Luceco Share Discussion Threads

[bigbigdave] 13/10/2021 07:39

Fingers crossed that puts a floor on the share price

[dr biotech] 13/10/2021 07:35

Looks like they paid 9x earnings compared to current 16x for luceco. Plus the assets. Seems decent if small to me.

[our haven] 13/10/2021 07:24

The acquisition of DW Windsor looks like a good fit to fill a gap in public sector lighting. No idea if the price for the purchase is keen, but given Luceco's track record it is likely to be keenly priced. There are bound to be cost savings.

[primarch1] 11/10/2021 13:58

They have already addressed this issue.The cost of a sea container from China to the UK has increased nearly five-fold over the same period. We estimate the total annual cost of inflation to Luceco to date will be GBP20m, a 15% increase in our cost of goods sold, of which GBP13m will arise in 2021 and GBP7m will be deferred into later years by hedging arrangements.We have had little option but to update our selling prices in response to this industry-wide phenomenon, albeit with a slight lag due to notice periods and order lead times. We expect 75% of our update to be in place by the start of the fourth quarter, with the remaining 25% to follow in early 2022.

[pre] 11/10/2021 13:45

yes that's a horrendous increase for businesses, hopefully things will become clear in the next trading update.

[dr biotech] 11/10/2021 13:34

Cost of a container has risen four fold and may go higher. Whilst that’s obviously significant, I’m not sure what that means for margins and the bottom line.

[pre] 11/10/2021 11:07

any mention of estimates regarding the shipping costs - that will be the concern i guess

[dr biotech] 11/10/2021 10:50

Gets a moderately positive mention in this months scsw but is topsliced in the model portfolio- doesn’t say at what price though. Short summary is that an acquisition is due “soon” but shipping cost are an issue.

[dr biotech] 07/10/2021 12:30

I feel that potential disruption in Chinese manufacturing and shipping are causing investors to be wary. UPGS is a similar company in that whilst it has a UK design and development section most of the products are made in China - LUCE has an assembly plant over here but thats mostly reliant on Chinese parts. UPGS are down 35% since their last positive trading update. There's a lot of bad news priced in there and here that may just melt away - but also I'd say the headwinds are stronger now than they were a few months ago so some pullback is justified. I feel markets in general are more nervous - this is shown in the smaller FTSE250 and russel index if not yet in the DOW and FTSE100.

But I'm looking at this as a longer term hold - 3 years or so, and I've avoided buying at the top which is something.

[ymaheru] 07/10/2021 11:54

Hi Dr B, I really don’t think LUCE was overvalued. It’s price rose a lot because it’s profits rose.

So, these prices look like a steal.

I think it’s dripping due to inflation and freight worries. There’s a trading update end of next week, so we’ll see how affected they are at that point.

[dr biotech] 07/10/2021 11:26

I've bought in today, about £10k which makes a decent size holding for me. I dont really understand why its dropped so much - sure it may have been overvalued but now it seems to have gone the other way. Having said that I hold a lot of shares - UPGS/VLX etc that have dropped by 25%+ since the beginning of sept and thats been quite painful. My largest holding which is a trust SL Smaller companies - has dropped 10%. If that was the FTSE100 we'd have seen it on the main news but thats held much better.

[ymaheru] 04/10/2021 13:24

Yup, dirt cheap.
It’s already my biggest holding, but I’m still tempted to buy more.

[primarch1] 04/10/2021 13:14

40% fall from high ,crazy after those results ,market seems hung up on getting goods from China bargain at this price.

[our haven] 01/10/2021 07:25

I note the new lending facilities. Will they spell out sometime soon any changes to their development plans?That said, the management team have been doing a great job so far. One happy investor.

[tomps2] 30/9/2021 09:01

Iain Staples mentions Luceco (LUCE) at 40m30s in the latest PIWORLD interview

Watch the video here:

Or listen to the podcast here:

[strollingmolby] 23/9/2021 13:18

Seems to be bottoming out after the recent sell-off so bought myself an initial stake this morning. Hopefully sentiment turns soon and supply chain delays and cost inflation concerns are now effectively priced-in at these levels. Onwards and upwards...

[sunshine today] 12/9/2021 20:33

Might like to look a lighting minnow, HDT margins of 35%, net cash 2/3 of share price, in profit.

Especially if your knowledgeable regarding lighting trends. (;I am not ).

[ymaheru] 08/9/2021 14:39

My assessment yesterday was that the share price got ahead of itself a bit inbetween the July 16th trading statement and the interims.

It’s still actually higher than after the trading update, although the interims gave v little new information.

Guidance given at the interims wasn’t negative, so I can see the share price gyrating around these levels for some time and then rising after the next trading update.

[hawaly] 08/9/2021 11:43

Need strong nails to hang on to this one.....

GLA 😎

[iandippie] 07/9/2021 13:44

Outlook pretty cautious. Given the recent rise the drop today is not that surprising.

[petes5] 07/9/2021 13:36

Good job the results were good, only down 8%.Seems to be a regular thing now, good results shares drop.

[our haven] 07/9/2021 07:34

Very good results. It's a case again of onwards and upwards, they just continue to deliver.:-)

[johnrxx99] 07/9/2021 07:21

Commenting on the results, Chief Executive Officer, John Hornby said:

"The Group has outperformed the market throughout its history thanks to its leading brands, strong channel relationships, well-invested product innovation and operational agility. The competitive advantages of our business model have been accentuated during COVID, accelerating our market share gains. As a result, in the first half, we have increased Group revenue by 31% and doubled Adjusted Operating Profit against pre-pandemic levels.

[johnrxx99] 01/9/2021 07:52

Sell some buy some - a correction is good for the game (as long as it's not an issue:-))

[ymaheru] 31/8/2021 12:30

While market has taken a dive in last hour or so.

I’m still happy with LUCE valuation.