Volex Share Discussion Threads

[miti 1000] 06/11/2020 11:09

Added another 25k at 266.60...just too cheap on a 1/2 year view imo.

Should add am buying heavily recently as I expect VLX to announce another accretive acquisition in year one before the end of this year. They've signposted it throughout the year so hopefully its not too far off. That should lead to upgrades for y/e2022 which seem way too low to me even without any acquistions.

[abarclay] 06/11/2020 06:18

goldilocks scenario in the US great for tech

[abarclay] 05/11/2020 13:25

you dont muck around mate

[miti 1000] 05/11/2020 11:29

Added another 25k at 266.95.

[nimbo1] 05/11/2020 11:14

I would think so - the move to electric cars happening with or without government imo...but should bring focus onto the sector.

needs a bit of buying volume and this should move

[northwards] 04/11/2020 20:03

I'm new here and just started building a position. Presumably a Biden victory would be good news given his commitment to the Paris Accord and a US move away from carbon?

[dewtrader] 04/11/2020 16:57

Scsw says 400p

[igoe104] 03/11/2020 13:47

Totally agree, I can only see these going alot higher over the next few years. Alot of electric vehicles will require alot of cords and cables, I feel we are on start of magnificent journey. Hopefully we will breach £3 by year end.

[imastu pidgitaswell] 03/11/2020 13:46

Ta. I read the presentation from June, and that is what made me get back on the dip down to the low 130s intraday in mid July and then late July, and quite a lot of them.

It is very persuasive, and they also demonstrated how they did it, which was informative. They can clearly operate in the pandemic too.

I guess, again, I have just been scarred by this in the past (I was buying them at 35p and below, as well as a lot higher) and left it recently on valuation grounds (and the attractive valuations available elsewhere). But I don't disagree on the case for investment - we all come to it from different perspectives.

[miti 1000] 03/11/2020 13:22

I buy Volex every month and tbh , if I think its going to 6quid it doesn't really matter. As the story improves, I just add more and more.

Rothschild had a target of 650mill revenue in 5 years set last year. Interestingly, the CFO said in a few years, rather than 5 so I'd imagine they will get to 650 rather faster than 5years with the growth they are experiencing plus cash accretive acqusitions .Margins closer to 11% by then and hopefully nearer 12% and that 's pretty cheap at the current price with no debt and a progressive dividend policy even after the recent run.

[imastu pidgitaswell] 03/11/2020 13:20

Stupid question (it's what I do...) but why didn't you put the same amount of money in back in June or July instead?

[miti 1000] 03/11/2020 12:47

Added another 100k shares this am....hard to imagine another better run company than this one. If anyone hasn't listened to the June presentation , I'd suggest doing so. Certainly , the best presentation I've heard from a company with a total focus on shareholder value.
Having previously done very well from ACL , now DSCV , I would expect volex to go from strength to strong over the next 3 years and be trading nearer 6quid. Roll on some more accretive acquisitions shortly.

[ggbarabajagal] 03/11/2020 11:30

No thank you that’s a bog roll firm
I’d rather have volex

[mfhmfh] 03/11/2020 11:25

Research ACRL as another example of a turnaround company with new management, etc. similar to VLX. IMHO.

[sidarthur2] 02/11/2020 13:42

Just in time!

[igoe104] 02/11/2020 12:15

Results presentation on the 12th November, should make very good listening. If you want to listen register via the investormeetcompany.

[jamessmith23] 28/10/2020 16:43

Thanks, that was incredibly helpful. I tend to do the same in regards to paying more attention to unadjusted figures unless the adjustments really are once in 10+ year occurrences or so and I can assume next year's results won't have any of those adjustments.I wasn't aware a large portion was related to an acquisition, and that to me feels more acceptable as it is a byproduct of the growth that was also necessary for growth, whereas share compensation to employees may be a byproduct of growth but isn't necessary for growth, apart from maybe the motivation aspect.Thanks again.

[valhamos] 28/10/2020 16:07

James - My default position is to ignore all profit adjustments as window dressing unless compelling evidence is provided otherwise. This usually results in my avoiding companies with high levels of adjustments as invariably the investment case does not work when just looking at statutory/unadjusted profit.

As regards share based payments I agree with Warren Buffet's question many years ago - "If options aren't a form of compensation, what are they? If compensation isn't an expense, what is it? And, if expenses shouldn't go into the calculation of earnings, where in the world should they go?" The accountants eventually agreed to change the rules and charge it as an expense but have ever since pretended it shouldn't really be one by identifying it as an adjusting item.

However I am cutting Volex some slack on this point because if you look at the Annual Report - Financial Review page 27 then $5.6m of the total $8.7m share based payment was in respect of acquisitions:

"These awards form an important part of the negotiation of consideration in an acquisition situation and are used to reduce the cash consideration and as an incentivisation and retention tool. In accordance with IFRS, where these awards have included any ongoing performance features, they must be recognised in the income statement rather than as part of the cost of acquisition."

So I allow $5.6m of the adjustment because if it wasn't for the performance incentives it would have been part of the cost of acquiring these business.

[jamessmith23] 28/10/2020 14:11

I noticed share based payments are excluded from operating profit, and it is something that is incurred every year which confuses me a little.Last year it was a very large component of profit, the prior year less so. I'm not that familiar with how it is calculated, is it something we can expect to continue to take a fairly big chunk out of profit every year?This company looks good from its operating profit numbers but every year there is a fair few exceptional items including share based payments, which is the only reason my holding isn't larger. Interested in people's views on this.Thanks

[abarclay] 26/10/2020 08:29

Similar looking chart to AO

[genoaguy] 25/10/2020 12:26

Received email from scsw Vlx was one of their naps for year

[freddie ferret] 22/10/2020 00:32

Where next?