Strix Share Discussion Threads

[darrin1471] 23/8/2023 17:02

I'm heavily overweight in Accrol. They make own brand toilet rolls, kitchen rolls and wet wipes etc for the UK. Paper prices rocketed. They were able to pass on prices in full but there was some price drag. Pulp prices have been falling since January so expecting some stickiness as input prices fall. ACRL invested heavily in automation in the recent past and that investment should now bare fruit. Own brand volumes are growing. ACRL earlier this year said FY23/24 cash generation will be "quite profound".
I bought at last years lows and keep adding. Price stable since January then dropped 10% the last 2 weeks and sitting on top of 200ma.
I would top slice from 60p but watch closely as this may turn into a growth share.

McBride(MCB)my 2nd largest holding make own brand household cleaning products. They were at financial risk last year when I bought at the lows. A wider range of products and markets. UK, Europe and SE Asia. Their input price inflation was severe and they were unable to pass on the price rises quick enough. The share price is up 50% the last 6 weeks and now consolidating. Higher risk, less well run and more variables than ACRL.
I would top slice at 60p to 100p but would continue to hold for possible all time high in 2-3 years.

Jet2. Great customer service and employer. Having a great summer. Profitable, growing and sitting on a pile of cash. Share price down 20% from year highs. Should regain high and more before the end of the year.

Strix. Bought at around a £1 in January and have added. Still waiting.

M&S MKS . I bought in December and have already top sliced but I do think this will continue to rise. Likely to re-enter FTSE 100 and restore dividend this year. Target to double from here in 4 years.

JDW. I've taken my profits but ready to buy back in.

Angling Direct. ANG. Up 50% last 3 months. Would top slice at 60p (another 50%). August 2022 was very hot and river levels were too low to fish in what is normally their best month. H2 like for like should be strong. Long term ANG are expanding across the UK and now EU. Online knowledge is taking over from local shop knowledge allowing ANG to consolidate. A bit of net cash and low EBITDA as they focus on gaining market share. Likely to be taken out by PE or international business who can fund quicker expansion.

I am happy to discuss further on appropriate threads.

[brucie5] 23/8/2023 14:29

Thanks darrin. I'd be interested to know your top five small cap recovery shares. There is such value out there in UK market at the moment it is difficult to know where to focus.

[darrin1471] 23/8/2023 13:59

I'm happy to listen to any opposite views.
There are lots of bargains in UK small caps.
I'm looking for those companies who are most likely to recover first.
Those who suffered from higher commodity prices and covid supply chains problems should be recovering now.
Current interest rates are only back to normal IMO so any housing or building related stocks are facing a multiyear headwind.
I have spoken to the owner of a top of the range kitchen design company who would install Billi style taps and he does not expect any impact to his business from higher inflation or interest rates based upon his 40 years experience. It would need a much deeper recession or a financial crisis to effect his customers.
I do like the Strix range of kitchen top instant boilers, one cup kettles and the ability to heat to a range of temperatures. A very small market at the moment but a push on energy efficiency could see them become mainstream if they are as long lasting as a kettle. Early versions (5+ years ago)tended to have a short life and look tatty due to limescale.
Water filtration and water bottles look like a segment that will continue to grow.
Kettle controls historically recover well from a downturn. China produces the vast majority of kettles but I do not know what percentage they buy. My impression is that kettles rarely break and they get updated during decoration or replacement of the kitchen. A consumer downturn could therefore soften sales.

[brucie5] 23/8/2023 12:43

Glad to hear you're confident of recovery here, Darrin. I've added a small amount on this retrace.

[darrin1471] 22/8/2023 13:38

Strix and Luce may have similar looking 2 year charts but I am expecting Strix to recover well before Luce.
Strix took on debt to buy Billi in a fire sale while their China customers were struggling with covid lockdowns. Strix are exiting those headwinds while Luce are just heading into a domestic and commercial downturn which will last years.

