Volex Share Discussion Threads

[bbluesky] 27/11/2020 09:50

Wood for the trees. What the copper price is telling us is that the world economy is picking up, so VLX are going to sell a lot more units.Over the last couple of years they have been very margin focused, so I am sure they will benefit from scale. CFO - what else can you get neurotic about? Deka looks an incredible investment and I look forward to the next. VLX are in the sweet spot and looking good. Still cheap.

[zipstuck] 27/11/2020 09:35

Retrospectively I doubt. On review dates perhaps.

[inever] 27/11/2020 09:12

Acquisitions are earnings enhancing. They have proven that. The Turkish acquisition Deka is on 6 times earnings. Volex already own Ta Hsing electric wire company so I'd expect significant synergies here in the short term. But it also sets them up to expand into the higher margin electric car charging market as that market takes off. Their electric vehicle cable business is already growing at 75%pa and we are still in the foothills of this market expansion. It will explode in 2024 as new battery technology is commercialized ( see Johnson Matthey reports).Copper prices are higher but two things to remember. Volex will hedge.Contracts with customers will include copper price variation clauses. The customer will bear the risk and cost.

[zipstuck] 27/11/2020 08:59

2 way pull here.

Acquisitions adding scalability but not cheap in this market. Wondering if CFO left because wasn't convinced. Copper price has risen a lot this year.

[inever] 27/11/2020 07:54

Downing had 8m Volex in August. They trimmed to pay redemptions by investors in their open ended trust fund.

[nesquikme] 26/11/2020 18:34

Patient do you have a link

[patient fox] 26/11/2020 17:20

Big write up on stockopedia.

[igoe104] 26/11/2020 16:25

If you Google vlx downing. You can see a video of Judith Mckensie talking about VLX. She said they trimmed because of position size, and still big fans. The video was filmed two months ago.

[v11slr] 26/11/2020 16:06

robow - see the latest holding RNS. It's Downing UK Micro-Cap Growth Fund that's selling. That's the Unit Trust that is suspended.

[zingerburger] 26/11/2020 15:59

bloody downing idiots

[sooty snipes] 26/11/2020 15:57

Just added a few more. Didn't really want to as I already hold a reasonable amount but couldn't resist on this current pullback. The chairman bought 100,000 recently and paid 253p so what's not to like? I'm pretty much full up now though.

[robow] 26/11/2020 15:55

Downing's investment trust holds VLX. Is it also one of the holdings in the unit trust that is being wound up?

[wanttowin] 26/11/2020 15:47

Got no worries with this one, I like these dips, it gives one a good chance to add.
My largest holding and I want more !!

[gdjs100] 26/11/2020 15:13

https://citywire.co.uk/wealth-manager/news/downing-uk-micro-cap-suspends-as-losses-mount/a1426424

[igoe104] 26/11/2020 15:02

I was under the impression that ruffer and Downing were rebalancing their portfolio because there position in VLX was too big of a percentage in there portfolio. Hopefully the selling won't continue from them. That's why buying into these funds aren't a great idea, because certain rules about having a oversized company etc permit them riding there winners for long periods. Whilst Private investors can hold as long as they like.

[nw99] 26/11/2020 15:01

Thanks would account for the weakness

[gdjs100] 26/11/2020 14:50

Would imagine Downing are liquidating as their fund is being wound down.

[frankwhite] 26/11/2020 14:44

Been in since 130p, topping up at these levels is not taken lightly and I have topped up! GLA great share to tuck away for long term, add on weakness IMO.

[dicktrade] 26/11/2020 13:47

simmsc

same for me , entered at 294 but see it as a long term holding

[simmsc] 26/11/2020 13:25

thanks igoe, that's my view too. hence becoming interested in this great company.

[igoe104] 26/11/2020 12:50

Simmsc, in the recent presentation Volex said they involved in a majority of Electric vehicles platforms. Government around the world are starting to ban electric / desiel cars, so car companies will start investing their plans into Electric cars. Awful amount of cables are going to be needed.