Volex Share Discussion Threads

[opodio] 01/7/2014 15:09

Volex Bankers did requre payment of £25m now and want the rest next year!!!

[imastu pidgitaswell] 01/7/2014 14:53

I guess we can disagree, I personally hate the way they would instantly put a business into insolvency, strip the assets and sell them for their own benefit and put people out of work. No vision, no business skills, no common sense - although interestingly, Volex's banks appear to have shown a sensible degree of flexibility in this case, rather than a 'computer says no' attitude as they have tended to do in the past - maybe political pressure, maybe they're just chastened by their own experiences recently.

Whatever, the financial profile now looks very safe. Although I seem to recall that's what I thought when I first bought some of these nearly two years ago...

[imastu pidgitaswell] 01/7/2014 14:38

Arguable as to whether they broke them - they did not break the adjusted covenants - but it is no longer a worry, with negligible net debt and sensible levels of interest cover:

The blurb (on the pre-existing facility) says:

"The Group utilises a $75 million multi-currency combined revolving credit, overdraft and guarantee facility ('RCF'). This facility is provided by a syndicate of three banks (Lloyds Banking Group plc, HSBC Bank plc and Clydesdale plc).

The key terms of the facility are as follows:
- available until 15 June 2015;
- no scheduled facility amortisation; and
- interest cover and net debt:EBITDA leverage covenants"

And in the notes:

"The result of these discussions was that the financial covenants referred to above were initially adjusted to allow for the poor trading that the Group was experiencing at that time.

Under the terms of the facility, the two covenant tests above must be performed at each quarter end date. At year end both covenants are met."


So (quite significant) issue done and dusted, now the placement has succeeded - hence the share price response methinks. It does also show the absurdity of most banking covenants though - one year of difficulty would mean covenants such as the above (interest cover and net debt:ebitda) would be broken. Banks, as ever, can force what they want - never mind that they cannot run their own businesses, they can shaft all the ones they lend to.

I've always hated banks...

[opodio] 01/7/2014 13:52

the only bit to worry about is that Volex recently breached its bank covenants

[cockneyrebel] 01/7/2014 13:47

New recent highs today - nice.

CR

[imastu pidgitaswell] 01/7/2014 13:41

They do. So what happens if it breaks the top of the channel?

;-)

[buywell2] 01/7/2014 13:12

Nah

Charts say the current trading top channel is about hit

[opodio] 01/7/2014 13:11

lets hope shorts cover lol

[buywell2] 01/7/2014 13:09

Depends upon how they spend the lolly

Thus far it has not been good

Short covering today

[opodio] 01/7/2014 13:06

next level circa 130p

[andyview] 01/7/2014 07:53

Nearly 72% take up on the open offer. Good support and should be stabilise price and see this move upwards.

Gla

[buywell2] 29/6/2014 11:15

Many here slagged me off both times when I said ..................





buywell2 16 May'14 - 14:47 - 2130 of 2154 0 0 edit

I should be charging you guys for this

Support around 82.5p might be next test




buywell2
8 Apr'14 - 15:25 - 2063 of 2129 0 0 edit


Chart is not very good this year possible 90p retest ?

[puffintickler] 28/6/2014 15:21

Directors have better things to do than waste even modest amounts of money buying higher than they think the price should be.

[burkey1942] 27/6/2014 20:14

Much, much cheaper I suspect. I can't see much value here. It looks very expensive.
Looks to me like the directors have been buying tiny amounts all the way down just to suck in the unwary.

[freddie ferret] 27/6/2014 16:50

Looking like we may be able to buy cheaper in the market. We wait and see.

[simon gordon] 27/6/2014 16:15

A grunt is buying:

27 June 2014

PDMR Shareholding

Volex plc (the "Company") today announces that on 27 June 2014 Allan Lam, a Person Discharging Managerial Responsibility, purchased 11,000 Ordinary Shares of 25 pence in the Company ("Ordinary Shares") at a price of 77.75 pence per share. This purchase represents 0.02% of the issued share capital of the Company.

[tanelorn] 27/6/2014 10:50

HSBC's letter arrived 23rd June, although it was dated 20th. Not happy, but chose to ignore option anyway.

[deanowls] 27/6/2014 06:24

I also emailed Td and had the notice yesterday that I had until yesterday to accept, terrible.

[matt123d] 26/6/2014 22:16

Reversal hammer week with a blood red month. People getting killed in this stock. Avoid.

[tom111] 26/6/2014 15:19

No problem with Halifax on the ball

[ferrism] 26/6/2014 14:50

Well, Investoree, that's quite a story! It makes my broker look like a paragon of virtue. They only delayed issuing notifications until the 19th of June which would have given unwary clients a whole two working days to make the decision and get funds in place. Like you, I wonder what is driving the delay for these brokers. We really should set up that "cynics" bulletin board. I'm quite sure it would be the most popular of the lot!

[investoree] 26/6/2014 12:44

TD Direct ignored various notifications relating to the Volex open offer and placing at 75p each on the basis of 4 new shares for every 11 old shares issued issued on 12th June 2014. TDD only E-mailed clients on 24th June 2014 just after 7pm when their customer service phone lines were closed to inform them that Volex's Corporate Action (CA) details were now available on their website. This same website that has recently been inoperable on several different occasions including the CA section as the view button had disappeared following their latest upgrade.

Having personally been aware of the Volex CA since 12th June I sent two E-mails to TDD on 19th and 23rd June requesting that they place this announcement on their website to allow other Volex shareholders the maximum opportunity to make an informed decision as to whether or not they wanted to subscribe to the placing, avoiding their shareholdings being diluted.

Despite having unreasonably delayed this important notification to clients holding Volex shares in TDD nominee accounts for 12 days they then stated in their message issued on their website on 24th June that client instructions needed to be received by 25th June. They further stated that if insufficient funds were available within an ISA the rights under the placing offer could be transferred into another nominee account but at least 2 days notice were required – clearly to comply with this deadline you would need to be a magician!

They further stated that if you wished to fund an account using a cheque this would require at least 10 days – again another deadline that would be impossible to meet as a result of TDD's unreasonable delay in notifying clients of the Volex open offer and placing.

It makes me wonder who would be the ultimate beneficiary of any lapsed open offer rights in Volex shares for TDD clients who had relied on being promptly notified of any CA then missing out – would TDD then directly benefit themselves by applying for these placing shares whose existence they had unreasonably denied to their clients, or parcel them out and sell them on to favoured clients? - Surely not!

[druinsky] 24/6/2014 15:29

last time it started moving it hit 130p very quick;u