Volex Share Discussion Threads

[ijamlon] 01/6/2021 11:44

The EV stuff is exciting, but Volex is far from a pure EV play. It generated revenues of about £40mln in EV power cords, not the juiciest part of the EV supply chain. That's probably less than a £2mln contribution to the bottom line for a company with an Enterprise Value of £760mln. Yes it's a growing segment, but even if one attaches a high growth multiple to anything EV related, it probably represents less than a fifth of the firm's value. I think Volex is a good growth business, but EV's a small piece of the story.

[red ninja] 01/6/2021 09:59

Global EV Sales in April up 249 % year on year

[red ninja] 01/6/2021 09:58

Why electric cars will take over sooner than you think :-

[togglebrush] 30/5/2021 10:10

Group's full year results for the 52 weeks ended 4 April 2021 scheduled 17 June 2021.

[dr biotech] 27/5/2021 18:57

Quite a lot of my holdings ended up a bit above the last regular trades today, will be interesting to see what happens tomorrow.

[podgyted] 27/5/2021 17:51

Well that's the MSCI rebalancing out of the way.

[red ninja] 24/5/2021 19:44

The UK's energy regulator has approved plans to invest £300m in low carbon projects including support for 3,550 charging points for electric vehicles :-

[sooty snipes] 24/5/2021 16:57

Thanks for the info

[acefromspace] 24/5/2021 14:30

It's just consolidating after a nice run.

[dr biotech] 24/5/2021 11:18

I was expecting more corporate action by the end of H1. Hopefully that will come at some point.

[its the oxman] 24/5/2021 11:14

Shares gone off the boil, trading sideways / down this year so far and not helped by tech retracement. Sense worst is over though. Hopeful of steady trading and a new leg higher soon.

[togglebrush] 22/5/2021 10:16

By my Notes
Final Results 17-Jun-2021

[lsoc85] 20/5/2021 21:34

Looking at the last few trades of the day, it appears the shorters are getting twitchy as f. Folk are throwing their coppers away lads 😂😂😂

[lsoc85] 20/5/2021 17:17

Looks like China's taking action against 'unreasonable' commodity prices anyway:



Copper down a few percent, VLX recovers by a similar amount.

Still don't reckon copper's price strength would have squeezed too much value out of margins. Global demand for power cabling won't diminish until electricity can be transferred via telekinesis!

[cboney] 20/5/2021 16:47

if you are worried about copper prices hedge your bets and buy a few XTR

[deanowls] 20/5/2021 16:43

I’d expect most contracts would be in USD.

[disneydonald] 20/5/2021 15:48

Problem may well be that just after acquiring the Turkish business, the Lira tanked to its lowest, and copper rose to its highest. We won't get to see details re the inherited hedging positions until formal results (bearing in mind half year results are unaudited), so I guess there is an element of safety first for those funds and large investors who have made substantial gains over last year or so. As long as no surprises are revealed, then I guess VLX should continue its rise once clarity re hedged positions is known.

Of course, it's not just the Turkish businesses copper hedging, but that of the wider VLX group as well. Although one VLX has negotiated hedging fairly well prior to the acquisition.

[lsoc85] 12/5/2021 13:07

Good news. VLX to be added to MSCI Global Small Cap Index on 27 May 2021. Will hopefully attract some investment - LOAD UP! LOAD UP!:

[red ninja] 10/5/2021 11:13

Latest comment from Downing Strategic Micro I.T.

Volex PLC (Volex) (15.17% of net assets)
Cost: £1.61m. Value as at 28 February 2021, £6.45m

Background
Volex manufactures complex cable assemblies and power cords through a global manufacturing base for a wide variety of industries. Following a turnaround and portfolio repositioning, the business has shifted away from lower margin, commodity products and has been growing sales in high structural growth sectors such as electric vehicles and data centres.

Update to the investment case

Robust performance and resilient business model
Significant opportunity for share price appreciation
Shares trading at a discount to sector peers
Acquisition of DEKA creates European platform
Progress against investment case
2020 was an inflection year for Volex and it enjoyed significant multiple expansion, aided by strong trading. We still believe that Volex is a great business and it warrants a high weighting in DSM, despite the markedly higher multiple than that which we paid at our initial investment. The business is now generating significant cash flows and has a hopper of potential acquisitions on which to deploy that capital. Alongside the significant growth in the consumer electronics space which we expect to continue for some time, and the structural tailwinds in the data, electric vehicle and healthcare markets, we think that the business has ample potential to continue compounding at a reasonable rate.

[mauricemonkey] 09/5/2021 22:59

The yoof would say "diamond hands" Sooty :)

[sooty snipes] 07/5/2021 13:22

Daren Morris the last CFO held a lot of shares. Don't know if he's offloaded any. I quite liked Daren Morris who in my opinion did a lot to build this tired old company back up. The new guy is pretty much unproven. Weak hands? Iv'e held this share for over four and a half years mate. 40,000 at an average of 75p so my hands seem pretty strong to me. I sold 5,000 at 360p to help fund another share purchase. Good luck all.

[deanowls] 07/5/2021 13:19

Yes mate. Young thick and stupid!