Strix Share Discussion Threads

[chopp1] 12/4/2023 16:38

This company has seriously too much debt and the analysts are talking it up on expected Chinese consumer demand improving. I’ve just sold at a marginal profit and won’t be going in again. The divi gas to be suspect with the debt load.

[chrisdgb] 12/4/2023 14:40

Let's hope so, it has had many owners in the past and a bid is quite possible this year....

[masurenguy] 12/4/2023 13:04

Back above 100p again. Can it hold that level to close above?

[wad collector] 10/4/2023 15:20

Tipped by ST in IC this weekend.

[masurenguy] 08/4/2023 13:21

Liberum: Strix sees green shoots of recovery

The markets in which kettle component group Strix (KETL) operates are recovering but this will need to be sustained before the shares can rerate, says Liberum. Analyst Edward Maravanyika retained his ‘hold’ recommendation but increased the target price from 105p to 110p on the stock, which jumped nearly 10% to 100p last week. The shares have risen 18% this year. Full-year 2022 results on Wednesday came in line with expectations but investors were cheered by the outlook statement that ‘highlighted the green shoots of recovery emerging in Chinese kettle controls in the early part of full-year 2023 after a tough 2022’. After a pandemic hiatus original equipment manufacturer capacity is now ‘running at higher levels than is typical at this of year,’ Maravanyika said. ‘The valuation is undemanding but we believe the market will need to see evidence of a sustained recovery in controls as well as net debt-to-Ebitda multiples falling before shares can sustainably rerate,’ said the analyst.

[darrin1471] 06/4/2023 09:59

Strix FY 31/03/2023 Investor Presentation now available to view online.

[lovewinshatelosses] 01/4/2023 13:48

For every seller, there is a buyer of course and I can absolutely see the case for holding this one and leaving it alone.
IMO, in this market, 120p might be a stretch, but over a longer period of time, quite feasible, especially once they get that debt pile down to 1.5 times or preferably lower.
My decision was based on the gamble that I will get a lower price again; potentially a fair bit lower if we see the long-awaited next market leg down. But it may not come and I certainly do not think that those still holding around a quid are crazy to do so.
IMO this is not overvalued today, but I have benefited from the nice trading range over the past few months here and naturally it is my hope for this to continue. GLA.

[tole] 01/4/2023 07:29

https://masterinvestor.co.uk/equities/small-cap-catch-up-diagnostics-bricks-and-switches/Strix Group (LON:KETL) – Can Billi Help the recovery?There is no doubt about it – 2022 was an awful trading year for the kettle safety controls group.Revenues were down 10.5% at £106.9m (£119.4m), while pre-tax profits fell 31.1% to £22.2m (£32.2m), earnings were off 28.3% at 10.9p (15.2p) and the dividend was lowered 28.1% to 6.00p (8.35p) per share.Even net debt was hit – jumping form £51.2m to £87.4m, a rise of 70.7%CEO Mark Bartlett stated that:"Following a period of uncertainty across a number of Strix's key export markets in Q4, recent sales data in 2023 indicates some green shoots are appearing and the path to a return of growth is opening across all segments.The successful integration of Billi will propel Strix into a new growth phase, further diversifying away from the core Kettle Controls business with strong potential for greater top line growth and improved margins going forward."Analyst Andy Hanson at the group's NOMAD and Joint Broker Zeus Capital is estimating that the current year to end December 2023 will show sales of £155.6m, upon which the group could well make adjusted pre-tax profits of £29.7, worth 12.1p in earnings and covering a 6.3p dividend per share.Looking ahead he sees further recovery taking sales up to £171.6m, profits to £33.8m, earnings up to 13.8p and enabling a 6.8p per share dividend.The question now is – will the Billi acquisition help to kick upwards the group's profit recovery. It will not be quick, but a steady progress would be beneficial.Capitalised at £219m, the group's shares at the current 97p look appealing, trading on less than 8 times price-to-earnings, while yielding a very handsome 6.5%.I now set a new Target Price for the shares at 120p.

[dr biotech] 31/3/2023 17:38

ST rates it as a recovery buy. Writes a lot about the billi acquisition, a bargain buy at 7x earnings from a forced seller.

[rcturner2] 31/3/2023 14:11

I think a lot depends on your time frame.

I am pretty much fully invested now as I have been able to buy good companies at cheap prices and as a value investor that is all I can ask for.

[simmsc] 31/3/2023 11:55

Too right melody - now is the time to add cash to the market and hold.

[melody9999] 31/3/2023 11:52

Re: 'this is not a buy and hold market'. Actually I think this may be a good time to place some positions with a view to holding longer term. Especially for companies like KETL where the underlying demand is reliable. Added a few more this am.

[lawson27] 31/3/2023 09:45

Nice to see it pushing through 100, GLA

[lovewinshatelosses] 30/3/2023 11:51

I have taken profits again. Plenty still left on the table for the next man too, I am sure. If the markets sell off again at some point soon, and I am able to return here, I will be most pleased. I like this outfit. IMO the positives outweigh the negatives - but this is not a buy and hold market right now either. To my mind anyway. GLA.

[iamnotanumber6] 30/3/2023 10:32

Yes, his write up is on the IC website from yesterday, not an online subscriber so can't see his conclusion, but I guess it's positive from the mark up.

[mr hangman] 30/3/2023 10:17

Has ST just mentioned something I wonder

[robsy2] 30/3/2023 10:04

I think so too.Looks like a decent recovery buy with a nice dividend to reward patient investors and it has ST support which helps bang the drum.

[mr hangman] 29/3/2023 09:14

Yes, plenty to like in the coming years, with the situation in China, only getting better, with a 6% yield thrown in, certainly worth the risk.

[lovewinshatelosses] 29/3/2023 09:07

Size of dividend cut was fine IMO and sensible with that debt pile, which was a little higher than I hoped for. Not concerning either though. Plenty to like in this company IMO. See if it will crack the 50 DMA at the second time of asking...

[martinthebrave] 29/3/2023 08:55

The only thing new today was a positive outlook. No surprise that the share price is rising. I Hold.

[melody9999] 29/3/2023 07:38

Yep share price marked down in anticipation of these results which are pretty much as expected with a brighter outlook