Strix Share Discussion Threads

[bend1pa] 02/8/2022 12:50

The main point is that Strix have held up well during the pandemic. If macroeconomics was going to dent their earnings, then surely it would have happened by now. I'd be keeping an eye on the div for next year Because if that get's unexpectedly cut we'll probably be looking at an share price half the price of where it is today.

There's always been some shorting interest in Strix shares, which surged from last Sept.That fell away a bit from late June but is once again on the upturn. So what we've been seeing over the past year has been largely down to shorter's activity.

[dr biotech] 01/8/2022 23:00

70% of revenues are kettle controls. Laica accounts for about 17%. So if revenue drops 20% there it’d be about 3-4% of group total. So not really.

[trident5] 01/8/2022 22:13

Hasn't the Italian acquisition taken them outside their area of expertise and exposed them to discretionary consumer spend just when you don't want that exposure?

[glenowen] 01/8/2022 21:23

As a long-term holder, this is a case of experiencing "death by a thousand cuts". When will the pain ever end? My fear is that, like with so many other small companies, certain people are "in the know" about Strix and investors at large never find out about serious issues until a profit warning is issued. While I agree that it certainly looks very good value at the moment, I am not tempted to top up because of the risk of further significant downside.I do hope I am wrong, though!

[bend1pa] 01/8/2022 20:55

It's strange why Strix share price is seriously underperforming now, unless insiders have got wind of trouble brewing ahead. Except so many AIM and small caps stocks are currently being dumped at the moment. In their recent statement Strix did not indicate any sign of serious problems other than expect interim eps to be flat or slightly lower. If share price goes below 150, which looks likely atm, I've no qualms about topping up.

[gary1966] 01/8/2022 17:18

Yep watched this for probably 3-4 years and never bought in until today at 158p. I like the defensive nature of the business and the company have a good track record of defending their patents. Like the new products to drive growth and they seem to be being received well. I am hopeful from this level that these will do well, even in a falling market due to it's defensive qualities.

GLA

[dr biotech] 01/8/2022 17:17

Back to where we were 5years ago here.


Just looked at the dual flo kettle reviews, it’s going to need some design changes if the early reviews are anything to go by.

Looks like we are also into single figure PE territory, decent value.


hxxps://www.amazon.co.uk/LAICA-Electric-One-Cup-Dispense-Capacity/dp/B09VL8TK9P/ref=sr_1_5?qid=1659370225&refinements=p_89%3ALAICA&s=kitchen&sr=1-5

[freedomexpress747] 28/7/2022 08:55

This is one I have been monitoring for a while, great business, not without risk and have invested now as in sensible valuation territory. The consumer is by and large accepting price rises, and few will compromise on safety for anything electrical. No sympathy for shorters still squeezing here...

[charlotte2020] 23/7/2022 12:49

Must be in takeover territory now. Highlighted by Investec on a takeover screen a couple of months ago at 180p

[bothdavis] 23/7/2022 09:43

At the end of the day...if your kettle stops working, you get a new kettle!

Plus they have a very good moat with regards to all their product protection.

[bend1pa] 22/7/2022 20:48

== Selling volume,
1.5m traded today (mostly selling of course). Of late it has been consistently 0.5m

HOWEVER the longer term view sees that 1.5m is not by any means big volume. On significant moves 10m is nearer the mark.==

Yes, well being an AIM stock, that sort of selling volume will dramatically drive the share price down. Like most AIM stocks Strix is narrowly traded. This bear attack has come about mainly due to Canaccord Genuity's downgrade note today from a 'Buy' to 'Hold'. If that spooks PIs, then so be it. There is nothing fundamentally wrong with Strix that is facing the same inflationary/recession climate as everyone else. Nor did they issue a profits warning in their interim closing statement. I'd expect eps to be roughly the same or slightly lower than PY's. interim So reading between the lines it seems like a panic over nothing. Not expecting a div cut.

[elsa7878] 22/7/2022 18:43

Hi, I don't think Graham was negative at all, quite balanced in fact. Correct in pointing out that they were very successful as a 1 product business and with its acquisition drive comes some risk. He summarised by saying it was probably appropriate on 12 x - well it's since dropped 15% and is closer to 10.5x.
I just fail how to see that a slowdown is going to markedly affect kettle sales. Cost of living issues = more time at home = more use of the kettle = quicker it will need replacing...what do I know! Meanwhile the water business is growing.
The premium rating of 20x has evaporated (not sure why it ever reached that level), previously it was more like 15x and now 10.5x.
Debt is not an issue. £50 million is very manageable when post-tax they make > £30 million pa.
I'm happy buying here.