[brucie5] 22/8/2023 10:30

Maybe a bit previous? But 90p looks good support. Pending next break over £1.00. Maybe also look at LUCE for very similar risk/reward.

[chrisdgb] 14/8/2023 21:41

Chart looking better….

[mr hangman] 14/8/2023 16:49

Did all you Dividend spotters, hang around train platforms in your younger years

Can't see the price breaking out, until the results

[alter ego] 14/8/2023 16:32

Cumbrian. Think HL dont allow reinvestment until you transfer to your capital account. It’s an option on the page that shows where you hold cash.

[darrin1471] 14/8/2023 16:08

With 50/100/200 ma at 100p, I am hoping this will be a base to kick on from here.

Last weeks trading volume was the lowest since June 2021

[darrin1471] 14/8/2023 16:03

My KETL shares are held with Halifax and the dividend showed up as cash on Friday and can be invested.

[cumbrian2] 14/8/2023 14:25

Mine is with H.L. Shows as cash on account but not yet cleared to reinvest. SCSW rated the shares as a ''buy'' at the weekend. Nothing new just reconfirming what was said in the recent update.

[pottsypotts] 14/8/2023 14:21

Mine seems to have been reinvested today with Halifax share dealing, who you using

[cumbrian2] 11/8/2023 17:00

Good to see a healthy dividend paid today. Strong long term hols for me and will use divine to top up

[darrin1471] 07/8/2023 09:40

2 x 272k trades at 97.9178 this morning.
We could expect a holdings update soon if Octopus is the seller.

[darrin1471] 04/8/2023 11:32

50/100/200ma all on 100p
900k traded in 2 trades at 100p this morning following 1.3m traded above 98p on Monday

[chrisdgb] 04/8/2023 09:26

Finding the £1 barrier tough to break through.....

[chrisdgb] 25/7/2023 08:08

China stimulus should be positive.......

[wad collector] 21/7/2023 10:49

I wish that were true, it is a positive spin on a disappointing sp!
Hold and hope for me.

[chrisdgb] 21/7/2023 10:44

Vulnerable to a bid if it stays at these levels much longer.........

[darrin1471] 19/7/2023 14:59

Mark. I have previously listened to your podcast on Marks Electrical.
Both were great summaries of the companies.
Your percentages regarding market share (10:38)got a little confused. For the record Stix have a 70% market share by value of the regulated market. 40% of the China market by value and slightly less than 35% by value of the non regulated market according to the last Strix annual report (page 24 & 25).
I also thought you did not explain the market for the Billi products very well. Paul got a little stuck in his view that the water tastes good in Bolton and he would not pay £1000's for a fancy tap. You missed the point and the market for the Billi product.
Upon reflection anybody considering investing would have no idea from your podcast about the range of products Strix are expanding into. A good starting point would be Strix's eBay store.

You could of also talked of the dividend history beyond the current yield.

[markatkinson] 19/7/2023 07:59

In this latest episode of the Desert Island Investor my very dear friend and fellow ‘pod-castaway’ discuss Strix ( KETL ), their traditional business of kettle safety controls and more recent moves into water and appliances.

We cover my recent trip to the Isle of Man and my attendance at the Investor Site Visit and AGM over successive days.

[dr biotech] 05/7/2023 16:50

Debt has been a concern for a while now here. They took on more for the new factory, and with the supply chain issues and acquisition last year. They always stress debt reduction now, reduced dividend etc to cover it. Its been a disappointing long term investment for me, but I feel there are better days ahead. Certainly don't feel a single multiple is justified, but it is what it is.

[brucie5] 05/7/2023 16:09

Maybe ongoing tensions around China. KETL and LUCE to my mind present very similar prospects - and issues. I hold both but am not adding to either right now

[rcturner2] 05/7/2023 15:55

No because macro factors have changed in the meantime.

Interest rate outlook is now much worse.