Volex Share Discussion Threads

[dr biotech] 30/8/2021 23:02

I wouldn’t say EV cables are cyclical either. That’s a growth area and will be for some time before it becomes cyclical.

[charlotte2020] 30/8/2021 22:20

Excuse my ignorance but what does.. Mean?

[ijamlon] 30/8/2021 22:09

Insideryou comes from Indonesia according to their profile. Which happens to be the home of the Bakries, whom NR accused of involvement with the corrupt disappearance of about $1bln from Bumi. Coincidence perhaps.

[ijamlon] 30/8/2021 21:16

Had only skimmed it originally. Now I see what you mean. I’m afraid it’s a typical British financial analyst hack job . Little understanding of, and an instinctively negative view of manufacturing. Partly because it doesn’t conform to simplified business-school scorecards, nor to the short timeframes and predictable conditions some analysts feel comfortable modelling. All encapsulated in the revealing sentence: ‘Despite the fact that Volex appears to be getting so much right, I also feel a bit anxious about its prospects.’

The negative marks he gives Volex are because ‘end markets are cyclical’ and ‘complexity217; (twice) . Sad to say, this anti-manufacturing mentality in our capital allocation system is why the U.K. has a relatively underdeveloped manufacturing sector. Companies like Apple, Foxconn, Dell, Honeywell, Tesla don’t tick the right boxes here in their early growth stage. Probably why Volex will end up acquired by some firm like Amphenol in the US, where power products firm get past $50BLN mkt caps and P/Es of 35x. Despite cyclicality and complexity.

[stockmaster5] 30/8/2021 19:53

Nobody is interested in your spammy posts. You obviously have a personal issue with NR. Labelling our XC as corrupt is cowardly. Come forth with your evidence insider who! Viva Volex!

[valhamos] 30/8/2021 19:40

Beddard's article I thought was very strange.

"But competing on cost often turns out better for customers than it does suppliers and if profit margins are thin profitability can be impacted disproportionately if demand slackens."

I think this misunderstands the strategy. If you are a low cost producer with a reputation for quality then you are in a strong position to make good margins and when a downturn comes you will stick around while others go out of business.


" This risk probably explains Volex’s diversification into assembling complex industrial and medical products...But diversification comes at a cost, which is that the business becomes more complex to run.....Individually Volex’s strategic goals are good, but they pull the company in different directions. Complexity adds risk, especially when it is overlaid with acquisitions."

They successfully diversified years ago! With the Irvine acquisition they are building on their past successes in complex assembly. If he is merely making a general comment that acquisitions come with some risk then he is excessively labouring the point!

[charlotte2020] 30/8/2021 17:52

https://www.ii.co.uk/analysis-commentary/richard-beddard-aim-share-just-keeps-powering-higher-ii521232

[insideryou] 29/8/2021 07:29

With the corrupt AND ultra-powerful NR at the helm, success is guaranteed here. Unless the agenda calls for a reverse position at some point. If you know Nat, then you know, he doesn't guess.

[ijamlon] 27/8/2021 12:35

If anyone would like the full 3-page Canncord note, including financials and comparables, you can email me at [e-mail]

[ijamlon] 27/8/2021 12:15

£4 a hair breadth away now. I'd like to buy you all a drink to celebrate if and when. Though given the practicalities, I'll probably just buy myself several instead.

[bigbigdave] 27/8/2021 09:21

BOOM...........breakout :o)

[ijamlon] 27/8/2021 07:06

Cannacord raises target to 500p..."The acquisition of Irvine Electronics strategically enhances the group's North American IMS offering by adding capacity and technical know-how on the West Coast while strengthening its presence across attractive defence, military, aerospace and medical markets through a blue-chip customer base. We see EPS accretion of 1.8% in FY22E, 5.1% in FY23E and 5.0% in FY24E while noting our estimates see Volex hitting its 2024E revenue target of $650m and $65m of underlying operating profit without further M&A. We reiterate our BUY rating with an increased TP of 500p (from 475p)."

[stockmaster5] 26/8/2021 12:17

Buckle up - 400 here we come !

[miti 1000] 26/8/2021 10:50

Well, lets take Nat at his word. He has clearly stated that he wants 10% inorganic growth ie. acquistions .

So y/e 3/2021 revenue was 443m so for year end 3/2022, he should be buying companies with at least 43 million turnover for the current year .I'm presuming this latest one is just over 1/3 of that target till march 2022. ie.there must be bigger acquisitions coming in the next few months imo.

[red ninja] 26/8/2021 10:39

Hold on. I'll just get out my magic ball ..

[sidarthur2] 26/8/2021 10:30

What will come first- £10 or takeover?