[thorpematt] 22/7/2022 18:07

niklol,
I think you're post was useful.

In fairness to Shore Capital they have at least got the price action correct; most of the other brokers were buy or hold and either of those strategies would in reality have lost you money! It is, perhaps, for that reeason, that they are re-iterating whilst others have gone a bit quiet.

----
melody9999,
I recall at one investor presentation they he was asked why they all managed to sell so near the top. He responded that it was a tax liability that they were all exposed to (HK I think). I would've asked the question much less-politely than it was asked (so it was good someone else asked first). I am minded to believe in the integrity of the management here on.

-----------
elsa7878, bend1pa,
FWIW I reckon your purchases will prove prudent in due course.


----------------
I felt yestrerday's RNS was badly written (particularly the second sentence of the trading update section). I also think Graham Neary's comments* may have spooked a few investors into fear mode...We know what to do when the market is fearful of course.

*I should add that I have no issue with him saying it as it is. In fact I like his scepticism. It helps to balance any confirmation bias.

-----------
Selling volume,
1.5m traded today (mostly selling of course). Of late it has been consistently 0.5m

HOWEVER the longer term view sees that 1.5m is not by any means big volume. On significant moves 10m is nearer the mark.

free stock charts from uk.advfn.com
'>

[bend1pa] 22/7/2022 14:57

Just topped up. Don't know about any large seller (who is it/are they), but this looks like a tree-shake after negative views today by brokers Canaccord Genuity, and recently, Shore Capital who have consistently rated this as a 'sell', so no change there.

Don't see the div being cut after Strix has shown such resilience during covid, so it's now in 'add' territory for me and a decent income stock if nothing else.

[elsa7878] 22/7/2022 14:07

Love these situations where there is a large seller. PE of 10.5 and a 5% yield is not to be sniffed at. I've been adding with every drop.

[dr biotech] 22/7/2022 09:33

They also sold a huge amount around a year ago at levels way above this. Long term hold for me, the controls are like a utility and hopefully the water side will provide growth.

[melody9999] 22/7/2022 09:20

Since then - 5th April 22 to be exact, Mark Bartlett, the Chief Executive Officer, Raudres Wong, the Chief Financial Officer and Gary Lamb, the Chairman purchased 134,249, 22,200 and 44,400 ordinary shares of £0.01 each ("Ordinary Shares") respectively @ 199p. Richard Sells, a Non-executive Director purchased 9,894 Ordinary Shares at a price of 202 pence per Ordinary Share.

So you can now purchase at 15% below levels at which our BOD were buying!

[niklol] 22/7/2022 08:18

Oh yes.
You're right.
Sorry for posting.
Glad it's old news.

[sharw] 22/7/2022 02:51

I think you are referring to Shore Capital which has reiterated its sell rating which it has had since at least January so no news there then.

[niklol] 21/7/2022 20:39

Daily Mail Broker views today has Strix as Sell

[edmonda] 21/7/2022 07:56

#KETL Price increases, new product launches, implementation of additional efficiency measures, and an easing of COVID-19 related restrictions all underpin our expectation of a much stronger H2 for Strix Group. As such, we are leaving adj. EPS unchanged for FY22 despite macro and Russia-related headwinds during H1. We estimate a broadly unchanged outcome with adj. PAT and EPS declining modestly by an average of 0.9% to £32.1m and 15.3p, respectively for FY22.

We continue to believe that the target of doubling revenues in the five years to FY25 remains on course. Strix also continues to seek the purchase of either complementary technologies or companies, aided by its strong balance sheet.

We expect the stronger H2 bias in trading to result in only a modest adjustment to our fair value to 275p (previously 284p) because of the measures undertaken. This is despite tweaking our estimates to reflect the larger than anticipated reduction in revenues associated with Russia and peripheral states.

Our fair value/share at 275p continues to be at a significant premium (nearly 50%) to the current price.

[bend1pa] 19/7/2022 13:21

Looks like a bottom has formed around 161p. Glad I bought some while it was still in the 160s, and if it dropped back to the 160s, I'd happily buy some more. Don't see this falling to the 120s as someone was predicting, unless the company produces unexpected bad results. Yet Strix has proven to be highly resilient throughout Covid, and that alone has to be a big plus factor.