Volex Share Discussion Threads

[sooty snipes] 24/6/2022 09:40

Mental price action. What was that all about?

[pauliewonder] 24/6/2022 09:30

Managed to get in at 217 :) thought I would have missed the boat based on yesterdays stellar results

[dougmachin] 24/6/2022 08:52

This is really important IMO:

"...under a well-motivated and experienced management"

In for more at 212p......... looking forward to FY2027 already.

[ijamlon] 24/6/2022 08:39

Times conclusion:Despite all this promise, the share price has fallen from 493p to 235p since last September, suggesting that there are sceptics lurking in the undergrowth. Nevertheless, on balance that decline looks more than anything like an opportunity to climb aboard at what may prove to be a historically cheap level.ADVICE BuyWHY Plenty of potential for an exciting ride under a well-motivated and experienced management

[ijamlon] 24/6/2022 08:29

I know nobody cares right now but positive note from Cannacord (albeit with slightly lower price target of 380p reflecting recent market movements) "Ambitious but achievable five year plan"Email [e-mail] for copy

[worldwidet] 24/6/2022 08:17

150-160p next point of interest.

[ymaheru] 24/6/2022 08:17

Thanks, Ayl30.
Gives it a buy rating, but does mention:
“HSBC sees the p/e ratio falling from 11.7 now to an attractive 8.8 for the year ending March 2025”

I’m hoping it won’t be so low 3 years from now.

[ayl30] 24/6/2022 07:11

Cable maker Volex is in a position of powerhttps://www.thetimes.co.uk/article/f6d3781c-f2fb-11ec-beb3-8cbcdd742a95?shareToken=c2550cc6ca3114bb8f6071898d733782

[petes5] 24/6/2022 05:17

Perhaps the drop after good numbers is more due to statements from Tesla/Musk. This is in regard to new factories losing billions. Supply chain issues from China. When he makes any statement markets tend to react. Does not matter if it really affects VLX its seen as the same sector.

[dougmachin] 24/6/2022 03:46

Couple of chunkier decent buys reported after hours.
60,000 each at 225p and 240p.
US markets on the bounce yesterday...
Could be a great time to buy in the morning... for the brave LOL !!
DM

[dougmachin] 24/6/2022 03:35

For the margin explanation, see page 8:



FY2021, 9.2% before tax savings.

The potential to grow into the medical sector in India and surrounding area seems exciting.

John09 - How did you arrive at (approx) 10 quid a share? 1.2 billion revenue at 9% margin doubles the current profit. Are you factoring in a higher PE value?

[ymaheru] 23/6/2022 22:18

Hi thebears1, what Volex said previously is that they are just passing on costs without profit margin at present.

That means that if they made 9.5% profit and inputs rise 20%, they only charge 120%, and still only make the same profit in dollars, shrinking to 7.9% in this example.

That will be reviewed at some point if required, so price rises (and margin contraction) might not be very permanent.

Also, as mentioned earlier, even this passing on of costs had a lag from when Volex incurred costs to when they passed on, so last year was affected for about 6-8 months.

[thebears1] 23/6/2022 21:07

One of the tests will be how the margin holds up in the next update when more is known about the direction of travel for inflation

[buywell3] 23/6/2022 21:04

With Covid-19 mutations aplenty

5Yr plans sound somewhat silly

One year ahead is more sensible -- possibly two

[essentialinvestor] 23/6/2022 20:59

The market does not want to hear about ...a pipeline of acquisitions..
at least for now. Perhaps unwise to have added that in the report.

[igoe104] 23/6/2022 20:45

According to Nat in the QA, he's very confident in the year ahead. Its worth listening to meet the investor volex QA, the management team don't seemed worried about anything...

They said the margin will stay between 9 and 10% for the 5 year plan for $1.2 billion turnover

[thebears1] 23/6/2022 20:41

If their input costs are rising and they are increasing prices to the trade, will they have to reduce prices to customers again once costs calm down or, will they be able to sustain the increased prices and grow the margin beyond 10%?They seem to be in the right sectors hopefully to grow profitAs I said I'm a big fan

[thebears1] 23/6/2022 20:18

Understood but maybe the markets are nervous of their ability to pass on all inflationary costs at the particular time. Will maybe feel better once inflation more under control?

[igoe104] 23/6/2022 20:12

Its still between their forecasts long term margin between 9% and 10%.

There is sometimes a lag in cost adjustments, it will correct itself...

[thebears1] 23/6/2022 19:52

I'm a big fan and holder of Volex but I'm sure there's a drop in margin from 9.7% to 9.1%

[ymaheru] 23/6/2022 18:15

Just read outlook update, and can’t see any bad news there.

It echoes the previous update, but sales are still going well in FY23, especially higher margin items.

The market has given VLX a bloody nose today, but given its already-lowered price, that seems odd.
Must be the PMI figures to blame.

I’m happy holding, and ready to add at the right price.

[rik shaw] 23/6/2022 16:58

Recording of this mornings presentation is now available on Investor Meet.

[john09] 23/6/2022 16:31

Unfortunately now the news is out of teh way theres a chance this gets walked down. Its kind of the norm now

[ymaheru] 23/6/2022 16:23

Share price not too perky.

PMI figures were poor, so probably fears over stagflation etc.

I’m still interested to buy on dips (but bought at 238p, so not just yet).