Volex Share Discussion Threads

[dewtrader] 12/8/2013 14:01

chart curving up. is it a bowl yet?

[bones] 12/8/2013 13:39

For more details about this scheme and who has rights under it, I direct you to the 2013 accounts on the Volex website:

hxxp://www.volex.com/Investor-Relations/Report-library/

Pages 54 and 55 of the PDF gives details.

[bones] 12/8/2013 13:26

CR, the facts are (per the RNS) that Mike McTigue HAS PURCHASED 426,667 shares at 98p and he has done that via the exercise of an award under the Volex Group plc Non-Executive Directors Long-Term Incentive Scheme. These are newly issued shares so other shareholders are marginally diluted but not by much as the company gets over £400k in cash from McTigue for the shares.

Then the RNS says that "a sufficient number of ordinary shares shall be sold in order to satisfy income tax and National Insurance payment obligations."

That might need 200,000 shares or something like that to be sold imminently. I assume that will cause another RNS to be issued to specify the exact number.

Remaining question is whether McTigue will sell his remaining shares any time soon. According to the RNS, he had 117,000 shares before the option purchse on 6th August (426,667 + 117,000 = 543,667 which is now his holding before selling for tax payments).

[bones] 12/8/2013 13:15

If it breaks the Feb/Mar levels of 115p, you would expect it to retrace initially back to that level to establish a new resistance at 115p before firing up to 150p, in a typical scenario of a breakout.

[wylecoyote] 12/8/2013 13:13

CR,

do you suspect it will break 120p?

[cockneyrebel] 12/8/2013 13:07

Gap up to 155p on the chart when this level goes:

[cockneyrebel] 12/8/2013 13:05

I think he's allowed to purchase them at that given price. He would never have got those in the market at this level and the fact that they were dealt on Aug 6th @ 98p when the mkt was 97-99.5p sort of says he's paid the mkt price for them.

you don't buy 426K VLX thinking you can just sell out straight away as these are so illiquid, he'd never get rid of them. Looks like he thinks the new board are going to do the business if you ask me - but that's just my opinion.

All imo/dyor etc.

CR

[bones] 12/8/2013 13:05

This is true, allstar. With his knowledge, he may be confident the shares will head north and he probably has plenty of money anyway. The fact that the RNS specifically stated that shares to meet his tax will be sold suggests the rest will not be immediately sold. It would be a positive signal if he does hang on to them, for sure.

[allstar4eva] 12/8/2013 12:33

Perhaps... But would you risk buying 425k and then trying to sell them almost immediately when the share price was 15% lower a few days ago?

Will be interesting to see how this pans out.

[bones] 12/8/2013 12:28

Why would he let them lapse? He is into an instant profit by exercising them and selling what he needs for his tax bills. His decision now is whether to sell the rest while they are above 98p or to risk hanging on for more profit. Again, we do not know what his severance deal entitles him to do. The company might want him not to have an interest. We do not know this.

[allstar4eva] 12/8/2013 12:25

Forced? Surely he would have let them lapse. They are option no? Not mandatory.

[bones] 12/8/2013 12:23

I assume McTigue was forced into exercising the options as he had left the board/company.

[wylecoyote] 12/8/2013 12:14

Bones,

Thanks, I thought I misunderstood something there.

[bones] 12/8/2013 12:12

Read the RNS, people! This is the guy McTigue who has just been sent on his way. He has exercised an executives option to buy these shares at 98p and the RNS says he is selling enough of them to meet his tax and NIC liabilities that arise from the exercise.

The apparent good news is that he has not sold the rest of his holdings but perhaps this is because he is privy to information that is not yet public and as a director/insider, he has certain responsibilities. That is my speculation.

Of course, he might sell them when his broker finds a buyer for them, who knows.

EDIT: Looks like the RNS is saying that sufficient of these shares will be sold to meet the tax liabilities. This implies that he will hang on to the rest, assuming he is not obliged to sell them as part of his severance deal. Don't know the answer to that one.

[protean] 12/8/2013 12:10

That's a good few shares.

Plenty of other director purchases recently so they all must be pretty confident of a turnaround and a decent move up in price.

[wylecoyote] 12/8/2013 12:10

is it a buy or what? It looks like he excised some options.

[cockneyrebel] 12/8/2013 12:03

426K director buy :-)

CR

[wylecoyote] 12/8/2013 10:47

you can subsribe to shares instead?

[imastu pidgitaswell] 12/8/2013 10:42

Very limited relevance to the price movement, but these go ex-dix (3 cents, or 2p) on 4th September.

Reinvesting said divi sub-100 looks unlikely...

[protean] 12/8/2013 10:42

150p or so looks like a good first target on the chart.

[wylecoyote] 12/8/2013 10:34

CR,

glad you are here too. Normally it means good things...lol

[cockneyrebel] 12/8/2013 10:28

Might not be stonking volume showing but Friday was the second highest volume day since May.

There has been a overhang here for some time and I suspect the seller wasn't happy with the existing board. New CEO, FD and Chairman changes a lot imo - can put a halt to sellers and excite those that like a recovery play.

When these bottomed in 09 they rose 00% in 2 months. I bought in Nov 09 @ 80p and a year later they were 350p.

Is it out of the question that these get back to doing the 24p eps they were doing a year or so ago? I'd say a return to that level of earnings looks undemanding for board that knows what it is doing. Put that on a PE of 10 and there lies the potential imo. Put it on the PE of 15 that these were trading on and it looks very exciting imo.

But they have to deliver that to get back to the 350p levels they were at - meanwhile it's a speculation on how soon they can show they are delivering imo.

Forecast to do 13.5p next year so the fwd PE isn't that demanding @ 113p on a PE of 8.3 and with debt reduced from $19.5m to $10.8m at the last IMS they aren't carrying much debt imo. With VLX, if you wait for the good news to be printed in an RNS you've usually missed a big rise in advance imo.

All just my opinion/dyor etc but imo

CR