Volex Share Discussion Threads

[zho] 06/10/2024 09:52

>>UK sees record EV sales in September up to 50k>>

Albeit driven by "driven by massive manufacturer discounting":

[siggs44] 06/10/2024 08:14

UK sees record EV sales in September up to 50k.Good news.

[riverman77] 03/10/2024 19:10

Either way looks good value for a growth company that's recently put out a positive trading update.

[ijamlon] 03/10/2024 19:07

Peel Hunt, its corporate broker, has a 37c / 28p earnings forecast and I would guess this is going to be the true baseline. Implies 11x forward p/e.

[johndoe23] 03/10/2024 18:32

Yes, my bad. Going by cents

[riverman77] 03/10/2024 14:54

Forward PE is now around 11.5x by my calculations - broker consensus for 2025 is 34.4c EPS (26.3p)

[johndoe23] 03/10/2024 14:23

Forward PE of around 9...

[drectly] 03/10/2024 13:20

Regards the budget, it is right no point selling now, but people thinking of buying for IHT reasons, might as well wait until there is some clarity at the end of Oct. It is the reduced buying that I am guessing is having the negative impact rather than selling.

[aishah] 03/10/2024 12:58

I sold many AIM shares in order to request the 25% tax free SIPP cash ahead of the budget. Pension providers are deluged currently from what I have read. So it's likely AIM stocks will continue to weaken for the time being imo.

[ijamlon] 03/10/2024 12:06

I hear you about the gifting option, but there has been much speculation that gifting 'loopholes' will get closed too. Imagine giving all your money to your kids and then finding you have to pay 40% to HMRC. Even worse if they then get divorced and lose half again!

[dr biotech] 03/10/2024 11:51

I think there have are some specific IHT funds that have had a lot of redemptions, and therefore the administrators are forced sellers at pretty much any price. Also means they are likely to sell the most liquid things first. I know cannacord for example have had to do that.

Investec have a large holding here and also sell AIM IHT funds so they may be a seller. I am of course jumping to conclusions that could be way off the mark.

You need to hold on to AIM holdings for two years for them to become exempt. It wouldn't surprise me if this changes in the budget to a longer time or to have a maximum exemption value. IHT is a fairly soft target to hit.

[danb45] 03/10/2024 11:39

IHT sell off is good for me, can buy up these shares cheaper now with no fundamental change in the business :-)

[ymaheru] 03/10/2024 11:15

You can help IHT if you sell now, then gift the cash.
If it’s over £3k, then make sure you stay alive another 7 years.

[ijamlon] 03/10/2024 10:49

IHT selling is actually daft. It makes sense to sell now if you're worried about a sudden CGT change, but an IHT change will only affect you if you literally die. You can sell now, after the budget or anytime before the grim reaper arrives, it won't change the tax treatment. In fact, neither will dying, unless you think you can find another asset to buy that will still be IHT exempt.

[sundance13] 03/10/2024 10:12

Yes AIM shares in particular really dragging my folio backwards. Got several sadly, all trading well but getting caught up in pre Budget fear.

[ijamlon] 03/10/2024 10:01

I will be buying next week. It is just always like this between results, and the budget uncertainty is probably making it worse. Its two core markets EV and Data Centres are enjoying strong growth (Tesla, its top EV customer just announced 6.5% sales growth), most likely VLX will positively surprise on guidance this month, as they usually do. Even on current estimates it's trading on a fwd P/E of just 11x. The sector average is 17x. Change in direction of GBP and the likely lower interest rates are going to be positive. If the market doesn't re-rate it, a private equity buyer will. I predict >15% gain before end of next month.

[johndoe23] 03/10/2024 08:23

Awful market I'm afraid. Better closing laptop and coming back end nov

[dr biotech] 03/10/2024 08:12

Seems to be on a bit of a dismal run here. Quite a lot of my small caps have suffered. I can't help but think that potential IHT changes are hitting the AIM stocks - although the index itself seems to have held up ok.

[gargoyle2] 27/9/2024 09:08

Maybe you can share your workings with us. 'Way above today's price' is great, but how did you get there? Thanks

[ymaheru] 27/9/2024 08:59

I recently evaluated Volex, and come out with a value way above today’s price, so am very bullish on it.

Generally, management have done what they’ve said and met fairly ambitious growth targets. So, all good here.

[tomg23] 27/9/2024 08:05

Some big early trades going through today

[igoe104] 26/9/2024 07:04

Huge amount of cables will required for these data centers new builds.

Blackstone to invest £10bn in North East datacentre.

[foreverbull] 24/9/2024 21:44

https://www.fool.co.uk/2024/09/23/3-dirt-cheap-small-cap-uk-shares-to-consider-buying-this-month/Significant long term potentialFinally, check out Volex (LSE: VLX). It's a manufacturer of critical power and data transmission products.I hold this stock myself and one reason for this is that I reckon it's undervalued. Currently, the P/E ratio here is just 12.9.Given that Volex makes products for the fast-growing electric vehicle (EV) and data centre markets, and is enjoying strong growth itself (helped by key acquisitions), I reckon that multiple is on the low side.It's worth noting that the company recently advised that it's performing well. In the first quarter of its financial year that ends on 31 March 2025, it registered year-on-year constant currency organic revenue growth of 9%, driven by "particularly strong performances" in the EV and data centre sectors.Now, one issue with this company is that some of its markets can be a little cyclical at times. For example, last year, the EV market was quite weak.Given this cyclicality, I think the key here is to take a long term view. Over the next decade, the EV and data centre markets are poised for significant growth, so Volex is well placed to do well.

[rachael777] 19/9/2024 15:27

Tasty volume today - bodes well for the near term