Velocity Composites Share Discussion Threads

[timbo003] 03/12/2019 09:02

New (43 page) broker's initiation note out from Cenkos this week I see, now available from Research tree (with a subscription) or from the Cenkos Web site (free but requires registration):

[arab3] 28/11/2019 22:55

.no more news till January then?

[timbo003] 24/11/2019 07:38

It looks like the company may be going on a PI charm offensive (for the first time) in the new year (I've booked my place):

[yump] 23/11/2019 16:53

Appears to be the non-exec chairman building a stake that might have run available shares low. That must be a vote for the future though, although its probably a future further away than many investors like nowadays.

[husbod] 23/11/2019 06:47

Should have mortgaged the house - post 108.

[techno20] 22/11/2019 16:25

Whoosh! Nice way to finish the week!

[timbo003] 22/11/2019 14:04

November Investor presentation for those who haven't seen it:

[yump] 22/11/2019 13:13

Well the revenue is twice the market cap which is quite weird, if you just go by market cap. Usually the other way around unless something is about to go bump.

[timbo003] 22/11/2019 12:52

I meant to add....I see no reason why these will not return to the IPO price (85p/share) in the short term, there was no significant selling on the way down and the fall was mainly caused by two problems that now seem to have been resolved

[timbo003] 22/11/2019 12:45

>>>jonwig, see finncap note (24th June 2019) which should be available from the finncap web site (requires registration) or from Research Tree (requires subscription for full note, summary available for free)

[yump] 22/11/2019 12:24

Still moving on not much £.

[yump] 22/11/2019 09:39

Slightly mystified by the rise but nice to see.

[jonwig] 18/11/2019 07:06

yump - we've no broker guidance of course.

From the prospectus, the best profit year was 2015, with earnings of £1m, so reaching that would be eps of 3p and a PER of 10x. As you suggest, that might be a stretch to repeat in 2019. I'm not sure cost-cutting will have been be a priority.

[yump] 17/11/2019 17:13

I was going to reduce my average but a bit unsure. Two reasons: first is that I’m not sure quite what level of profit they can squeeze out by cutting costs - for a business in demand that shouldnt really be an issue with their level of turnover and its not clear whether existing levels of admin will cope with increased business, or whether each new facility jumps the admin costs. Secondly it seems a bit odd at this early stage to mention incentivising staff, while also thanking them for their enthusiasm and commitment.?

I’d like to see the uk/eu based business making a clear profit before they start on overseas, mainly to just prove the business isbproperly viable and the final profit won’t be some miserly % that can be knocked into loss by small negative events.

[jonwig] 15/11/2019 08:29

Andy Beaden again? Could be a director buy, The closed period is end-Nov: two months before the results announcement which is 31/01.

[techno20] 15/11/2019 07:51

Decent 50k buy at close of play. Have been adding a few since the the trading update to reduce my average. Vel listed at £30m and though all of the boardroom antics has made solid progress. I remain hopeful that now that things appear to have steadied we’ll see more investors willing to come aboard.

[jonwig] 13/11/2019 08:04

Trading statement:

- Revenue for the year approximately £24.2m (FY 2018: £24.5m) ie. flat.

- Gross margin improvement over FY 2018 (18.3%) and H1 2019 (20.9%) good, significant.

- Results for the year to October 2019 are expected to be in line with market expectations whatever those are! I can't find any views from Cenkos or anywhere else.

- Net cash (before finance leases) £3.4m as at 31 October 2019 but FLs have to be classed as debt under new accounting rules. Some investors might be caught out if they aren't aware.

Exciting enough?

[husbod] 31/10/2019 16:03

Thanks jonwig. Agree with your conclusion and give his date of appointment he is not one of the directors who led us into a false sense of euphoria with their earlier buys.

[jonwig] 31/10/2019 11:18

The buyer:

Andrew was appointed Non-Executive Chairman of Velocity in July 2019. He most recently served as Group Finance Director and a member of the board of Luxfer Holding plc, a producer of highly engineered advanced materials, from 2011 to 2017, having joined its predecessor British Aluminium in 1997. Luxfer (LXFR) is listed on the New York Stock Exchange. Mr Beaden is a co-founder and Chairman of IN4.0 Group Limited, a company encouraging growth through the use of industry 4.0 technologies.

Mr Beaden is a Chartered Accountant, holds a degree in economics and econometrics from Nottingham University and is a Fellow of the RSA (Royal Society for the Encouragement of the Arts, Manufactures and Commerce).

Also stuff on Linkedin and his own website;

I doubt he'd spend £100,000 on company shares on a whim!

[enter] 30/10/2019 17:20

I was almost tempted to buy shares in Velocity once, but when they surged from 100p to 130p I decided to leave it. That was a rare piece of good luck for me.

The director buying is interesting but I would not expect imminent good news because there would be accusations of insider dealing. There probably is value from here though if you are prepared to hold for a while.

[husbod] 30/10/2019 17:02

Don't worry chaps - like your goodselves I thought I saw the potential here a while back and am just averaging down on the basis of developments that should now be occurring allied with the directors buys.Thanks for the posts though.

[jonwig] 30/10/2019 16:25

@ Husbod - it's just the one director buying in bulk, isn't it? (The Chairman. I guess the others have plenty anyway, haven't checked.)

The close period is 30 days before final results are announced, and they have indicated that will be on 31 January.

[techno20] 30/10/2019 16:06

Husbod - Velocity is the perfect example of why not to remortgage your house to buy stock. I first purchased multiple times at around £1, on the back of significant director buying. I then bought a bunch more at around 50p again when directors were buying. You can see what’s happened since! I’ve bought yet more in recent weeks to bring down my average, but this is still high risk, so take care!

[husbod] 30/10/2019 15:28

Never had so many directors buys in any of my holdings before and as I am a huge fan of such buys I really should be mortgaging the house.Time to further review the portfolio.