Volex Share Discussion Threads

[ijamlon] 16/8/2021 13:46

Agree - the other thread has 4200 posts versus this one which has a couple hundred and a silly subject title. I'd recommend centring on the other one !

[red ninja] 16/8/2021 12:27

Thanks Shanklin, found it.

[shanklin] 16/8/2021 12:03

It was in the Sunday Business section

[red ninja] 16/8/2021 10:54

Hi Oxman,

Which day and section was that tip in.
I read the Times and have not seen any Volex tip.

[its the oxman] 16/8/2021 08:26

Nice jump on yet another tip in the Times this weekend. 400p getting closer, slowly does it I guess.

[ayl30] 16/8/2021 08:23

Reacting well to write up in Sat Times

[nw99] 15/8/2021 14:28

Great write up roll on 450p

[robow] 15/8/2021 11:16

thanks ijamion

[igoe104] 15/8/2021 09:06

Excellent, should be a good on Monday then....

[ijamlon] 15/8/2021 08:58

It's The Sunday Times, Sarah Meddings. Link attached (paywall)...Cable guy's turnaround makes this one to buyhttps://www.thetimes.co.uk/article/cable-guys-turnaround-makes-this-one-to-buy-r5s2vmg5q

[ali47fish] 15/8/2021 08:47

ijamion please indicate who is tippling this or provide a link

[ijamlon] 15/8/2021 00:08

Great Volex write-up and Buy reco in The Times...If you own a laptop, vacuum cleaner or television, it is likely that at least part of it was produced by Volex, a maker of high-spec cables.The AIM-listed company, which traces its roots to the 1890s, also makes cables for charging electric cars and scanners in hospitals, and wiring for data centres.Cables have become big business, helping Volex to transform from a small-cap horror story to one of the bright lights of London's junior market. Until a few years ago, it had been all but written off. The share price fell from a high of £20 in 2000 to a low of 39p in 2003, a drop of 98 per cent. This prompted a switch to medical and industrial sectors.It was the arrival of Nat Rothschild, the financier, as a shareholder, non-executive and then executive chairman that transformed its fortunes. He began building a stake in 2008, and now owns 26 per cent, making him the largest shareholder. On Rothschild's watch, Volex has increased its prices and ditched low-margin businesses, which helped to boost its operating margins from 2.8 per cent in 2017 to 9.7 per cent.Now the turnaround is under way, Volex is targeting growth. It has 17 factories on three continents, and employs 7,000 people, including in Basingstoke. Its fastest-growing divisions make parts for data centres and electric vehicles. The latter represent 12 per cent of revenues, rising 193 per cent to $53 million in the year to April 4. Volex is increasing production capacity, particularly in Asia.The company has done well over the past 18 months despite lockdowns. In March last year, when professionals were forced to work at home, its customers reported a surge in demand for laptops, monitors and printers. Then there was a shift to home entertainment. Once families had built up savings, sales of white goods soared as homeowners renovated. The question now will be how long the spike in consumer spending lasts. Either way, Volex is diversified enough to benefit. As hospitals are opening up, its medical business should rebound.In the year to the end of April, Volex reported its best profit performance for 20 years. Pre-tax profits rose 84.9 per cent to $29.4 million on revenues up 13.3 per cent to $443.3 million. It also increased its dividend by 10 per cent to 3.3p.Volex's acquisition of European power cord-maker Deka is likely to be repeated with further bolt-on deals. HSBC has a target of 445p on the shares, while Stifel is predicting 410p. The shares closed at 357p on Friday, valuing the company at £565.4 million. This is one to watch. Buy.

[albanyvillas] 10/8/2021 12:30

400p is like a magnet, propulsion from a deal this will be 450-500p

[zingerburger] 10/8/2021 08:12

Brilliant

Targets rising

Medical going great, EV scorching, Data rocking

What more do you want? £10 lol

[ygor705] 09/8/2021 12:32

Yes those numbers definitely higher than the consensus shown on my system - particularly for 2023. Actually my historic PE is now showing as 17.9. We look to be at around 19 at the end of this year but down to 16ish by the end of 2023. Looks pretty good to me.

[ijamlon] 09/8/2021 11:39

EPS is complicated because they account in USD and had a one-off tax gain in the last financial year ended in March. Cannacord estimate for year ending March 22 are in USD...Sales: 540m / EPS 25.6 c per share For year ending March 24, they project Sales 626m ($) / EPS 30.5 The median PE for U.K. industrial group is 24.6x 2022 expected earnings. If you applied that to 30.5c, you'd eventually be looking at well over £5 share price

[its the oxman] 09/8/2021 11:38

Seem to be struggling to break free from 350s despite upgrades and decent trading, got to give and motor through 400p at some point.

[hydrus] 09/8/2021 11:17

Think EPS forecasts are 17.9p so the PE is closer to 20

[ygor705] 09/8/2021 08:55

Interesting.....I was looking at the Stockopedia consensus eps forecasts over the weekend. They were showing -9% this year and +9% for 2022. With a PE of just 12.7 I think that this was creating a finely balanced two way pull on the share price It won't take much by way of earnings upgrade to push this one much higher. Personal view - DYOR

[bigbigdave] 09/8/2021 08:25

Upgrade doing no harm whatsoever :o)

[zingerburger] 09/8/2021 08:18

Brilliant

Targets rising

Medical going great, EV scorching, Data rocking

What more do you want? £10 lol

[ijamlon] 09/8/2021 07:25

Cannacord upgrades VLX, new price target 475p.....Increased guidance provides an early upgrade: While we flagged upside riskto our estimates in June, the early guidance upgrade (FY22E underlying operating profit to be slightly ahead of previous $50m consensus average) suggests customer demand and visibility across consumer electronics/white goods, EV, data centres and medical is stronger than we expected. Accordingly, we have increased both our adj. PBT and EPS estimates by 7.4% in FY22E, 5.0% in FY23E and 3.3% in FY24E.• Navigating supply-side challenges: The group has successfully passed through copper price inflation and continues to manage supply-chain headwinds, including freight. There is no suggestion of margin dilution relative to previous guidance levels.• Market read-across suggests positive outlook: We note recent results and commentary from leading medical equipment, white goods and EV OEMs which, in our opinion, suggests further financial outperformance could be on the cards for Volex as structural demand drivers and the COVID-19 recovery continues to play out. To this point we note that Q2 order intake for Philips Healthcare's Diagnosis & Treatment vertical increased 29% y/y, with strong double-digit growth in Image-Guided Therapy, Ultrasound and Diagnostic Imaging.• Maintain BUY, increase TP to 475p (from 440p): Our target price is based on a

[johndoe23] 08/8/2021 19:53

Thanks for that. Should see a nice rise in the morning