Spirent Communications Share Discussion Threads

[wall street trader] 07/3/2023 08:12

I'm buying more this morning

[weaverbeever] 07/3/2023 08:10

I read the results and thought, these seem OK nice rise in dividend. What the heck do I know. Down 15%Probably a good buying opportunity Good luck all holders

[martinthebrave] 07/3/2023 08:08

Down 15% & still falling.....

[redartbmud] 07/3/2023 07:54

Today's results are very encouraging, but with the caveat favoured by all companies reporting at present:

"Well documented concerns about the global economy have affected all participants across our industry and Spirent has not been immune to these pressures. As previously communicated, we saw some customers exercise caution towards the end of last year in response to broader macroeconomic conditions and this was most notable amongst customers for our 5G lab-based Lifecycle Service Assurance applications. This has continued into the beginning of 2023 and as a result we expect revenue to decline slightly in the full year 2023, and to maintain our gross margin with effective supply chain management."

Online presentation at 9.15am

red

[wall street trader] 07/3/2023 07:48

Am slightly down in my purchase but these results show this is a long term hold for me

[masurenguy] 27/2/2023 07:46

Spirent’s long-term outlook strong, says Royal London

Royal London’s Henry Lowson says macro headwinds have hit telecoms testing group Spirent Communications (SPT) but the long-term outlook is positive. Lowson holds the stock in his £417m Royal London UK Mid-Cap Growth fund, and in his latest fund update said the provider of test and assurance solutions for telecoms companies was a detractor in January.

"The business alluded to orders weakening in the fourth quarter within its lifecycle service assurance division. The macroeconomic environment has clearly impacted telecommunications customers’ immediate purchasing decisions but the longer-term outlook is undiminished." he said. He added that network operators need to manage, upgrade, and roll out networks "in a secure and cost-effective manner whilst meeting the demands for volume and speeds", which Spirent Communications can continue to offer. The shares rose 0.2%, or 0.4p, to 215.6p at the end of last week.

[shallwe] 09/2/2023 20:45

Great write-up in Investors Chronicle this week, at least they understand the company.

[wall street trader] 01/2/2023 11:27

i'm in now been waiting ages for an opportunity and that's now for the long term

[chard1980] 25/1/2023 10:00

Taken a nibble, seems ripe.

[shallwe] 23/1/2023 09:37

Of course it is, my bad, most of my stocks are AIM, so an automatic thought process for me.

[masurenguy] 22/1/2023 13:14

“Savage competition” between mobile operators will ensure that 5G-mobile network investment holds up during the economic slowdown. That means a strong pipeline of business for this global technology-testing specialist, not least because “analysts estimate barely 30% of all telecom network operators globally have deployed initial 5G networks”. Spirent boasts a “very strong balance sheet [and] some of the highest gross margins” in the industry. The shares are “a great way” to buy into the next generation of telecommunications. 275p" Shares Magazine 19 January.

Ouch - bad timing just 24 hours before the trading update crashed the price but the sentiment remains even more valid following the subseq18% fall in the shareprice.

No position yet but looking for a potential entry point.

[steeplejack] 21/1/2023 10:46

Spirent,formerly known as Bowthorpe,was listed on the London Stock Exchange long before the feral AIM market was created in the 1990s.

[mortal1ty] 20/1/2023 17:12

Also its not an AIM stock. Its ftse 250. Had been for a long time.

[mortal1ty] 20/1/2023 17:11

It is a very cyclical tech business that has performed well in an environment where tech stocks have been dropping massively. Discussion of uncertainty and a slowdown and H2 weighting just makes people think whether this is next tech company drop. Also... why own this when there are other tech companies out there down 70pc.

[shallwe] 20/1/2023 17:01

Wow, that was a harsh drop, yet the fundamentals still look good.It's a case of 'welcome to AIM'.

[wall street trader] 20/1/2023 14:41

I've been look at getting back in to Spirent - a great company and well run - will try and get in early next week for the long term - reckon it will hit about 205 area but would be happy paying a bit more if it doesn't

[steeplejack] 20/1/2023 12:45

This sort of price reaction is so extreme that it serves as an advert to invest in the bond market.Makes a cryptocurrency look like a steady eddy :)

[tim1478] 20/1/2023 12:13

I saw the dramatic fall, then read the report. I might be naïve but the report seemed good enough

The was posted by Buzz which was more negative

BUZZ – UK's Spirent Communications bottom on mid – caps over orders slowdown
11:07
* Shares of IT and network service provider Spirent Communications down as much as 17.5% to 230.4p
* Stock is top pct loser on FTSE midcaps index
* Spirent set to post worst day since Oct 2014, if losses hold
* Co sees its order growth to have slowed in the quarter due to delay in customer's investment decisions amid global market economic conditions
* Posts order book growth of only 7% in 2022 after 30% growth in H1 of 2022 due to weakness in its network validation and service testing software unit called the Lifecycle Service Assurance Division (LSA)
* Jefferies expects weak orders to continue well into H1 - 2023
* We have prudently assumed that there will be no material recovery in H2-23 either - Jefferies
* Stock hit lowest level since June 2022
* Stock lost ~6% in 2022
* Spirent stock up ~4.5% this month, as of last close (Reporting by Sruthi Narasimha Chari in Bengaluru)


Share price was at the top of it's range with a P/E > 20 which would account for the hit. It is towards the bottom of the range. I aim to hold unless it breaks below support

Naked trader has three positions on his virtual online portfolio around 250p

[doobz] 20/1/2023 11:33

Giving this a little wiggle room, only slightly down still and may well top up here. Still an over reaction I feel

[indiestu] 20/1/2023 11:12

Lol. That should have cleared out most amateur PI's stop losses.

[steeplejack] 20/1/2023 10:43

You're right,Sort of suggests that we're being primed to expect disappointing first half figures but shouldn't worry unduly.

[mammyoko] 20/1/2023 10:07

Early in the year to be warning about second half weighting when their results are traditionally second half weighted anyway

[owenski] 20/1/2023 09:42

"Heavily weighted" to second half, which means uncertain markets, kick the can down the road and hope it all comes good later... That's all well and good provided this unknown outcome does come good and not a deterioration over the next six months. SPT is on a PEG of over 1 as well so although a quality business, it's not cheap. Cash position is always good here though.

[steeplejack] 20/1/2023 09:37

Yes i agree,could be a good time to buy.The markets don't like Fridays and moves are all the more exaggerated as a consequence.The algorithms just seem to take over,swinging stocks around in an erratic fashion.

[cinoib] 20/1/2023 09:30

Seems to have everything under control apart from issuing on a Friday, so hard to warrant such a big drop, but like a lot recently well and truly over reaction and well over sold. Good chance for a top up.