Volex Share Discussion Threads

[imastu pidgitaswell] 24/6/2014 13:46

:-)

Stepping back and looking at it, the past 3-4 months have seen the price reduce from 120 to 80, i.e. drop by a third.

Which, coincidentally I'm sure, is close to the 4:11 ratio for the the placement - so the market has kept the market cap more or less constant over the period, positive RNSs and injections of cash from the placement notwithstanding. Remarkable levels of foresight in the market, especially that last little plunge South just before the placement was announced...

Cynical I am...

But on the bright side, the financial and operational profile is now a lot healthier, it's just that the maximum upside is reduced by around a third.

[cockerhoop] 24/6/2014 13:39

I'm still able to adjust my take up of the open offer with my broker (until 11.59pm on 25/6/14)so don't think yesterday was last day - just depends on efficiency of your broker.........and from what you write Ferrism perhaps you should change :-)

[ferrism] 24/6/2014 13:15

Me too. It's all a bit strange though. Yesterday was the last day to accept the open offer, although I'm not sure how relevant that is! Am I being naive here but there must be a very compelling reason to buy at the moment. After all, it seems likely that a lot of those 75p open offer shares will hit the market as soon as they're allocated.

[cockneyrebel] 24/6/2014 12:55

Up-trend starting?

CR

[imastu pidgitaswell] 23/6/2014 13:49

?

Agree with the first bit - although why the banks thought a net debt of $33m was too high for a $400m+ turnover business is difficult to fathom. Other than they wanted some fees...

The second bit though is incorrect, surely? They have a gross facility of $45m, while the debt debt will vary between 0 and say $10m ($4m is the pro forma year end figure for net debt, i.e. if the placement had happened pre year end the net debt would have been $4m. I don't know much about how banks judge risk (nor do they, except very badly, imho...), but I would think any bank syndicate would be happy enough with the risk factor of an overdraft facility of up to $45m (gross remember, offset by cash balances in other parts of the group of a similar amount), amended covenants and the future cash generation and usage projections of Volex from here. They won't have to 'give the rest back' in two years, they will renegotiate and continue with a similar facility.

[opodio] 23/6/2014 11:20

The Company has entered into an amendment letter dated 11 June 2014 with Lloyds TSB Bank plc, HSBC Bank plc and Clydesdale Bank PLC its lenders (the "June Amendment Letter"). Under the terms of the June Amendment Letter, the terms of the Company's existing revolving credit facility (the "Facility") will be amended to limit the available facility to up to US$45.0 million (previously US$75 million) and extend the termination date from 15 June 2015 to 15 June 2017. In addition the Company has negotiated revisions to its financial covenants and interest rate margins. In consideration of these amendments, the Company will pay its lenders a work fee of US$0.3 million, and prepay US$25.0 million of its outstanding bank debt. The June Amendment Letter is conditional upon the Placing & Open Offer completing.


Price would have crashed if they had said they had breached covenants and not had the placing. They are going to have a smaller 45m facility and be up against the toilet pa
less than 2 years given to give the rest back

[cjohn] 23/6/2014 11:12

Recent results: basic earnings -14p per share. Adjusted: -5p per share.

Look back over the last ten years and it's the same pattern every year. Every year a trranche of exceptionals. The following year another tranche of exceptionals. Look at how much shareholder value has been destroyed over the last decade. What are the chances that this pattern will change? Low in my view.

The company culture is self-indulgent and they rely on tapping shareholders to cover the flawas in the company's economics and the management.


Of course there COULD be a turnaround and I regularly buy companies in distress. The difference here is that there's scant asset value, so the company's viability has to be shored up by further pills of capital.


Not a good bet.

[puffintickler] 23/6/2014 09:48

tom111, buywell2 is a time waster, just filter.

[tom111] 22/6/2014 13:33

Buywell u seem to be getting into lather about it if I may say so.Sorry done a bit of research on triclosan turns out its in toothpaste as well..Google Triclosan

[buywell2] 22/6/2014 08:08

BOD buying is sometimes due to desperation also




Something to elucidate you .... it affects every single one of you on a daily bases probably 1000 and more times for nearly 24 hours a day and you probably have never heard of it.





........................ MONEY : It's a GAS .............................


This is nothing short of CRIMINAL and I do hope that people who have NOT acted as they should get sued BIGTIME


...................... Something will get done by 2016 ........................







Lawsuit Forces FDA to Finally Enforce Removal of Endocrine Disruptor Triclosan From Soaps

November 24, 2013

The U.S. Food and Drug Administration (FDA), under a court agreement signed Thursday, will end decades of delay and decide how to protect consumers from triclosan, a suspected endocrine disruptor linked to reproductive and developmental harm in laboratory studies.

