Volex Share Discussion Threads

[valhamos] 15/11/2024 15:34

As expected.

[s2lowner1] 15/11/2024 15:33

Saying at the start that they are not taking questions are providing any further information on takeover in meeting just discussing the half year report.

[johndoe23] 15/11/2024 13:45

Yep,need to tread carefully out there ATM. Santa rally weeks away, might bring some relief...

[sphere25] 15/11/2024 13:43

Look at that pop higher on the official rejection from TTG. This move down looks more like worries of overdoing it on the takeover front, rather than the results. TTG is in trouble with rapid forecast cuts and debt higher than expected.

Yes, TTG is cheap on historic multiples, but buying into that mess with the existing debt and then adding on another £240m worth of debt has got the market worried. The Bulls will say it will work out in the long term, but in the near term the market says it doesn't like it and it could cause all kinds of problems.

Naturally time will tell, but VLX would not fall this much if there was no offer for TTG.

It looks abit odd, because VLX has just had a little relief rally that TTG has rejected the offer, but then the algos have bid TTG higher on the fact that the VLX price has gone higher. And then currently the VLX price hasn't fallen back down on the fact that TTG price remains strong i.e. worries that VLX will have to push the takeover offer higher to get TTG.

So a little bit messy right now, but in the short term, VLX recovers if they don't come back with higher offers and TTG plunges (barring someone else having a sniff) back down.

Or VLX could continue back down if the market continues its worries over all that additional debt and how much more debt has to be taken on to convince TTG to come on board.

So a few thoughts there on the short term dynamics. Hell, it could all work out beautifully years from now. No idea. Just a short termer here with quick ins and outs. Recently traded the Budget bounce, no trading today because its abit nutty right now but usually watching in here.

All imo
DYOR

[hericsaba] 15/11/2024 13:35

Share price bump up now, because of TTG came out with an RNS that they got a better offer from an other company...

[dr biotech] 15/11/2024 13:30

Investor meet at 3pm. Will be interesting to hear what they say.

[bulltradept] 15/11/2024 13:28

Told you! ;-)

[disc0dave46] 15/11/2024 13:03

Gap 289 could be filled.What you reckon JD?

[aneesrjp] 15/11/2024 12:56

Is the fall due to potential take over or result?

[johndoe23] 15/11/2024 12:18

No position currently but always been bullish here. Bit less so after this morning's update, more risk attached.Imagine there would be a few buyers around 280-285

[igoe104] 15/11/2024 11:48

Decent possible takeover in my eyes. UK investors worried about any type of company change at the moment. Debt will be easily manageable, especially when the CEO is a multi billionaire...

[martinmc123] 15/11/2024 11:16

4*
Volex posted another very impressive set of Interims for the 26 weeks ended 29th September this morning. The business has seen continued strong organic growth, with margins maintained and full year expectations unchanged. Group revenue increased by 30.4% to $518.2m including strong organic growth of 9.7% with notable increases in Electric Vehicles and Consumer Electricals sales. Underlying operating margin was maintained comfortably within the target range, underlying operating profit was up 27.3% to $47.6m. Statutory PBT was up 20.5%...from WealthOracle

wealthoracle.co.uk/detailed-result-full/VLX/980

[disc0dave46] 15/11/2024 10:46

Their proposal included issue of new shares, which looks like about 22% dilution.TTG has been loss making the last two years and no wonder it's share price is up 38% and VLX is down. Nothing to do with their interims IMO.

[disc0dave46] 15/11/2024 10:35

The debt has been steadily edging up and +18% for H1 comparatives excluding c £127m for TTG.Debt and proposed acquisition aside the interims look pretty decent.

[tomv33] 15/11/2024 10:33

I've abandoned AIM recently, just down and nothing exciting anymore, but I will be back

[zho] 15/11/2024 10:07

Paul Scott (on his Substack page, not yet behind a paywall) gives VLX a green rating on this morning's interims, viewed in isolation, but that's before he considers the merits/implications of the proposed takeover of TTG.

[dr biotech] 15/11/2024 09:34

It’d be another £127m in debt to take on, may be stretch.

[blusteradjuster] 15/11/2024 09:27

I think the implication is that TT is a good business, poorly managed - such that VLX's superior management capability is the key to such a turnaround.

TTG's trading update (yesterday) had good numbers from Europe and Asia with all the issues in North America.

As for the share price reaction, this is the LSE, acquisitive growth is considered bad - all that is wanted are divvies, such is the old-fashioned mindset. One of the reasons the London market is slowly dying.



Group revenue in the period was 1 per cent lower than the previous year on an organic constant currency basis excluding the unwind of pass-through revenue, with a 10 per cent increase in Europe and an 11 per cent increase in Asia more than offset by a 16 per cent reduction in North America, which as previously disclosed has been impacted by operational challenges and the subdued components market.

[johndoe23] 15/11/2024 09:27

Bit of both I would say. Surprised at this fall, but markets are unforgiving

[igoe104] 15/11/2024 09:26

Doesn't this always fall on results day, regardless of any numbers..

[dr biotech] 15/11/2024 09:17

Wonder how much of today’s fall is due to the results and how much is due to the potential takeover? It will take a lot of management time to turn around TT I’d much rather they bought a better company. As Buffett said, a great company at a fair price is better than a fair company at a great price.

[bulltradept] 15/11/2024 09:15

Gap @ £2.89, if it gets filled.

[redartbmud] 15/11/2024 08:53

TTE has made a mess of several recent acquisitions. Vastly overpaying.
Fired the CEO and brought in Peter France as replacement. Formerly CEO of Rotork a few years ago, until their biggest takeover was a flop.
Nevertheless, he is a good guy and could turn round TTE as a stand alone operation.

If they don't overpay it could be a good acquisition.

Just MHO

[hericsaba] 15/11/2024 08:49

Had some great opportunity to buy in under 300p. Who knows when will be the next time here, hopefully never!

[valhamos] 15/11/2024 08:19

Surely TT Electronics shareholders will force the board to engage with Volex? TTG's management has not achieved anything in recent years and the company is ripe for a takeover so that decent profits can be developed - would probably take 2 to 3 years to sort out.