Valirx Share Discussion Threads

[rainmaker] 04/9/2021 12:06

I have to ask where are the Thematic Institutional Investors? I wouldn't name them but they are paid solely to seek and find such opportunities-its their job-to capitalise and exploit industry megatrends such as the emergence then domination of EV. With annual global automobile sales expected to reach 70mln this year, this is a multi billion dollar industry and Electric Vehicles is by far the biggest technological revolution to ever impact on this Industry.

AIMHO, DYOR as I have done mine

regards

[rainmaker] 04/9/2021 11:34

"Buy Sheep, Sell Deer"

regards

[rainmaker] 04/9/2021 10:46

From many years experience as a Stockmarket Value Investor you learn that "The Market" has definite "blind spots" where it doesn't process information either effectively or efficiently.The accurate valuation of brands is one case in point as Investors overwhelmingly don't understand the competitive advantages they bring to a business and the enhanced value they create so they can't value them properly. Another is so called "earnings myopia" Investors all consuming fixation with very short term earnings outlook at the expense of all else rather than the longer term earnings and I believe this applies to Volex. Everyone knows, or should know, that Electric Vehicles are quite simply a better technology and there is huge growth to come and its happening right now.

AIMHO,DYOR as I have done mine

regards

[rainmaker] 04/9/2021 02:04

Certainly for a Volex's incredible predicted growth rates to come-according to a UBS report, EV are expected to reach 25% and 50% market share in 2025 and 2030 respectively from just 3% in 2020(note there was a report released at the beginning of August stating that EV market share of new vehicle sales are now 8.7%) and margins that are an excellent at 9.7% and growing consistently,there is a major anomaly that Volex is trading at just 2.27 times annual sales v a sector at 6.41 times sales. IMHO this huge discrepancy can only be resolved by a sharply higher Volex share price.

AIMHO, DYOR as I have done mine

regards

[rainmaker] 04/9/2021 00:56

Ben Graham's allegory "Mr Market"

hxxps://fs.blog/2013/11/mr-market/

Remember

The Market is there for your convenience to serve you and not you serve the Market.

Never take investment advice from Mr Market by buying when prices have risen steeply or selling when prices have declined considerably

Only deal with and take advantage of Mr Market when it suits your book and he is offering to buy your holding at an unrealistically high price that bears no relationship to the company's operating performance and prospects or he is irrationally offering you his holding at a substantial discount to its intrinsic value.

Always think about price and value

regards

[rainmaker] 04/9/2021 00:34

Hi Steve, sorry missed your post. I'm really not worried because I'm not too interested in the share price but far more interested in the underlying company,its developments and progress.As Ben Graham famously remarked "In the short run, the market is a voting machine but in the long run, it is a weighing machine." Personally I would be surprised to see further weakness in the share price.

AIMHO,DYOR

regards

[rainmaker] 04/9/2021 00:13

Re Volex(VLX) which has been flagged as an opportunity here, closed at circa 460p today up 60p on the week.

Hmmm Telegraph article. Reference the comment that US $70mln management's estimate of sales in the EV division for 2021 being too low because the it ended the 2020/21 financial year turning over US $8mln a month so US $96mln a year. But if you remember, the preliminary report released on 17 June 2021 for the 52 weeks to 6/4/2021 Volex said-

" Revenue from our electric vehicle customers grew to $53.1 million (FY2020: $18.1 million), a year-on-year increase of 193%. Demand in the first quarter of the year was subdued as our customers identified ways to re-open their automotive plants in a Covid- secure way. From the second quarter of the year demand began to pick up, with run-rates improving further in the second half of the year. Over this period of time, we have been increasing our capacity to support production for our electric vehicle customers with additional capacity becoming available in the first half of FY2022."

So demand was "subdued" in the first quarter but still running at close to US $100mln annually. The evidence since suggests that EV are now making up 8.7% of all new vehicle sales up from 3% in 2021(see my link on 1/8/2021). We could use those figures to derive an estimate of US $154 EV sales in 2021 which almost identical to the continuation of the 2019/2020 growth rate at 193%.

IMHO with an explosion in the growth rates of EV sales and the Company's shrewd and disciplined acquisition policy,we're going to be dealing with a "runaway train" here and long experience has taught me that in such situations the earnings multiple will balloon, as the penny finally begins to drop that Electric Vehicles are the biggest revolution to ever impact on the global automobile industry, I really don't see £20 s share as a problem as the Herd, Thematic Investors etc begin to arrive paying any price to hold and Volex becomes very popular because EV are an easy concept for them to grasp. Forget growth rates for a moment and just apply a p/e of 100 times then we're already trading at circa £20 a share.

AIMHO, DYOR as I have done mine

regards

[nico115] 03/9/2021 15:18

Buy when blood on the streets

[speightyboy] 03/9/2021 15:11

I've topped up a couple of times today too!

[nico115] 03/9/2021 15:10

I bought 55k Mkt cap is 12mWe must've invested 100m into our drugs ?Wrong price surely ?Crazy times

[speightyboy] 03/9/2021 15:00

Looks like we have bottomed again. Buys coming in ready for the next push upwards.

[nico115] 03/9/2021 14:48

What has KC achieved ?

[wulber] 02/9/2021 21:56

Shall everyone just calm down and if you are a LT holder see what Cenkos deliver please first - we don't know?! I believe in SD and KC to make the right decisions - look at KC's success over 25 years - cool it!

[amaretto1] 02/9/2021 10:36

Cenkos may do a Quindel on us !!

[gpferg] 02/9/2021 10:31

Shambolic company what a betrayal BOD and current leadership bereft of ideas . Good idea know how useful Val really is . Having to try to re-package the product and bring in what they think is a slicker sales team That is what SD and her cohorts are all about . If what thy do was any good I wouldn’t be writing this

[amaretto1] 02/9/2021 08:24

Maybe bottom of channel .... 17.5 ish

[tburns] 02/9/2021 08:19

Where is this going to bottom out?

[nico115] 02/9/2021 07:17

Stupid comment

[dope007] 01/9/2021 21:39

I'll hold. Cenkos have a good track record and Val being so small compared to normal leaves me very intrigued and therefore keeps me holding.

[luckyabbeygale] 01/9/2021 21:30

The broker will be gutted in not being able to convert the warrants in time, because the price will never be over 22p until after they have expired. However I will stay holding just in case I am wrong.

[stretford1964] 01/9/2021 21:18

I bought 20,000 shares at 20 several months ago and sold at 24.05 on the recent rise. Will buy back around 17/18 if possible but in no rush as a deal seems unlikely anytime soon. Probably next year at the earliest. Also a possible sub 20 placing on the cards if no IIs on board.

[luckyabbeygale] 01/9/2021 14:00

Lots of buys now. Max potential is 22p until them warrants have expired to make sure VAL get their broker services for free.

[amaretto1] 01/9/2021 10:46

U wasn't falsely accused...i was 100 percent right !!All sells .. 20 won't hold.

[cparry1989] 01/9/2021 10:35

I have a right to defend myself if I'm being falsely accused as a lier

[sooty snipes] 31/8/2021 16:32

cparry thou doth protest too much me thinks