The FDA first proposed in 1978 to remove triclosan from certain consumer products. But because it took no further action, the chemical has been widely used in antimicrobial soaps sold in the U.S.


The growing use of triclosan in products over the past few decades has led to widespread residues in the environment and in people.

In 2010, the Natural Resources Defense Council (NRDC) sued the FDA in U.S. District Court for the Southern District of New York to force the agency to issue a final rule. The parties reached a settlement and, under a consent decree signed Thursday by U.S. District Judge Alvin K. Hellerstein, the agency committed to taking final action on triclosan used in consumer hand soaps by 2016.

"It's outrageous that FDA has waited 35 years to protect the public from this harmful chemical. This final rule should prohibit triclosan from use in soaps," said Mae Wu, an attorney in NRDC's health program.

"Washing your hands with soap containing triclosan doesn't make them cleaner than using regular soap and water. In fact, not only do soaps containing triclosan fail to provide benefits consumers might expect, they carry potential health risks."

The growing use of triclosan in products over the past few decades has led to widespread residues in the environment and in people. Bio-monitoring results found residues of triclosan in 75 percent of Americans over the age of six. The chemical is absorbed through contact with the skin and tests have found it in human blood, urine and even breast milk.

Laboratory studies have shown that triclosan is an endocrine disruptor capable of interfering with hormones critical for normal development and reproduction. Such hormonal interference has the potential to cause long-term health problems including poor sperm quality and infertility and damage to the developing brain leading to poor learning and memory. Several studies suggest that triclosan also may contribute to the development of antibiotic-resistant bacteria, may exacerbate allergies, and may weaken muscle function.

In April 2010, FDA acknowledged soaps containing triclosan offer no additional benefit over regular soap and water. FDA also has expressed concern about the development of antibiotic resistance from using antibacterial products and about triclosan's potential long-term health effects, but did not move ahead on the rule-making, prompting NRDC's action.

[opodio] 21/6/2014 19:13

The money raised is going straight to the greedy bankers - and they want the rest by 2017

Under the terms of the June Amendment Letter, the terms of the Company's existing revolving credit facility (the "Facility") will be amended to limit the available facility to up to US$45.0 million (previously US$75 million) and extend the termination date from 15 June 2015 to 15 June 2017.

[cockneyrebel] 21/6/2014 19:08

New board and those directors buying - that's 2 signals that are powerful imo - tho not infallible.

CR

[opodio] 21/6/2014 18:56

The Company has entered into an amendment letter dated 11 June 2014 with Lloyds TSB Bank plc, HSBC Bank plc and Clydesdale Bank PLC its lenders (the "June Amendment Letter"). Under the terms of the June Amendment Letter, the terms of the Company's existing revolving credit facility (the "Facility") will be amended to limit the available facility to up to US$45.0 million (previously US$75 million) and extend the termination date from 15 June 2015 to 15 June 2017. In addition the Company has negotiated revisions to its financial covenants and interest rate margins. In consideration of these amendments, the Company will pay its lenders a work fee of US$0.3 million, and prepay US$25.0 million of its outstanding bank debt. The June Amendment Letter is conditional upon the Placing & Open Offer completing.


Price would have crashed if they had said they had breached covenants and not had the placing. They are going to have a smaller 45m facility and be up against the toilet pan

[tom111] 21/6/2014 15:17

In for a penny in for a pound may as well take them up surely cant go down much further.

[cockneyrebel] 20/6/2014 16:47

I think some of these trades are funds acquiring to get in on the open offer - probably from those stale bulls that have been holding a while.

CR

[don777] 20/6/2014 16:43

can any bods of VLX afford to pay £1.74M to buy that amount of VLX shares?

[imastu pidgitaswell] 20/6/2014 16:41

Director Buy...

;-)

[don777] 20/6/2014 16:41

2.178M, that's more than 3% changed hand.

[cockneyrebel] 20/6/2014 11:21

Directors seem very keen to load up - just a month before the interim management statement.

All imo/dyor etc.

CR

[ferrism] 20/6/2014 10:09

I'd go for 2) imastu. Small enough purchases not to worry the average Director but large enough to convince us to accept the offer..... and you said you were cynical!

[andyview] 20/6/2014 09:09

A lot of confidence shown by the directors here, I'll be taking my allotment as things stand. It's possible the trading has continued to improve as per their earlier rns's....bodes we'll IMHO.

gla