Volex Share Discussion Threads

[mfhmfh] 21/10/2020 22:32

Good results from Tesla

[bbluesky] 20/10/2020 18:38

igoe104 - agree early days and being greedy I hope they up the divi!

[ygor705] 20/10/2020 17:23

In case you missed it, Honda announced yesterday that it was going to stop manufacturing diesel vehicles and move production towards greener fuels. The way forward is clear and must favour the electrical sector.

[igoe104] 20/10/2020 16:58

215 trades today, a month back we were lucky to get 10 trades a day. Just shows find a good company in a growing market, invest for the long term is the best way to maxamise gains. Looking forward to the next couple of years as the EV market really starts to expand.

[sidarthur2] 20/10/2020 12:20

Blimey! What happened there?

[yus777] 20/10/2020 11:47

off topic buy dest nt trade only going to rocket

[acefromspace] 20/10/2020 11:43

Yep. Long term play this one for the pension with a divi to add.

[igoe104] 20/10/2020 11:20

Nice spike up, think we have alot more in the tank yet.

[ygor705] 17/10/2020 08:35

Nat Rothschild having a 1for1 rights issue and then more than doubling profits in the following 12 months was what originally caught my eye here. Some good comments on this thread and certainly things to bear in mind for what looks to be a good situation in a far from favourable economic environment. Management deserve a good pat on the back here.

[bbluesky] 16/10/2020 18:15

Many thanks to today's contributors. Excellent content. If only other threads...Much appreciated - bbluesky.

[igoe104] 16/10/2020 12:13

Also, Vlx has $31 in cash so that needs to be accounted for.

[ihatemms] 16/10/2020 12:05

Mfhmfh - the TU is in $ whereas your analysis in £. You need to adjust for the fx rate but nevertheless useful analysis.

[igoe104] 16/10/2020 11:32

Excellent summary mfhmfh, these should continue to rise over the coming year. At least a P/E 15 for a growth company like VLX should easily be accieved. The management are talking at a investor presentation next month, It should be worth listening to.

[mfhmfh] 16/10/2020 11:18

half year profit was £20m. VLX should achieve full year profit of £40m (probably more).

half year revenue was £200m, so £400m of full year revenue is a fair estimate (probably more).

current market cap is £344m which is below current full year revenue.

if VLX is valued at 10x profits then share price would be 263p - this is based on full year revenues of £40m but I wouldn't be surprised if revenue/profits accelerate in the 2nd half.

if VLX is valued at 15x profits as it's a growing company then share price would be 394p.

All IMHO.

[energeticbacker] 16/10/2020 10:29

Volex ahead again. Investor’s Champion comments to look out for more acquisitions over the coming months.

[owenski] 15/10/2020 22:35

Nice bit of buying today with decent volume. Quality management running this.

[igoe104] 15/10/2020 13:11

Strong trading update
Volex plc (VLX:LON) | 214 40.7 9.8% | Mkt Cap: 325.8m

N+1 Singer

The Group has issued a trading update ahead of its interim results due on 12th November 2020. Overall, the first half has seen a strong recovery in activity and the Board now expects to report H1 revenues and operating profit of at least $200m and $20m respectively. This is materially ahead of market expectations and with a high degree of visibility through Q3 FY2021E we are upgrading our operating profit forecasts by 39% and 25% for FY2021E and FY2022E respectively. The Group is seeing strong growth in EV charging cables and bespoke high-performance cabling solutions, and consumer electronics demand has also remained robust. Together with investment in automation and cost efficiencies, the Group operating margin is now 10%, which is a testament to management’s operational and strategic focus. The shares trade on an FY2021E EV/sales multiple of 0.9x which compares to a sector based multiple of c.1.2x for companies with comparable operating margins and growth

[patient fox] 15/10/2020 09:49

Is that just a buy rec igoe104 or price target/numbers.

[igoe104] 15/10/2020 09:45

Singer have upgraded VLX, saying they are experiencing large growth in EV cables.

[owenski] 15/10/2020 09:41

Good to read -

"Consequently, the board now expects revenue and profitability to be above current market expectations for both the half-year period and the full year as a whole."

[mfhmfh] 15/10/2020 08:58

VLX have mentioned they are actively looking at acquisitions to grow the company along with organic growth.

They are building up the cash pile and I trust this management team to put it to good use.

All IMHO.

[valhamos] 15/10/2020 08:53

A class act. They clearly are doing very well if they felt the need to issue an "above market expectations" for the half year and full year a month before the interims. At the AGM they were flat on prior year for revenue and profit for Q1 so to be 25% up for H1 profit means that has been a stonking performance in Q2 (although some of that 25% increase will be attributable to there being a full 6 month contribution from Ta Hsing and Servatron acquired June and July 2019).

[sidarthur2] 15/10/2020 08:09

Acquisitions I hope....😀

[acefromspace] 15/10/2020 08:07

Yep and a nice little divi while you hold long term. That's my plan.