half years of revenue buys the whole of CLX.

apad

ps
I was a bit quick buying at 121p this morning. Later breakfasts in future. 😊

[steeplejack] 07/3/2023 09:36

Yes,i agree.It’s difficult to see how the stock can command a forward multiple of over 30 times that implies a price around a quid tops.One to watch though,well managed tiddlers like this could prove takeover targets in time.

Those well timed director sales reaffirm my faith in closely watching ‘insider’; dealing!