Spirent Communications Share Discussion Threads

[masurenguy] 15/3/2023 07:49

Four directors and/or associates have purchased 95,105 shares collectively, since the annual results were published last week, at an average price of circa 181p.

[wall street trader] 08/3/2023 16:31

Am gonna sit back for the next few years and see what happens - won't be posting just observing - think I have a fair price for a great business

[kiwihope] 08/3/2023 07:42

Price just returning to fair value. Since 2019 eps increased by about 30% but price doubled. Was valued for perfection. Always at risk of a fall...

[1knocker] 07/3/2023 20:27

I held Spirent years ago - in the red for a lot of the time but sold at 205 which gave a good profit. I have kept a general eye on them since, and watched the price go a good bit higher than that. Its a good quality business. Today I bought a few at a fraction under 180. It could fall further, and no doubt will if there is another profit warning. I expect I shall again be in the red for significant periods, but I think Spirent's time will come again. By then, I hope to have built up another decent sized holding.

[masurenguy] 07/3/2023 19:05

"The index tracking the UK’s large and medium-sized companies is now trading at a record discount of 40% to the US markets, putting on London’s standing as several firms mull a switch to Wall Street." The Times: 7 March 2023.

[2bluelynn] 07/3/2023 17:11

Calnex clx dropped 31% today on news ! Don't hold either but will look at this to see where the bottom ish lies

[apatel21] 07/3/2023 16:50

And £210m net cash on the B/SEquivalent to c32p a share

[willie99] 07/3/2023 16:39

I think this is another example of the London markets inability to properly value technology stocks. This low valuation leaves it open to a foreign (probably U.S.) takeover, with the Fx rate making it even more attractive. They get circa 50% of their revenues from the U.S. so it would be surprising if a U.S.fund wasn’t looking at them. I topped-up my holding today on this thesis.

[masurenguy] 07/3/2023 16:30

With a market cap of 2 x annual sales at today's closing price of 180p, this could easily become be a sitting duck for a US predator.

[mayers] 07/3/2023 16:11

'Those that are down need fear no falls', Mr Powell. At least for the present.

[fuji99] 07/3/2023 14:32

The reason for such sharp drop could be the revenue stagnation in 2023.

[masurenguy] 07/3/2023 14:16

Looks oversold at virtually a 3 year low. No position here yet but will keep this under close review since it looks rather tempting at this level.

[wall street trader] 07/3/2023 10:16

Yep you are right but am 60% invested in funds so not loads to worry about - review my long term shares on the weekly charts not any less

[antanatar] 07/3/2023 10:14

This just strikes me as being oversold and stop losses being taken out.... fundamentals of the business are solid and wouldn't surprise me if the company gets snapped up somewhere down the line

[steeplejack] 07/3/2023 09:58

Yes and that approach is more than prudent but you end up potentially creating your own indexed FT250 fund and there's a lot of stocks to monitor.I've always liked Spirent but the market appears less than enamoured so i'm steering clear until there's greater clarity.

[wall street trader] 07/3/2023 09:35

I guess time will tell - I'm invested across many areas and never put more than 2% in any one share - that's a positive way to ensure you don't get burned

[steeplejack] 07/3/2023 09:28

Yes you're probably right but i've got this nagging doubt that 5G is proving something of a damp squib.All those exciting new applications will be put on the back-burner in a difficult economic climate.5G doesn't appear to be the compelling leap forward that was heralded.

[wall street trader] 07/3/2023 09:05

Am happy at these levels to invest - it's very hard to pick the bottom but think longer term this will look cheap

[henley2] 07/3/2023 09:00

Don’t disagree with you, it’s just timing the entrance that’s tricky.
Would it be a surprise if the company were to say later on in 2023 that customers have continued to defer orders resulting in more downgrades?
Don’t know …. but the trend at present is down.
On a 5 year view it’s a buy.

[wall street trader] 07/3/2023 08:49

not all come in threes this is a well run profitable company and will weather any storm

[henley2] 07/3/2023 08:46

Sales slightly down.
GM Flat
Op Costs +2.5%
Tax Rate rising to 15%
EPS -15-20%
Net cash, strong market position, profit warnings come in 3’s so risk of further order delays in 2023.
Company will probably be snapped up by US private equity player

[wall street trader] 07/3/2023 08:42

bought more

[wall street trader] 07/3/2023 08:30

I'm investing for 20 years so happy at these prices

[zipstuck] 07/3/2023 08:25

Just nervous that warnings come in three's. H2 this year could be risky IMO

[slopsjon2] 07/3/2023 08:17

From the Outlook section.

"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."