Luceco Share Discussion Threads

[hamhamham1] 20/7/2022 21:20

Happy in that I bought just over a quid.

[hamhamham1] 19/7/2022 10:09

Happy holder here.

[owenski] 19/7/2022 09:45

No Brucie, been watching it for a recovery play, being that it has lost 75% of its value I'm wondering whether the rout is overdone.

The DIY division accounts for c80m of revenue and so is material wrt the stated softening of that division and the statement suggests further softening.

There's no evidence of accumulation taking place here as yet, so I may or may not place a trade if that changes. No need to rush into these things.

[brucie5] 19/7/2022 09:21

Seems to bouncing back somewhat now... I don't hold but have been watching the chart.
Are you in this Owenski?

[owenski] 19/7/2022 08:33

Home spending still softening, but this part contains stunning growth -

"We launched a new range of EV chargers in Q2, branded jointly under BG and Sync brands, which are selling well. We expect EV charger sales to increase from GBP1m in 2021 to c.GBP7m in 2022, which includes nine months of Sync EV ownership, at an operating margin well above the Group average."

If the business doesn't deteriorate then this looks a good entry price for a recovery play.

[johnrxx99] 19/7/2022 08:30

To be honest, doesn't sound too bad. Holding their own and no real nasties like Chinese pressure. I won't be buying in this market but will continue to watch.

[brucie5] 19/7/2022 08:03

This will be interesting. I'd be interested to hear comment on today's statement.

[purplepelmets] 19/7/2022 08:02

Ouch ya buggaz

[diku] 06/7/2022 15:01

What a mountain reversal on chart...morale of story when in good profit don't hang around..

[hamhamham1] 06/7/2022 14:59

Bought 2100 more of these puppies today.

[purplepelmets] 05/7/2022 07:12

Supreme warning this morning its lighting division is underperforming. Expect some readacross this morning here

[hamhamham1] 05/7/2022 06:56

Maybe, maybe not, I have found them more reserved than most, , but for the brave, there are plenty of beaten up shares out there which can give 3x returns over next few years IMO.
That's one og a few which I have taken a chance on, alongside having boring steady shares as well.

[our haven] 04/7/2022 18:56

Investors Chronicle ratings have a very poor record all round in my experience.

[hamhamham1] 04/7/2022 10:33

More work for Luceco's recent SyncEV aquisition?

[hamhamham1] 03/7/2022 19:30

Another investors chronicle article from end of last year. They had a buy rating on it when it was approx 430p

[hamhamham1] 02/7/2022 09:19

Buywell. Most all the info you asked for is in this article. But since then they have bought UKEV and DW Windsor.


A snippet from that, the share price was 326p at the time this was published, the last 2 paragraphs are...

The company is positioning itself to sell into growing markets and its strong return on capital bodes well. It has also promised to return at least 40 per cent of its earnings as dividends. The recent worries with its supply chains are offputting and, as with any macro issues, it is difficult to forecast what will happen. It also helps explain the rise in inventory levels and receivables, something that would normally be considered a classic red flag.

Brokers aren’t concerned about this in the medium term. FactSet's consensus EPS forecast has stayed at 21.6p for 2023. Coupled with Luceco’s recent share price drop, this means the ratio of price/next-twelve-month earnings (NTM PE) has fallen from 22 to 16 in the past month and the price/earnings growth (PEG) ratio sits below one. True, a warning cannot be ruled out given the backdrop, but for a company this profitable it looks good value, although there is no denying it is a stock that requires nerve to buy.

[hamhamham1] 01/7/2022 18:25

Added another 5k of these today

[buywell3] 01/7/2022 08:12

What percentage of LUCE products sold are manufactured by them in the UK ?

[ymaheru] 01/7/2022 07:32

I think the divi will remain at or close to current levels.

1- in fy21, LUCE say, “…expect our Adjusted Gross Margin from now on to exceed the 35.8% delivered in the second half of 2021.”

2- in Q1 update, they say, “…We are targeting Adjusted Gross Margin of 37% during H2 2022.”

We also expect revenues to be down 2-3% in FY22, so adj profit will be similar to FY21.

Added to this, LUCE’s stated div payout ratio is 40-60%, but they only paid out the minimum 40% last year.

If profits remain roughly similar, then I’d suspect divs will be flat or have a token increase, depending on business outlook for 2023.

[purplepelmets] 01/7/2022 02:46

don't expect the divi to remain as our margins will take a kicking

[cyberbub] 30/6/2022 18:16

Thanks guys I'll think about it. The p/e is low, but doesn't sound excessively low for a plain vanilla manufacturer of widgets with no IP protection. PEG also above 1. I'll have a look at the accounts and board though.

[brucie5] 30/6/2022 15:34

A bit like Ketl, minus the IP?

[ymaheru] 30/6/2022 15:19

Low debt growth company.
Well placed in 3 markets:
- LED lighting
- Wiring accessories (power sockets etc)
- Portable power (extension cables)

Moving to higher margin products like USB wall sockets and remote control lighting etc.

Also, last year moved into outdoor lighting (growth market) and EV chargers.

Dependent on construction industry for a large part of business.

Net debt was one year net income end of last FY.
Quadrupled profit in 4-5 years.

Note: 2020 profits flattered as net tax was negative, making it seem 2021 had no growth by comparison, but that’s wrong.

Almost all production is in China, so affected by lockdowns, shipping and also a little by higher raw material costs, but passing those on.