Volex Share Discussion Threads

[johndoe23] 27/4/2023 06:20

Nice contract win, seems pretty significant

[worldwidet] 26/4/2023 08:54

"WorldwideT
19 Apr '23 - 11:26 - 6398 of 6422

260p a late easter present to sell"

[mfhmfh] 25/4/2023 23:12

looks like GLG partners have reduced their short position by 0.10% to 0.78% on 21st April.

[mfhmfh] 25/4/2023 17:30

VLX has beaten expectations in a period of time where there was high inflation and worldwide supply chain issues.

Both of these are now improving and their target markets are growing.

IMHO.

[johndoe23] 25/4/2023 16:46

Indeed, I have a long timeline

[valhamos] 25/4/2023 16:03

How quickly after a strong trading update do we revert to discussing share price movements!

The trading update gave a good steer as to how the near term future for Volex is shaping up - the company is targeting markets with strong structural growth, the growth that the company is seeing is ahead of the underlying market (the company is gaining market share) and VLX is expanding its capabilities and widening its product offering thereby increasing wallet share with existing customers as well as attracting new ones.

My investment philosophy has been to concentrate on the business not the share price. Get the business right then the share price will sort itself out.

[essentialinvestor] 25/4/2023 15:38

Recent share price has been far from exuberant,
there appear to be an increasing amount of cautious trading updates across the market, but none of us have a crystal ball.

General consensus 6 months ago saw a prolonged recession this year which has not happened. May be that looks different again in another few months.

[worldwidet] 25/4/2023 15:28

"The signs, Esmeralda, the signs!"



exuberance comes before a fall...

[dougmachin] 25/4/2023 14:43

The signs, Esmeralda, the signs!

[worldwidet] 25/4/2023 14:32

The figures reported for the past are unimportant. They are past and already included in the prices. The point is to think about what might happen in the next 6-18 months and how it will affect the company.

The signs point to a deep recession and then you can think about what it will do to Volex's low-margin and highly cyclical business.

Volex, with its OEM business, is heavily exposed to cyclical sectors.

It can get damn ugly in the next 6-18 months.

The equity markets still refuse to enter a recession. The bond markets, where the smart and big money is, have known for a long time where the journey is going and have priced in the recession. Stock markets will follow...

[dr biotech] 25/4/2023 09:45

Last year the bottom seemed to be about 230p - with the "beat" and the lowering of the debt its disappointing to be in the same place. I guess there is no rational explanation - same could be said when it went to 500p.

I remember reading Alan Sugar's autobiography many years ago - he floated Amstrad in the 80s/90s and sold a load of shares when the price rocketed on the back of the tech boom even though trading hadn't improved a great deal, then bought them back after the dot.com crash when the price had cratered even though trading was again similar. Can't beat market sentiment.

Obviously many more examples but that stuck in my head as a then novice investor.

[johndoe23] 25/4/2023 08:07

A slow burn maybe, but the company is in better shape now than when the share price was 320p!

[belluci] 25/4/2023 07:27

The appetite for manufacturing businesses seems to be in bear territory. The US manufacturing index has been dropping. Fear of a recession will keep volex priced down I fear. Maybe a slow burn for the next few years I guess.

[johndoe23] 25/4/2023 07:13

Back in the 230s unbelievable

[valhamos] 21/4/2023 15:56

Thanks, Ijamlon. A good listen - a well articulated explanation of the factors behind what has been achieved and how they continue to drive the business. Their acquisitions have been really successful and good to hear again that the exciting acquisition pipeline is still in place and looking forward to further announcements.

[essentialinvestor] 20/4/2023 17:25

Dave, why I mentioned it may have been unhelpful talking up the pipeline of acquisition opportunities previously.

Now that cash generation has improved and debt has come down from the last statement, it's perhaps a more appropriate time to reference the possibility of acquiring further,
but the market might like to see another 6 months plus where they focus on organic growth.

[disc0dave45] 20/4/2023 17:16

Good point.Possibly the reduction in debt too......however, it's still up on last year and nearly 10x more than 2021.

[essentialinvestor] 20/4/2023 14:43

Hi Dave, appreciate the view.

Would guess it was the cash generation the market liked.

[johndoe23] 20/4/2023 14:31

Didn't expect these to rocket up to 300p but was hoping/expecting a hold above 250-260p. Always seems like a load of sellers here. Patience!

[disc0dave45] 19/4/2023 21:24

EIBeen watching these for a long time now and was surprised it broke below support in late Feb, think that surprised a lot. That said I was equally surprised at the share price reaction on the trading update, truly glad for those holding as I hadn't the balls to enter before the update given the aforementioned decline.......still can't quite get my head around it now tbh as their forecast beat is only about +2.4% on Rev and about +4.7% for op profit. Perhaps it was the growth compared to last year that Mr Market focussed on?.Either way I'm now thinking of a starter position despite the phenomenal rise as pragmatically it's still only back to previous support levels (the bowl) where I initially considered a purchase.

[redartbmud] 19/4/2023 19:26

EI

It isn't mu normal policy to nuy ahead of results but in this case the results weren't tipped to be that good, but I figured that the pundits had got it wrong, and we would see a nice bounce.

Tipsters were quick to mark them up.

red

[mfhmfh] 19/4/2023 16:11

Analysts at Canaccord Genuity raised their target price on power products manufacturer Volex from 380.0p to 400.0p on Wednesday after the group's full-year trading update came in "strong and ahead of expectations"

[essentialinvestor] 19/4/2023 15:25

Red, fwiw I would not have added before yesterday's statement and personally do mind going against negative sentiment.

PS is spot on, messaging arguably could have been better. Hopefully it's better going forward.

My Dad holds a chunk so keep an eye on VLX.

[johndoe23] 19/4/2023 14:57

Disappointing that yesterday's rise hasn't been followed up today. Promised to early doors.